Identifying US Coins with Bullish Futures

Okay, let's get something straight? I do not advocate the purchase of United States coins strictly for investment purposes. Like most traditional collectors, I believe coins are to be primarily appreciated for their artistic beauty, historical connections, and the joy of pursuing them. However, it should be no secret that a significant number of us do add to our numismatic holdings while simultaneously peeking at the payback angle, too.

In truth, there are probably substantial numbers of traditional collectors who prefer to acquire coins destined to increase in esteem and value over time; treasured heirlooms and a source of pride to be passed from one generation to the next. On the flip side of this equation, it seems implausible that anyone would buy a coin with the hope or expectation to see it stagnate or decrease in value. Indeed, any commentator who suggests the words "investment" and "coins" should never appear in close proximity to one another is ignoring a heavily populated segment of our hobby.

Now that we've established that it's not numismatic heresy to seek coins with strong upside possibilities, let's get down to basics. The guiding principle is simple: Any coin that has demonstrated solid, consistent gains over a long period of time is likely to show continued growth in the years ahead. Easily said, but as we shall soon see, not so easily put into practice.

So exactly how does a one identify coins with a potentially bullish future? The best clues are revealed by analyzing the retail value trends over a long period of time for a given coin. Observing current prices alone does not yield enough information to correctly evaluate prospective price movements. What was the coin selling for two or three years ago compared to today? Dig deeper, and find the market price for the same coin 5-10 years ago. While you're at it, get something from 20-30 years or more in the past, too. The more good data researched, the more reliable will be your final conclusions. Now whip out your spreadsheet and chart the numbers, or compute annualized rates of return. Flat or negative trends are bad. Positive trends are good. Steep positive trends are best. Any coin displaying a proven annualized growth pattern of at least 5-10% over a span of many years qualifies as an attractive option for the collector desiring coins headed for much higher price levels a few years down the road.

During the course of my lengthy numismatic career, I've researched the long term value trends of most collectible US coins. Thanks to my trusty computer, I've calculated annualized compounded percentage return rates and honed in on a handful of coins that have consistently beaten the overall coin market averages. Unfortunately, the blue-chippers are scarcely encountered. Perhaps it is this fact that explains why so many well-intentioned hobby purists scorn the idea of blending coin collecting with the profit motive.

Individuals whose objective is to satisfy their numismatic pleasure by assembling a collection certain to be the envy of tomorrow's collectors must do their homework today. Remember to research historic value trends and evaluate growth potential based on previous performance. One last word of advice? never loose sight of the fact that you are handling artifacts of America's past, and that all of us are merely their temporary custodians. Respect these coins and the history they represent, and you'll always discover new avenues of adventure not found in most other investment opportunities.

Daniel J. Goevert is the webmaster of US Coin Values Advisor (http://www.us-coin-values-advisor.com), specializing in coin value trends and listing bullish US coins. Other offerings include detailed coin collecting advice plus an illustrated history of the United States and the US Mint.

---

Jewelry Making: Measuring for Bracelets Without a Tape

Your cousin's friend in Saskatchewan has asked you to design... Read More

My Greatest Stamp Find

I have been involved with stamps nearly my entire life.... Read More

Coin Collecting ? A Fun Hobby

Over the years, collecting coins has grown from being just... Read More

A Brief History of Candles

For centuries man's progress has been lighted by candles. However,... Read More

Beautify Your Stamped Cards with Creative Coloring

Stamping is one of the most versatile crafts around because... Read More

Christmas Gifts Kids Can Make

Christmas is a time of giving and receiving. Even kids... Read More

More Than A Memory- A Legacy

Everyone has that box of pictures either in a close... Read More

The Top Five Morgan Silver Dollars

Why waste everyone's time? Let's skip the appetizers and get... Read More

It is Possible to Create All Kinds of Items with Hobby Metal Casting

Hobby Metal Casting enables the home metal craft worker to... Read More

Use Order and Text to Give Life to Your Scrapbook

There are no specific rules stating that all photographs or... Read More

World Skills & Learning About Old World Skills

There was once a time when almost everyone acquired, or... Read More

Scrapbooking Ideas for Kids

Many times at auctions, or estate sales, a box of... Read More

Origami Instructions - Getting Started

The birthplace of origami is still a mystery. Paper was... Read More

Ever Wanted to Make Your Own Themed Gift Baskets?

If you've always wanted to know how to make your... Read More

Civil War Uniforms: 5 Tips on Making Your Trousers Last Forever!

Are your pants wearing out too fast?Does it look like... Read More

Faux Wax Seals, Tearing, and Fraying in Your Scrapbooks

Would you like to add more creative appeal to your... Read More

Woodworking Tools: Right Selection And Care Will Save You Money, Part 1

Woodworking: Tools Of The Trade, Part 1 - A Place... Read More

Saltwater Coral Reef Aquariums - 5 Tips for Success

Do you dream of watching the natural beauty of the... Read More

Step-By-Step Guide For Creating Collages and Other Unique Picture Frames

So you want to make a collage or perhaps you... Read More

Discover the Truth about Comic Book Collection; Nerdy Geeks or Shrewd Investors?

It is unbelievable when one says, yeah, I collect comic... Read More

Floral Arranging as a Hobby

Flower arranging has become increasingly popular as a hobby, for... Read More

Gemstone Collecting

Personally, I have become fascinated with gemstones (precious and semi-precious... Read More

Jar Lid and Jar Candle Decoration

Supplies Needed:Most items can be found around the house or... Read More

Working With Leather

This can be as simple & basic Or advanced &... Read More

Handmade Quilts are Made with Love and Make Great Family Heirlooms!

Today's handmade quilts are more like a work of art... Read More

Getting Rid of Messes and Mistakes in Your Scrapbooks

No matter how careful you are, you will undoubtedly find... Read More

Roasting Your Own Coffee - A Hobby You Can Love

There is nothing like a cup of coffee that has... Read More

Choosing The Right Mat Board Colour For Your Art Work

The framing industry has no books, no set theory, not... Read More

An Easy Way to Understand Your Collectibles

What kind of gifts you often receive? Is it toy... Read More

Decorative Metal Work Techniques From The Early 1900s

Today's Metal Craft workers should truly appreciate the artistic skills... Read More

An Interesting Look at the Cuban Cigar

Even most non-cigar smokers have heard some of the lore... Read More

Robotic Vacuum Cleaners: Perfect for Cleaning Pool Tables

A friend of mine bought a robotic vaccum cleaner as... Read More

Gourd Enthusiasm Growing Around the World

Gourds played an essential role in the daily life of... Read More