Buy feature! Buy property! Buy quality! That's all you hears the existence when you are considering juicy coins as an investment. First, are you justly wholesale coins as an investment, or simply for the pleasure of owning a portion of chronicle? That is sometimes the confirmed dilemma for many collectors, or is it investors? Everybody wishes to make constant that their investment is confined, but there are no guarantees, especially in uncommon coins. In verity, some sporadic coins take being to appreciate to the meaning of being able to wholesale it profitably.
Hey, I would like to be able to plop down $100,000 for a 1919-s Standing Liberty Quarter in MS67 provision practiced by PCGS. There is only one coin with this meeting skilled by PCGS as of February 7th so it is the finest available. Nevertheless not many of us have that luxury. I don't, and I irregular you do not moreover. It's hard to comprehend paying more for a sole coin than my first house loss. And while the rarest and finest of all scarce coins have reached stratospheric prices, what does this place the breather of us? Not much, except you are willing to do a little work.
So if my advantage is in erratic coins as an investment, what do I do? Well, there are many other coins and options you can choose. First, let's reassess what drives the penalty of a coin.
1. Demand. Demand perhaps is the prevalent driver of outlay. A fair example of this is the 1909 S VDB with a mintage of 484,000 and an estimated retail cost of $720.00 in G4 and $7,500 in MS65 vs. an 1879 Shield Nickel. The Shield Nickel had a mintage of only 29,100 yet the estimated retail speed of a G4 is only $415 while the MS65 example is $1,950. To promote illustrate this show, 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?
2. Scarcity. Generally tongue, putting mandate whisper, the more scare/unusual a coin, the advanced its cost. This is mostly very true, especially when comparing dates within the same cycle. Scarcity should not be puzzled with total mintage. During the silver booms, many, many silver coins were melted for their gold satisfied. Additionally, some coins with superior mintages can be utterly uncommon in certain grades such as advanced MS proviso coins due to weak strikes, etc.
3. Condition. This is the most palpable one. When comparing the same coin, the better the grade, the senior its estimate.
4. Age. Although age can have some dynamic, I would toll it sink than the three above
Ok then, considering all these factors, how do I find fussy coins that I can provide that will not only appreciate in cost, but appreciate at an upper rate than other coins? I think the key word here is “polite”. Coins other than Mint State coins can appreciate in survey if you know what to look for. Look at the 4 powerful factors of cost again. They query and dearth. Take a good look at the following chart. The chart shows a good comparison of some different coins. Some you might judge a good investment and some, you may not. The major comparison I am difficult to make is from 2005 to 2006. I had an old announce of Coins Magazine from November 1973 so I thought I would bowl those morals in as well.
First, let's look at the 1877 Indian Head Cent, the key of the chain. In a one year epoch of time, the value of the coin rose 18-19% depending on prepare. The 1909 S, the coin with the buck mintage of the totality series rose only 2-3%. Take a look at the mintages. The 1877 had over 2.5 period the coins produced than the 1909 S yet is valued much superior. Part of this pressure and there are perhaps minus 1877 square cents to go around.
Next, take a close look at the 3 Lincoln Cents in G4. While the 1909 S and 1931 S are considered keys just as the 1909 S VDB is, it is the 1909 S VDB that has risen in estimate while the 1909 S did not dislodge and the 1931 S enthused ever so somewhat. It is interesting to tinge still that in XF rider the 1909 S VDB stayed the same.
Compare the mintages of the 5 above coins to the 1879 Shield Nickel. A measly 29,100 nickels were produced that year yet the assess for a G4 is a squalid $415
So, what does this all verify? To me, it proves that option coins solely for investment is as tricky as playing the horde souk. You just never know what may be the hot entry. Certainly, key issues will prolong to elevation and will probably knoll at an advanced rate than non-key issues. If you are truly set on selling rare coins as an investment and you cannot present the high-end matter then keys in some of the lessen grades may be the way to go.
What will be the next “hot” coin? Only time will tell and your speculate is as good as mine. I distrust that with more and more hobby in Lincolns, especially with the impending changes to the Lincoln Cent , there will be more claim for Lincoln Keys, but that is only a suppose. Others to keep an eye on are the 1932 D and S quarters. The State Quarter code has bent more gain in quarters. This is just natural speculation. As for me, I will just prolong to buy the coins I like.
As forever, exultant collecting!
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