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Investing in Coins – The 3^rd Year secret!

Many a coin collector or coin investor starts out buying coins or proof sets from the US Mint.  “Why not?"

They rationalize this idea by asking themselves “Where else can you buy US coins cheaper than directly from the source that makes them, the U.S. Mint?”   They may be right, but often they are wrong.  If you like to buy newly issued coins from the mint, read on to learn my secret that may just give you an edge in picking coins that may go up in value.

Truthfully, modern coins often go down in price within a couple years after they are released.  Pick up a current Red Book (Guide Book to US Coins and Their Values) or any price guide and check it out.  You will often find recent coin sets that can be purchased for less than their issue price.  Why is that?  

 How coins can sell for less than issue price

It all boils down to price movement that effects any kind of investment market – supply and demand, with a little case of “coin promotions” thrown in.  The coin market, like any market of goods or services fluctuates based on demand from the public and coin dealers, and is influenced by the available number of coins for sale. 

 After the mint stops selling a coin or set demand often drops, because most everyone that wanted one has one.  Of course there are exceptions to this pattern, especially when the mint unexpectedly discontinues production of an item.   This same process holds true for coins issued by the US mint, as well as other world coin mints, such as the Canadian (Royal) mint and Perth mint of Australia.

 Additionally, when a year is over and the government mint has stopped making coins dated that year, mintages or sales figures become known.  If a large number of coins or sets were found to have been minted, then coin investment potential is obviously less likely.  Coin collectors, speculators, investors, and coin dealers may try to unload high mintage coins even at discounted prices, before prices fall further. 

 The Coin Buyer’s Secret  - That Often Works

You love the idea of buying coins from the mint.   So what are you to do? 

If you don’t mind getting it wrong once in a while, and like the idea of coin speculating then here’s the secret:

Buy coins and sets during the third year of issue.

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