Value of Rare Coins
Rare gold coins typically outperform gold bullion in times of economic distress and inflation. The value of rare coins can be tracked over the years using the CU 3000 index. This index uses the value of a set of rare coins worth $1,000 in 1970 as a benchmark. Today the index is well over $60,000 and has out performed the Dow Jones Industrials and the S&P 500 since its inception in 1970.
The value of rare coins does not so much depend upon their bullion value as their rarity and state of preservation. American gold coins are especially rare because of their confiscation in 1933 and the wide spread melting down of coins for the gold in the early 19th century. Because coin collecting was itself rare in the early days of America, there are very few well preserved old gold coins. An Indian Head Half Eagle from as recently as 1909 with a New Orleans mint mark is worth a million dollars in a 66 grade.
An unusual gold coin is the $4 Stella. All grades 60 and above sell in hundreds of thousands of dollars and a grade 66, 1880, Coiled Hair specimen can sell for as much as one million, four hundred thousand dollars. The Stella was minted in an attempt to facilitate United States international trade and travel and only small numbers were minted. The name comes from the star on the reverse and the inscription, One Stella. The coin was meant to be valued roughly the same as the Spanish 20-peseta, Dutch 8-florin, Austrian 8-florin, Italian 20-lire, and French 20-franc pieces, but the plan did not work out. For this reason, the coin was only minted in 1879 and 80.
Rare coins are treasured for both their monetary and their historical values. Investors who are careful and purchase quality coins are typically rewarded with beautiful and valuable pieces.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
