Numismatic: Definition and Meaning
Numismatic means relating to numismatics, the study and collecting of coins, paper money, tokens and medals. In the precious metals market the word does a narrower job. A numismatic coin is one valued for its rarity and condition. A bullion coin takes its value from the weight and purity of its metal.
The Dictionary Definition and Pronunciation
In Merriam-Webster's entry, numismatic means "of or relating to numismatics," with a second, wider sense: of or relating to currency. Say it noo-miz-MAT-ik, with the stress on the third syllable.
Numismatic is the adjective. For the noun, numismatics, Merriam-Webster gives "the study or collection of coins, tokens, and paper money and sometimes related objects (such as medals)." A person who collects or studies them is a numismatist, and that title isn't a license. According to the American Numismatic Association (ANA), there's no such thing as a certified numismatist, so the title describes an interest, not a credential.
A numismatic coin is one bought as a collectible and not for its metal alone. Graded coins are the plainest example. Each one has been authenticated and graded by a service such as the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Company (NGC).
The Greek Root and First Use in English
The root isn't a word for number. Numismatic came into English through the French numismatique, from the Latin and Greek nomisma, meaning coin. From there, Merriam-Webster traces nomisma back to the Greek verb nomizein, to use, and finally to the noun nomos, custom or law. A coin, in that line of descent, is money because custom says it is.
The word has been in English only since the 1790s. Its first known uses, per Merriam-Webster, are numismatics in 1790 and numismatic in 1792. The study took shape in the same decade. Joseph Hilarius Eckhel's eight-volume Doctrina Numorum Veterum came out in Vienna from 1793 to 1799, and the American Numismatic Society (ANS) dates numismatics as a systematic discipline to that work.
What Numismatics Covers Beyond Coins
Coins are only part of the field. Numismatics, in the words of the United States Mint's glossary, is "the study and collecting of things that are used as money, including coins, tokens, paper bills, and medals." A collector of bank notes or tokens is doing numismatics as surely as a collector of Morgan or Peace dollars.
At the Smithsonian Institution, the National Numismatic Collection contains approximately 1.6 million items, and the Mint calls the Smithsonian's holdings the largest collection of money and transactional objects in the world. Collectors have organized as well. The ANA, an organization devoted to coins, tokens, medals and paper money, was founded in Chicago in October 1891.
Numismatic Coins Compared With Bullion Coins
In the bullion trade, numismatic is the opposite of bullion, and what sets a coin's value decides which side it falls on. The Mint's glossary describes its bullion coins as "investment-grade coins that are valued by weight and fineness," unlike "commemorative or numismatic coins valued by limited mintage, rarity, condition, and age."
Numismatic doesn't mean old. In a release dated April 2, 2019, the Mint listed proof, uncirculated and commemorative coins among its own numismatic products. Newly struck proof coins sit on the numismatic side from the day they're made.
One design can sit on both sides. The Mint describes American Eagle Silver Proof Coins as "collector versions of the official United States bullion coins." Bullion American Silver Eagles take a different route to market: the Mint sells them only to authorized purchasers, not directly to the public. In hand, the Mint's current silver proofs bear the W mint mark of West Point, while bullion Silver Eagles have no mint mark.
To place a coin, ask what its price rests on. If the answer is the weight and fineness of its metal, it's bullion. If the answer is mintage, rarity or condition, it's numismatic. Collector value, according to the ANA, is "largely based on rarity and condition, as well as market factors of supply and demand." A key date, a scarce date needed to complete a collection, is rarity in its plainest form.
How Tax and Retirement Account Rules Treat Coins
The tax code doesn't use the collector's definition. To the Internal Revenue Service (IRS), coins in general are collectibles: IRS Topic No. 409 says "Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate."
Retirement accounts start from the same place. Section 408(m) of the Internal Revenue Code counts "any stamp or coin" as a collectible and treats an IRA's purchase of one as a distribution equal to its cost. Paragraph (3) then excepts certain U.S. gold, silver or platinum coins, plus bullion that meets a fineness standard and stays in a trustee's possession. Those exceptions go by coin type and fineness, so the word numismatic or bullion on a listing doesn't settle how the law treats a coin. We're not a registered investment advisor and can't give individual investment or tax advice, so speak with a tax professional or financial advisor.
Numismatic and Bullion Coins in Our Catalog
Our catalog holds both kinds: bullion coins bought for their metal and collector coins such as pre-1933 gold coins. People buy the second kind for date and condition as well as for the gold in it. We're a member of the American Numismatic Association and an authorized dealer for PCGS and NGC, and we guarantee that every item we sell is genuine.
Frequently Asked Questions
Is numismatics a hobby?
Yes, and it's a field of study too. The wording in Merriam-Webster, "the study or collection," covers both. For the scholarly side, the American Numismatic Society's definition is "the study of coins and money, of coins and coin-like objects." A collector filling an album of Lincoln cents and a curator cataloging the Smithsonian's holdings are both numismatists.
Why is a coin collector called a numismatist?
The name comes from the thing collected. Nomisma is the Greek word for coin, and Merriam-Webster says numismatist grew from the same roots as numismatic. Its definition is a person who collects coins, medals or paper money, so someone who collects only bank notes is a numismatist too.
What does numismatic value mean?
Numismatic value is the price collectors will pay for a coin. It's separate from face value, the amount you can spend the coin for, and from intrinsic value, defined in the United States Mint's glossary as the market value of the metal. Don't assume a coin has much of it. Most circulating legal tender produced since the 20th century holds only a nominal collector's value over face value, according to the American Numismatic Association.
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