Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.Some 40 million American adults are considered collectors. While many are simply hobbyists, an increasing number are also interested in items that can enhance a diversified investment portfolio. Coins are an old favorite of folks looking for Investment-grade collectibles.
Consider the $20 gold pieces struck by the U.S. government between 1907 and 1933. These were designed by celebrated American sculptor Augustus Saint-Gaudens and are considered by many to be the most beautiful of all United States coins.
The front features an image of Miss Liberty and the reverse, a flying eagle. The photograph shows a specimen minted in 1907 that I purchased recently for $3,000.
Several independent companies grade coins on a standard scale of 0 (flat slug) to 70 (mint perfection) and then encase them, along with the grading information, in hard plastic holders. Having thus been "slabbed," the coins become tradable commodities subject to market forces of supply and demand. The coin in the photo received a grade of 65, making it an uncirculated "gem" specimen desirable to collectors. Of the three thousand such coins handled by the two major grading houses, only a limited number were rated that high.
Investors like the rarity, too. Over the past five years, the 1907 piece pictured has increased in value by about 65%. It contains 0.9675 ounces of gold. The metal was up by $350 per ounce over the period, but that only accounts for about one-fifth of the increase in the price of the coin. It's the collector value that has done so well.
At that, the 1907 coin is rather an average performer. Quite a few in the $20 series have more than doubled and many good quality specimens of lower denomination are up even more. The price movements tend to be steady, too. That helps investors sleep at night.
Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store.
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
Reader Comments (Page 1 of 1)
11-19-2008 @ 11:18PM
rod said...
I have a high relief 20 dollar certified ms64 NGC. How much is it worth?
11-20-2008 @ 2:52AM
LDSCHUTTS said...
The price a coin commands at auction depends on such factors as grade, overall appearance and individual auction supply/demand. For rare pieces like the high relief 1907 $20 Saint-Gaudens coin, price spreads over a given year can be wide. Still, most coins tend to settle into limited ranges. So far this year, I can find major auction records for sales of seven coins graded MS-64 high relief by the Numismatic Guaranty Corporation. The six pieces with a wire edge fetched $25,300-$29,900 (avg. $27,696). The single Flat Edge specimen sold for $27,600.
Larry Schutts
12-11-2008 @ 3:42PM
MAS said...
I have a collection of British and international old coins (more than a 100 years) in a good condition. How much are they worth and where to sell?
12-11-2008 @ 4:50PM
ldschutts said...
Book shops carry all manner of catalogs listing British and world coin values. They tend to show prices you would be asked to pay a dealer, however, not the prices a dealer would offer you. There is usually a sizable difference. The historical auction compilations provided on the Web sites of such major houses as Heritage Auction Galleries, Bowers and Merena Auctions, Spink Smythe and Teletrade will give you a much better feel for fair market prices. They will sell your coins for you, too, but their fees are not inconsiderable. If you are in a position to do so, you'll probably get a better return selling the coins yourself. The worldwide online exposure provided by outfits like eBay can generate enough bidding action to make the do-it-yourself approach worthwhile.
Larry Schutts
12-12-2008 @ 9:42AM
lin said...
I found an old metal box in basement and coins calore were inside....seems to be mostly silver dimes and half dollars...what do I do with them?
12-12-2008 @ 11:34AM
Joyce said...
Could someone please tell me how to find out what a coin is worth? Where do I go and who do you trust? I have a bunch of rare coins. How do I find out how much they are worth.
Thank you for your help.
Joyce
12-12-2008 @ 1:17PM
ldschutts said...
To Lin and Joyce.....
Your best first step is probably to go to your local book store and buy any of the available handbooks listing coin values by denomination and date. Be sure, however, to get one with a discussion of grading. A coin's grade is a measure of how worn it is and coin values are critically dependent on grade. Note that handbooks tend to show prices you would be asked to pay a dealer, not the prices a dealer would offer you. There can be a sizable difference. In order to get a better idea of "fair" market values, follow the bidding for coins like yours on a major Web auction site like eBay.
Larry Schutts
12-14-2008 @ 7:32AM
Mary said...
I would like to find out the value of some 1800 Silver Morgan and Peace Dollars I have. Also the value of J.F.K. silver half dollars. Where would be the best place on the internet I could look these coins up?
12-14-2008 @ 12:26PM
ldschutts said...
To Mary.....
See the bidding levels for coins like yours on one of the general Internet auction sites...like eBay. Also, see the bidding results archived by any of the major coin auction houses...like Heritage Auction Galleries, Bowers and Merena, Teletrade, David Lawrence, Spink Smythe.
Larry Schutts