Appreciating Value

Do coin sets typically appreciate in value as time goes on, or remain the same? If they do appreciate in value, about how many years until it is anything noticable? Thanks

 

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Unfortunately, there is no general rule to follow for this question.

 

Hmm. Not the answer I was hoping for, but thanks Tom.

Second opinions?

 

that's about the best answer you're going to get. value is baded upon demand, and demand can vary from year to year. some coins may appreciate, some may depreciate, and some may stay the same. there's no hard rule to it.

 

I received a 1962 proof set in 1974 that probably cost $12 at the time. They don't cost much more than that now, but there's been A LOT of inflation during that time. A very poor investment, considering....

 

Supply and demand seems to be the rule of the game. Gold and silver prices also add or subtract from the price. Please take the time to learn about coins before you start buying or selling. We could probably help you if you would be more exact with your question.

 

More or less, I am trying to find a way to collect coins with a return on the ones i decide not to keep. I was hoping someone would say that I can sell a set 5 years down the road for a 20% profit.

I am a new collector. I am starting with Walking Liberty Halves, Franklin Halves, and also all the standards (Pennies, Nickles, Dimes, and Quarters to date). Thoughts?

 

The best thing you can do is to know everything about coins and the hobby-industry and even then there is no guarantee.

 

In my opinion, it is very difficult to make money collecting coins. Not everyone shares my opinion. Modern coins would require a low mintage and high demand. With older coins , you can never be sure how many are still around. High graded coins seems to be the only safe bet to not lose money. LOL

 

There are some hedge funds I could put you on to if you're looking for a 20% return. Wait a minute, those guys are now in jail....

Seriously, if your're looking for an investment return on coins you've really got to do your homework. And if you've got to do all that homework you ain't havin' fun. That's why I'm strictly a collector....:smile

 

There have been a number of Threads on this very topic. As many have noted what you are asking is perhaps the most difficult question in our hobby. I'll note that Franklin Half prices are quite depressed now. I had a killer set of those and just couldn't get a good sell price, why? because the dealer didn't have a market for them. Demand was way down.

Collecting coins to make a short term profit, is more like becoming a dealer. Even then dealers sometimes can't move certain products quickly enough to make the return they need.

A number of good Threads about becoming a dealer can be searched for also.

As far as advice....it's worthless but here goes......buy low and sell high.

 

It's not how old the sets are it's if they have toned. There's a guy on here working on a process to speed up the toning using a torch. Once he perfects it then he's going to be rich.

 

Value is based on so many factors, But at the end of the day its only worth
What someone is going to pay for it!!

 

Research, research and research is the key here. I collect primarily for pleasure, but I also try to select some coins based on potential to appreciate over time. I cannot imagine anyone who would want a collectible to decrease in value! Overall, coins are not the best investment but my serious investments are elsewhere. As a cherry-picker, I like to find that diamond in the rough and the hunt is a lot of fun. TC

 

The WL's will certainly increase in value.
And the higher the grade the better.
Franklins not so much, mostly because they are a more recent issue.
The other categories you mentioned are too vague to make much of a statement about.
But in general:
- older is better
- keys are better
- higher grades are better

Now having said all this, to me here's the overriding factor:
AT THIS TIME, although pre-1965 will continue to accrue increasing worth, they WILL NOT beat inflation.
Treat them as a pleasant diversion, not as an investment.
The Possible Exception: Coins costing 6-figures and up.

 

I would bet on the appreciation of pre-82 cents and nickels. Since the metal value is worth more than the face value, they must head north. Furthermore, China and India are growing very quickly, which is pushing up the value of base metals.

 

If there was anything producing a 20% profit every 5 years, it would be all over the news and everybody would know about it. I don't think you could find any investment making that kind of profit in the next 5 years. That is huge.

I have a MS-63+ Franklin half set going. I have about $540 in it with 9 coins to go. I'll be pusing $1k on this particular set by the time I'm done. When it is finished, how many people do you think are in the market for a MS Franklin half set?
First, how many coin collectors are there to begin with? Of that percentage, what fraction even like Franklin halves? Of that percentage, what fraction wants to buy an entire set up front? Of that percentage, whom of those collectors will be able to afford to buy the entire set they want? Of that percentage, what fraction will actually like YOUR set?

As you can see, the numbers get widdled down pretty fast for potential buyers if you want to be realistic. This goes for any full set.

 

I think you can add that they will go up with inflation though. They may not beat it but they will go up as they have in the past giving the impression that prices have skyrocketed. But in reality, prices will have skyrocketed for everything during the same period. Not just coins.

Popularity of the hobby has an affect too. Will that go up or down? Metal prices have an affect. Will investors panic and flock to the coin market, artificially driving prices through the roof again? Some day, it will probably happen again. As time progresses, newer generations forget the lessons learned of past generations. All of this is very unpredictable.

 

i stopped playing that game two years ago when I realized I was losing. I ended up having a bunch of half finished sets I wasn't interested in, that were not appreciating, some fully finished sets, that I put more into than were currently worth. SO I changed my approach. The only guarantee in coin appreciation is that if it is "rare" enough, and enough people want it, it will continue to climb in value. Like the 16-D merc and the 09 S VDB.

 

My observation has been that common silver and gold coins increase in value over the very long term because the underlying metal rises in price. And very high quality and truly scarce coins increase in value. Everything else is a crapshoot.