A lot of “collectible” coins really aren't that collectible. If you're looking to preserve wealth, consider the four qualities that make coins valuable …
(This article was originally posted on November 29, 2006, and has been updated.)
The US Mint over the past twenty years or so has revitalized interest in coins and coin collecting with the numerous special series that have come out.
Coin collecting and history
The 50 State Quarters Program began in 1999, and issued five state quarters per year, with different reverse sides on each one. Following that, the America the Beautiful Quarters series did it again beginning in 2010; it's scheduled to be done in 2021.
There is a lot of educational value in the release of these quarters, and they're fun to look at.
I personally liked the Presidential $1 Coin Program even though they reduced the production of the coins starting in 2012. The bicentennial Lincoln cents in 2009 and the Westward Journey nickels are also neat.
These modern coins are also easy to collect. Hundreds of millions of each of the quarters were minted. Collecting them can be as easy as checking your change from the supermarket, and it's certainly made coin collectors out of a lot of people. Filling up a map with $12.50 in quarters isn't going to break too many banks.
Four qualities of a collectible coin
If you take this collection to a coin dealer, though, they might give you $13.00 for it — map included. These coins lack most of the qualities that make coins valuable:
Rarity
When there are half a billion of something floating around, people aren't fighting over the available supply.
If there's only a hundred of something out there, and it's in demand, then it's going to be extremely collectible and people will fight — that is, bid against each other — to get them.
Age
A well-preserved antique is a view into the past.
Literally: “They don't make them like that anymore.”
Jefferson nickels are available now. Liberty Head “V” nickels, on the other hand, haven't been produced for more than a century.
All other things equal, older is more desirable.
Condition
The condition of a coin is a scale that answers the question: “How close is this coin to a perfect example?” MS70 is the highest grade; PO-1 is the lowest.
If today's quarters are MS65 (a relatively high uncirculated grade) then they might be worth 75 cents. Otherwise, they're worth a quarter.
Composition
The cost of the metals that make the coin also lends to collectibility.
US coinage used to be silver and gold. Not anymore.
Silver quarters are worth a lot more than modern quarters, even in rough conditions. Coinflation.com has the current melt value of these older coins.
An idea of what to do instead
So, even though these coins have neat designs, these aren't really the kinds of coins that compose a collection you'll want to pass on to your kids. They might be able to buy a Happy Meal with it in 25 years. A coin collection that stores value better has coins that are rare and in good shape, with precious metals like silver, gold, palladium, or platinum.
I hope that I'm way off on this one, but I suspect there are a lot of people who think that their state quarter maps filled with coins will be more valuable down the road. Given current monetary policy, it's almost certain that these collections will be worth less down the road. It's almost certainly better to pull the coins out, sell the map on eBay, and put the coins in a savings account or spend them.
If you want to a valuable collection of quarters, get some minted 1964 or before. The 90% silver composition makes the value of them about $2.50 each. The 1932D and 1932S are worth a lot more due to their rarity.
If you completely want to not even have coins in your possession, and just want to own some precious metals, then Saving Advice has a review of a service that can hook you up with a precious metals IRA.
Regardless, collect what you like
In the end, though, value isn't everything. Collecting should be enjoyable!
When I answer questions on my fancy serial number group — these are types of collectible currency — I often run across people who just plain like a particular number. Even if the number isn't terribly valuable, I simply encourage them to have fun and collect what they enjoy. (Who am I to say what's cool or not? I'm just one guy!)
In either case, if you're collecting for enjoyment or collecting for value, or both, you should understand what your motivation is, and approach it in pursuit of that motivation!
I started off with a fun coin collection but I ended up with one that was worth considerably more than face value. It's an open door to a viable way to preserve wealth.
I think he is trying to convey that "Modern Coins" are useless for preserving wealth. Or he is trying to dissuade people from coin collecting so he can keep all that rich booty to himself. Arrggh Matey!
Yup – the state quarter program has been fun.
Incidentally, I believe the South Dakota quarter is the first US coin to have four presidents on it. The New Jersey quarter is the other quarter that has Washington on the front and the back (crossing the Delaware). And the penny has had Lincoln on the front and the back since the Lincoln Memorial was put in on the tailside (yup, he's actually a speck in the memorial!).
I think one of the worst scams today are the home shopping networks hocking those state quarters plated with gold, silver, and platinum. Have you seen them on TV? "$600 value, yours for only ninety-nine dollars!" Buyers will NEVER, (repeat, NEVER,) get their money's worth back, and you may not even be able to spend them as loose change because some of them are a different color. $99 for less than 13 bucks worth of plated change.
I've been collecting coins since 1967 and am hoping for a resurgence in the hobby so I can perhaps stand some gains in my collection, which is mostly old silver coins.
http://1sttimeinvestor.blogspot.com
/2006/10/selling-precious-metals.html
Good article although I'm a bit late getting here! I echo the sentiment of your last paragraph.
I started off collecting wheat pennies as a kid. My collection has grown over the years and so has it's value. I think you should start coin collecting for fun, not for profit but a collection can certainly become very valuable over the years.
I thought you did a great job of hitting on the qualities that make a coin (or collection) valuable.
I hear what you're saying about the state quarters. I respect your opinion, but I think it may be too early to tell just yet what the future value of these may be. I'm sure in 1909, when the new wheat penny design came out, no one thought that the 1909-S VDB wheat penny would be worth a mini-fortune years and years down the road. Who knows what the future holds years and years down the road from now. Things have a way of changing. I guess only time will tell, my friend.
Mike Smith
The 1999 Delaware Silver Proof graded Ngc PF70 is already valued at over $6,000 and most earlier Silver State quarters will fetch hundreds. Also, the gold spouse proof coins graded PF70 by NGC and especially PCGS have increased in value substantially. The late 2008 and early 2009 versions are ending with production numbers in the 4,000 for MS and 7,000 for PF instead of the expected 20,000 limits. Making these modern coins very rare and desirable with the potential to dramatically increase in value within the next decade. Such as the silver eagles have, particularly the 1995 W NGC PF70 being valued at $20,000+ and it had a mintage of 35,000. So you are somewhat mistaken in stating that collecting modern coins is a waste of time if profit is what you seek!!!
Eddie is right. Modern coins with low mintages are fetching big bucks. Look at the 1997 W ms Jackie Robinson Gold $5 coin–easily 3k to 4k.
How about the 1996 D olympic silver dollars–paralympic, high jump, rowing, and tennis–all fetching $300-450. Any Silver dollar with mintage less than 16,000 and any gold coin with mintage of less than 6000 is a winner regardless of age.