Forgot your password?

Investing In United States Obsolete Coins

By Edited Aug 14, 2015 2 4

Using Money to Make Money Can Make More Than Cents

Turn a Buck on a Penny with Uncommon Cents

Investment grade indian head cent
Investing in United States obsolete coins is not a new fad. It's no freak accident that these coins are the most popular collectible in the entire world. Several reasons can be credited directly. One will be the simple fact that we have a scorecard. So many other areas of investing are confusing and it can be really hard to know what your really investing in.

With United States obsolete coins, there are known facts. The mintage number for instance. We know exactly how many coins were struck at the time of manufacture. This of course is only a jumping on spot as many post mint factors can come into play.

So what else influences the value of an obsolete coin, besides the amount made? How many are left is the next question. This one's not quite as cut and dry because of a million different unknown variables. There is the melt factor for obsolete numismatic items that are produced from precious metals such as silver and gold. Even copper coins have a significant melt factor.

When the price of metals goes up, obsolete coins are melted for their metal content. This reduces the amount of coins for that series, that would otherwise be available to the collecting and investing world. It also reduces the survival rate. This reduction can directly relate to the price, or value, for any given obsolete coin.

Another factor that can quickly change the value of investment obsolete coins, is a sudden blast to the market from some unknown hoard. This is one variable that we have no control over and hence exists the risk factor. 

Any series of United States coins, no matter how rare, are subject to becoming more common from a hoard being brought to market. Collectors have been socking away examples of United States coins since United States coins have been made. They all come out eventually. The best that we can hope for is that it doesn't happen before we've sold at a tidy profit.

This risk can be reduced by only investing in high grade, limited run coins. The earlier  years are much safer, when smaller numbers were minted and therefore you have a smaller chance of somebody having a lot of one type of obsolete coin. 


Silvers up again!

What a fun way to hedge against inevitable inflation

Morgan silver dollars from the US are not new to the investment world. They have been a part of many investment portfolios for years. Putting a couple of these away for a rainy day is never a bad idea.

Morgan silver dollars from the US are not new to the investment world. They have been a part of many investment portfolios for years.  Putting a couple of these away for a rainy day is never a bad idea.


Government Silver

Consistently on the Rise

When you consider the broad collector base for United States silver proof sets, you really can't go wrong with an investment in this type of numismatic product. There are people all over the world ordering these up and they sell out at the US Mint, just about every year. It's a supply and demand world we live in and this is something with a limited supply and a high demand.


My Oh My, What to Buy?

Remember, Just My Two Cents

The header of this paragraph may sound a little like a disclaimer and rightly so. I am in no way telling anybody, that they can make money investing in United States coins, or any other vessel for that matter. I am saying the possibility is there and with a little knowledge and some serious focus, the risk can be reduced and the chances of a prosperous return elevated.

One of the first elements to consider is rarity. How many high grade examples, of any given date and series, are thought to exist. Again, no matter how much time and research is expended, the answer is always going to be hypothetical. The previously discussed danger still exists.

Earlier minted coins such as the copper half cent series and also the copper large cents, are a great place to invest. There were only a few thousand made for some years and others have a few hundred thousand examples known. This affords the investor  a chance to get in on any level. All of the obsolete half cents and large cents are constantly rising in value with the arrival of many new collectors and investors entering the fray via the Internet. The available product is quickly evaporating and the market value for these coins is showing it.

When choosing a United States obsolete coin to invest in, there should be a good amount of time spent on picking a series of coin that has potential to rise in value. This can be accomplished by watching current and past eBay auction prices as well as watching the daily price changes at PCGS. This web site updates the value for all obsolete United States coins daily. It also lists highest grade known and estimated surviving examples. All relevant information to the investor about to enter the collectible coin market.

RS. Yeoman's Redbook of US. coins is another invaluable resource for investors to get instant mint numbers for all coins. This publication also lists a value for each coin. Redbook prices are only updated annually and shouldn't be used for investment purposes. Too many things can happen within a year to rely on their numbers. Use this book as a handy guide for mint numbers and relative value to other coins within the series.

Basically what you buy will depend upon the extent of the investment you have in mind. Obsolete United States coins offer something for everyone. United States Lincoln wheat cents can be bought for a few cents a piece, up to hundreds of thousands of dollars for a high grade 1909-S VDB. coin or the infamous 1914-D cent. Whatever series of coin you decide upon should be researched until you are the expert on that coin.


Silver Sets are Hot Right Now

Pile up a Few of These and the Pile will Grow Itself

1995 silver sets can be considered shares of stock. The value will rise as the stock is bought up. Get some today because tomorrow the price will probably be more.


A safe and Inexpensive Alternative

Forget the Silver Rounds and Art Bars

1877 Key Date Indian Head Cent

King of the Indian Head Cents

Investment grade indian head cent
Credit: dreamaker


Dec 1, 2011 11:11pm
Interesting article. I never thought of investing in obsolete coins.
Dec 4, 2011 6:29pm
It's a great way to hedge against inflation using the very instrument that causes the inflation, Money. Thanks for stopping by.
Feb 9, 2012 3:40pm
Great read on investing in US obsolete coins. These have been great investments for a long time but atm it looks like the chinese porcelain market is rising massively - only time will tell which is better i guess
Feb 22, 2012 5:40pm
That's a new one to me, the only thing I know about china is ming vases are rare and expensive. I'll have to check it out. Thanks for stopping by.
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money