| Author |
 Replies: 26 / Views: 14,981 |
|
Valued Member
United States
397 Posts |
For the most part, I'm in coins from a investment side. I absolutely love the fact that if I'm careful that I can pick up coins for well below market value.
However , from a investment standpoint, what coins will realize appreciation the most? I'm unsure if I should be trying to go for key dates, or just a wide variety of coins and hope that whatever I get has a decent bit of appreciation.
I know so far I've done well , back in '03 I bought a bag of 90% halves for $5 from a estate auction.....Needless to say they're worth a little more than $5 now ;)
|
|
|
|
Pillar of the Community
United States
870 Posts |
Key dates with extremely low mintage. SOMETIMES grade helps, but with most truly numismatic investments the grade is less important than you might think. It's hard to find an "investment" grade coin that will appreciate significantly for less than $1000, but it can be done. Most of the best performers seem to be in the $4k+ range (in my judgement).
This is all from an amateur collector's perspective. When investing, it's best to make your own judgements!
|
|
Pillar of the Community
United States
870 Posts |
AND as has been discussed in a thread similar to this last week or two weeks ago - be sure that your investment portfolio is wisely spread - my "investment" portfolio will not likely ever comprise more than 10% of my entire investment portfolio!
|
|
Pillar of the Community
United States
3283 Posts |
It appears to me that if you asked that question a year ago, anything
silver would have been the answer, with a 300% increase. My crystal ball is a
bit foggy so I don't know but key dates and higher grade stuff at least have
always been safest, But I proved my ability to predict the market around 2000
when I misplaced my shirt, lets say.
|
|
Pillar of the Community
United States
4846 Posts |
i would go with key dates, too, like they say; quality, not quantity
but there are different coins that appreciate different values for different reasons. 2 of the major ones are 1. grade rarities and 2. mintage rarities, and then there are the extreme rarities like the 13 v nickel- a mintage rarity and say a 1896-O Morgan that continues from 1000 in MS-60, to more affordable rarities like the 09-S V.D.B.
i believe that the safest and most reliable type of rare coin to collect is the mintage rarities, because there will never be more of that coin discovered, the mintage is fixed, unlike the grade rarities, which more can be discovered from a family hoard, ect.
I would also go with the popular coins, like the 09 S V.D.B.
because of the demand.
there are many more key dates- even rarer than the 16-D merc- than you might think, its just that they're not known as much because the demand is low.
Edited by Adam_E
05/31/2011 2:33 pm
|
|
Pillar of the Community
United States
721 Posts |
Adam E states it well.
If you look at prices over the last couple of decades, you will see that key dates have increased dramatically. Will that trend continue? Who knows. Some feel that they are disproportionately high, others maintain that they will continue to increase at a high rate. Remember the law of supply and demand. If there continues to be more and more collectors out there, then the low supply of key dates will dictate higher prices for them. But if this hobby dies out (I hope it doesn't), then the demand drops and so do the prices. Historically, also look at the price trend for higher grades in semi-key dates. These also have done well. I'm talking percentage increases here.
However, if you want to make bigger dollar returns, you'll have to fork out more dollars to begin with, and then of course you have the risk involved with a fewer amount of coins. Best advice? Diversify as they always say.
|
|
Valued Member
 United States
397 Posts |
Well , for the past month or two, I've been offering everyone in my small town money for their portfolios.
For instance, I picked up nearly 100 IHPs pretty cheaply , nothing that spectacular , from 1883 through 1909 , no key dates but decent quality. I'm trying to decide whether it'd be a better bet to try and trade or barter them around for one low end key-date coin (Maybe a 32-D quarter or some such) or if I'd be better off amassing more pennies when I find 'em at a major discount. Either way I'm growing my collection, I just want to go for appreciation more so than having complete sets. Something like 50% of my value right now in coins (which make up less than 20% of my investments) are in common dated, silver coins.
|
|
Valued Member
United States
397 Posts |
Also , does anyone have data on coin attrition rates for coins prior to maybe 1964? I know that quite a few coins are destroyed/lost/damaged a year , however I'm unsure how many older coins are culled per year.
|
|
Pillar of the Community
United States
870 Posts |
Schockergd - check the thread titled "collection consolidation" - in my opinion it is definitely better to turn many coins into a few much better ones, at least from an investment perspective!
|
|
Valued Member
United States
397 Posts |
Any of you have any hard numbers?
I'm just curious what some coins are performing as compared to some of my other investments....
|
|
Pillar of the Community
United States
870 Posts |
I'd suggest that you do the research yourself so that you can make your own informed decisions. My research leads me to believe that the best keys can do 10% per year on average over 50 years. Anything but the best keys are underwhelming. Lower-priced keys can do half of that, but unless they're high grade, they do less. There are coins that have spurted for more (sometimes a lot more) than that, and the best keys in highest grades (we're talking $50k+ now) have done a lot better than that in certain periods, but it seems pretty whimsical to me. That's not saying they're not good investments, but they're less predictable.
|
|
Pillar of the Community
United States
3184 Posts |
be careful with rare coins as there are coins that have dropped dramatically in value as well. I think PCGS has a thing on there site that shows the biggest losers and biggest winners/
|
|
Bedrock of the Community
Australia
21788 Posts |
Quote:
"The rare coins get rarer, the common coins stay common"
I have always noticed in auction results over the decades. that rare coins in top condition appreciate the most. These coins attract collectors trying to complete their collections, and investors who ususlly have much more money to spend, because coins are but a small part of a much larger investment portfolio.
|
|
Valued Member
United States
397 Posts |
Thanks for all the help guys , MkMan - do you have a link to the PCGS page you're talking about? The site I was on was just doing a overview of key-date morgans, and since 1950 they averaged something like 14% per year in appreciation. For reference, common-date Peace dollars have performed about 6.5% over the same time period. |
|
Pillar of the Community
United States
870 Posts |
Don't get the price of silver confused with numismatic appreciation... =) Not saying that's what happened with Morgans, but be sure to differentiate the two.
|
|
Pillar of the Community
United States
526 Posts |
I guess that I am a Lucky person. I love collecting older coins (Silver and Gold) in any type. I try to spreadout what I buy then consolidate the 90% silver for Gold. It is easier to spend $50.00 a week in proof sets then trade them in a month or two down the road for Gold. That is providing I can get the sets below melt. I have Seated Halfs/qtrs/dimes, Lots of Morgans and Peace dollars, Barber Collection of Halfs and a 2X2 flip box full of Half dollars, Mercury dimes, Full rolls of Rosie's and a complete roll of Rosies from 1946 in the original wrapper. I also have quite a few 1 toz rounds of silver, some 1970 D Kennedys along with a complete set of mint sets from 1954 to 1970. I am addicited to the hobby that will also support my retirement in 14 years....  |
| |
Replies: 26 / Views: 14,981 |
Posted 05/31/2011 1:34 pm
