Longevity of Numismatic Appeal to Collectors?

[metallica73]

Thoughts on this? Is it even possible to think ahead with regards to numismatic premiums. A few of the coins I hold have gone in different directions value wise....

eg.

2012 1oz Lunar Series II Dragon - I picked this up for £40 at the time with a big premium and can remember a couple of years later they were still selling for £60 a pop, in 2021 they are now selling closer to my purchase price IF lucky!

2003 & 2014 Mexican Libertads, picked up around £18-20 and now going for DOUBLE that.

2017 plain edge Sov - paid £525, now selling £750-850

2012 Rwanda Rhino - cost £35... now selling for £80

I guess my question is, do these series all have a 'sweet' spot for maximising returns?  Looks like interest in the Aussie Lunar Series 2 has faded but a 75% hit ratio is pretty good.

[LawrenceChard]

On 14/07/2021 at 16:16, metallica73 said:

Thoughts on this? Is it even possible to think ahead with regards to numismatic premiums. A few of the coins I hold have gone in different directions value wise....

eg.

2012 1oz Lunar Series II Dragon - I picked this up for £40 at the time with a big premium and can remember a couple of years later they were still selling for £60 a pop, in 2021 they are now selling closer to my purchase price IF lucky!

2003 & 2014 Mexican Libertads, picked up around £18-20 and now going for DOUBLE that.

2017 plain edge Sov - paid £525, now selling £750-850

2012 Rwanda Rhino - cost £35... now selling for £80

I guess my question is, do these series all have a 'sweet' spot for maximising returns?  Looks like interest in the Aussie Lunar Series 2 has faded but a 75% hit ratio is pretty good.

If a coin has numismatic appeal, then there is no reason this would decline over time, whether it is due to aesthetic or technical reasons.

That is different from "numismatic premium", which is price or value related, and will also depend on supply and demand.

Of course, sometimes demand will be based on numismatic appeal, which may then affect prices.

My point being that there is a distinct logical difference between the numismatic aspects of a coin and its value.

I believe true collectors do so out of interest rather than value or investment potential.

Market prices are also subject to "fashion", sentiment, hysteria, and any number of illogical factors.

Some of my oldest advice for collectors is to buy what they like and are interested in, rather than as an investment. Their reward or dividend will be the pleasure they get out of it, any financial gain will be a bonus.

As a corollary, investors should buy for sound financial reasons rather than for collector interest.

Of course, there is a middle road, but it is worth being aware of ones own reasons for buying coins.

 

 

[metallica73]

Thanks Lawrence.

I've been in the silver game for 10 years now and I think my reasons for buying coins has changed 3 times in that decade

I no longer see it as a way to make a quick profit but as a long term hedge against inflation - money I put into any metals/coins i'm looking to preserve their value over time.

But it's interesting to me to see the changes in fads over that time, for a good 75% of that time the Lunar 2 series was seen as a must have collection but it definitely has lost some value. Just trying to pick some winners that can hold their numismatic value - e.g do we see the premiums on the rwanda series or the queens beasts maintaining itself over the years.

[HawkHybrid]

6 hours ago, metallica73 said:

Just trying to pick some winners that can hold their numismatic value - e.g do we see the premiums on the rwanda series or the queens beasts maintaining itself over the years.

imo spot the odd one out:

queens beast series

perth mint lunar II series

perth mint koala

mexican libertad

britannia

 

HH