The Insider’s Edge
Volume 1- Edition 4
Hello and welcome back,
We hoped that you enjoyed the last edition of The Insider’s Edge. We continue to receive excellent feedback from our readers. We know that we’re biased, but we believe that this newsletter compares favorably to any other investment newsletter in the hobby. This being our forth edition, our Find Me One column still has not brought a single coin out of the woodwork. But, that will not stop us from posing the challenge again this month. We are not giving any hints about this month’s featured coin, but it is deceivingly rare. As usual, this issue will contain some more great investment advice. In Blue Chip Picks, Robbie Jenkins exposes a rare copper coin that many collectors have overlooked. Exposing the Myths continues to work through our list of the 10 Myths of Coin Investing, selecting another one for detailed discussion. Finally, we will feature a special interview with dealer extraordinaire, Julian Leidman. With over 40 years experience as a professional numismatist, Julian shares with us an insider’s perspective of the coin business. Needless to say, this is not an issue to be missed!
Market Report
By: Robbie Jenkins
The rare coin has remained active throughout March and April, in the face of an uncertain economy and record energy prices. Tax season has passed, allowing many collectors and investors to refocus on the numismatic sector of the market. The decline in precious metals prices over the past month has temporarily taken the spotlight away from gold and silver bullion. The Central States Numismatic Convention was very active. Most dealers reported a great show, with strong demand for fresh material.
The Central States Heritage Auction produced astounding results, highlighted by the sale of the Queller collection of Silver Dollars. The centerpiece of the sale was a Class I 1804 Dollar, the “King of American Coins.” The first Class I 1804 Dollar auctioned in nearly a decade, the NGC PF-62 example realized over $3.7 million. This is the second highest price paid for an 1804 Dollar. This result vaulted the coin into the top 10 for prices paid for a U.S. Coin. In total, the auction realized over $44 million, nearly double the results of the 2007 Central States Auctions. Some other highlights from the sales included:
1802 Dollar PR-65 CAM PCGS - $920,000
1870-S Dollar XF-40 NGC - $805,000
1839 Quarter No Drapers PF-65 NGC - $517,500
1794 Dollar AU-58 NGC B-1 BB-1 - $488,750
1871-CC $20 Double Eagle MS-64 NGC - $414,000
There are many wealthy individuals taking positions in rare coins. They view coins as inexpensive when compared to other collectibles such as rare art and antiques. Additionally, the cooling off of precious metals has resulted in some profit taking, freeing up some cash to direct toward rare coins. One area to monitor in the upcoming months will be how the coin market interacts with the volatile precious metals market. At present, many numismatic areas continue to be red hot, with associated weekly and monthly price increases. Early U.S. Type remains active. Choice pieces from most early series are seeing aggressive action. Nearly all copper coinage is hot, as well. Advanced collectors/investors continue to chase registry-quality Large, Indian and Lincoln Cents. Morgan Dollars are once again seeing activity after a temporary cooling-off period. Both high grade generics and better date dollars have seen price increases in recent months. However, generic gold is considerably lower this week. Since these coins derive much intrinsic value from their bullion content, this correlation is to be expected.
As stated earlier, metals prices have taken a sizable hit over their last-month highs. As of this edition, gold is trading at $865.70 per ounce, with silver at $16.57 per ounce and platinum at $1,955 per ounce. This downturn has occurred in the midst of several factors:
· The U.S. Dollar has recovered fairly significantly against European Currencies over the past month.
· The Federal Reserve lowered interest rates another quarter point last month, but indications were that this may be the last rate cut for some time.
· The IMF and some central banks have sold or announced their intentions to sell quantities of gold, adding supply to the market.
These factors have temporarily shaken investor confidence in metals. While some are still buying at the lower levels, others are cashing out and taking profits. There are also those in a holding pattern, waiting for the next trend to develop. One factor still lending support to the precious metals prices is the record price of oil. At over $120 per barrel, the impact is not only at the pump, but in the increased prices of many other goods and services. The summer months will prove interesting for precious metals, as competing factors will push metals prices in opposite directions. Which influencing factors will prove strongest? Only time will tell.
Exposing the Myths
By: Rob Lehmann
The neophyte (and some veterans for that matter) may not fully understand how to begin buying rare coins. They are faced with a myriad of decisions, including where to source coins, which pieces to buy and how much to pay. Dealers bombard them with information, much of it accurate but some not. The purpose of this column is to address some of the common coin myths. This month we will dispel another common misconception.
The secret is buying my coins direct. I can’t afford paying a middle man mark-up.
Fact: People like to save money. Investors are especially prudent when it comes to this area. Dot the i’s and cross the t’s.
Fact: Rare coins are extremely specialized. Knowledge is power, and you are not going to gain the knowledge necessary to profit from the rare coin market overnight. There is a learning curve. The insiders have been at it for years. Some have been doing it for decades. A knowledgeable numismatist has probably forgotten more about coins than the neophyte investor will learn in their first year.
So then, should the prospective investor sit on the sidelines until they have enough of a knowledge base to proceed? Or, it would it be wiser for them to start taking advantage of opportunities that exist immediately, and reaping potentially huge profits from a very bullish coin market?
Enter the numismatic advisor, portfolio manager, comrade dealer or whatever title you wish to assign. This is your insider, your meal ticket to the rare coin market. Without this person, you are simply a fish swimming upstream, and in a stream full of piranhas.
Here are some examples of the types of information that your inside liaison can provide you with, information that can make or cost you thousands of dollars:
1) Did you know that PCGS and NGC actually grade coins in certain series differently? Knowing which coins and understanding the associated value relationships is the key.
2) Are you aware that two coins in the identical grading services holder with the same assigned grade can actually have dramatically different values? Just start researching auction results and you will see this reoccurring theme. What makes the one coin better than the other?
3) An auction representative can help you purchase those elusive rarities. Often, insider bargaining and positioning occurs before the auction even begins. There sometimes is an opportunity to strike up a negotiated transaction with the auction house resulting in buying coins under their reserves. Sometimes, this posturing takes place in the auction room while the auction is being called out. There is also the strategy of cut bidding, as well as multiple representations. Only someone with a thorough understanding of the auction process can maximize your opportunities in these scenarios. Never underestimate the value of an auction representative.
4) Perhaps most importantly, your insider can view and assess your potential purchases in-person. Nothing in the coin business beats a good set of eyes. No matter how high-resolution an image may appear to be, there is no substitution for grading a coin in hand. The concept of computer grading has been around for over 15 years, but yet it has never gained market acceptance. The reason for this is simple. A computer, no matter how sophisticated, simply can not assess or grade a coin with the accuracy of a live human being. There are just too many subjective elements that get factored into a coin’s grade, and in turn, value. Two such components that come to mind are originality and eye appeal.
Now that you are beginning to understand the value of your liaison, the question becomes what is fair compensation for his/her services? This is not a simple answer, but here are some general guidelines.
· The usual fee for auction representation is 3-5%. This is very fair considering that many auction companies tack on an extra 5% charge just for using their live internet bidding feature, a feature that is absolutely unnecessary with an auction representative.
· Dealers usually charge 10% or more to go out into the marketplace and procure a coin for you. Included in this charge are their transportation charges and associated expenses to travel to and from shows and auctions. Many times they will also lay out the necessary money up front to purchase the coin or assume the responsibility for financing. Most importantly, they will serve as your eyes in the marketplace to assure that you buy the right coin for your portfolio or collection.
· Some dealers prefer to work on a profit split. Of course, this arrangement has the dealer also assuming risk. If the coin does not realize the client a profit, the dealer has in essence worked for free. Consequently, this type of arrangement usually comes with a higher associated fee, perhaps as high as 25%.
· Less common a practice is a flat fee for portfolio management. In this scenario, a prospective investor might pay a dealer a lump sum fee to purchase coins for an agreed period of time. This type of arrangement is usually only employed on large transactions where the investor may feel more comfortable paying an agreed amount in lieu of accruing commissions.
The coin hobby, and in turn the coin business, is very specialized. Certain dealers handle specific series of coins while other dealers sell a broad range of coins. Some dealers cater to the collector while others target the numismatic investor. Some dealers sell specifically price-conscious coins. Conversely, there are dealers that handle only the highest quality material, regardless of price. Which direction a potential investor chooses is highly individualized. And once the path is chosen, identifying the dealers that present the best opportunities for acquisitions is imperative. Understanding this aspect of specialization is yet another reason to employ the services of a numismatic insider.
Fact: The coin market has a wonderful track record as an investment medium. A carefully planned numismatic portfolio can reap huge prospective returns. In the last 5 years, it has been possible to make more with coins then with some of the more conventional investments such as stocks, bonds, treasury bills or real estate. The caveat is the carefully planned aspect. A common mistake, especially with the newer investor, is to blindly start purchasing rare coins without the knowledge or assistance required. The results of this type of carelessness can be disastrous.
Fact: In a business as specialized as rare coins, there is a tremendous learning curve. Unless the prospective investor is committed enough to learn the ins and outs of the numismatic marketplace, the use of the middle man or liaison is highly recommended.
Fact: For most investors, buying coins direct can be suicidal. For the same reason that you would hire an attorney or go to a physician, you should strongly consider the advantages of hiring a numismatic middle man.
It’s your money, and when the day is over, wouldn’t it be nice to have more of it then what you started with?
Blue Chip Picks
By: Robbie Jenkins
During the recent boom in the rare coin market, key date coins of nearly every series have seen widespread price increases. Prices of popular coins like 1877 Indian Cents, 1909-S VDB Cents and 1932 D & S quarters have increased significantly over the past 8-10 years, and deservedly so. Key dates are always popular with collectors and tend to have demand that outpaces their supply. However, if a collector is willing to pay the price, these pieces are generally available. I believe that a smart strategy for a portfolio is to target key date coins that are seen less frequently. Sometimes, these coins are a specific grade of a key date. For example, 1916-D Mercury Dimes can be found fairly easily in About Good and Good condition, but are much more difficult to locate in middle circulated grades of Very Fine-About Uncirculated. Other key date coins simply do not appear frequently in any grade. One such example from a short-lived and underappreciated series is the 1872 2 Cent Piece. When compared to most other keys, the 1872 2 Cent Piece shows up very infrequently in any grade. One need only view the limited auction appearances for this date to understand how rare it really is.
The 2 Cent Piece is a fascinating series. Designed by Chief Engraver John Longacre, it was the first coin to display the motto “In God We Trust.” Originally released to significant fanfare, the series quickly lost its appeal with the general public. Mintages fell quickly, from over 19 million pieces in 1864 to just around 3 million pieces in 1866. The lack of acceptance is partially attributed to the rise in popularity of the 5 cent series.
According to Q. David Bowers, the two cent denomination was practically dead by 1872. As the last circulation issue, the 1872 two cent piece has a mintage of just 65,000 examples. This is an extremely low production run when compared to other key date coins. To compare, view the following chart on key date mintages.
Key Date Mintages
Date |
Mintage |
Rarity Compared to
1872 2 Cent |
1877 Indian Cent |
852,500 |
13.12 X Minted |
1909-S VDB |
484,000 |
7.45 X Minted |
1885 Liberty Nickel |
1,472,700 |
22.66 X Minted |
1916-D Mercury Dime |
264,000 |
4.06 X Minted |
1916 Standing Quarter |
52,000 |
0.8 X Minted |
1921-D Half Dollar |
208,000 |
3.2 X Minted |
1893-S Morgan Dollar |
100,000 |
1.54 X Minted |
Now, rarity certainly cannot be ascertained directly from a coin’s mintage, as the coin’s survival rare is much more critical. However, mintage provides a good foundation. One can see that the 1872 Two Cent Piece has significantly lower mintages than the other key date coins in most instances. Only the 1916 Standing Quarter has a lower mintage than the Two Cent Piece. Interestingly, Kevin Flynn notes that out of a total mintage of about 45 million pieces for the entire series, over 17.5 Two Cent Pieces were redeemed and melted by the US Government between 1871 and 1881. The copper from the melting of two cent pieces, along with Half Cents and Large Cents, was used to produce Indian Cents. If over 1/3 of the entire mintage of two cent pieces was melted, how many of the 65,000 1872 examples were lost forever during this period?
The next major statistic to help approximate the survival would be to examine population data, as reported by PCGS and NGC. To date, PCGS and NGC have graded a combined 371 examples of the 1872 Two Cent Piece in all grades and color designations. This number is undoubtedly inflated to a degree by resubmissions of the same coin with the hopes of receiving a higher grade. Both services have graded only a combined 171 examples in Mint State, with a portion of this total likely resulting from resubmissions as well. The highest graded BN and RB coins are NGC MS-66s, with the highest graded Red examples being three PCGS MS-66s. The following chart provides combined PCGS and NGC population data for other popular key date coins, as compared to the population of the 1872 Two Cent Piece.
Key Date Populations
Date |
Population in all Grades |
Population Comparison to
1872 2 Cent |
1877 Indian Cent |
3,923 |
10.57 X Graded |
1909-S VDB |
13,743 |
37.04 X Graded |
1885 Liberty Nickel |
983 |
2.65 X Graded |
1916-D Mercury Dime |
5,396 |
14.54 X Graded |
1916 Standing Quarter |
1,445 |
3.89 X Graded |
1921-D Half Dollar |
1,298 |
3.50 X Graded |
1893-S Morgan Dollar |
5,308 |
14.31 X Graded |
As mentioned above, the population numbers for these coins will be somewhat skewed due to resubmissions. However, the comparative populations will provide insight into the relative availability of certified examples of these coins. One can see that the 1872 Two Cent Piece compares extremely favorably to these other key dates, with a certified example being anywhere from 2.5 times as scarce to over 35 times as scarce as these other popular key dates! Consider the 1916 Standing Quarter, which had a 20% lower mintage than the 1872 Two Cent Piece. The certified population of 1916 Quarters, though, is nearly four times the population of the Two Cent Piece. Perhaps, this is due to collectors who tended to save first year issues, while largely ignoring final issues.
Next, we need to examine the relative prices of the coins. Using the CDN Greysheet for pricing data, we will examine the prices of the above key date coins in the grades of F-12, XF-40, MS-63 and MS-65. For copper coins, we will use the Brown color designation for MS-63 and the Red-Brown designation for MS-65 examples. According to the April 2008 Greysheet, the 1872 Two Cent Piece has a price of $440 in F-12 condition, $730 in XF-40 condition , $1,650 in MS-63 BN and $3,400 in MS-65 RB. Compare these values with the values of the other key date coins from our sample.
Key Date Wholesale Values
Date |
F-12 |
XF-40 |
MS-63 (BN) |
MS-65 (RB) |
1877 Indian Cent |
1,150 |
2,100 |
3,760 |
10,000 |
1909-S VDB |
825 |
1,030 |
1,200 |
3,300 |
1885 Liberty Nickel |
650 |
1,000 |
1,900 |
6,250 |
1916-D Mercury Dime |
2,025 |
4,500 |
14,000 |
20,800 |
1916 Standing Quarter |
6,475 |
9,250 |
17,000 |
21,000 |
1921-D Half Dollar |
430 |
1,625 |
11,500 |
22,000 |
1893-S Morgan Dollar |
4,000 |
8,800 |
140,000 |
500,000 |
In nearly all cases, this pricing information indicates that the 1872 Two Cent Piece is undervalued based on its rarity when compared to the other key date coins. The most accurate analysis would be to further extrapolate the populations down to individual grades, but I have skipped that step in the essence of time. However, one can look into the data and make comparisons. For example, in MS-65 and better, a total of 57 1921-D Halves have been graded. Comparatively, only 34 1872 Two Cent Pieces have been graded in all color designations. However, the 1921-D Half bids at $22,000 while the 1872 bids at $3,400. There have been a total of 109 1916 Standing Quarters graded Extremely Fine, compared to a total of 48 Two Cent Pieces. However, the 1916 Quarter is over 12 times the price of the 1872 Two Cent.
One can go throughout all of the tables and make comparisons between our Blue Chip Pick and the other key date coins in the sample. The price and rarity statistics favor our pick nearly unanimously. Of course, other important factors, such as collector demand, play a critical role. According to the data, the 1909-S VDB Cent would be considered overpriced compared to nearly any other key date coin in the entire U.S. series. However, overwhelming popularity has supported its prices for years and will likely continue to do so. The Two Cent series has long been overlooked by collectors, but has begun to gain momentum in recent years as all copper series have seen significant interest. View the following pricing history for the 1872 Two Cent Piece
1872 2 Cent F-12
Year |
Value |
1950 |
$6.50 |
1980 |
$80 |
1995 |
$175 |
2003 |
$225 |
2007 |
$650 |
On average, the coin in this grade has increased by an average of 8.41% annually since 1950. Therefore, this date has historically seen a steady increase in value. One can see that this date has benefited from the recent bull market in rare coins, more than doubling in value from 2003 to 2007. However, the data seems to indicate that the 1872 2 Cent Piece remains undervalued and has room for significant growth. The limited auction data that is available for this coin indicates momentum. A recent MS-64 RD example realized over $13,000 in January of 2008, with examples in other grades also realizing over published values. We recently purchased an NGC MS-65 BN specimen and sold it to a very knowledgeable dealer at well over the published price levels.
In our opinion, the 1872 2 Cent Piece is a coin worth purchasing and holding for the long term. It has seen steady growth in the past, but is still significantly undervalued when its price and rarity data is compared to other popular key date coins. We believe that this is a great date to purchase, whether the investor wants to collect circulated examples in quantity or aims to purchase a few Choice Uncirculated examples. Either should prove to be a great challenge. As the numbers indicate, this is a legitimately rare coin. The key date 1872 Two Cent Piece is a great value in today’s market and, therefore, is this month's Insider's Edge Blue Chip Pick.
Find Me One!
By: Rob Lehmann
We have now published 3 issues of The Insider’s Edge, and nobody has been able to find us one of the featured pieces for this column. Well folks, they don’t get any easier! This month’s Find Me One! coin may prove to be our toughest yet; introducing the rare and very elusive mint state 1896-O Barber Half Dollar.
With a mintage of 924,000 pieces, this coin could conceivably be considered scarce, but rare? When we’re done presenting our data, it will quickly become apparent that this unheralded coin is about as rare in uncirculated condition as anything minted within the last 120 years!
To date, the PCGS population shows a combined 20 1896-O Halves in all grades of mint state. And yes, this number probably includes some resubmissions. NGC boasts a whopping 14 pieces in the same grade range. That gives us a TOTAL mint state population of 34 pieces for PCGS/NGC combined. Assuming that upgrade candidates and crossovers probably account for a 25% duplication in the census numbers, we are reduced to a probable population of maybe 25 pieces. Just to put this into the proper context, NGC and PCGS have been grading coins since 1986. Together they have graded over 20,000,000 coins. What our data suggests is that on average, either PCGS or NGC grades a mint state 1896-O Barber Half about once every year. One in a million is an old cliché, but in this instance, it’s pretty accurate. When a coin is submitted to PCGS or NGC for grading, the odds of it being a mint state 1896-O Half Dollar, according to the current census numbers, is about 1 in 800,000! Are you impressed yet? If not, read on.
Auctions really support the extreme rarity of an uncirculated 1896-O Barber Half. In the last 5 years, there have been a total of 2 auction appearances for this date in certified grades of MS-60 or above. Since 1 of the 2 pieces was an ANACS net graded “MS-60 Details- Cleaned”, our number is reduced to just a single problem-free example. Interesting to note, there have been more appearances of 1804 Dollars, 1894-S Barber Dimes and 1913 Liberty Nickels in that same 5 year period! The aforementioned single coin was a handsome PCGS graded MS-65 example that was sold by Heritage in the February, 2008 Long Beach Sale for $37,375.00. In retrospect, this appears to have been a great bargain.
It is plainly obvious that the 1896-O Barber Half is grossly undervalued. The April 2008 Coin Dealer Newsletter Monthly Summary shows a wholesale valuation range of $1100/$1200 for a MS-60 graded example, $4700/$5200 for a MS-63 graded example and $11,500/$12,500 for a MS-65 graded example. Clearly, the Heritage coin mentioned above was a prudent buy and it sold for over 3 times the current published valuation.
Why then is this coin so under-appreciated? Why do the published values, and for that matter, the single auction price realized, seem so ridiculously low? Since few reference works have ever been published on the Barber Half series, there is not a lot of research material to rely on. One can only conclude that it may not be possible to supply a logical explanation to either of the above questions. But one thing is for certain, this coin has been flying under the radar.
Let’s look at for a second what this coin does have in its corner: For one, it is an integral part of a complete-able collection of a relatively popular series; hence it receives collectors’ attention. Secondly, it’s a large U.S. silver coin, again a target for most collectors. Third, it is one of the tougher date Barber Halves to acquire in any grade. Consequently, the 1896-O is not isolated as strictly a grade rarity.
Now the fun part: Go ahead and find me one! And just to prove that I really do believe in this coin, I would offer a premium of 100% over current April, 2008 CDN Greysheet Monthly Supplement Bid for any PCGS or NGC graded mint state specimen. As a result, I would love to think that an uncirculated 1896-O Barber Half Dollar might come my way. But after reviewing the above data, I think that being struck by lightning may be more likely!
Interview
Julian Leidman is one of the household names of the coin hobby. For over 40 years, Julian has been a regular at every major coin show and auction across the country. His warm smile and friendly greeting awaits all fortunate enough to visit either his bourse table or coin shop in Silver Spring, MD. Whether with a young child or a veteran collector, Julian will always take the time to share his numismatic experiences, while spreading his infectious enthusiasm for the hobby. His accomplishments are numerous, and include buying and selling some of the most important numismatic properties, consulting corporations, professionals and collectors, as well as receiving the prestigious Lifetime Achievement Award from the Professional Numismatists Guild. Julian’s famous “Who Am I?” advertisements have loomed large in many of the leading numismatic publications for over a decade. This month, Julian has been kind enough to share some of his experiences and insight with the Insider’s Edge. We hope that you enjoy it!
Insider’s Edge (IE): How did you get started in numismatics?
Julian Leidman (JL): I started in coins as a young boy. My parents were looking for a hobby to get me out from in front of this new technology called the television. They first tried stamps, but without much success. They then introduced me to coins and I took an interest in them. That was in about 1958, so I guess I have been in coins for 50 years now.
IE: What advice would you give to a young collector just getting started in the hobby?
JL: I tell everyone to focus on an area that they enjoy. I suggest that new collectors look around and find an area of coins that interests you the most. Study your area of interest and look for pricing in the series that fits your budget. A collector should have enthusiasm for the series that they collect.
IE: What was your impetus to turn a hobby into your business?
JL: I was always going to be a lawyer. However, I wasn’t much of a studier. I realized that if I wasn’t much of a studier, then I wouldn’t be much of a student. I flunked out of the University of Maryland, and probably had ADHD. However, they did not diagnose the condition back then. I could focus on coins though. I kept on expanding my collecting knowledge and began sharing it with others as a dealer.
IE: You have handled many world-class coins over the years. Does one stand out as your favorite?
JL: The Indian Head double eagle pattern, Judd-1776, is my favorite. It is the prettiest coin that the U.S. has ever minted. I just had an attraction to it from the first images I saw of it, until I finally handled the coin.
IE: Many great coins have become very expensive by most people’s standards. In your opinion, what are the great coins of tomorrow which remain affordable today?
JL: It is all a matter of how you define affordable. For some people, $100 is affordable; for others $100,000 is affordable. I have always avoided telling people what to collect. I just help them with the collection that they decide to build. Most great coins in the U.S. series are highly appreciated by some collecting group, whether by type collectors, date collectors, variety collectors, etc. There isn’t a lot that hasn’t been appreciated. Numismatics is a luxury. Sometimes, coins are hot and valuable; other times they are valuable but not quite as hot.
I guess a few areas that may receive more attention in the future are early U.S. gold coins by die variety, obsolete paper currency, tokens and metals. Regular numismatic and US Coins are already greatly appreciated.
IE: How has third party grading affected the numismatic market?
JL: Third party grading makes people more reliant on the opinions of others rather than their own opinion. It is more difficult for more experienced numismatists like myself when we have differences of opinions with grading companies. There are more and more collectors wanting encapsulated coins and believing that the opinions of the services are the best opinions to get. I have examined many coins and often have differences of opinion with the services. I have to get people to look at the coin, not just the holder. I recently showed a collector a graded MS-65 RD Indian Cent that I believed was a MS-66. Although it was in an MS-65 holder, I encouraged the collector to take the coin and compare it to his other coins of the same grade. I received a check for the coin quickly.
IE: Are there still any great collections like Norweb, Garrett or Eliasberg waiting to surface, or have most of these old-time collections been dispersed?
JL: The famous old time collections have come out, but many great collections are in formation and will come out in the future. The life of a collection is now much shorter with the building of Registry Sets and the competitions between collectors that occur. But, there are still many old collections sitting out there, with owners who have no need, or are in no hurry to sell them.
IE: Much has been written lately about the potential of investing in rare coins. If you were to give the introductory investor some ground rules, in a nutshell what would they be?
JL: I am against someone investing in numismatics on their own as a beginner to the hobby. You have to have significant experience in coins to understand this hobby from an investment standpoint.
IE: With the advent of the internet and all of the associated information sharing, what viable role does the dealer still provide for the collector or investor?
JL: The dealer has the professional eye and experience behind him. As collectors become more sophisticated, it becomes easier for them to act on their own behalf if they know what they are looking for. However, dealers offer considerable knowledge, experience and council for all but the most experienced of collectors
IE: You still operate a coin shop. Do you believe that the coin shop still serves a role in the hobby or is it fast becoming a thing of the past?
JL: A coin shop certainly is less important than it once was. However, it is important as an introduction to the coin collecting hobby. It is an important place to purchase coins and supplies, talk with others about your collecting interests and seek professional council from a dealer. There is still great value in a coin shop.
IE: Do you ever see the investment community taking a serious position in rare coins, much like what Kidder-Peabody tried back in the 1980’s?
JL: Taking a series position in rare coins can be done, but it has to be done with a collector’s attitude and mentality. A collector can gain excellent returns on his collection, but he cannot have a set liquid date. A fund could be created to build fabulous collections, but there cannot be a specific end date for the fund to liquidate.
IE: Do you believe that outside regulation is on the horizon for our hobby?
JL: No, I believe that we can pretty well take care of the hobby ourselves. If regulation does come in the future, it will be important for them (regulators) to know what they are doing.
IE: Do you have any closing comments or advice that you would like to share with our readers?
JL: I encourage them to find the area of coins that they enjoy most and research it. Read about your series of choice and work to assemble a collection that you enjoy. Look at your coin collection as a hobby first.
IE: Thank you for your time.
Personalized Investment Portfolio
If you like what you have been reading in the Insider’s Edge and want to build a personal rare coin portfolio, we strongly urge you to contact us at The Reeded Edge. Our firm specializes in structuring personalized numismatic portfolios, targeting the same type of coins that we have been reporting in this publication.
The last fifteen years have witnessed the rare coin market outperforming virtually every other investment medium. The good news is that this market continues to be very bullish. Great numismatic opportunities still exist, if you know where to find them. The professionals at The Reeded Edge have over 25 years of experience, helping people just like you, acquire world-class coins.
Please call Robbie Jenkins today for your free personalized consultation @ 301-724-0400.
We would like to thank you for taking the time to read The Insider’s Edge. If you ever have comments or inquiries about The Insider’s Edge, rare coin investment questions, or are looking to begin building your own numismatic portfolio, please do not hesitate to contact us.
Individuals can subscribe to The Insider’s Edge by sending an email to insidersedge@reedededge.com.
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113-115 Baltimore Street
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113-115 Baltimore Street
Suite 102
Cumberland, MD 21502
(301) 724-0400
(301) 724-0478 fax
Reeded Edge