| Do I have to Buy the Best Quality Coins if I Want | | | | Ok then, considering all these factors, how do I |
| to Make Money? | | | | find nice coins that I can afford that will not only |
| | | | appreciate in value, but appreciate at a higher rate |
| Buy quality! Buy quality! Buy quality! That's all you | | | | than other coins? I think the key word here is |
| hears these days when you are considering rare | | | | "nice". Coins other than Mint State coins can |
| coins as an investment. First, are you really buying | | | | appreciate in value if you know what to look for. |
| coins as an investment, or merely for the | | | | Look at the 4 driving factors of price again. They |
| pleasure of owning a piece of history? That is | | | | are demand and scarcity. Take a good look at |
| sometimes the real dilemma for many collectors, | | | | the following chart. The chart shows a good |
| or is it investors? Everybody wants to make sure | | | | comparison of some different coins. Some you |
| that their investment is protected, but there are | | | | might consider a good investment and some you |
| no guarantees, especially in rare coins. In fact, | | | | may not. The main comparison I am trying to |
| some rare coins take years to appreciate to the | | | | make is from 2005 to 2006. I had an old issue of |
| point of being able to sell it profitably. | | | | Coins Magazine from November 1973 so I |
| Hey, I would love to be able to plunk down | | | | thought I would throw those values in as well. |
| $100,000 for a 1919-s Standing Liberty Quarter in | | | | First, let's look at the 1877 Indian Head Cent, the |
| MS67 condition certified by PCGS. There is only | | | | key of the series. In a one year period of time, |
| one coin with this date certified by PCGS as of | | | | the value of the coin rose 18-19% depending on |
| February 7th so it is the finest available. But not | | | | condition. The 1909 S, the coin with the lowest |
| many of us have that luxury. I don't, and I | | | | mintage of the whole series rose only 2-3%. |
| suspect you do not either. It's hard to | | | | Take a look at the mintages. The 1877 had over |
| comprehend paying more for a single coin than | | | | 2.5 times the coins produced than the 1909 S yet |
| my first house cost. And while the rarest and | | | | is valued much higher. Part of this is demand and |
| finest of all rare coins have reached stratospheric | | | | there are probably less 1877 dated cents to go |
| prices, what does this leave the rest of us? Not | | | | around. |
| much, unless you are willing to do a little work. | | | | Next, take a close look at the 3 Lincoln Cents in |
| So if my interest is in rare coins as an | | | | G4. While the 1909 S and 1931 S are considered |
| investment, what do I do? Well, there are many | | | | keys just as the 1909 S VDB is, it is the 1909 S |
| other coins and options you can choose. First, let's | | | | VDB that has risen in price while the 1909 S did |
| review what drives the price of a coin. | | | | not budge and the 1931 S moved ever so slightly. |
| 1. Demand. Demand perhaps is the biggest driver | | | | It is interesting to note though that in XF condition |
| of price. A clear example of this is the 1909 S | | | | the 1909 S VDB stayed the same. |
| VDB with a mintage of 484,000 and an estimated | | | | Compare the mintages of the 5 above coins to |
| retail value of $720.00 in G4 and $7,500 in MS65 | | | | the 1879 Shield Nickel. A mere 29,100 nickels |
| vs. an 1879 Shield Nickel. The Shield Nickel had a | | | | were produced that year yet the price for a G4 |
| mintage of only 29,100 yet the estimated retail | | | | is a paltry $415 |
| value of a G4 is only $415 while the MS65 | | | | So, what does this all prove? To me, it proves |
| example is $1,950. To further illustrate this point, | | | | that picking coins solely for investment is as tricky |
| PCGS has certified 703 MS65 Red 1909 S VDB | | | | as playing the stock market. You just never |
| cents and only 27 MS65 Shield Nickels. How many | | | | know what may be the hot item. Certainly, key |
| Shield Nickel collectors do you know vs. Lincoln | | | | issues will continue to rise and will probably rise at |
| Cent collectors? | | | | a higher rate than non-key issues. If you are truly |
| 2. Scarcity. Generally speaking, putting demand | | | | set on buying rare coins as an investment and |
| aside, the more scare/rare a coin, the higher its | | | | you cannot afford the high-end items then keys in |
| value. This is usually very true, especially when | | | | some of the lower grades may be the way to |
| comparing dates within the same series. Scarcity | | | | go. |
| should not be confused with overall mintage. | | | | What will be the next "hot" coin? Only time will tell |
| During the silver booms, many, many silver coins | | | | and your guess is as good as mine. I suspect that |
| were melted for there bullion content. Additionally, | | | | with more and more interest in Lincolns, especially |
| some coins with higher mintages can be quite rare | | | | with the upcoming changes to the Lincoln Cent / |
| in certain grades such as higher MS condition coins | | | | there will be more demand for Lincoln Keys, but |
| due to weak strikes, etc. | | | | that is only a guess. Others to keep an eye on |
| 3. Condition. This is the most obvious one. When | | | | are the 1932 D and S quarters. The State |
| comparing the same coin, the better the grade, | | | | Quarter program has created more interest in |
| the higher its value. | | | | quarters. This is just pure speculation. As for me, |
| 4. Age. Although age can have some factor, I | | | | I will just continue to buy the coins I like. |
| would rate it lower than the three above | | | | As always, happy collecting! |