The Primary Purpose of the Coin Value Tables™

The primary purpose of the Coin Value Tables™ is to provide coin buyers with historic value trends over the last half century, in order to identify coins possessing the best opportunity for solid future growth, while avoiding those with questionable potential. This is not to say that rare coins should be viewed strictly as investment vehicles, but if you enjoy numismatics and intend to make some purchases, why not make selections destined to rise in value over time?

By reviewing value trend data covering a period of many years, one can determine proven "track records" and make smart purchase decisions. Look for coins with the most impressive growth rates over long periods of time. These are the coins that will command the highest prices from the coin collecting hobby in the years to come. Hindsight is the clearest form of vision, and it is the most powerful tool available.

Some examples on how to use the Coin Value Tables™for locating blue chip coins are found on our Bullish US Coins page, which spotlights a few of the obvious winners.

Rate of Return Computations

%

Compounded annual rate is a universal measure of investment return.

The Coin Value Tables™ contain many compounded annual return rate computations, to facilitate comparisons from one coin to the next, measuring how much they change in value over time. Compounded annual return rates, the typical yardstick for measuring investment vehicles, are offered here and are from 1950 to the present, 1980, 1995, and 2000 to the present.

Why were these years chosen from which to measure compounded annual return rates? What follows is a brief insight on why these periods were selected for analysis:

As coin collecting popularity expanded in the 1950s, the Whitman coin folder was the faithful companion of the budding numismatist.

1950: More than five decades ago, most of even the rarest collectible coins had not yet started their ascent into the pricing stratosphere (after all, who today could imagine purchasing an 1893-S Morgan silver dollar in VG for a mere $15.00?). Not coincidentally, this is just about the time coin collecting started gaining appreciably in popularity in the United States.

Thus, evaluating annual growth since 1950 is a worthwhile endeavor because it is a reasonable "starting point". What you will see is that coins held in the highest esteem by collectors (i.e. "key dates") have easily outpaced their more mundane brethren over the last half century, and will continue do do so. By comparing compounded annual return rates since 1950, the most important coins sought by numismatists are readily identified.

GOLD RECORD CLOSE: $850/oz Jan 21, 1980

1980: The precious metals boom of 1979-1980 simultaneously fueled a massive explosion in coin prices. By the winter of 1980 the coin industry stood on an unprecedented plateau. Since then, coin values have gone down and up tremendously several times. Any coin weathering the wild roller coaster ride since 1980 is certainly a fine acquisition.

1995: In 1995, coins were just starting to emerge from the shadows of a severe slump that had spanned several years. Many observers cite as the cause of the tailspin the issuance of the grading services initial population reports in the late 1980s (which provided a better glimpse of the actual scarcity of collectible coins), followed by speculators fleeing from coins. Since 1995, we've witnessed a steady, if not spectacular, rise in market conditions. With the speculator debacle behind us, you can bet the price hikes since then are supported by sound fundamentals. Coins that have appreciated nicely since 1995 are likely valuable heirlooms you will be proud to pass on to your grandchildren.

2000: With the advent of the 50 State Quarters program in 1999, the number of active coin collectors surged. All of a sudden, individuals who previously lacked interest in coins found themselves scouring through pocket change looking for the newest state quarter.

The widespread availability of the Internet has accelerated the pace of the coin market during the 21st century.

Later, many of them graduated to the rank of numismatist when they discovered the thrill of owning collectible coins minted long ago. With the added competition from new buyers, coin prices have risen dramatically since the year 2000. Additionally, grading standards have been tight and consistent, so we really are comparing "Apples to Apples" here.

Tracking performance of coins since 2000 is useful, too, because during that time, the Internet made it increasingly easier for average buyers and sellers to get together to consummate coin transactions. Many of the coins that have risen sharply in value in the true supply and demand environment we now enjoy demonstrate strong "grassroots" support with the rank-and-file collector and bode well for continued growth.

Perhaps you prefer a different year for a baseline comparison. Whatever time frame you choose, you're in luck here, because this site features a flexible Coin Rate of Return Calculator, where readers are free to compute compounded annual return rates for virtually any time period, for any coin they wish to analyze. It's easy and fun to use, and yields great information!

A Word About Grading

Grading has always been central to numismatics, but decades ago, the standards employed to grade coins were somewhat vague and applied inconsistently. Over the last 20 years, great strides have been made to bring more standardization to grading practices. Throughout it all, the magnifying lens has earned a reputation as one of the most important tools the coin collector should invest in.

Going back to the 1950s and before, coin grading was limited to a few adjectival terms, such as Good, Fine, Uncirculated, and Proof. Accordingly, numismatic references of those times conformed to the same set of adjectives to approximate retail coin values.

Varying distinctions of Uncirculated (today's equivalent of MS-60, MS-63, etc.) and Proof were recognized in some advertisements and auction bills by employing modifying descriptors such as "Gem Uncirculated" or "Choice Proof", for example. However, with no clear point of reference or consistency on how the modifying descriptors were invoked, most publishers resorted to listing values for only one "Uncirculated" grade and one "Proof" grade.

In the late 1970s, as coin prices escalated dramatically, most notably for pristine, high quality specimens, varying distinctions of "Uncirculated" and "Proof" became evermore critical. Descriptors "Choice" and "Gem" were replaced by numerically assigned grades, utilizing the newly developed 70 point ANA scale, based on a numeric system introduced by Dr. William Sheldon in the 1940s. Uncirculated coins were differentiated as MS-60, MS-65, or MS-70. A few years later, grades MS-63 and MS-67 joined the fray. Although not applied consistently (a situation that gave the coin business a black eye), the practice of assigning a numerical grade to indicate quality was universal by the mid-1980s, and eventually brought some consistency to coin collecting that was absent as the hobby passed through its formative years.

The Coin Value Tables™ reflect the historic availability of numeric grades to describe coins. Thus, for 1950 through 1975, the values appearing in the MS-60 column should be viewed as the "Uncirculated" listings of those years, since numeric grades largely did not exist. Likewise, PF-65 corresponds to simple "Proof" figures of the same time period, while G-4 corresponds to the "Good", VG-8 to "Very Good", and so forth. By 1980, when numeric grades were in widespread use, the MS-60 column should be interpreted to indicate precisely that. Other grades, MS-63 for example, made their debut on the Coin Value Tables™ in 1980 or later, and are carried forward from that time to the present. As more intermittent grades and qualifiers (e.g. "Dimpled" Morgan silver dollars) became commonplace, they too were added to the Coin Value Tables™.

One Caveat: Due to shifting grade interpretations in the early 1980s, some coins that graded, say, MS-65 in 1980, might be equivalent to today's MS-63. Bear this is mind as you review the data. Still, important trends do surface, and are not obscured by the grading problems of a quarter century ago. This statement is especially true for coins in less than Uncirculated and Proof conditions.

More in-depth knowledge on grading is presented on our Grading Coins section. There, you'll find a few thoughts on the importance of coin grading, a look at the ANA grading scale, plus more.

©Copyright 2007 by us-coin-values.advisor.com. All rights reserved.

Use of any content contained on these website pages without the expressed written consent of us-coin-values-advisor.com is strictly prohibited.

No copyrighted images may be used without permission of original copyright owner.