CervantesPelayo885
Buy good quality! Buy top quality! Acquire quality! That's all you hears these days when you are contemplating rare coins as an investment. Very first, are you really buying coins as an investment, or merely for the pleasure of owning a piece of history? That is at times the actual dilemma for several collectors, or is it investors? Everybody wants to make sure that their investment is protected, but there are no guarantees, specially in rare coins. In fact, some rare coins take years to appreciate to the point of getting able to sell it profitably.
Hey, I would love to be in a position to plunk down $100,000 for a 1919-s Standing Liberty Quarter in MS67 condition certified by PCGS. There is only 1 coin with this date certified by PCGS as of February 7th so it is the finest obtainable. But not many of us have that luxury. I don't, and I suspect you do not either. It's tough to comprehend paying a lot more for a single coin than my initial house price. And even though the rarest and finest of all rare coins have reached stratospheric costs, what does this leave the rest of us? Not a lot, unless you are prepared to do a little perform.
So if my interest is in rare coins as an investment, what do I do? Nicely, there are a lot of other coins and alternatives you can decide on. Initial, let's assessment what drives the cost of a coin.
1. Demand. Demand possibly is the most significant driver of value. A clear example of this is the 1909 S VDB with a mintage of 484,000 and an estimated retail value of $720.00 in G4 and $7,500 in MS65 vs. an 1879 Shield Nickel. The Shield Nickel had a mintage of only 29,one hundred however the estimated retail worth of a G4 is only $415 while the MS65 instance is $1,950. To further illustrate this point, PCGS has certified 703 MS65 Red 1909 S VDB cents and only 27 MS65 Shield Nickels. How many Shield Nickel collectors do you know vs. Lincoln Cent collectors?
two. Scarcity. Usually speaking, putting demand aside, the far more scare/rare a coin, the greater its worth. This is usually quite correct, specially when comparing dates within the identical series. Scarcity must not be confused with all round mintage. During the silver booms, numerous, several silver coins were melted for there bullion content. Furthermore, some coins with higher mintages can be rather uncommon in specific grades such as higher MS situation coins due to weak strikes, etc.
3. Condition. This is the most apparent 1. When comparing the exact same coin, the better the grade, the greater its worth.
4. Age. Although age can have some element, I would rate it lower than the 3 above
Ok then, contemplating all these elements, how do I find nice coins that I can afford that will not only appreciate in worth, but appreciate at a greater rate than other coins? I assume the crucial word right here is great. Coins other than Mint State coins can appreciate in value if you know what to appear for. Look at the 4 driving aspects of value once more. They are demand and scarcity. Take a good appear at the following chart. The chart shows a very good comparison of some distinct coins. Some you could take into account a very good investment and some you might not. The major comparison I am trying to make is from 2005 to 2006. I had an old concern of Coins Magazine from November 1973 so I believed I would throw these values in as nicely.
Very first, let's look at the 1877 Indian Head Cent, the key of the series. In a one year period of time, the worth of the coin rose 18-19% depending on condition. The 1909 S, the coin with the lowest mintage of the whole series rose only two-3%. Take a look at the mintages. The 1877 had more than 2.5 instances the coins developed than the 1909 S but is valued a lot greater. Element of this is demand and there are possibly much less 1877 dated cents to go around.
Next, take a close look at the three Lincoln Cents in G4. Whilst the 1909 S and 1931 S are viewed as keys just as the 1909 S VDB is, it is the 1909 S VDB that has risen in value while the 1909 S did not budge and the 1931 S moved ever so slightly. It is fascinating to note even though that in XF situation the 1909 S VDB stayed the exact same.
Evaluate the mintages of the 5 above coins to the 1879 Shield Nickel. A mere 29,100 nickels were developed that year however the value for a G4 is a paltry $415
So, what does this all prove? To me, it proves that picking coins solely for investment is as tricky as playing the stock marketplace. You just never ever know what may be the hot item. Certainly, important troubles will continue to rise and will almost certainly rise at a greater rate than non-essential issues. If you are truly set on getting rare coins as an investment and you cannot afford the high-end things then keys in some of the reduce grades may be the way to go.
What will be the subsequent hot coin? Only time will inform and your guess is as good as mine. I suspect that with much more and a lot more interest in Lincolns, specifically with the upcoming changes to the Lincoln Cent <http://www.mountainviewcoins.com/Lincoln_Cents.htm>, there will be far more demand for Lincoln Keys, but that is only a guess. Other people to maintain an eye on are the 1932 D and S quarters. The State Quarter system has produced a lot more interest in quarters. This is just pure speculation. As for me, I will just continue to purchase the coins I like.
