When this article was originally published, Atlanta Gold & Coin had recently spoken with several people who had inherited estate coin and currency collections and then learned that many pieces carried little or no value. That realization can be difficult, particularly when invoices from the original company suggested something very different. If these pieces were acquired strictly for enjoyment, with no expectation of a future profit, that is one matter. Yet, at the time of publication, many customers said their parents believed their collections were worth thousands of dollars. In one instance, a parent had told adult children that rare coins were being acquired to provide them with a meaningful inheritance someday. Unfortunately, only about half of those items had value. Through evaluating thousands of large estate collections, Atlanta Gold & Coin had identified seven recurring mistakes made by people acquiring rare or collectible coins. This article shared those observations in the hope that readers and their relatives could avoid mistakes regularly seen in estate collections.
Steer Clear of Privately Minted Commemoratives
At the time of publication, the marketplace contained an extraordinary number of privately minted commemorative coins. Private mints made commemorative and collectible products in many formats and sizes, with values that varied widely. Rounds, bars, and ingots made from precious metals retained some intrinsic metal value, but many pieces Atlanta Gold & Coin encountered were made from base metals such as nickel or copper and had very little value. Purchasing an item because it matters personally—for example, a 9/11 commemorative coin—can make sense as a personal choice. However, when the purpose is investment, the original article advised extra thought, because such items more often than not did not appreciate as buyers expected.
Be Wary of Promotions Outside Coin Publications
When this article was originally published, coin companies were spending striking amounts on advertising, particularly in magazines and circulars. Many employed professional advertising agencies skilled at creating promotions intended to prompt quick action. Advertising influences nearly everyone to some extent, but Atlanta Gold & Coin had found that coin advertisements appearing in publications unrelated to coins were often less than ideal. The items were frequently made by private mints or comparatively unfamiliar government mints, then packaged to appear more desirable. At the time of publication, advertisements in numismatic publications generally featured quality items; however, the article advised readers to pause before responding to an advertisement in the National Inquirer.
Exercise Caution With TV Promotions
At publication, By the original publication date, television had become one channel for marketing coins. Programs devoted entirely to coins, including Coin Vault, tended to offer quality numismatic material at reasonable prices. In contrast, coins and commemoratives presented through broad home-shopping television programs tended to be less impressive. Atlanta Gold & Coin had found that many offerings contained little or no intrinsic value. Even where an item did have intrinsic value, the price being offered was often substantially above what a buyer should reasonably expect to pay. Not every item from those programs was subpar, but the original article stressed researching carefully and performing due diligence before deciding whether a quality item was being offered at a reasonable price.
Avoid Limited-Edition Foreign Commemorative Coins
Rarity, or the number produced, is an important consideration in determining a coin’s or bullion item’s value. People are naturally drawn to scarce and distinctive pieces, and that interest generally supports a healthy rare-coin market. Still, a limited production number by itself does not mean an item will hold its value or rise in value later. Over the years before publication, Atlanta Gold & Coin had seen many limited-edition foreign commemoratives from obscure countries that most people could not identify on a map. If a collector had never heard of a country, or knew only vaguely where it was located, prospective future buyers might face the same uncertainty. Put simply, when the time came to sell, the market for that item could be limited.
Pass on Modern, Non-Precious-Metal Coins With Large Mintages
In earlier years, one mistake attributed to the U.S. Mint was producing too many nickel-copper proof and mint sets during the 1970’s, 1980’s, and 1990’s. At the time of publication, many of those sets were selling at substantial discounts to their original issue prices. Consequently, many purchasers would likely never recover what they initially paid. The original article noted that the U.S. Mint had responded by reducing production levels for many modern sets, which had helped some sets preserve value and, in certain cases, appreciate. Before treating modern commemorative coins or sets, whether issued by the U.S. Mint or another source, as an investment, the article recommended researching the quantity produced to make a more informed decision. These comments did not apply to modern gold and silver bullion coins, including gold and silver eagles.
Avoid Painted or Colorized Coins and & Currency
Colorful, attractive items naturally appeal to people, but coins and currency that have been painted or colorized are usually worth less than they were in their original form. Before publication, Atlanta Gold & Coin frequently encountered colorized Morgan dollars, Peace dollars, and American silver eagles. Painted Morgan and Peace dollars were typically handled by coin dealers as “cull coins.” In practical terms, they were valued similarly to silver dollars with considerable wear or damage. The difference between colorized and unaltered American silver eagles was not as large, but the original article said colorized eagles could be expected to bring less value. That difference became somewhat wider for lower-mintage or key-date American silver eagles, including those produced in 1986, 1994, 1995 and 1996, which can sell at substantially higher rates than common date silver eagles.
At publication, Review the spot price before acquiring precious-metal items
At the time of publication, Atlanta Gold & Coin, as a dealer buying and selling substantial quantities of gold, silver, platinum, and palladium coins, commonly checked the current spot price of the underlying metal before a transaction. Spot price means the current market value for one troy ounce of the particular precious metal. At publication, up-to-the-minute gold, silver, and platinum prices could be found on the homepage of our website or by visiting kitco.com. For someone purchasing a precious-metal item at that time, the article recommended first checking the current spot price. Some rare or numismatic coins had little connection to the current metal value, but understanding the underlying metal’s general value was presented as a sensible starting point.
Summary
In closing, the original article outlined seven approaches intended to help reduce losses in the rare-coin market. Privately minted commemoratives may be visually appealing or mark an important person or event, but the article cautioned against expecting significant appreciation. Coin offerings promoted through non-industry publications and television programming might also look appealing, yet the article stated that most were overpriced and rarely held their value. It further offered a general rule: avoid limited-edition foreign collectibles, especially those from obscure countries, because they could be difficult to sell later. For clad or nickel-copper sets, the article suggested looking for relatively low production levels, since high-mintage pieces tended to have limited staying power. It also recommended avoiding colorized coins and currency and checking gold, silver, or platinum spot prices before a purchase. Following these guidelines, the article said, could help readers avoid common pitfalls and support the assembly of an impressive, valuable rare-coin collection.
