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 Replies: 13 / Views: 1,684 |
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Pillar of the Community
United States
3670 Posts |
So, I was getting my oil changed down at the local Midas, and I sat down and grabbed a sport car magazine, and opened it right up to an add for Coinace. A sight which sells higher end graded gold coins and others. The example the add gave, was a graded 1804 Wavy hair gold coin which was graded like 66 or something, and was worth 50 grand in 1980, and recently sold for 1.7 million....
Got me to thinking, that the graded coins seem to have a chance to double, triple, and so on in value, much faster than your typical gold or silver coin, which sells just beyond spot. Of course they cost more, the graded, so it comes down to whether you want to buy cheap now, and sell cheap later, or buy costly now, and sell for who knows how much later.....
The big con that comes to mind for me with graded coins and perhaps some of you others, is they are sealed away forever and perhaps some like hands on if you will. Again, this is something I think a nice bit of diversity comes into play, as nice to have some examples of both if one feels hands on is important, as do I, even though I try to handle the coins as little as possible....
Finally, what is some of your all opinions of what could be the next wavy hair like in the example above? Another-words, what is a graded coin (or not graded but perhaps a real nice one that needs to be) to go after now that is still perhaps some what affordable, that one of you all think is a diamond in the ruff, and gonna be worth big money someday, and it does not have to be a gold or silver coin? Edited by Silverhawk74
06/04/2011 01:12 am
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Valued Member
United States
212 Posts |
I guess if I had the money and wanted to add some higher end coins to my collection, I would concentrate on the lower mintage key dates from various denominations. Various denominations would be diversification. One of my favorite coins is the 2009 Ultra High Relief $20 Gold St Gaudens that I got for $1280.00 a few years ago. No matter where it's value goes, it's my personal collection favorite. I also have a complete set of the Australian Silver Kangaroo Series started in 1993 to current date. (Spendy, Wow) Didn't really look at these purchases as an investment, but just bought them for the artistry and quality. Guess I just got lucky.
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Pillar of the Community
 United States
3670 Posts |
Schnauzer great name and avatar, one of my top favs  .... Edited by Silverhawk74
06/06/2011 02:12 am
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Valued Member
United States
384 Posts |
I think the price doubling and tripling has more to do with the coin's quality itself rather than the TPG label. Sure the label does provide assurance of authenticity and what not, but the price of a rare coin comes from the coin itself. The label will maybe add the value equal to the cost of grading, not more. |
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Rest in Peace
United States
9104 Posts |
From PCGS itself:
Today 12Mo High 12Mo Low All-Time Hi
Index $68,021.84 $68,021.84 $66,886.27 $181,088.48
Change +36.21 0.00 +1135.57 -113066.64
Pct Chg +0.05% 0.00% +1.70% -62.44%
Date 8/17/2011 8/17/2011 8/18/2010 5/31/1989 If you bought at the lowest point in a year and sold at today's record high price, you'd be up $1135.57, or 1.7% (minus the 20% commission the dealer charged you). If you bought 22 years ago, you'd be down roughly 2/3, despite record high gold prices and near record silver prices. Quote:
A sight which sells higher end graded gold coins and others. The example the add gave, was a graded 1804 Wavy hair gold coin which was graded like 66 or something, and was worth 50 grand in 1980, and recently sold for 1.7 million.... Did they say they sold it? Were they even in business in 1980? My guess is no to both. So what you're looking at is the most exceptional growth in value of any coin they could find, not a typical return. Hey, lookie this guy ate 57 hotdogs! Does that mean anyone else can do it? No. Does that mean anyone else can do it? No. Does it even mean the same guy could do it again? Prolly knot. Does it mean you can do it? Almost certainly not. |
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Pillar of the Community
United States
667 Posts |
If you expect high gains in numismatic coins then you have to buy the rare coins which for the most part are out of the league for me and I expect most people. Buying the lower end numismatic coins are an option but I feel more of a speculation than plain gold or silver. I will admit that I love Morgan silver dollars and I buy high graded ones under $100. My primary reason for buying them is that I like them. If they still bring a higher premium when I sell them that is fine. However I never expect any of them to jump 10 or even 2 times what I have paid. A lot of people do speculate with numismatic coins, to me you are double speculating on both the numismatic value and PM value of the coin. If you are looking for gains I would suggest buying the top end coins and not waste much time on the low end that I buy even though they are graded about MS 64. However I can't see how you can loose with the Morgans and the CC mint mark - may be worth the risk. |
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Pillar of the Community
United States
3670 Posts |
Yes I agree BF. Buying a graded gold coin, and it turning out to be worth millions 30 plus years later is slim to zero, just luck if it happened in the end, a lucky buy or good hunch maybe. Again, it was a high end car magazine, so I figured they were trying to advertise to a certain high end possible buyer. Thought it was also something you may have not seen in a magazine five or ten years back, or perhaps I just would have noticed the adds then, as I would have little interest in coins then. The add did say "sold for", as well, but sure that could be false I am sure....
MK, I like the graded Morgans as well, again pay a bit more but they sell for a bit more later, so it really is a to each their own thing I figure. I actually prefer the feel of a nice gold or silver coin loose in the palm of my hand, protected in a case of course, but you know what I mean, lol....
Edited by Silverhawk74
08/18/2011 2:06 pm
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Valued Member
United States
362 Posts |
It seems to me the o ly really reason to get a coin graded is if the premium on its numismatics I much higher then the gold, or silver value in the coin ( granted Iam sure there are many coins not made out of neither)
But if you buy a rare slabbed coin from, lets say for 1800's, I couldn't see this coin getting any more or less rare, because all of them are most likely in collectors hands already, so the only thing changing the value is going to be the cost of the metal, and the change in the value of the dollar
And also, things are only worth what someone is willing to pay.
I have been reading a lot on PM's lately, but to be honest I don't know to much about numismatics
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Pillar of the Community
United States
4008 Posts |
I would think that a lot depends on why a person owns gold or silver. If it is as an investment, then some part of that could be in numismatic coins that have the potential for gains significantly higher than bullion alone can provide. If it is for a possible SHTF scenario, then I would say stick with the bullion coins. They will always have their bullion value, whatever that might be, but numismatic coins might not fare as well in a very bad situation, such as a dollar collapse or even a depression worse than 1929. I can easily see them becoming bullion coins too, losing every bit of that supposed numismatic value. But then, that's probably just the pessimist in me. Ignore grouchy old guys... but do so carefully.  |
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Rest in Peace
United States
9104 Posts |
Quote:
If you expect high gains in numismatic coins then you have to buy the rare coins which for the most part are out of the league for me and I expect most people. Not only that, but your crystal ball better work. In this case, you had to guess that this series would become more popular than all related ones and that particular grade and that date and guess that its toning would be desirable 31 years later and that its TPG was still in favor. Oh, and have the bux and the nads to take the gamble with enough $ to buy a house. |
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Pillar of the Community
Canada
1502 Posts |
Much easier/faster to get rid of bullion coins versus finding a buyer that will pay the expected value for a numismatic coin too.
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Pillar of the Community
United States
3670 Posts |
True dat BF, as 50 large in 1980 was a huge gamble on a an old graded gold coin when you could have just as easily put a huge chunk down on a home an some land, lol....
I would never buy a slab form one of those high premium sites let me make clear as well, and was more intrigued to see numismatic coins becoming more MAINSTREAM so to speak. The guys who can afford a Ferrari and reads that mag, may not be to worried about high premiums. And perhaps may make an impulse buy at the drop of a hat, if they think it is the in thing so to speak, and it is easy for anyone to see the recent climb in gold prices. Or at least that was the marketing departments pipe dream, when they made a deal to advertise in that magazine anyhow, lol....
Edited by Silverhawk74
08/19/2011 01:31 am
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Pillar of the Community
United States
3184 Posts |
There are coins that were bought for 250k that are worth considerably less now.....
Just enjoy coins and not be too worried abt getting rich off of them
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Rest in Peace
United States
9104 Posts |
Quote:
and was more intrigued to see numismatic coins becoming more MAINSTREAM so to speak. Getting numismatics to be thought of as a mainstream investment instead of a backwater hobby has been the dream of the big coin dealers for decades, and was the whole purpose behind slobbing, "now anyone can trade coins sight unseen without needing any knowledge of coins." Counting crack-outs, PCGS has slobbed $20 billion in coins. If we took every coin they slobbed since day one and sold all of them instead of stocks on the NYSE, we'd run out of coins before lunch on the first trading day.Do you think the mega-dealers would like to tap an investment market that buys as much in a half day as the coin market has done in its entire history? You better believe they would. |
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Replies: 13 / Views: 1,684 |
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Posted 06/06/2011 02:11 am
