Gold Dollars?

Today my question is about Gold Dollars, specifically the Sacagawea and Presidential Dollars. I've been collecting both for years, and pick up every one I come across. In reality, unless you have an "error" coin (Sacagawea 2000P Goodacre Presentation or the 2000P Boldly Detailed Tail Feathers), or the coin is in MS-65 condition, it's basically worth $1.00. Same with the Native American Gold Dollars. So, as a collector, it is worth it to continue to collect these Gold Dollars? I understand that after 2011 Presidential Dollars are not issued for circulation, only for numismatic sales. Any thoughts? Thanks

 

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golden not gold

 

I believe that only you can make that personal decision, which you make periodically for your personal reasons. If your asking whether there may be future financial benefits for your current actions, again, only you can determine the rewards. If you're asking whether the coins might monetarily appreciate in the future, I would guess not.
Are there other rewards for collecting coins, I believe that I, and many others viewing this site would answer yes.

I became a collector because saving seemed to be an impossible task, requiring great effort to implement others rules, who seemed to benefit most from my efforts. My efforts were selfish, so that I could occasionally have the funds saved to ride a Bus (or originally a street-car) to where-ever I needed, rather than walk, run, or pedal our only family mobile vehicle. Our family never had a motorized vehicle.

I eventually developed a habit of collecting (accumulating?) monetary "tokens", with which I hated to part. In my "spare time" between multiple full time jobs, and auditing classes for credit, I'd "sort" my "collection" as mental therapy to determine what was missing. To my current "significant other" chagrin, I still collect (accumulate?) in large containers, some of the items you've mentioned, crushed Aluminum cans, copper cents, state quarters, etc., until a "need" (at the behest of another) arises to "convert".

I no longer need to have change for a bus!!

Is there any benefit for you? There may be yet "unrealized benefit"!! Time will tell. JMHO

 

I think Doug's answer was perfect.

 

I agree. While I don't have the experience to know that collectors mostly lose money, I think collecting is not about making a profit but having an enjoyable hobby.

 

I’m collecting the Presidential dollars too; it’s an easy coin to get (the train ticket machines here in Seattle give them as change), they are attractive, and they are fun to collect for historical interest. I’m also holding on to Sacajaweas 2002 – 2008 when I find them, as they are NIFC like the 2012+ Presidents (Kennedy half dollarss 2002+ as well). For the Presidents I’m not even trying to get the 2012+ coins from circulation, I just ordered double sets from the mint: one to leave in its packaging and one to remove and put in the Whitman folder. I’m enjoying collecting them a lot, my only irritation being how quickly they tarnish and look cruddy in circulation. So, if you enjoy the coins like I do, yeah – it’s a great coin to collect!

If you are asking if you can expect a reasonable return on the coins as an investment, I’d say not likely in your lifetime. On a long enough time-line these coins will be worth something more than a dollar, but not in the foreseeable future. Remember that at one time Morgans were common and collectors were completely disinterested in them, but give it 100 years and now they’re very popular. Unfortunately the Sacs and Presidents have no PM in them but (and especially because they are so unpopular for circulation presently) eventually interest in them will pick up. I also keep Kennedy dollars and Susan B’s, not only because I love the Kennedy, but because they both had a relatively short run, are historically interesting, and everyone else seems to hate them so I don’t anticipate my great grandchildren will be finding a lot of them in their 7-11 change. I also figure that the speed with which the current dollars tarnish in peoples’ pockets will raise the value of well kept coins eventually.

But, again, I’m talking the very long run. Consider that the S&P 500, an index of 500 of the largest and most stable U.S. companies’ stocks, averages an annual return of around 11.7% over the last 80 years since its inception. If you took your roll of $1 Sacagawea coins worth $25 today and bought $25 worth of an S&P 500 index fund and reinvested any dividends with interest compounding annually in 50 years you would have $6,318.28 (=25*(1+0.117)^50). If you just kept it as a roll of Sacagaweas or Presidents you will probably have $25. If you are saving them for your grandchildren in, let’s say 150 years, your S&P index fund would be up to $403,567,306.30 (=25*(1+0.117)^150).

That’s assuming a constant 11.7% return, which I admit you won’t get from stocks, and people will argue that the 11.7% is wrong and blah, blah, blah, so let’s say that instead you put the same $25 into a certificate of deposit that pays 1% compounded daily. After 50 years you’ll have $1,262.56 in your CD (=25*(1+0.01/365)^365*50) compared to $25 worth of coins, and in 150 years you’ll have $3,787.69 in the account (=25*(1+0.01/365)^365*150). So to keep even with your humble CD earning 1% your grandkids will need to sell each of your dollar coins for $151.51. While that is conceivable, I don’t consider it likely.

So in summation, “is it worth it to continue to collect these Gold[en] Dollars?” Absolutely, it’s a lot of fun and cheap to do! But don’t do it instead of contributing to your 401K and other traditional investment vehicles; in fact if you want to collect them it’s best not to look at it as anything but entertainment or you may decide to stop collecting all together to instead lock in that guaranteed 1% interest.