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collecting strategically - Question re: future "investment" value
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<p>[QUOTE="calcol, post: 3160894, member: 77639"]You're right, Doug. </p><p><br /></p><p>For example, look at the 1867-S eagle. It's selling in AU50/53 for about the same absolute price ($6-8K) today as 20 years ago, which means it's value has declined because today's dollar is worth less than 1998's dollar. In 1998, a couple could buy a compact car; 3 would be needed today. In VF20-30 though, it's about doubled in absolute price (from about $2K to about $4K). So the VF coins at least kept pace with inflation. Only part of the increase was due to increase in the bullion value. The coin has about $550-worth of gold at today's price; about $130 at 1998's price.</p><p><br /></p><p>This coin is rare in any grade, and an expensive coin for most collectors even in VF. Demand for the issue may have increased, but fewer collectors could afford AU, so competed for VF coins.</p><p><br /></p><p>Let's look at a common date eagle, the 1881. In MS64, it's price has stayed at about $2K for the last 20 years. So its inflation-adjusted value has declined. In VF20-30 the coin was a little above bullion value in 1998, and that's the case today. So it's more than tripled in value and beat inflation. The "bullion floor" was sloped-up over the last twenty years, and that's what caused the more impressive value performance of the lower grade, common coin.</p><p><br /></p><p>[Coin prices above are from PCGS auction prices realized; gold prices from goldprice.org]</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>
[QUOTE="calcol, post: 3160894, member: 77639"]You're right, Doug. For example, look at the 1867-S eagle. It's selling in AU50/53 for about the same absolute price ($6-8K) today as 20 years ago, which means it's value has declined because today's dollar is worth less than 1998's dollar. In 1998, a couple could buy a compact car; 3 would be needed today. In VF20-30 though, it's about doubled in absolute price (from about $2K to about $4K). So the VF coins at least kept pace with inflation. Only part of the increase was due to increase in the bullion value. The coin has about $550-worth of gold at today's price; about $130 at 1998's price. This coin is rare in any grade, and an expensive coin for most collectors even in VF. Demand for the issue may have increased, but fewer collectors could afford AU, so competed for VF coins. Let's look at a common date eagle, the 1881. In MS64, it's price has stayed at about $2K for the last 20 years. So its inflation-adjusted value has declined. In VF20-30 the coin was a little above bullion value in 1998, and that's the case today. So it's more than tripled in value and beat inflation. The "bullion floor" was sloped-up over the last twenty years, and that's what caused the more impressive value performance of the lower grade, common coin. [Coin prices above are from PCGS auction prices realized; gold prices from goldprice.org] Cal[/QUOTE]
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