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When people refer to the “gold market” they often mean the cash, futures or numismatic markets. But there’s another side of the gold market that shouldn’t be overlooked. The use of gold for actual purchases and exchanges. There’s a significant line of distinction between rare coin, numismatic and bullion dealers. I’ve gotten the impression that rare coin and numismatic coin dealers think they may have a “holy bloodline” or something. Rare coin and numismatic dealers often criticize the “lowly” bullion dealer. They often

It appears that gold is about to go up for the first time in many years. People who know something about the subject tell us that gold is set to make a run. We asked Mark Smalley to contribute an article on gold. Mark Smalley is the founder of  the website  - BullionCoin.Com - http://www.BullionCoin.com  It is the ultimate bullion coin dealer directory. The purpose of the directory is to help users locate competent gold, silver and platinum bullion dealers quickly and easily. But that’s not all, they’ve also provided company ratings based on Web site quality, E-commerce capacity, customer satisfaction and overall performance. Email Mark at: mark@bullioncoin.com

I have never downplayed the significance of numismatic and rare coin collecting. Nor would I criticize someone for devoting their lives to the study of ancient coinage. It’s a fascinating topic.

However, we built BullionCoin.com to help people locate reputable coin and bullion dealers fast. It’s a free service for dealers and users. 

We’re not concerned about the distinction between rare coin, numismatic and bullion coin dealers. That’s not the purpose of the directory.

We developed BullionCoin.com as an Internet resource for dealers and consumers. The site was developed in 1997 while I was trading gold and silver futures to address a need I perceived in the market. In 1997 there were no powerful, database driven directories that helped people find coin and bullion dealers.

Anyway, back to the other side of the gold market. The arguments are on both sides in regards to the value of rare coins, numismatics and bullion. However, I’d like to make a very significant point regarding bullion.

Bullion coins have a universal exchange value in practically every country of the world. You’ll find that gold and silver bullion coins will be enthusiastically accepted by local traders or businessmen in Mexico, Egypt or Malaysia. You may need to negotiate the value of the bullion but the gold prices are easily obtained (even in the boondocks).

If you were to offer the same local trader or businessman a rare coin or a coin with numismatic value you would rarely receive the true exchange value for the coin.

In other words, in practically every currency of the world it’s fairly easy to assign a “local currency value” to gold and silver bullion coins. Numismatic and rare coins have value, there’s no doubt about that, but in terms of a “street value” they’ll never compare to exchange value of gold and silver bullion coins.

In severe market downturns, depressions, economic calamity or social unrest, I would much rather have “spendable” gold and silver bullion coins than a “priceless” Middle Eastern coin from the Roman Empire.

Bullion coins are universally accepted. Rare and numismatic coins are not. Bullion coins maintain a fairly consistent exchange value across every boarder in the world. It’s important to always be aware of the other side of the gold and silver market.

Mark Smalley
Founder
BullionCoin.com
mark@bullioncoin.com