There is some disagreement about who first said, “Beauty is in the eye of the beholder.” Shakespeare? Ben Franklin?
It doesn’t matter. The truth is every art gallery and antique shop bases their livelihood on that premise. Along with “beauty,” some also factor “value” into the axiom. After all, when one pays a premium for an item they admire, over time, they hope its value will increase....
Whenever I spot a beautifully presented “collectible” advertised in a magazine, newspaper, online or on TV, I imagine what the buyers might, one day, expect in return. That’s particularly true for the endless offerings of “precious” or “rare,” coins, currency and stamps.
Recent promotions contain vintage US coins and stamps issued over the past century. The prices being asked suggest they are rare. What most all have in common is their presentation.
One offer includes over a dozen silver US coins released over the last 100 years. It features a nickel containing 35 percent silver (issued during WWII); three dimes; three quarters; four half dollars and four silver dollars. All are housed in a beautifully polished wooden display cabinet with “100 Years Of US Mint Silver Coinage” printed on the insert holding the coins.
It is impressive. And, most of the coins do contain 90 percent silver. (The one American Eagle silver dollar contains 99.9 percent.)
Silver was once the standard for many currencies and has fluctuated wildly in value. During the Great Depression in the early-1930s, its value was barely 25-cents per ounce. By 1960, silver was still worth less than one dollar. The insane silver run-up of 1979/1980 saw silver soar to $50 per ounce. As recently as the 1990s the precious metal dipped back to barely five dollars. As I write this silver is hovering near $28 per ounce.
To be fair, I showed the advertisement for the set of coins to several reputable coin dealers. Each agreed it was attractive. But what about the value? From what one dealer could see in the ad, the set did contain a 1921 Peace dollar which carries a good premium. From the picture he couldn’t clearly see the dates of the other coins, their condition, or if they had been cleaned. Cleaning dramatically lowers a coin’s value.
One dealer said he would buy the coins for around $260 and sell them in the $300 range. Another dealer was a bit higher at $275 and $350 respectively. The price being asked by the catalog company…$999. With shipping costs added the final price was $1,022.
But what if the coins being sold proved to be in better than so-so condition? Might that double their value? If so, it would still be just over half of the advertised cost price. And, the “buy” price the dealers offered would be barely half the asking price. But, again, they need to see them in person. As for their value decades from now…that waits to be seen.
Another set of advertised coins consisted of all 50 State Quarters minted between 1999 and 2008. These are the common copper/nickel “clad” variety we still see in our pocket change. However, each of the coins in this set was “layered in pure 24k gold” and housed in a “museum quality portfolio.”
The quarters set was equally alluring, especially with the gold coating. The price -- $169.95 (plus $18.99 shipping) for a total of $188.94. Again, I deferred to the dealers who daily trade in this type of material.
They said all they could pay for the coins was their face-value – 25-cents. That came to $12.50. But, what of the gold content? The dealers confirmed such a microscopic amount of gold used in the electroplated coating couldn’t really even be weighed or factored in. One said it might even detract from the coins’ value because they had been “altered after leaving the Mint.”
But, let’s say the dealers were off by double. Even then, the quarters would be worth only $25 – a lot less than $188. To that point, each of the dealers offers their customers any State Quarter they have in stock for double its face value, or 50-cents each.
In the end, it’s always fun looking at the endless offers out there. It’s part of collecting. But, presentation cases aside, the best deals and advice almost always come from a local dealer.
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