Peace Dollars

What's your opinion of them? Like 'em? Hate 'em? Ambivilent?

I've got to admit that the recent uptick in precious metal prices has renewed my interest in what is on the horizon for silver and gold. The Peace dollar, in many respects (numismatic considerations notwithstanding), seems like a bargain at today's values.

Call me crazy, but I've always thought the Peace dollar was an attractive coin. I know it plays a distant second fiddle to the Morgan, but common dates hardly seem worth 60% or so of comparable common Morgan dollars. I guess this is on my mind because I recently acquired a nice roll of 1922s for under $300, all MS-60/61/62 coins.

Speculators might advise against buying Peace dollars and recommend investing in something like the ASE if one is betting on precious metal prices going up. However, I like to "split" my risk by keeping potential numisatic benefits in mind. I can't help but believe that the Peace dollar will some day become a more desirable coin.

Any thoughts?

Thanks!

 

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I have always liked Peace Dollars. I will admit that Morgan's are my favorite series...but there is nothing wrong with the Peace Dollar and there is plenty of room out there for both. To me, there is nothing inferior about the Peace...they are just different than the Morgan.

In fact, an MS-60 or so 1921 Peace is one of my top "to get" coins in the nearer future, above any Morgan's. Not as an investment thing or anything...I just have a special attachment to that coin.

 

Coins are not investments, as the transaction costs are WAY too high. Would you buy a mutual fund with a 30% load? Of course you wouldn't -- and that's exactly what you'd be doing in speculating on these coins.

Furtermore, splitting risk also splits results. If you want to speculate in precious metals, there are far better ways, and frankly, if you want to speculate numismatically (almost always a BAD idea) there are better options.

That said, I've always liked Peace dollars. Asthetically, they are 1000% more attractive to me than the Morgan dollars. They have a lot going for them including their large size, gorgeous design, and availability in virtually all price levels. As a collector, you could do MUCH MUCH worse than collect them.

 

high relief peace dolalrs are the way to go baby

 

This is the prettiest one I'd ever had in my hand



http://aviva.mrbrklyn.com/images/peace_dollar_1922_obverse_aviva.png
http://aviva.mrbrklyn.com/images/peace_dollar_1922_reverse_aviva.png

 

Hmmm.....

Maybe the Peace dollar isn't the best example in this instance. Even if silver triples in value you'd likely see just a small profit, but I don't think the concept of buying coins for their collectibility and turning them for a heafty profity are mutually exclusive concepts. Take DEs.

Three years ago a common Liberty DE in high AU/low BU condition could be had for under $450. That same coin today will sell for well in excess of $800. A profit of $300 or so per coin can be easily realized.

I don't want to turn the topic away from the Peace dollar, but I do think coins can be a wise investment under the right circumstances.

 

Perhaps in the main, but I cite the example I provided above. I've personally witnessed it.

Maybe $300 per coin isn't much of a profit for some folks, but multiplied by 20 or 30 it could make a noticable difference in an individual's yearly income. Again, I'm not placing the Peace dollar into this category, and I'm not claiming that this is something a collector could do year in and year out, but it is certainly possible in a single year with careful planning, patience, and the right timing.

Moreover, I'm not suggesting that purchasing Peace dollars today would somehow make a collector rich over night. Quite the opposite. However, I do wonder if their prices are depressed, be it due to prejudice, short sightedness, or simply an inbred lack of enthusiasim from within the numismatic community.

 

Bigs,

Your example is proving my point -- the coin you used as an example IS a bullion coin, and the price increase is matches that of gold. Peace dollars aren't so lucky.

The basic rule of thumb, if you're going to speculate on bullion, is to purchase them for as close to spot as you can as to minimize transactions costs and maximize profits. Buying circulated double eagles (the single most-common US gold coins), isn't too bad, and one can buy other gold coins for less, but to burn 10 to 15% in transaction costs on both sides of the equation (as you would with Peace dollars, AT BEST) is simply silly.

Respectfully....Mike

 

Drats, GDJMSP beat me to the punch!

 

You've got me curios. Why, in your opinion and based on your experience, have Peace dollars never been that popular? They seem to be better looking then most of the coins made since then...

 

I collect peace dollars becasue I love the design and I like to be different then the norm. Most collect the morgans. I agree if you want to play the bullion market, silver rounds as cheap as you can buy them, that's always been the best bet. Buy coins because you like them and maybe the day that you have to sell them you'll gey lucky and one might be worth a lot more than what you paid for it.

 

I hope you don't mind my piping in....but in my opinion it is because most silver dollar collectors gravitated towards Morgans. This is due to (a) their larger supply due to the mint releasing them by the millions starting in 1962. (b) their availbaility in high grade relative to Peace dollars, (c) they are older, and (d) they are cheaper in the same grade.

So, the Peace dollar is basically second fiddle to Morgans, and always will be in my opinion....Mike

 

Darnit, now Tater beat me to the punch. I'm going to sleep.

 

Perhaps my approach is a bit simplistic to some, and it doesn't maximize the potential profit to be made versus buying and selling gold or silver bullion at the right time, but neither do I consider common DEs as bullion (Leadfoot), certainly not in the same category as the AGE. Perhaps it is merely a matter of perception as a coin collector, however jaundiced. To be sure there is an enormous potential intrinsic profit to be made off of bullion under the conditions that have existed as of late, but I'm not so quick to dismiss the potential numismatic upside of holding actual coins.

Historically we've seen the results of increased precious metal prices: Millions of coins melted for their value. The number of surviving examples decreased, their collectibility increased, and their value went up. No, I don't foresee gold hitting $2,500 an ounce in 2 or 3 years as some folks have predicted, but a marked increase in the price ($1,200 an ounce?) will undoubtedly encourage some folks to sell. Numbers go down, rarity goes up, value increases. Therein rests the rub.

This discussion, however interesting, is tangential to my original question: I'm more interested in knowing what the community believes to be the future of the Peace dollar.

 

Well, I doubt the Peace dollar will be coveted outside of the key dates. But, it still has value as "90% junk silver" with possible numismatic appreciation. I look at it this way, I can often find circulated Peace dollars for ~.50-75 over spot, while I often find Silver Eagles for 1.00-2.00 over spot. Peace dollar is a better value in the bullion sense (plus is older, maybe more numismatic potential, but who knows.)

But holding a lot of junky coins for silver investment is kind of survivalist-trashy-dumb, with storage/spread issues, so buy the SLV ETF.. that's so clean and easy.