1972 pennies are significantly more valuable than 1932 pennies.

[Keleum]

Well, it's because

 

1,972 pennies is worth $19.72

 

But

 

1,932 pennies are only worth $19.32

 

 

Ok so now I got your attention. I stumbled across what i thought was an interesting paper published in 2005:

 

The data accumulated, analyzed, and presented here suggests a highly attractive complementary asset category that even with a small allocation provides good diversification for a well-diversified portfolio, and whose returns look impressive when compared against the fixed-income category and as an inflation hedge. In addition, capital and economic market conditions suggest that rare coins could exhibit above-normal returns compared with underperforming recent years.

 

Allocation of a portion of an individual’s portfolio to rare coins must be pursued with full appreciation for the non-income generating nature of this asset category and recognition that no profit-generating corporate entity stands behind it. Moreover, rare coins exhibit a relative lack of liquidity and potentially high transaction costs.

 

Rare Coins: A Distinct and Attractive Asset Class

 

I was surprised that it claimed that the rare coin market was an estimated $40 billion annual business.

[wayneherndon]

I thought this was going to be about 1972 DDO cents. I'm not so sure 40 cents is that significant anymore. Especially, when you then start talking about $40 billion.

 

When I see language like that you quoted, I generally consider it a pretty good sign the author has no clue what he's talking about (but knows he has to get his xxx-word article written by the deadline).

 

WH

[michael]

this guy is in encino and he has to write english for me to understand

 

 

based on all his bulla bulla and also he is in encino sounds like he moonlights for R&I coins

 

 

 

[DaveG]

This article was discussed extensively Across the Street several months ago. In my opinion, it is so mis-conceived as to be totally wrong.

 

The author uses a wholesale price guide (the Blue Book) for the first few years and then a retail price guide (the Red Book) for the rest of his data. (Gee, I wish I, as a collector, could buy coins at wholesale and sell them at full retail price!)

 

Basically, it's a silly exercise in calculating the differences between prices printed in a book, without taking into account any real world factors, such as transaction costs - which are big enough to wipe out one or two years worth of his estimated price appreciation.