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Are the $2.50 Indian/liberty gold coins good to collect/ invest in?

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Hello,

I would also like to ask other collectors if the $2.50 Indian/liberty gold coins would be good to collect/invest in? I have a few in au-58-ms62. Thank you for your opinions and advice, sincerely, Dan

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Dan, we've told you, and we will continue to tell you. Collect what you like, and don't focus on rare coins as an investment. If you want to talk about bullion as an investment, that's one thing. But rare coins are subject to the ups and downs of a cyclical and whimsical market. We cannot, and most of us will not, give you investment advice about rare coins, because that is not the approach most of us in this community take to collecting.

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i think they are great to collect as a hedge

 

i would not invest in them but with a budget under 400 per coin you can get some good collector coins that are slabbed

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I agree with Physics but if you want an opinion on the financial merits of these coins, I will give you one.

 

No, I do not think that most of these coins are good SPECULATIONS (since they are not "investments" at all). Some might turn out to be but probably not most of them. I'm not familiar with the exact prices of the grades you mentioned or if these are the coins you actually have in mind to buy more of. But if this is what you intend to buy, I am almost certain that these grades are not "investment" material at all. The grades are too low for "investors" to buy them and many of the coins are either not attractive or not particularly so.

 

If they do go up in price, it would probably be more because of the price of gold and since the premiums on these coins are large over spot, you are probably just better off buying bullion.

 

I do not collect any US coins at all but whether it is US coins or the series I buy, selecting one with the express purpose of making money is about as likely as finding a needle in a haystack.

 

The reason for this is that until you start buying and collecting them, there is no way you (or anyone else) can possibly know the economic dynamics and collecting attributes of the series. And even after someone becomes knowledgeable, if the coins turn out to be "dead money" or in a bear market, the collector is still unlikely to make a profit or more than a meager one. (This is aside from the high transactional costs associated with most coins, which I would expect would generally be at least 20%.)

 

Many of my coins have increased in value because they are scarce, historical and/or desirable to the few people who collect them. But there is only ONE series where I have been able to consistently make money in buying and selling regularly. The others are only worth more because I bought them cheap several to many years ago but the gains (where I have them) are modest.

 

Think of it this way, making money through speculation consistently is very difficult. Many people only falsely believe that it is not and most people, unless they are the beneficiaries of a long term bull market or are able to exit timely as in the recently ended financial mania, LOSE money over a lifetime of speculation or make very little at it.

 

Given the pitfalls in buying coins, I would expect that the likelihood of the uninformed buyer making money in coins generally or any particular series to be LESS than doing so in an area like the stock market.

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Union of South Africa issued from 1923 to 1960. The reason I am able to do so is because I know more about them than most others. But offsetting this advantage is that I have to buy these coins sight unseen, sometimes with no pictures and the coins are usually not graded. The chances of any local dealer having anything worth buying are essentially zero.

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Most coin speculators (A.K.A. investors) don't put much stock in coins that "only" grade AU-58 to MS-62. Those are considered to be "collector grades." As such don't expect any hugh price increases any time soon.

 

The "action" is in MS-65 and higher grades, and most of the time investors are looking for larger coins, NOT dime sized pieces like quarter eagles.

 

I've collected coins for over 50 years, and I've done well with many series mainly because I've held them for so long. About the only things that are "dead" in my collection are modern Proof sets. They might get some play in the year they are issued, but after that, most collectors don't care about them.

 

Like others said, collect what you like and don't use coins as an "investment." If you want to play with bullion, play with bullion coins. Don't buy numismatic coins with the idea their prices will go up. Chances you will lose interest in them and decide to sell before the investment has become "ripe."

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I think this is a beautiful design, though the small size makes for a larger premium over bullion than contemporary larger size gold issues. The Bela Lyon Pratt design is a very short series with only one especially difficult coin in the group. Something to keep in mind with the Pratt coinage is that the mintmark is the only raised portion of the coin and, as such, will wear away much quicker than anything else. Therefore, even in high grade the key coin in the set (the 1911-D) might have a weak mintmark while only being minimally worn. In my opinion, a weak mintmark on a key coin makes the piece much more difficult to sell later. The remainder of the coins are fairly common, but you have to keep in mind that the manner in which these were produced did not give the coins the typical luster found on other series and many folks think these are quite scruffy below the MS63 grade. Therefore, I would love to purchase these in EF-AU for not much over bullion, but would stay away from high end AU through MS62 coins because I don't like the look and don't think the value is as high as might be in other series. Beyond MS62 you had better be fairly expert in the series to obtain nice, accurately graded original coins since the prices get very large very fast.

 

The Liberty quarter eagles do not face many of the problems of the Pratt deisgn, but this is a looooong series that few actually complete. Again, the premium to the bullion is quite large since it is a small coin and there are quite a few killer dates to obtain. This is quite an expensive set.

 

With a $400 or so budget per coin and a desire to buy classic gold, I would rather buy $5 Liberty coins or save up and purchase $10 Liberty coins. Of course, the $20 gives more bang for the buck, but not everyone wants to wait a few months between purchases.

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Several years ago, I was buying these up under $300 in MS-62 for all dates except the 11-D key. Today pricing has changed with the tougher coins bringing higher prices than the common ones. They are an attractive series, and the entire collection can be put together without breaking the bank -- assuming you can afford the 11-D which is a $10K+ coin.

 

If you decide to purchase these, I suggest that you start with the 1908-1915 dates because they are a lot tougher than those issued in the 20's and do not command much of a premium, and that could change if the series got "hot". There is a big premium between the MS-62 and MS-63, so if you become very familiar with these there is potential to upgrade MS-62's that may be undergraded. I was also successful in acquiring MS-62's in this series graded by ANACS (small holders), and all have crossed to PCGS at the same grade. The ANACS graded coins typically trade at a discount to PCGS and NGC, so you may want to pursue that angle to potentially get more bang for the buck. It's my opinion that ANACS (small holders) was pretty accurate when it came to grading gold, yet they still have the Rodney Dangerfield halo associated with them.

 

Hope that helps.

 

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I love the Pratt design however I would recommend that you purchase the Indian Quarter Eagle as a collectible rather then an investment. For this series of coin to be considered an investment you would need to purchase:

 

1) A Proof coin.

2) The 1914 in MS 63 or better.

3) 1911 D with a strong mint mark Ms 62 or better.

4) Any common date prior to 1925 Ms 65 or better.

5) The 1925 D – 1929 you would need to pick up an Ms 66 .

 

Now go look at the prices for these coins that I would consider a possible investment and you will see how expensive they are. Most investment grade coins are very expensive plus you are usually up against collectors with years of experience and deep pockets that will bid up the best coins.

 

Other then counterfeiting the biggest problem with this coin is surface enhancement with putty.

 

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