Proof Coins – What are they? Should you buy them?


Hello and welcome to another episode of the
bullion channel. I’m going to be using another set for the next few episodes that’s from
one of my other channels, but it should be alright. Today we’re going to be talking about
proof coins. Now a lot of the amateur bullion investors I’ve come into contact with recently
who are just kind of getting into collecting bullion, they hear the term “proof” thrown
around. And often they don’t know exactly what that means. And I’ve actually discovered
a lot of people actually assume it has something to do with some sort of proof of authenticity
like some kind of certificate or something like that. But it has nothing to do with that.
It all has to do with the manufacturing process. Now I’ve got a couple of coins here I’m going
to show you. And both of these are Kennedy half dollars. Both are 90% silver. The one
over here is just a standard uncirculated, and its a very nice looking coin. And this
one over here is a proof coin. Now you’ll notice the proof coin has, um, the finish
on it looks much like a mirror other parts of the finish look almost kind of a frosted
look to ’em. And so it all has to do with the way they’re stamped in the minting process.
You could read up on it. Its kind of complicated. They usually press it more than once, I think
they heat it a little more, and I think they use some kind of acid or something. I’ve heard
different ways of how they do these. Essentially it all has to do with how its pressed. And
now they do make really nice looking coins. They don’t have to be silver, by the way.
Let me give you another example. This here is a standard US nickel. And here’s a proof
version of the same nickel. Neither one of these are silver. But you can tell that the
proof nickel has a very nice frosted and mirror finish look to it. Its very nice looking.
They don’t have to be older coins. Here’s a modern silver quarter. This is from 2006.
Its a proof and its 90% silver. And its very nice looking. So the question is obviously
raised. If you’re buying bullion for the purpose of investment do you want to buy proof coins
or not? Well, I can’t answer that for you. There’s a lot of opinions in either direction,
so I’m just going to give you the facts. And I’ll let you make your own decision. Lets
go back to the example of these two Kennedys here. This is the standard coin. This is the
proof version of the same coin. Now both have the same amount of precious metal in them.
So if it’s the “zombie apocalypse tomorrow, and you need to sell these to a smelter to
be melted down, and that’s where you’re going to get your money from, these coins have the
exact same resale value. They have the same amount of silver. So why would you want to
pay more for the proof coin, if they’re worth the same money? Okay, that’s one way of looking
at it. But, if you’re going to be reselling your coins to another individual, you know
assuming there is no zombie apocalypse, you know this is your retirement savings and you’ve
got a bunch of these, and you’re going to sell these to an individual, or a coin shop,
or put them on ebay, or whatever. The proof coin will always retain slightly more value
than the non-proof coin. So from that perspective, it probably doesn’t make too much difference.
Now keep in mind, I only paid a few Dollars more for the proof version, than the non-proof.
So, I don’t really collect a lot of the proofs. I like to have a few because they’re nice
looking. But, overall I tend to stick with the plain Jane, and the reason is because
when I go to resell my bullion at some point in the future, I’m probably going to be selling
a lot of it in bulk. Like several tubes at once. And I don’t want the hassle of trying
to single out a lot of specific coins that have unique, numismatic values to them. But,I
suppose if you were to collect all proofs, and you had all the same kind, well then I
guess it wouldn’t matter. The same principle would still apply. You could sell them just
as easily in bulk, without having to worry about it. So I’ll just leave that up to you,
but at least now you know exactly what they are and the advantages and disadvantages.
Well, I hope you found this episode interesting, I’ve got a few more coming down the pipeline
and hope to see you soon!

62 thoughts on “Proof Coins – What are they? Should you buy them?

  1. I just subbed your channel. Great vid. I fairly new to collecting coins and find I like the proof coins better. Not necessarily for any resale value but more for my own visual pleasure if that makes sense. I do have some regular bullion silver eagles though so I can see the benefit in getting silver closer to spot.

  2. Greetings from a new sub 😉

    I've only been stacking for a relatively short period and am going the low(est) premium bullion route.  When/If it comes time to sell I would prefer any negotiations to be as simple and straightforward as possible.  The whole notion of numismatics makes my head hurt, but to each their own. 

    Great channel!

  3. Whats your take on the freefall on silver prices?17 now how low you think we go 15? 10?..I just won 74 proof ikes in an ebay auction first time i ever got them this cheap.i got lucky.because most sold listings are still $8-12 ea…I would like to know your thought since im rather new..the 74 ikes i won are in tubes there in beautiful cond,,50 are 71s 24 are 72s..tot cost $427 shipped $5.77 ea…Seems like a very fair price dont you think?Ive noticed with silver ikes especially they hold there value more then any other silver coins even when silver is falling.Most sold listings now for blue and brown ikes are closing on ebay for the same price when silver was 22 per oz a couple months back..Why is that?

  4. Proof coins were originally made as a trial piece to see how a coin design looks in the best possible presentation. Nowadays, they are a collector coin gimmick and are made in huge numbers. As a result, sometimes, BU versions have lower mintages and end up being worth more. You can buy beautiful old rare Franklin Mint proofs for spot, sometimes even for less than they sold in the 70s. They do have eye appeal but are very delicate and easily marred. I recently bought rolls of Benjamin half silver proofs for spot + 10%. An MS68 BU will cost a way lot more. It takes time to figure all this out. Subbed.

  5. i purchased my first proof coin this week its more of a long term investment as well as being a great hand down in years to come

  6. I only buy proof's now, I love the mirrored finishes on them. In gold they come with much lower mintage's, than standard BU gold coins do ie: 2016 panda bu 30 gram is 600,000 mintage, while the 50 gram Proof Panda, has a mintage of just 20,000!

  7. Good vid. I have contemplated a recent find of buying a proof Libertad for 35.00 ….one oz………I just can't wrap my head around spending almost 18.00 over spot for the same BU silver weight in silver. I must be missing something. I am not a flipper or ebay-er….I am new and just buying physical silver as a hedge against inflation and maybe sell when spot really climbs higher. Am i mising the bus on this buy? thanks

  8. thank you did not know what they were. not collecting yet but information is great. nice presentation clear concise and understandable

  9. Great channel, subscribed.

    The cost of uncirculated coins depends directly on the metal content of the coin, and the cost of proof coins depends more on the labeling.
    Therefore, it is worth to be determined by a purpose and then to invest.
    I buy uncirculated coins and proof coins.
    I like the look of proof coins.
    Always I placed my pre-sale order at BE (offered pretty prices)
    Now i wanna buy this coin with s mintmark
     https://bullionexchanges.com/2017-s-1-oz-proof-silver-american-eagle-pcgs-pf-70-first-strike-sf

  10. MY INITIAL REACTION IS 'WHAT A WIMP' HOWEVER YOU DO A VERY GOOD JOB PRESENTING BOTH SIDES. I AGREE YOU DO NEED TO DETERMINE YOUR ULTIMATE GOAL, GIVEN ENOUGH TIM HOWEVER YOU CAN DO BOTH, BY TIME I MEAN FIGURE ON A MINIMUM OF 5 YEARS. PREFERABLY 10 TO 20 YEARS FOR A VERY GOOD IN DEPTH APPROACH

  11. I do have proof silver quarters but I won’t buy more of them anymore because I feel it’s not collectible. I would but gold proof.

  12. i bought 2x PF70 and p
    PF 69 x2 silver kruger coins (50 years aniversery) but never received them yet I bought and paid for them at SA coin, every time i contact them they have a different story just bullshit,any ideas or are there people that rceived there's from SA Coin here in South Africa

  13. I have a couple proof coins I can see my reflection on them like a mirror but I don't know if they are silver how do I find out

  14. The answer is simple you buy proof you well spend more and it won’t warranty more money at the time you sell it.
    But some people spend money on cigarettes so you doing better.

  15. Errors in coins can cost hundreds to thousands more than a proof, so it is best to check coins thoroughly before sending them to a smelter.

  16. Come see my Cameo Quarter on eBay… https://www.ebay.com/itm/1776-1976-S-Bicentennial-Quarter-REVERSE-DC-OBVERSE-REG-PR-RARE-ERROR-DD-O-R-/293069236154

  17. I have couple of the year 2000 Australia proof silver 1oz coin. I bought it in 2006 for $50'ish…now it's like $200-300. Worth the investment! Wow, I didn't know the 8-bit guys is a coin collector!

  18. Its weird to think that you have a channel based on something I'm interested, yet I never heard of it until I was a fan of 8-Bit Guy for around 2 years or so. Sad to know you don't use this one anymore, but nevertheless, I'm still a fan of 8-Bit Guy and Keys.

  19. but WHY do they retain more value? WHY are they made to begin with? WHAT is their purpose? The Mint doesn't just put out different coins because they look fancyer.

  20. OMG!!! I have loved your 8-bit guy videos forever, but I never knew about your numismatic interests. This is awesome and I wish I had more upvotes and subscriptions to offer!

  21. look at the number of pressings –I collect certain gold sovereign proofs –but bullion too
    Never handle proof faces –fingermarks mess them up

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