Intrinsic value of coins: a protection against inflation and some surprises for US and EU coins.
I came across this excellent site the other day:
that has the metallic values of most US coins. I was surprised to see that pre-1982 penny is worth its weight in copper right now, and was actually a lot higher 6 months ago, before the drop in copper prices. The older silver coins are many times over their nominal value as you will see.
When I did the math for some pre-Euro coins of the country I live (Greece – former currency was "drachma"), I was shocked to find out that a kilo worth of 1-drachma coins (minted 1988, 99% copper) has total nominal value of €1.10 but its price in local copper (black) market this summer reached €4.4.
Despite of this being an indication of the inflation that was imposed to us by the transition to Euro, I did some research on the metallic values of modern Euro coins and found out that 10cent coin has the best metallic value at the moment.
I would be very interested to learn the metallic values of all coins still in circulation around the world, before I begin my new hobby: coin collecting !
If you have any information, please post it.
That is an excellent site. Thanks for bringing it to the forum!
Chris also has this site listed under his, "Stay Current" tab in… "Resources"… Just wanted to point-out to everyone to please checkout the Resources section on this site, it is excellent and covers many different area.
Passion comes in many forms; as a collector our hobby is our soul. The investor or collector, many times the collector starts as a collector? You see very few if any investor sales in the UK and just a few in the USA of British coins. The investor becomes the hunter as he converts to become another collector. In your collecting life time there are only a few sales that have an impression, for me Slaney, Bridgewater House and recently the Brady groats will become a future landmark. Coins are mostly round and come round every generation unless lost, end up in museums or in collections that grows slowly – then you need to wait a little longer as we are just the lucky keeper in our lifetime and maybe the next generation.
Should we keep acquiring coins? A bland question, but not so easy to answer. Auction prices and results can be confusing. When prices rise then coins are brought to be sold at auction but we need to be aware that prices never continue on a straight upward line and fashions in collecting do change. Quality and rarity, this is today’s big issue to which we have the maximum gains in requirements by collectors. Prices at auction are increasing for quality at the auctions. The UK market has only a finite number of quality pieces, the British collectors are not like the US, they collect and sell less frequently.
British coins are spread over 2000 years and many denominations which gives the opportunity to meet everybody’s needs. One fact is undisputable; “quality” is paramount if you can afford to collect it. When scouring dealer’s trays and auctions these days we all chase the finest quality. The reality is that the quality items are few and far between and they are demanding premium prices. An inescapable truth is that there was always a dearth of quality coins.
The speed with which gold coins have once again gained a large number of followers harks back to similar patterns from the past – growth, absorption, stability for a few years and during this period there were a number of bargains to be had. To the area of Anglo Saxon there are many rare coins and mints and once again fashion is driving the market to new heights.
We should re-visit the period of the renaissance coinage and look at the period a little before. Coins with portraits have always been sought after. English or Scottish collectors love these pieces. The fortunate position today is those that collect gold in many cases do not have the same feeling for silver and base metal coins.
The pride, challenge, effort we go to have in our collections the ‘finest known’, the earliest knows specimen. Coins with a WOW factor, beautiful tones, wonderful strikes, designs that give you the feel-good factor. How do you explain to an individual this feeling of ‘love at first sight for a collectable? A coin is in fact what the artist was required to show, the ruler, magnificent, his achievements, his importance, in fact a medium used to disseminate messages to the people of whatever their Emperor, Caesar, King or Queen wanted to convey.