Investing In The Future - Canadian Coins Or Bills

My wife prefers the 25 cents series, especially with all the different varieties being produced by the RCM. I've been collecting all the loons in MS-65+. Maybe over time, as our new item inventories start filling up, we may slowly move to older coins, but we've made a decision not to be in this for investment (at this time anyhow). And so not to drift too far away from not the main topic, the reason we've been hesitant to be more "investment minded" is because the selling values are just not matching with book values (i.e. I target to buy at 30-40% less than book value). I'm thinking discretionary cash is running lower for many Canadians? I'm sure there are other reasons as well.

Nothing really new, only the key dates and the best grade hold value.

Take a look at recent TCNC sales, or Heritage common stuff either no bids, or terrible 50% starting bids only just the best key dates garner some actions, it's been a buyer's market for a long time.

My advice is to buy scarce coins that have above average eye appeal as they should retain their value over the years.

Coin collecting or saving hoards was never intended to be a surefire money-making hobby. In the past, you could somewhat count on appreciation based upon scarcity and demand. Now, however, appreciation is based almost solely on the specifc condition grade given to the coin. Nowadays a 1 point increase in the grade, once over MS-65 for older coions and over 67 for newer stuff, can mean a premium of 2-5 times the price of the lower. The same applies to a decrease. It all depends upon the MS number that is assigned and the TPG's grading reputation and grading criteria. You can buy a $1000 MS-67 coin and find 2 years down the road that it's really a 66 and now worth less than $500 due to changing grading specifics.

Before you ever decide to put your egg nest into coins, you have to study study study and learn how to grade and fully comprehend what each TPG considers when assigning a grade. The money being made right now in coins is due solely to careful shopping, not just buying something. Whatever you see in a price guide, spreadsheet or book on how much something is worth, DON'T BELIEVE IT! You can't sell a coin to a book; you need to find someone with a wallet willing to buy it from you. Stay away from NCLT, don't buy anything from a magazine ad, and realize that "Trends" is off by 30-70%.

I have collected Victoria Large Cents for over 30 years. If I had to do it all over again, and I was looking for profit only, I would collect Any Victoria denomination before 1890 in XF-45 to AU-58 coinage with no artificial toning or cleaning. They will continue to go up and the rarified air of MS-60 and above will continue to become dependent on what is written on the TPG holder and subject to inordinent increases and decreases depending upon the acuracy of the grading. The high grade lightly circulated coins will continue to appeciate regardless ... but you have to learn how to grade carefully and depend on an honest dealer/auctioner.

I can think of a handful of pieces that might hold their value and appreciate some:

Any two dollar Newfoundlang gold pieces;

1870 No LCW, 1890-H & 1894 Victoria fifty cents, especially in VG or better;

1946-C Newfoundland five cent silver;

the key date George V small cents in better grades, but not high-end mint state, 1922-1926;

1948 George VI dollar.

Of the coins listed here I own three of them and the 1870 No LCW and 1890-H fifty centers have appreciated fairly well, and mine are only in Good - my 1894 fifty cent piece has also appreciated but not to the same extent.