How does one go about “investing” in coins? The goal of Investing is to make money on coins rather than enjoying the thrill of putting together a collection of a certain set.
There are probably three ways of investing in coins and precious metals. The first is similar to collecting; one has a great deal of money invested in a complete set of Morgan dollars, for example, even though the collector doesn’t think of his set as an investment. The state quarters have gotten many people interested in coin collecting. Perhaps some went back and collected many of the early silver quarters, those before 1964. As silver goes up and down in value, so does the value of their collection.
Any silver or gold coins are good targets for buying or putting back as an investment. U.S. silvers coins are 90% silver. In a Morgan dollar, there is 71.5% of an ounce of silver. Put ten of these away, and you have seven plus ounces of silver. For those in a hurry, currently a $1,000 face value of U.S. silver coins will cost you about $23,500. Put a bag of those away, and watch your investment grow as silver goes up.
There’s another way to invest in silver. Twenty five years ago. The mint began to produce one ounce, 99.9% silver coins, called the American Silver Eagle (ASE.) These are beautiful coins, with the obverse featuring the “walking Liberty” from the old walking Liberty half dollar. Prior to this, investors and collectors were limited in their sources for buying silver.
Because these are also “coins,” though not used for circulation, they have also caught the eye of collectors. Five different versions of these were just released in the 25th anniversary set, with the issue price of $300. Because only 100,000 were produced, prices immediately doubled and tripled. The 2011 ASE’s not included in the set can be purchased for about $38.50 from the mint or coin dealers.
Both of these methods allow you to actually “hold” the coins. A third way to invest is through the purchase of EFT’s, or exchange traded funds, in gold and silver. These are only “paper” investments, though, and are riskier. Obviously, my articles focus on coins you can hold in your hands!
Want to learn more about the fascinating hobby of coin collecting? The Brown County Coin Club meets on the second Tuesday of each month, at 6:30 pm, at the Austin Avenue Church of Christ. There’s probably at least one club member who shares an interest with you and would encourage you. Get involved in making your own unique coin collection!
The Brown County Coin Club hopes to see you on December 13, at 7:15, for their next meeting. Call Bill Cooper at 325-642-2128 or me, Bob Turner, at 325-217-4129 for more information.
