Rare Coin Investing
May 16, 2009 - Right now the big news in rare coin investing is this silver dollar, one of only fifteen known to exist, in a series created for such world leaders as the King of Siam and the Sultan of Muscat. The coin itself, an 1804 silver dollar, has an interesting history having been purchased by Texas publisher, coin collector and American Airlines co-founder Amon G. Carter for a mere $3,250 in 1950. It eventually found its way into the hands of a private coin collector who sold every last coin in his collection including this one to build a church in Ohio. At the last auction where the uncirculated coin was sold, it fetched a mind boggling price of a cool two million.
So of course, hopes are high for the coming sale of coin at this month's Cincinnati, Ohio coin auction. Large figures are being thrown around with the sale at least expected to top the previous winning bid of two million. Joe Barret, co-owner of various Rare Coin Gallery shops throughout Cincinnati, said of the coin and the convention "For coin people, it doesn't get any better than this. For young collectors, this is an opportunity to see things they wouldn't get a chance to see otherwise." going on to compare the event to a film buff visiting a museum of film with a favorite star as their tour guide.
For the everyday investor in rare coins, two million and up may seem a little steep pay for a single coin. Certainly the winning bid will most definitely be offered by a multi-millionaire who happens to be well seasoned in the art rare coin investing. Still, that doesn't mean that the rest of us can't get excited at this incredible scarcity going up for grabs, even if those of us still coming up in the world rare coin investing may have to stick to our relatively modestly priced pieces.
That said, if you can easily afford such a rare piece you would have to have gotten out of the wrong side of the bed that morning to bypass such an opportunity. Over a half century this coin has gone from just over three thousand dollars to the multi-millions, nearly one thousand times its original price, so you can certainly expect the coin to be worth significantly more a few decades from now. Simply put, this is one of the rarest and most valuable known coins in the world right now, and of course when you make a buy, prices do not tend to decline over time, as they cannot, somehow, become less rare, in that they are limited to their original mintage numbers (a mere fifteen in this case).
And of course even if the two million dollar coins are a tad bit out of your price range it's still always worth it to go to these coin conventions and auctions if you can. The simple fact of the matter is that when looking into rare coin investing you can find some great opportunities at these events. Understandably, we can't all book a flight to Cincinnati every time we hear that Heritage Auctions rolls into town but if you're in the area it's always worth a drive to see what you can find to add to your rare coin investing accounts.
Of course, whether you choose to visit auctions or simply buy through online dealers, either way you're providing yourself with a solid backbone for your finances. Just make sure that all of your coins are certified authentic, as even if you can ascertain for yourself that the coins are in fact the real deal, most buyers simply won't take your word for it and will insist upon seeing some verification in the form of a written certificate of authenticity.
So our advice is; visit a coin event be it a convention, an auction or just a public showing if you can, as it truly is a wonderful experience. Simply being there and observing the incredible rarities on display, not to mention the fun of sifting through the miscellaneous boxes in hopes of finding a hidden gem, makes it worth the trip and can only serve to reinforce your passion for collecting and investing in numismatic scarcities.
Arthur McGuire
May 16, 2009
