Money winners of 2008: Walter Husak cashes in on rare pennies

Posted Dec 14th 2008 9:40AM by Larry Schutts
Filed under: Deals, Entrepreneurs

This post is part of our feature on Money Winners of 2008. See all 20.

At one time or another, we have all dreamed of turning pocket change into millions. A California man actually made it happen last February, though, when he sold a collection of 301 pennies for $10.7 million. Of course, they were not just any pennies. The set contained virtually every variety and subvariety of U.S. cent minted in the classic period between 1793 and 1814. Van Nuys resident Walter J. Husak had been assembling his early coppers for 28 years and estimated that they cost him a little over $5 million. That is a lot for a coin collection, but it ultimately netted him a profit of close to $200,000 per year and that is a return anyone can appreciate.

As with any investment-minded collector, Husak was doubtless torn between the desire to put together a complete collection of early cents and the hope that they would increase in value. He chose the path that usually finds the best equilibrium between aesthetic satisfaction and monetary gain by going high end. He acquired attractive specimens in the most advanced grades possible, very often locating the finest known examples of given varieties. That led to ownership of coins like the 1793 and 1794 "about uncirculated" specimens shown below, which sold for $632,500 each. The pictures are from the Husak Collection catalog, produced by Heritage Auction Galleries.

Husak began collecting coins at the age of twelve, showing early acumen when he bought six Indian head pennies for $12 and then immediately sold the single valuable piece for $15. He disposed of his early collection to buy a car and make a down payment on a house, but re-entered the hobby in 1980 with the purchase of an 1804 large cent. His aerospace business subsequently prospered, allowing him to pursue all the penny varieties generated by the variable early American coin making process. He managed to acquire all but three, and then hung on to them, sparking feverish demand from an avid collector community that had not seen many of the rare types for years.

The need to pay off some real estate debt finally led to Husak's decision to sell and he admitted that he was "scared to death" of losing money on the collection. He need not have been. The Heritage sale represented a one-in-a-lifetime opportunity to bid on many of the coins, and quite a few realized multiples of previous records. There were no breaks for family members, either. Husak's daughter, Trina, was a bidder and reportedly paid about $20,000 for the two coins she won. Wife Patricia was said to have put the entire experience into perspective by noting that her husband would probably start collecting something else.

Way to go, Walter! Investment-oriented collectors salute you.

Be sure to check out more Money Winners of 2008.

Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store. He writes a column for BloggingStocks on Collectible Investments.

Tags: coins, collectibles, featured, Heritage Auction, Money Winners 2008, Walter Husak

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Reader Comments (Page 1 of 3)

12-12-2008 @ 7:32AM

Amey said...

are pennies after 1950 worth more than face value yet?

12-12-2008 @ 8:43AM

Lars said...

Amey;
yes they are, some like 1955 double die in good shape is worth hundreds

12-12-2008 @ 9:03AM

jeff said...

i am an investment coin dealer and it is my hope that next year all one cent coins will double or triple in value when new one cent coins are issued for the bicentennial of abraham lincoln.already the coin industry is increasing their costs because of the new influx expected of new collectors and people who are going to reenter the hobby next year when these new designs are released.i personally have purchased over a million wheat back coins in the hopes of doing what i just stated.if i am wrong its been fun and i have no regrets.

12-12-2008 @ 9:49AM

BLANCHE said...

Were pennies ever a diff. metal?like silver? Are JFK coins or Eisenhower silver dllrs worth more?

12-12-2008 @ 9:21AM

Patricia said...

I am really happy for Walter, I to have old money years from 1862-1939, but i found most of them, how can i check its worth

12-12-2008 @ 9:23AM

MALOLO said...

I have a giant water bottle cooler filled with penny's that we have saved since we were married 41 yrs ago,never checked any datesI wondered what to do with them?

12-12-2008 @ 12:24PM

BRIAN B said...

FIRST PENN. PRECIOUS METALS IS PROUD TO BE A PARTICIPANT IN LARGE COLLECTIONS OF PENNIES AND OTHER IMPORTANT COIN COLLECTIONS LIKE THE HUSAK COLLECTION...IF YOU HAVE QUESTIONS ON ANY COINS DO NOT HESITATE TO CALL OR EMAIL ME AS WE ARE NATIONALLY RECOGNIZED NUMISMATISTS!

215 674 5910
FPPMDIAMONDS@AOL.COM
25 EASTON ROAD
WARRINGTON, PA 18976

12-12-2008 @ 9:39AM

Chrissy Pat said...

Where do you go to see if your coins are worth anything?

12-12-2008 @ 9:44AM

Ben Donatelli said...

How about a 1944 US Bond booklet filled with 25 cent stamps but never cashed in ?
Does it have any numismatic value ?

12-12-2008 @ 10:04AM

Breaker515 said...

There has never been a penny minted by the United States Mint - ever. A penny is an English coin, originally made from silver, that, until Britain changed to metric coinage, never had any comparable value to the American CENT. The gentleman sold a set of United States large cents, a coin about the size of a quarter and made from copper.

12-12-2008 @ 10:44AM

Allan said...

For Blanche.....yes there were steel pennies in 1943 because the copper was needed for the war effort

12-12-2008 @ 10:46AM

bob seda said...

I recently got a hold of a 1832 penny with a hole in . Seems like it might of come from a bullet . Is there any history of anyone using it as a target,game ,etc?

12-12-2008 @ 11:13AM

Bill Copeland said...

I have over 250 mercury head dimes and 95 Roosevelt dimes. I know nothing about coins and looking at selling them for $350.00. Do you see anything wrong with this thinking?

12-12-2008 @ 11:30AM

jan wickline said...

i collect rare coins , but never gave a second thought to the possibility of finding one worth a big payday. im going to be looking alot closer at them , thats for sure

12-12-2008 @ 11:33AM

janice said...

I have a mercury head dime minted in the early 1900 do you think it is worth anything?

12-12-2008 @ 11:43AM

Darrell said...

That's what's wrong with me-lack of patience!! I could've been in like manner.

12-12-2008 @ 11:52AM

jonathan c said...

where should i go to check out the value of those rare coins/?

12-12-2008 @ 11:58AM

Dave said...

To Blanche: Since first minted pennies have consisted of numerous metals. They started in copper but rising prices in copper have forced other metals such as zinc to be incorperated. In 1943 pennies were minted in steel as to save copper for the war going on. The penny may soon be eliminated because it is costing more to mint now than its acual value. The answer is yes to your silver dollar question. Coins have two values one is for there prescious metal content and the other is demand value. So any coin containing silver or gold will always have a higher value.

12-12-2008 @ 12:08PM

David said...

It is nice to see collectibles increase in value and I am sure it was fun for someone with $5Million to spend on pennies. The writing of the article, though, stated that it was a good investment. I disagree. For an investment of $5Million over 28 years, doubling your money is not that good of a return.