# 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!