| Okay, let's get something straight... I do not | | | | and find the market price for the same coin 5-10 |
| advocate the purchase of United States coins | | | | years ago. While you're at it, get something from |
| strictly for investment purposes. Like most | | | | 20-30 years or more in the past, too. The more |
| traditional collectors, I believe coins are to be | | | | good data researched, the more reliable will be |
| primarily appreciated for their artistic beauty, | | | | your final conclusions. Now whip out your |
| historical connections, and the joy of pursuing | | | | spreadsheet and chart the numbers, or compute |
| them. However, it should be no secret that a | | | | annualized rates of return. Flat or negative trends |
| significant number of us do add to our numismatic | | | | are bad. Positive trends are good. Steep positive |
| holdings while simultaneously peeking at the | | | | trends are best. Any coin displaying a proven |
| payback angle, too. | | | | annualized growth pattern of at least 5-10% over |
| In truth, there are probably substantial numbers | | | | a span of many years qualifies as an attractive |
| of traditional collectors who prefer to acquire | | | | option for the collector desiring coins headed for |
| coins destined to increase in esteem and value | | | | much higher price levels a few years down the |
| over time; treasured heirlooms and a source of | | | | road. |
| pride to be passed from one generation to the | | | | During the course of my lengthy numismatic |
| next. On the flip side of this equation, it seems | | | | career, I've researched the long term value |
| implausible that anyone would buy a coin with the | | | | trends of most collectible US coins. Thanks to my |
| hope or expectation to see it stagnate or | | | | trusty computer, I've calculated annualized |
| decrease in value. Indeed, any commentator who | | | | compounded percentage return rates and honed |
| suggests the words "investment" and "coins" | | | | in on a handful of coins that have consistently |
| should never appear in close proximity to one | | | | beaten the overall coin market averages. |
| another is ignoring a heavily populated segment of | | | | Unfortunately, the blue-chippers are scarcely |
| our hobby. | | | | encountered. Perhaps it is this fact that explains |
| Now that we've established that it's not | | | | why so many well-intentioned hobby purists scorn |
| numismatic heresy to seek coins with strong | | | | the idea of blending coin collecting with the profit |
| upside possibilities, let's get down to basics. The | | | | motive. |
| guiding principle is simple: Any coin that has | | | | Individuals whose objective is to satisfy their |
| demonstrated solid, consistent gains over a long | | | | numismatic pleasure by assembling a collection |
| period of time is likely to show continued growth | | | | certain to be the envy of tomorrow's collectors |
| in the years ahead. Easily said, but as we shall | | | | must do their homework today. Remember to |
| soon see, not so easily put into practice. | | | | research historic value trends and evaluate |
| So exactly how does a one identify coins with a | | | | growth potential based on previous performance. |
| potentially bullish future? The best clues are | | | | One last word of advice... never loose sight of the |
| revealed by analyzing the retail value trends over | | | | fact that you are handling artifacts of America's |
| a long period of time for a given coin. Observing | | | | past, and that all of us are merely their |
| current prices alone does not yield enough | | | | temporary custodians. Respect these coins and |
| information to correctly evaluate prospective price | | | | the history they represent, and you'll always |
| movements. What was the coin selling for two or | | | | discover new avenues of adventure not found in |
| three years ago compared to today? Dig deeper, | | | | most other investment opportunities. |