diego@cca.UUCP (Diego Gonzalez) (09/04/84)
When I initially looked into this net, there seemed to
be some concern for the low activity of the net group. I
hope I can spice things up for some of you who are
interested in collecting or investing (really the same
thing) in rare coins.
To begin, let me tell you that I am an independent
agent for the Dubin, Brown Rare Coin Gallery of Natick,
Mass. Mr. Charles Brown is one of the most respected num-
ismatists in the U. S. and is the principal buyer for the
firm. However, it is not my interest to pitch to you.
Rather, I would like to pass on to you any ideas about
coins that might be helpful when you are planning your
investments.
A few people were asking, I think, about investing in
the Olympic Coin sets put out by the Treasury Department.
There are some pros and cons. Certainly these mintings
have some intrinsic value, since they are made of precious
metals -- something which has been lacking in other recent
U. S. coinage. In addition, they will probably retain
some value as curiosities over the years. However, they
are not legal tender; in truth, the Olympic "coins" are
really commemorative medalions. They are being sold at an
above-face-value rate to raise revenue for the national
olympic effort. Since the games memorialized by the coins
are not special (savr the non-participation of some
nations) it is not likely that any unusual consideration
or demand for these items will occur in the future. Also,
because the coins are not currency, they are all "uncircu-
lated" and have essentially equal quality and value.
Considering these issues, the Olympic minting is prob-
ably not as strong an investment as are some of the rare
and proven past coinages. If you are considering the
Olympic coins, their aesthetic value and your support of
the Olympic spirit and cause should be foremost. For coin
collecting or investment from which you expect substantial
appreciation (remember that coins are relatively long term
investments, with a remarkable growth record), the rare
minted currency coins of above average quality are the
best bet. In another note, I'll try to cover the reasons
why.wmartin@brl-tgr.ARPA (Will Martin ) (09/11/84)
Nice to hear from a pro in the field. Could you post some comments regarding what the "resale" market on these Olympic coins will do after the government or the Olympic Committeee stops selling them? What will happen to the unsold leftovers -- will they be melted down or sold at a discount or scrap value on a bid basis to a large coin dealer or a salvage operation? Will the dealer community offer to buy these from individuals who want to sell them only for the precious-metal value, or will the artificially-high issue price have an effect of maintaining a higher sale value on these "coins"? Do you expect that these will be available for sale from dealers at some time in the future at a price higher than the metal value (of course!) but lower than the current issue prices? If so, how long will this take? (That is, will the value drop to this level the day after the issuer stops selling them, or will it take months or years?) How long do you expect this lower price to be maintained -- essentially forever (that is, only inflation will raise the price back above the original amount), or will they eventually become valuable enough that there will be a "collector's premium" raising the price, thereby justifying them as investments, albeit poor ones? And, while I'm asking you to predict the future, where will silver be next March? :-) Regards, Will