• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

Archived

This topic is now archived and is closed to further replies.

Why are US coins so expensive?

Started by stinkycheese1,

27 posts in this topic

stinkycheese1

stinkycheese1

Posted
Posted

Why are United States coins so expensive? Especially gold coins, look at gold dollars, they have such a small amount of gold, yet sell anywhere from $300-500 dollars in high AU to low MS. Alot of other countries coins aren't *that* expensive I think. I really like britantias (sp?) they have brilliant gold coins and silver coins.

 

Do US coins carry some type of premium over other countries coins?

Link to comment
Share on other sites
MunkyMan95

MunkyMan95

Posted
Posted

Well, choice AU gold dollars can be had for darn near $200.

 

But anyways, the demand for US Coins is MUCH MUCH higer than other countries.

 

Think about a US coin from the late 1700's... Take the Fugio Cent for instance. You could get a nice piece of British copper from 100 years EARLIER (talking about late 1600's) for less than the price of that Fugio (MUCH LESS). I recently bought a Hungary coin from 1549. Only cost about $35! A US coin even close to that old would have cost me many multiples my $35.

 

So, the reason is demand for the US coins.

Link to comment
Share on other sites
James_OldeTowne

James_OldeTowne

Posted
Posted

I think that, as citizens of our great country, American consumers carry with them, always in the back of their minds, some kind of Capitalistic notions. Thus, even though coins are a hobby, often purchases are made with some speculation in mind, and so there's a willingness to pay a high price now, with the idea that there are profits to be made later.

 

I dunno, just speculating confused-smiley-013.gif!

Link to comment
Share on other sites
Dcoin

Dcoin

Posted
Posted

It may also have to do with historical factors. The US and its mint were created many years (more like centuries) after all the other countries and mints. By 1794 European mints were quite well developed and in full production while the US mint was just getting started. All this equals small numbers in production and a higher premium in price.

 

Another factor is that modern day Americans tend to have more disposable income than other countries. This leaves a little extra for things like collecting. Well, what are they going to collect? That’s right, American coinage. Put the two together and you have a recipe for an expensive hobby.

Link to comment
Share on other sites
DC Dawg

DC Dawg

Posted
Posted

The price of gold is $671, which has something to do with the base price of gold coins.

The price of silver is $13.73, which has something to do with the base price of silver coins.

 

Then there is the concept of supply and demand. For older gold coins, where the supply is low and the demand is high, the costs are more. In the case of what are referred to as "common date" gold coins, such as the 1923 double eagle, the price is a small premium over the spot price.

 

Other coins are priced based on supply and demand. For example, there is a low supply 1916-D Mercury Dimes (264,000 struck) but there is a high demand (I can't find one that I like that is "affordable") so the price goes up. Since the supply is not going to change, as the demand increases the price goes up.

 

Simple economics... supply and demand rules! headbang.gif

 

Scott hi.gif

Link to comment
Share on other sites
construct

construct

Posted
Posted

I would think the supply/demand issue is the key to the smaller gold coins that are mentioned in the original post. But gold dollars are not a particularly popular series, and there must be about 350,000 that survive (judging from QDB's type coins book). I can't really explain what drives the prices on these so high. Maybe a large number of these are problem coins. Maybe more people collect these by date than I was aware of. There's about $35 worth of gold in a gold dollar, and a Type III in AU-58 is going to run about $200.

 

Sorry, I'm rambling, but it's not adding up for me yet.

Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted

I think James and Dcoin are correct when they mention it has to do with American collectors and American collectors prefer American coins. If you look at modern NCLT from small countries, many are created specifically to cater to Americans because of Americans have a greater willingness to spend disposable income on collectibles. I think Americans have an effect on the "overall coin market" and spans many "market segments." In general, Americans are willing to spend more for many things relative to people from many other countries, not just coins.

 

The US did very well economically after WWII and the Cold War. It will be interesting to see how the US coin market does relative to coins from other countries as general US competitiveness to other countries changes in the future.

 

Also don't forget that a large percentage of American coin collectors tend to be older. Younger Americans do not seem to have as much affinity for collecting coins and there are a number of articles saying younger Americans are not as financially well off as older Americans (when adjusting for many things). Part of this is due to tens of thousands of dollars of debt from expensive American higher education. So as the older generation passes the torch to the younger one, there may be dramatic changes to pricing and demand for many US coins.

Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
Link to comment
Share on other sites
curly-migration

curly-migration

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif

 

 

You are correcto zoins...and let us not forget what America did for the world 63 years ago today.

Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
You are correcto zoins...and let us not forget what America did for the world 63 years ago today.
We should definitely not forget, but in remembrance, many people may long for the days of what America did and stood for 63 years ago. Many fewer are happy with America today, whether correctly or incorrectly. I wonder how many Americans have traveled in Europe over the last 7 years to see how many of those people, who were grateful to America before, feel about America as it affects them now. I think the opinion of America has dramatically changed for many foreigners over recent years with many of them giving great respect to the America of 63 years ago.
Link to comment
Share on other sites
BillJones

BillJones

Posted
Posted

Why are U.S. coins so expensive?

 

One word: DEMAND

 

The U.S. is one of the most affluent countries in the world. We have excess money we can spend on stuff like luxury cars, big houses, posh vacations and useless stuff like coins. 893whatthe.gif

 

As for the gold dollar, I'd say the "overpayment" relative to the melt value for those coins is nothing compared to stuff like early copper and early silver. Copper at last check was not a precious metal, and yet people will pay many thousands of dollars for rare varieties of large cents even when the coins are not a bit nice. I sat and just marveled at the bids during the recent EAC convention sale.

 

Most U.S. collectors are drawn to U.S. coins. That's why their prices are so high despite a lack of true rarity in many cases.

Link to comment
Share on other sites
michael

michael

Posted
Posted

demand

 

the key to any countries coins being more expensive to others is the fact that if there is huge demand in the country for their own coins then these coins will be more strongly priced

 

and of course with usa being one of the most powerful and richest countries in the world well this basically says it all

 

combine big demand inside the usa for their coins along with huge disposible income

and add in for good measure the two usa based grading services

and a current free exchange of information with regards to pricing and also many books even speciality books being published monthly on the usa coins

 

and great ease of liquidily for graded usa coins

 

this all heatrs up demand for usa coinage

 

DEMAND IS THE KEY

Link to comment
Share on other sites
WoodenJefferson

WoodenJefferson

Posted
Posted

American minted gold coins, private or government born are very hard to counterfiet and to pass on to unsuspecting buyers.

Link to comment
Share on other sites
michael

michael

Posted
Posted

usa early classic and gold coinage in the combination of the most historical and beautiful ever produced also contributes greatly to demand

Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted

stinkycheese1, since you like gold coins, don't forget that a lot of later date, circulated US classic gold can be had for essentially melt.

Link to comment
Share on other sites
MunkyMan95

MunkyMan95

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
You are correcto zoins...and let us not forget what America did for the world 63 years ago today.
We should definitely not forget, but in remembrance, many people may long for the days of what America did and stood for 63 years ago. Many fewer are happy with America today, whether correctly or incorrectly. I wonder how many Americans have traveled in Europe over the last 7 years to see how many of those people, who were grateful to America before, feel about America as it affects them now. I think the opinion of America has dramatically changed for many foreigners over recent years with many of them giving great respect to the America of 63 years ago.

 

It's Bush's fault. yeahok.gif

Link to comment
Share on other sites
MAULEMALL

MAULEMALL

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
You are correcto zoins...and let us not forget what America did for the world 63 years ago today.
We should definitely not forget, but in remembrance, many people may long for the days of what America did and stood for 63 years ago. Many fewer are happy with America today, whether correctly or incorrectly. I wonder how many Americans have traveled in Europe over the last 7 years to see how many of those people, who were grateful to America before, feel about America as it affects them now. I think the opinion of America has dramatically changed for many foreigners over recent years with many of them giving great respect to the America of 63 years ago.
893censored-thumb.gifem
Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
You are correcto zoins...and let us not forget what America did for the world 63 years ago today.
We should definitely not forget, but in remembrance, many people may long for the days of what America did and stood for 63 years ago. Many fewer are happy with America today, whether correctly or incorrectly. I wonder how many Americans have traveled in Europe over the last 7 years to see how many of those people, who were grateful to America before, feel about America as it affects them now. I think the opinion of America has dramatically changed for many foreigners over recent years with many of them giving great respect to the America of 63 years ago.
893censored-thumb.gifem
That might sum up the natural disposition of humankind. If so, the Chinese and Mexicans may be saying that eventually, with the help of some Americans that may be saying that today. Some American businessmen have felt that way about American consumers and workers in the past. Some may feel that way today.
Link to comment
Share on other sites
MAULEMALL

MAULEMALL

Posted
Posted
Because we are the greatest country the world has ever seen, anything America is popular, no matter what it is: movie stars, cartoon characters and even coins.
Don't forget cars and consumer electronics wink.gif
You are correcto zoins...and let us not forget what America did for the world 63 years ago today.
We should definitely not forget, but in remembrance, many people may long for the days of what America did and stood for 63 years ago. Many fewer are happy with America today, whether correctly or incorrectly. I wonder how many Americans have traveled in Europe over the last 7 years to see how many of those people, who were grateful to America before, feel about America as it affects them now. I think the opinion of America has dramatically changed for many foreigners over recent years with many of them giving great respect to the America of 63 years ago.
893censored-thumb.gifem
That might sum up the natural disposition of humankind. If so, the Chinese and Mexicans may be saying that eventually, with the help of some Americans that may be saying that today. Some American businessmen have felt that way about American consumers and workers in the past. Some may feel that way today.
I believe that Both Germany and France have both recently had elections where the Anti American parties where both SOUNDLY DEFEATED...Your argument has No merit and your point is Moot.

thumbsup2.gif

 

 

Now the important question is ,,,How is Paris doing 893scratchchin-thumb.gif

Link to comment
Share on other sites
Zoins

Zoins

Posted
Posted
I believe that Both Germany and France have both recently had elections where the Anti American parties where both SOUNDLY DEFEATED...Your argument has No merit and your point is Moot.
You think the primary reason people elected those parties was their pro-American feelings? If so, America does indeed have a lot of influence in the world smile.gif
Link to comment
Share on other sites
BillJones

BillJones

Posted
Posted
I believe that Both Germany and France have both recently had elections where the Anti American parties where both SOUNDLY DEFEATED...Your argument has No merit and your point is Moot.
You think the primary reason people elected those parties was their pro-American feelings? If so, America does indeed have a lot of influence in the world smile.gif

 

No, I think they looked at the riots in France, even AFTER the then French president took very anti-American stance, and came to the conclusion that controlling violence might require more than appeasement.

Link to comment
Share on other sites
cladking

cladking

Posted
Posted

The US has the most wealth per capita and largest middle class to provide the demand for collector coins.

 

This is, however, changing gradually. There are rapidly expanding middle classes in China and India. There is still growing wealth in Europe and this will likely expand to more and more regions as the new century progresses. Even Africa is expecting a torrid 6% growth rate for the foreseeable future. With their expanding infrastructure and improved educational opportunities they may prove to surprise a lot of economists.

 

Many of these newly wealthy people are buying coins of their own country but they also have an appetite for US coins often. Like most new collectors they don't automatically exclude coins of more recent vintage. They are finding that frequently the later coins are far scarcer than the older ones because they have been ignored, circulated, and (in many cases) melted.

Link to comment
Share on other sites
Conder101

Conder101

Posted
Posted
Just a thought.. even with 90% gold content, that's about 0.9 ounces of gold.. and gold is valued at approximately $670 an ounce right now. You'd think the coin value would be close to that, even with a horrible grade.

Double check your math, a gold dollar has closer to .05 oz of gold, not .9 oz.

 

Cladking has the correct answer. In general every coin sells best in its home country, and America is relatively much more affluent than most other countries so American have, relatively, a lot of money to spend on our American coin. If you look at other affluent countries you also find that their coins sell for a lot of money in their countries as well. Usually more than they do here because there are more avid collectors in their home countries. (But the affluent American collectors do tend to affect the prices for those coins as well.) You might think this would mean that you can get bargains for US coins overseas. Sometimes you can, but there are a lot of knowledgeable dealers out there who will buy up the choice coins and ship them back to their home countries

Link to comment
Share on other sites
World Colonial

World Colonial

Posted
Posted

Financially speaking, American coins are far more influenced by "investors" versus collectors than any other country which I believe is a better explanation than simply variances in income and disposable income.

 

Collectors outside the US seem to be willing to pay less for premium quality, even if they have the money, which is why the price differences on many or most world coins are much less than on US coins.

 

That is one of the primary reasons I collect world coins exclusively. Your money goes a lot farther and I believe the financial potential is much better because the coins are much cheaper and frequently much scarcer at the same time. (Whether this potential will be realized is a different issue.) True demand is less and usually much less, but because the supply is frequently also so much less it takes far less demand to push prices up. An example of a series with high global and not just local demand is high grade South Africa ZAR. Just take a look at recent prices from the Spinks, Stacks and Heritage auctions. Those coins have far outpaced most US coins since I resumed collecting in 1998. I just wish I had bought more of them.

Link to comment
Share on other sites
Go to topic listing