Whether you're looking to diversify your investment portfolio or add something original to your coin collection, platinum proofs are a compelling choice. Investing in platinum proof coins adds both interest and value to your selection of coins. Get to know more about platinum proofs and why they deserve consideration for your next coin or bullion purchase.
What Are Proof Coins?
Proof coins are uncirculated collectible coins with exceptional detail in the design. They typically have a shiny, mirror-like surface. The outstanding quality of a proof coin's appearance comes from the way the coin is produced. A proof coin is struck at least twice to ensure sharp detail. Early strikes from specially polished dies and a slightly higher striking force help contribute to the enhanced appearance as well. Special cleaning contributes to the signature shine and glossy appearance of a proof coin.
Proof coins are rarer than other uncirculated coins. Coins that are simply classified as uncirculated may feature the same design as the corresponding proof coin, but they do not have the same quality enhancements. While both uncirculated and proof coins come with a Certificate of Authenticity, proof coins are also encased in a protective capsule to protect their exquisite quality. [1]
Who Buys Proof Coins and Why?
Proof coins are a popular choice for both investors and collectors because they have outstanding value. The quality and distinctiveness of a proof coin's design gives it a worth that's greater than the current value of the underlying metal. While the price of platinum may factor into the value of your proof coin, it's far from the only element that matters.
As an investment, proof coins are a wise choice because they will carry a decent markup value. For this purpose, it's best to invest in special proof coins that are part of exclusive sets and limited runs, which will likely increase in value over time.
For collectors, proof coins are a fascinating option because they provide outstanding detail and a distinctive design. Proof coins are encased in a protective covering and look stunning on display. The striking appearance makes proof coins a popular choice for gifts. Select years and designs can help commemorate a special event or create an annual tradition as the collection grows each year.
What Factors Impact the Value of Proof Coins?
If you have proof coins in your collection, these are likely among the most valuable coins that you own. There are several factors that will impact how much your platinum proof coins are worth:
- Condition: All proof coins are certified as PR or PF, which adds to their value. These coins are further graded by quality. A perfect uncirculated coin is rated MS-70. A choice uncirculated coin is MS-65 and an uncirculated coin is MS-60. The higher the grade, the more value a coin carries.[2]
- Popularity: The popularity of a coin determines the demand for that product. If a particular proof becomes very popular, its value will rise.
- Rarity: Proof coins are among the rarest uncirculated coins. The lower the original mintage figures, the rarer a coin is. Checking the certified population figures for your coin will give you even more information about its rarity by letting you know how many of that coin have been certified at a particular grade.[2]
- Bullion value: Platinum is one of the rarest precious metals. The current value for platinum bullion will impact the value of platinum proofs. Following platinum prices will give you an idea of how the value of your platinum proof coins will fluctuate.
Why Buy Platinum?
If you're interested in building your investment portfolio, platinum is a precious metal that deserves serious consideration. There are many reasons to buy platinum, such as its:
- Rarity: Platinum is rarer than gold and silver.[3] Most platinum in the world comes from just two countries.[4]
- Demand: The demand for platinum is usually high. This is a major component in automobile manufacturing, so demand in the auto industry is directly connected to the demand for platinum.[4]
- Diversification: Platinum and other precious metals can help diversify your investment portfolio, offering a balance to stocks and bonds.
- Liquidity: Platinum has consistent value around the globe, which makes it a very liquid asset. You can typically sell platinum for cash easily and quickly.[4]
Why Buy Platinum Proof Coins?
Platinum proof coins are beautiful, intriguing, and valuable. There are many compelling reasons to invest in platinum proof coins, whether you're an investor, collector, or both. Platinum proof coins are:
- Legal tender: Platinum proof coins count as legal tender with their own assigned face value. Though the face value is far below the actual value of the coin, this can provide a measure of protection and peace of mind knowing that the coin always holds value regardless of the associated price of the bullion.
- Collectible: Platinum proof coins are popular collector's items. The metal was almost never used for circulating coins, but it gained popularity for commemorative and bullion coins in the 1970s. As foreign platinum proofs gained popularity, Rep. Mike Castle of Delaware began pushing for the issuance of U.S. platinum proofs, which were subsequently released in 1997.[5]
- Rare: The availability of platinum proofs is limited. This makes them a very rare find and an intriguing addition to any coin collection.
- Attractive: Platinum proof coins are stunning in their detail and gloss. These look beautiful on display and make an eye-catching feature in your collection.
If you're interested in experiencing the intrigue of platinum proofs for yourself, start exploring some of the coins available on today's market. You'll find everything from distinct American coins from the U.S. Mint to international proofs that offer global appeal.
Article Sources:
- United States Mint. What's the difference between bullion, proof, uncirculated, and circulating coins? https://catalog.usmint.gov/faqs-faqcategory-products-programs/products-programs-coin-design.html?fdid=faqcategory-products-programs. Accessed September 30, 2020.
- American Bullion Inc. The Basics of Coin Grading and Mint States, https://www.americanbullion.com/the-basics-of-coin-grading-and-mint-states/. Accessed September 30, 2020.
- Outsider Club. Platinum and Palladium, https://www.outsiderclub.com/report/platinum-and-palladium-more-precious-than-silver-and-gold/935. Accessed September 30, 2020.
- Yahoo Finance. Gold vs. Platinum, https://finance.yahoo.com/news/gold-vs-platinum-better-investment-164119737.html. Accessed September 30, 2020.
- GovMint. Everything You Need to Know About Platinum, https://www.govmint.com/coin-authority/post/Everything%20You%20Need%20to%20Know%20About%20Platinum. Accessed September 30, 2020.
