Proof Coin vs Uncirculated: What’s the
Difference?
When investing in precious metals, you will often hear the terms “proof” and
“uncirculated” coins. Experienced silver bullion buyers will know the
difference at first glance but if you are new to the silver market you need to
educate yourself about them and how the difference impacts their price. On the
surface, these look the same but they are not. Experienced coin collectors and
bullion buyers will be quick to notice a silver coin for what it is. Here are
just some basic things you need to know before your buy silver bullion
coins for investment purposes your retirement plans.
The Minting Process
Proof coins are the first blank coins that are run through a minting press.
Uncirculated coins that are produced but never circulated for some reason or
other. These coins are valuable because of their silver content. They are very
liquid and can be sold virtually anywhere in the world. The biggest difference
between the two is the minting process.
Double-Strike Proof Coins
Traditionally, proof coins are the first coins to go through minting. They are
struck twice at the beginning of a minting press run to make sure that the die
creates a perfect design before any other coins are produced. The action of
striking coins twice gives them a shiny mirror-like background. In addition to
that, proof coins are hand polished during the minting process and individually
packaged to preserve this signature finish.
Mints now only produce proof coins for collectors looking to buy silver bullion
that has a certain extra appeal. This has increased the value of these items
even more.
Single-Strike Uncirculated Coins
As the name suggests, a mint uncirculated coins only once. Specially burnished
blanks are used for these coins which makes them look shinier than regular
coins that are in circulation to make these coins so that they appear shinier
than regular coins in circulation. An uncirculated coin are put in a special
encasement to protect it. They also come with a certificate of authenticity.
The Mintage of a Proof Coin vs. Uncirculated Collector’s Items
Proof silver coins are rare because mints produce a small number of these
coins. This rarity makes them more valuable and sought-after by coin collectors.
It is more expensive to buy silver bullion or specially designed commemorative
silver coins than it is to buy proof coins but in the world of coin collectors,
some uncirculated coins can fetch a higher price because of their low mintage.
The lower the mintage the higher the value of these coins.
Comparing Prices and Face Value
Proof and Uncirculated coins do not have a face
value because governments do not intend to have these coins as legal tender.
Their value is more symbolic and numismatic.
Proof and Uncirculated Coins V.s Bullion coins
Proof, uncirculated, and bullion coins can all be produced by the same mint.
Mints strike a bullion coin once just like they strike uncirculated coins.
These coins represent a legitimate short-term investment. However, bullion
coins are more tradeable or liquid. When all has been said and done investing
in any kind of silver coins is a great way to store wealth over time. It may
boil down which product you can afford to buy.
Because of their rarity, Proof coins can cost more than the spot value for bulk
purchases. When you have a choice to buy bullion silver or proof coins consider
whether you are in the investment game for the long term or a short term. The
rarity of proof coins increases over time but when it comes to storing and
safeguarding delicate coins bullion coins are not as complicated and they hold
their value rather well.
Proof Coin vs Uncirculated: What’s the Difference?
