Considering Starting To Collect Reale 8-S From 18th Century. Advice?

, ArbInv!




I have been actively buying 8 reales for the last five years and I don't believe their value has dropped by more than half. What evidence do you have for that claim?



They were minted in the millions so many are still available for today's collectors. That level of availability is one reason that makes them popular to collect. Since they are popular to collect, there should be adequate liquidity. Just check ebay to see how many are available.



Your questions seem to be focused on 8 reales as a type of coin investment. I seriously doubt you will see much appreciation in value on $250-$500 per coin. Some high end examples are more affordable than they have in the past but I think that might be more related to current coin trends or broader economic trends and not specific to 8 reales.

My advice is to study them first, especially how to detect the fakes and learn about their rich history. 18th Century 8 reales are the period of the Spanish Empire so you can collect coins from Spanish mints, Mexico City, Lima (Peru), Potosi (Bolivia), Guatemala and more scarce types from Chile and Columbia. In your price range XF pillar dollars to AU portrait dollars should be available for common varieties. Many can be found in TPG certified slabs if you prefer.

Perhaps the best advice I can give is to read swamperbob's posts here about 8 reales. They are packed with great information. Hopefully you will buy his book as a reference to "Counterfeit Portrait Eight-Reales, the Un-real Reales".

Hi All

Thanks for the super helpful responses. My ultimate goal here is to put money into something which is both a) enjoyable and b) delivers an absolute return over a 15-20 year period. By nature I am a contrarian and like to invest in under-loved and under-appreciated assets which will with time shine through (no pun intended). Whether it is a return to the mean or is something that people will at some point come to realize true value is my sweet spot. I have no interest in putting money into todays 'hot stuff'.

I thought that Reales might be a good way to go but have read a lot about the forgery issue and this is a red flag for sure. I will keep thinking on it....

Andy

Spend some time window shopping here.

http://www.sedwickcoins.com

You can see the whole range of quality and price over several years of auctions.

I see 8R's as collector coins, with liquidity at 50% of retail, and that value only when selling to specialist dealers (who are looking at carrying costs) and avid collectors (who are looking for bargains). Outside of those 8R's usually sell above melt, but not by much.

I like the cobs because of the hand-made quality. They are superabundant due to the shipwrecks. Retail prices are all over the place, from overpriced historic novelties from specific wrecks to cheap undated ones that are very badly struck and/or corroded. The only ones that have great value are the royals, and these should appreciate. Take a look at Lot 1095 in Sedwick's Treasure Auction #9 to see a premium 1685 8R royal.

If you want coins that are interesting and obscure - and possibly underappreciated - look at the English Commonwealth. Compared with the contemporary Massachusetts coins they are a bargain. I don't remember what I paid but this shabby one was well under $500.

I totally agree with thq. Cobs (in Spanish: macuquinas) are a lot of fun to collect. They are the perfect niche for the individualist: not two of them are alike, there are many different mints, both peninsular (from the Spanish motherland) and colonial (South- and Central American). There is something for every budget and it doesn't take an eternity before you yourself can tell a fake from an authentic coin.
Be prepared for many hours of interesting and exciting detective work! An absolute must is Sedwicks' "Practical Book of Cobs", available at their online shop. There are are also several highly recommended fb groups, ideal for information, advice, warnings and back up. Some basic knowledge of the Spanish language may come in handy.

You can have a lot of fun assembling an 8 Reales collection. So many directions you can take it - by mint, date runs, denominations, varieties, eye-appeal, etc... It can be a truly rewarding experience.

You will need to learn quite a bit, especially when it comes to identifying forgeries. Having said that, sticking to already certified examples will drastically reduce any risk associated with buying a counterfeit. Yes, I'm aware of cases where both NGC and PCGS have certified questionable coins, but the percentage is so small that I consider these to be outliers.

Here's what I have assembled over the last 10 or so years working with a relatively limited numismatic budget. Most of these coins are in the price range you have mentioned.

http://www.PCGS.com/SetRegistry/Sho....aspx?sc=478