Buy quality! Buy quality! Buy quality! That's all you hear these days when you consider rare coins like an investment. First, do you buy coins as an investment, or do you just enjoy having a piece of history? That sometimes becomes a real problem for many collectors, or are they investors? Everyone wants to make sure their investment is secure, but there are no guarantees, especially for rare coins. In fact, some rare coins take years to appreciate to the point of being able to sell them profitably.
Hello, I would like to be able to downgrade the $100,000 1919-s Standing Liberty Quarter to MS67-approved PC67S. There is only one coin with this date approved by PCGS as of 7, February, so it is the best available. But not all of us have that luxury. I don’t, and I suspect you don’t either. It's hard to imagine paying more for a single coin than the cost of my first home. And although the rare and best of all rare coins have reached different prices, how does this leave us all? Not much, unless you are willing to do a little work.
So if my interest is in rare coins like investment, what do I do? However, there are many other coins and options to choose from. First, let’s review what drives the coin price.
1. The need. Demand is probably the biggest driver of prices. A clear example of this is the 1909 S VDB with 484,000 mintage and an average retail price of $720.00 on the G4 and $7,500 on MS65 against the 1879 Shield Nickel. The Shield Nickel has only $29,100 but the average price of the G4 is only $415 and the MS65 model is $1,950. To further clarify this point, PCGS has secured 703 MS65 Red 1909 S VDB cents and only 27 MS65 Shield Nickels. How many Shield Nickel collectors do you know compared to the Lincoln Cent collectors?
2. Shortage. Generally, setting aside a need, when a coin is very frightening/rare, the greater its value. This is often very true, especially when compared to days between the same series. Deficiency should not be confused with mintage in general. During the silver boom, many, many silver coins were melted down to obtain bullion content. Additionally, some mintage coins can be as rare in certain grades as high-status MS coins due to weak strikes, etc.
3. Status. This is the most obvious. When you compare the same coin, the better the rate, the higher its value.
4. Age. Although age may be a factor, I can estimate it below the three
Well then, considering all these factors, how do I find the best coins I can afford that will not only inform you about the value but enjoy a higher value than other coins? I think the keyword here is "good". Coins other than Mint State coins can appreciate the value if you know what to look for. See also 4 price points too. They are a necessity and a shortage. Take a good look at the following chart. The chart shows a good comparison of other different currencies. Some you may consider a good investment and some you may not consider. The main comparison I was trying to make was from 2005 to 2006. I had an old issue of Coins Magazine since November 1973so I thought I would throw those values out again.
First, let's look at the 1877 Indian Head Cent, the key to the series. Over the course of one year, inflation increased by 18-19% depending on the situation. 1909 S, coin with the lowest mintage of the whole, series, increased only by 2-3%. Look at the montages. 1877 had more than 2.5 times more revenue generated than the 1909 S, yet it has a much higher value. Part of this is a necessity and about 1877 cents to travel.
Next, take a look at 3 Lincoln Cents on the G4. While the 1909 S and 1931 S are considered key as they are the 1909 S VDB, it is the 1909 S VDB that increased in value while the 1909 S did not move and the 1931 S moved slowly. It is interesting to note that in the case of IF the 1909 S VDB remained the same.
Compare the mintage 5 coins above with the 1879 Shield Nickel. 29,100 nickels were produced that year, but the price of the G4 is $415 less.
So, what does all of this prove? To me, it proves that choosing coins to invest only is as tricky as playing the stock market. You never know what might be hot. Indeed, important news will continue to rise and will likely rise at a higher rate than non-essential news. If you are really willing to buy rare coins such as investments and cannot afford high-quality items, the keys to some lower grades may be the way to go.
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