Well maybe it is just an expression, and maybe these thoughts today are just ramblings of ole blueduck.....
Precious metals still seem to be the way to go today, though with less vehicles being manufactured and so forth, the price of noble metals are dropping and Pt has dropped below gold this week though for how long is anyone's guess..... at the time of writing this Pt is a mere $2.00 above Au and Ag is up a dollar over yesterday Pd is unchanged in over a week and Rh is picking back up after falling nearly $9000.00 this year alone. The guru's are predicting that those folks wanting to possess the yellow metal [Au] will call in the paper and drive the price up and at the same time other guru's are calling for Gold to dip to the $500.00 mark.... it is crazy. remember though, gold and oil have pretty much gone hand in hand since 1946, 3 grams of gold to the barrel of oil.
There are 31.1 grams per troy ounce [toz] making it pretty easy to see that most people over pay compared to the spot price index for metal on any given day, let alone over a 30 day period which I base my buy prices on.... though in the past 90 days even that has been adjusted for the other market allowances, and i aint buying gold right now til after the first of the year unless i get rid of a few rare or collectible coins.
Rare coins? or just coins, old time collectors wont deal with anything newer than 50 years old as a "rare" type coin for the most part as they are "untested" in the marketplace, and recently after buying a few graded state quarters for the kids I can agree, Fair market value and cost in the marketplace are actually two different items, the older the coins the closer FMV gets to being true and correct, and still there are deals to be had.
Since getting back into coin collecting this past summer i have found a couple new ways to make it interesting, my 1934-S peace dollar is not just a nice coin, but is also a VAM example of a double die error making it on the hot 50 list of collectibles, so not only is it a semi-rare date in that not as many were minted, but it has added value in collector circles for its additional rarity.... I am happy I was not able to peddle it to a friend before i found this out.....lol well happy in the respect he did not know about the VAM error either but we could not come to a dollar figure on my coin for his collection, and my peace dollar collection is stable, neither growing nor shrinking.... but adding value.
Rare coins are a better investment for the long run of investing, if for no other reason is the metal they contain can always be melted down and recovered should it need go that far..... the coins were at one time and are still recognized as a medium of exchange and that has value in a future world market if an unstable economy somehow never regains its legs. As an example one of my peace dollars during the recent demise of the stock market actually gained from $4870.00 to 4920.00 in October, though a couple weeks ago the FMV dropped to $4790.00 but did I lose? not really cause i would accept a fair and reasonable offer on that coin [and any others out of my graded collection above what i paid for them] the only loss occurred in that the marketability went down a couple of percentage points
So how does this all apply to the Lawball game? to Survival? to Preppers? Well first off the Law of Supply and Demand in collecting coins gives increased value to the collector, what is hot today may not be so hot in 10 years but more over what is not so hot today in ten year could be through the roof. 15 years back when i was sort of collecting coins i bought a group pf coins from a kid needing a few bucks, I gave more than many other folks offered and more than i should but i did so knowing they would hold value and more than likely increase. One coin in that group was a 1858 flying eagle cent, worth at the time $15.00 tops, today it trends for around $75.00 to 90.00 in the condition it is in and is a hot collectible..... but who knew then cause if i had of I would have bought a bunch of those coins.... in better condition for they are a hot item for now.
The Lincoln cents gets it 100th birthday this coming 2009, and there is a coming change for the coin, in fact 4 new lincoln cents are about to come out, making the memorial cents a tradable and hot item coming up.... perhaps not in the millions of dollars but better examples already trend in the hundreds of dollars, the 1959-P full red in grade MS67 trends at $550.00, I believe i have at least 2 of these that are in such a quality though not graded at this time by one of the top 4 grading companies. this coming year i expect if things go well enough I will be able to trade for some other things i want with those few cents going to collections where they will be honored among other high quality coins and of course i probably will keep one around for the future too.... as an investment for the kids. ergo supply is limited, in that no more are being made, and the coins were used making the finer examples harder to come by and worth more to the coin collectors and that in turn gives me opportunity to gain more prep items once those coins are sold or traded...... Yes the lowly one cent "penny for your thoughts" turns out to be an opportunity to get little bit ahead for some folks. and of course there are other examples of such high dollars for finer grades of the one cent coin. [The Fair Market Value Price guide
] which is mainly for graded coins is free to look at and wonder if your pocket change qualifies for such a grade.... or buy a the official Redbook about $14.00, now in the 62nd printing.... the best answer is most pocket change will grade to the AU and under grades, though a few coins will make the higher uncirculated grades if caught right away after making it into circulation..... commonly known as business strikes. The uncirculated coinage from the US mint can be purchased yearly directly from the mint or for past years from coin shops and private parties..... often time a coin shop will charge 20-50% over the cost of purchase from the mint, sometimes a deal can be had from private party negotiations and auctions.
Grading is a subjective call, it is opinion only and that opinion is shared by at least 3 folks at any of the top 4 third party grading services and as such is respected by collectors for the most part, though there has been a move to have the grade independently verified by another company CAC in which the coins then pretty much have a set value and wont go lower than what is considered fair... yeah there is a cost involved but when dealing with coins ranging into the tens of thousands of dollars vs the next grade down maybe only be a few thousand as less of the very high quality examples exist, it is worth paying a few dollars out to have those verified to the ANA standards. having coins graded also helps the newer collector make sure they have a real coin [yes there are fake coins and hucksters out there in the coin collecting world] and having one of the "top four" NGC, PCGS, ANACS or ICG grade your coins will cost some, but in the long run you win on the top quality coins, there are others but they are less recognized and some downright over grade their coins. Learning to grade your own coins is imperative too, knowing which to buy or send in for third party opinion, when to grade all the coins in your set for registry or just plain knowing for insurance value [though you already know what i think about limited liability] but Graded coins also have another value and that is collateral, graded coins have a fair market value set and as such could be used to get a loan of some sort until you could sell the collection or pay off the loan.....
In all coin collecting for the prepper can be more than just a hobby, it is an investment in both the future for trade and for retirement should nothing come along in the form of a disaster. A coin portfolio and precious metal portfolio should be part of everyones preps. and coins are pretty easy to collect, similar to a famous potato chip or a tattoo, you can't seem to collect just one.
More thoughts later... maybe sooner.
Blueduck is one of the last of the Free radicals, but not THE LAST, nor the most radical
from the N P Rez