Is this coin worth it?

At a local store there is an AU 50 1909-S VDB Lincoln Cent for $975, with it's certification through NGC it's worth approximately $1250.00 according to NGC's Database.

WITH the market now, is this a good buy? Are they going up, is it worth it?

I'm looking at it as a long term investment. I am active duty military and I have to decide if this is worth it right now. I don't have much to spend, but this would definitely be considered an investment instead of buying silver for the rest of the year.

PLEASE PLEASE comment with the ups and downs and help me decide!

 

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NGC's guide to what the coin is "worth" is self-serving, or at least dealer-serving. It provides an opportunity for a dealer to say "look, I'm offering this at more than 20% off its real value!"

But if you turn around and try to sell the identical coin to a dealer, you'll probably be lucky to get $800.

The 1909-S VDB and the 1916-D Mercury dime are two of the most popular and famous coins in the US hobby, so they've done well over time. But "investment"? No way.

If you really want a long-term investment, buy a mutual fund or a dividend stock. And don't panic-sell it the next time there's a 20% correction. A few decades down the road, you'll be A LOT further ahead.

 

When is a good time to buy one of these, and would online be better than a hobby shop, or coin show? I am hoping to pick one up sometime, maybe not as a large investment, but definitely to have some equity.

 

I couldn’t add anything more to what @-jeffB said. Coins aren’t an investment vehicle. They are a fine place to store wealth. A very poor place to create wealth....... And one more thought from the cheap seats. The 09-S, VDB is a legendary coin to be certain. It commands the price due to its legendary status. Whether it retains that status is anybody’s guess. That said, I do believe that is a fair price for an AU-50 coin.

 

Why would he be under selling this coin by almost $300?
Isn't he in the business to make money?

 

You know how price guides are, 20% of that is a window, you should never expect to get NGC's projected price

 

He’s not underselling the coin. The NGC price guide often has little relation to market reality.

 

One more thought. This time of year merchants need to deplete inventory. Less they have on hand January 1 is less they have to pay taxes on. So you may be in a bit of a buyers market. If you are set on owning this one, he may very well consider an offer. I would make my offer with cash though. Don’t negotiate and pull out a card. That is poor form. Cards cost the dealer a service fee.

 

IMHO, it's a buyers market for a lot of coins as there is a slump going on. Dealers are happy to move some around higher priced coins, especially at this time of the year to raise needed cash. I see you are only 18 so if you could sit on this coin once purchased for 10 years or more, I personally would not consider it a bad addition at this time. The problem with the legendary status is just that and these are readily available in all grades from many dealers. When you compare mintage of this with other series, especially classic series and similar grades you will see a huge difference in prices. This is the most expensive of the entire series and dealers have long known that everyone wants one to make their series complete. If I had the money, even at my age I would buy this to finish my set. But the above advice is very good and I'm not arguing their points at all. If you are buying online, tread very carefully. This is only my opinion, you have to make the final choice.

 

And don’t get the not-so-bright idea of buying this coin raw. It’s often faked.

 

The Yeoman Red Book also has a 1909-S VDB in AU-50 listed at $1250.00. Regardless of the source, a price guide is just that, a guide. It's like the MSRP on a new car price tag.

If you are looking for an investment, no you shouldn't buy this coin. If you are a collector or want to be one day, yes, by all means buy it.

You have some serious consideration to do with yourself. If you do decide to buy this coin then consider this:

A) The coin is priced at $975.00 for a reason.
B) Yes it is $275.00 below NGC's guide but don't let that affect your judgment.
C) It is graded so you can look up the number for more information.
D) Ask as many questions as you feel are necessary to make a smart decision.
E) You can always make in offer lower than the dealers asking price. Be prepared for a counteroffer.
F) Only you can decide if this coin is right for you and your anticipated future needs.

What is going up today may be going down in a year or two. Don't let market fluctuations influence you into a buy/sell/hold decision.

 

It's NGC verified for AU 50 1909-S VDB so I was kinda leaning toward the authentic side, I had no question especially since reputable seller.

 

Thank you for the detailed response!

 

And if I were to say I would love to buy this coin for myself, don't let that influence you. I'm a collector, hence my name. I buy and buy and buy. I hardly ever sell, anything, especially coins.

 

110% agree.

 

Thank you everyone for your opinions. If I can talk him down to $800-$850 would it be better for a verified AU 50 1909-s VDB? I mean honestly, I plan to hold this for the years to come.

 

I doubt he'll go that low but a cash offer of $900.00 would be great! Like I said, make an offer and wait for a counteroffer. Then only you can decide.

 

Completely agree with @Collecting Nut ... Pull eight Benjamin’s out. Lay them on his counter and read his facial expressions. Have another in your other pocket if he counters your offer.

 

Is it attractive for the grade? Does it have nice even color? How much luster is showing, and how red is it? Not all AU-50s are the same. You have to buy a coin because you like the way it looks, not just for a potential uptick in value. If it's ugly, it doesn't matter what the price is - you will have a hard time selling it.

 

You're fairly new to the hobby, Colbie? Please, there's no shame so be honest.

I mean absolutely no offense, but I get the distinct feeling you're setting yourself up for a disappointment and is based solely upon what you've said in this thread.