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