Van Simmons: The best values in the rare-coin market today
From Ben Morris, Editor, DailyWealth Trader:
Most people don’t like their investments…
They would rather buy a new TV or take a vacation than spend the cash on 100 shares of a stock.
After all, you only enjoy a stock when its value rises… or when it pays you a dividend. The rest of the time, you probably wish you didn’t own it.
But that’s not the case with all investments. Lots of folks enjoy visiting a second home, for example, or working on an antique car.
Today, I’m sharing another “enjoyable investment” idea with you. With these assets, price appreciation is just one of the benefits. Fundamental appreciation is another… And it’s an important one.
Today, I’ll show you why you may want to consider buying rare coins…
You can invest with as little as a few hundred dollars… You’ll likely enjoy your investment more than shares of stock… And it could be the start of a profitable hobby.
Regular DailyWealth Trader (DWT) readers know asset allocation is the single most important factor in protecting your wealth in the event of a financial crisis. As we’ve written many times, smart asset allocation means diversifying your wealth across stocks, bonds, real estate, cash, and precious metals.
Rare coins fit into a different category. They often contain gold and silver… But rare coins are collectibles, like certain types of art, stamps, baseball cards, and autographs. If you’re interested and knowledgeable (or willing to learn a few things), collectibles are a great way to diversify your assets.
No one I’ve ever met – and possibly no one in the world – knows more about collectibles than Van Simmons. Van has bought and sold just about every kind of collectible you can imagine. He also co-founded the Professional Coin Grading Service (PCGS), which has certified more than 32 million coins over the last 30 years. It’s the benchmark for quality in coin grading.
Yesterday, I asked Van about the rare coins he’s most interested in right now…
It’s important for you to know that collectible coins are graded on a 0-70 scale. A score near zero means a coin is extremely worn. A score of 70 means it’s a flawless, “mint state” coin. (This would be an “MS 70” coin.) Scores above 60 (“MS 60” and up) are what many collectors look for. They are the rarest… and most appealing to the eye.
Van looks to buy coins that have a long track record of collector demand… but have fallen out of favor. This is where you find value in the rare-coin market. Over time, these coins tend to come back into favor and their prices rise.
So, where are the values today? I asked Van about both rare gold and silver coins. Let’s start with gold…
Van has two favorite collectible gold sets. The first are gold “Type” coins. As Van explains:
This is a group of coins that virtually every coin collector strives to buy for his collection. Collectors like to buy one of every “type,” or one of every variety. A set can include eight coins or more.
These coins are mostly available from the early 20th century, but also include gold dollars, struck from 1849 to 1889, and the $3 Indian, struck from 1854 to 1889.
Here’s an image of a gold Type coin from Van’s site, David Hall Rare Coins…
You can find a list of gold Type coins in the Training Center, below. Prices vary. But you can expect to pay at least $1,200 for a high-quality, MS 65 gold Type coin today.
Next, Van likes gold commemorative coins struck from 1903 to 1926. There are 11 different coins in the set. Nine of them are gold dollars, and two of them are $2.50 coins. Van explains:
I love these coins for a few reasons. First off, they have a long history of collector demand. Secondly, they have been slaughtered in price over the last five to seven years. I feel that at current price levels, they are a tremendous value play. You can complete a full set in grades MS 65-66.
Here’s an example of a gold commemorative coin…
Again, prices vary. But you can expect to pay at least $1,300 for an MS 65 gold commemorative coin today. In the 1980s, some of these coins sold for $28,000.
Now, let’s move on to rare silver coins. We’ll start with one of the most popular, most collectible coins in America. The Morgan Silver Dollar…
They were minted from 1878 to 1904, and in 1921. They get their name from a U.S. Mint engraver named George T. Morgan. Coin collectors like Morgan dollars the same way baseball-card collectors like Mickey Mantle cards. They’re classics.
High-quality Morgan dollars aren’t as rare as the coins above. But they’re rare enough, and popular enough to command a price of about $160 for coins in the high grade of MS 65 today. One of the benefits is they’re liquid (or easy to sell) relative to other coins.
For great values in higher-end rare silver coins, here’s where Van is most interested…
The rare silver coins that are called 19th Century Type coins have been the backbone of the rare-coin marketplace for more than 100 years. The entire area has been overlooked by the masses for the last decade.
The interesting part is some of the very rare dates or very high grades that are in the six to seven figures have done very well over the last 10 years. Big money has been buying the very high end of this marketplace, while the coins the majority of collectors and investors look to acquire have gone almost unnoticed.
I like the Barber series of dimes, quarters, and half dollars, struck from 1892 to 1916. I love the Seated Liberty coins. They seem so underpriced.
Here’s an example of one of the Barber series…
And one of the Seated Liberty series…
High-quality 19th Century Type coins sell for around $1,200 and up.
Lots of folks expect silver coins to be much cheaper than gold coins… And in some cases, they are. But remember, collectors pay for quality, rarity, and “eye appeal.” The metal content is far less important.
So be sure you love how a coin looks before you buy. You probably won’t be happy you spent hundreds or thousands of dollars on a coin if you don’t like looking at it.
Rare coins aren’t for everyone, just like baseball cards aren’t for everyone. But if you’re still reading, there’s a good chance that you’re like me in that you find them interesting and beautiful. So, if you want to enjoy your precious metals holdings, you may want to keep a small portion of them in collectible coins.
Van considers the rare coins above some of the best values out there today. They’re a good way to start (or add to) your collection.
P.S. If you’re interested in buying rare coins, other collectibles, or gold and silver bullion, feel free to give Van a call at 800-759-7575. He can help you choose exactly which coins will suit your needs best. I receive no compensation from Van or his colleagues for mentioning him. He simply has a great reputation, great insight, and a long history of treating clients (and Stansberry Research readers) well.