Recent Auctions Prove Rare Coins’ Investment Value

Recent Auctions Prove Rare Coins’ Investment Value

January 17, 2014 - The decline in gold and silver values and the seemingly saturated coin market has not stopped lovers of rare gold coins from professing their interest via their wallets, as evidenced by a slew of recent auctions in which some coins far surpassed their estimates and previous auction prices. Just this week Heritage Auctions held an auction in Orlando, Florida, that saw a total of $7.87 million change hands.

Rare coin investors know that $7.87 million is a relatively small number for total sales at a gold coin auction, but in this case the 7-figure sum came from the sale of just two coins, while the overall auction netted over $55 million.

The elusive 1787 Brasher Doubloon gold coin, the first gold coin minted in the United States, sold for $4,582,500 to an undisclosed buyer. Heritage Auctions executive VP Todd Imhof said that only a handful of the hand-struck 1787 Brasher Doubloons exist and that the almost $4.6 million selling price for that coin was a record.

Heritage’s auction also featured the $3,290,000 sale of a 1913 Liberty Head nickel. The 90% silver coin has a somewhat mysterious history and was once the subject of an episode of the “Hawaii 5-0” TV show in the 1970s. Only five of the coins are known to exist and questions about how those five coins came to be have stymied numismatists and historians for decades.

While such large transactions are rare among investors because we usually prefer the lowest-cost coins so we can get the most gold or silver for our money, these auction results highlight the re-emerging trend of successful investors taking positions in the rare gold and/or silver coin markets to hedge against inflation and possibly gain leverage above the raw gold price.

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Shawn Penny

Senior Staff Writer - Rare-Coin.org

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