With
the economy's woes over the last few years one thing that may or may
not be surprising is that the demand for coins has remained strong.
There have been some price corrections, but as a whole the prices of
rare coins have done very well.
One
of the biggest factors for coins doing well is the fact that many of
them are made with precious metals. Gold and silver are primary
metals that many coins were made of for years. With the prices of
gold and silver rising over the last few years it has also brought up
the prices of rare coins. Silver quarters that were worth $1-$1.50
each are now worth around $4 each just based on their silver content.
Common silver dimes, quarters, halves, and dollars have all
experienced price increases because of silver being worth more.
Equally,
gold coins have done very well. A typical $20 gold coin that was
$300-$350 in the late 1990's is now $1500-$1650. But the metal
content is not the only rise that common gold coins are experiencing.
Lets look at a $20 Saint Gaudens as an example. Years ago a nice
uncirculated coin (MS-63) would typically bring about $75 over the
spice of spot. Today that same coin trades at $250-400 over the price
of spot. Not only is the gold worth more, but the premiums are up as
well.
Rare
date dollars are a good area to look at for price corrections. I will
use the example of an 1879-CC Morgan dollar in MS-63. At the peak of
the market this coin was worth $6,500-$7,000. Today it is worth
$5,000-$5,500, but if you look back just a few years further it was
only worth about $3,000. Yes the price has corrected, but it still
worth much more than it was about seven years ago, and today the
market is holding firm.
Prices
of rare coins are good news in our economy today. With those looking
for extra cash, selling coins or a coin collection is a great option.
The coins are generally worth more today than they were 5-10 years
ago, and that is a great thing for those who need cash. Many
collectors that were buying coins over the last 20 years are now able
to cash them in for hefty profits. The proverbial “rainy day”
saving of rare coins is paying off.
Just
as interesting is that many are actively seeking rare coins
as a way to store value. Over the last 20 years many collected out of
excess, but today are buying coins as a way to preserve value. Demand
for rare coins remains very strong.
The
market today is experiencing a nice balance. Which way the pendulum
will swing from here is yet to be seen, but for right now it is a
great time for buying or selling.
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