Ever dreamed of finding a rare coin in your pocket or spotting a million dollar coin at a real estate sale or garage sale? The news of coins being auctioned for phenomenal sums has drawn attention to high quality coins. Many are now wondering if coins and other precious metals could be a worthwhile investment in their future.
That Oxford Gold Group understands the fascination and intrinsic value of gold. Gold coins are valuable for a variety of reasons besides the value of the precious metal itself. Take a look at some of the world’s most expensive coins and how they earned their value.
Why are there high quality coins?
Coins can be of great value for many reasons. The minimum value of a coin is generally the value of the metals it contains. Some coins, particularly US nickels and pennies, have a face value lower than their metals.
In contrast, the world’s most expensive coins can be worth tens, hundreds, or thousands of times their face value.
Many of the most expensive coins have a value far in excess of their value when melted down. Like postage stamps and sports cards, coins have value to collectors, and coins with unique or intriguing provenance can fetch high prices at auction.
A coin can have value for at least three reasons:
Historical meaning
Coins that trace their origins to historical events such as the American Revolution or the Civil War can be of great value. However, a coin or note made during a specific historical period does not necessarily have to be rare or expensive.
During wars, nations often mint more currency to pay off debts. For example, collectors will find inexpensive Civil War or Roman currency.
Coin errors and mischief
Some coins reflect errors or intentional actions by mint employees or mechanical problems. Minting errors included double strikes, rotated dies, and misaligned dies. Other mistakes were using the wrong die, such as B. the Lincoln penny “Wide AM” from 1999.
Deliberately minting coins without government authorization is a “clandestine strike”. Some extremely valuable coins emerged from clandestine strikes.
Large denomination coins
Governments sometimes produce large denomination coins to pay off large debts or to show national standing. High denomination coins and other currencies are not necessarily worth much. They could have less value if the country issuing the currency was in a period of hyperinflation.
The large denominations with the highest chance of retaining their value contain precious metals. Like Morgan silver dollars, low denomination coins can be a sound investment.
Examples of high value coins:
After the American Revolution, the new nation issued many coins with historical motifs that reflected the symbols and spirit of the revolution. Not surprisingly, these coins are popular collectibles in the United States.
coin 1: 1933 double-headed eagle
value: Over $18 million
The 1933 $20 Double Eagle gold coin is so rare that the U.S. government generally does not allow citizens to own it. The few copies that exist have not come into circulation legally.
The US government will confiscate Double Eagles in 1933 because it considers them stolen property. However, the government is exempting from confiscation two coins in the US National Numismatic Collection and another coin that the government has declassified in a legal settlement.
Coin 2: 1943 copper penny
value: Over $80,000
The 1943 copper pfennig is not the most expensive coin in the absolute sense. Compared to its face value, however, the 1943 copper penny has experienced the most notable increase in value of any modern US penny.
The coin owes its high value to the intensive demand for copper during the Second World War. The government planned the 1943 penny as a steel coin, but the mint inadvertently produced a few copper coins. Fewer than two dozen of these coins could exist, making the remaining specimens exceedingly valuable.
Coin 3: The 1913 Liberty Head V Nickel
value: $4.5 million
In 1913 the US government switched from the Liberty head design to the Indian head design for their nickels. However, there are some Liberty nickels with a 1913 date.
The circumstances that prompted the mint to mint these coins are a mystery. However, the government never intended to put them into circulation.
The Smithsonian Institution describes the production of the nickels as a secret strike believed to be linked to a money-making scheme by Samuel W. Brown of North Tonawanda, New York. Copies have sold at auction for more than $4 million.
Coin 4: $1794 with flowing hair
value: Over 10 million dollars
The Philadelphia Mint produced these silver dollar coins as a gift to enhance the standing and legitimacy of the United States in the eyes of foreign powers. According to a CNN article, this particular coin, which sold for $10 million, was a gift to former Secretary of State Edmund Jennings Randolph.
Coins like these can break records at auction because they are unique. A wealthy collector with a single-minded desire for such a coin could bid any amount to acquire it.
Coin 5: The 1907 Saint-Gaudens double-headed eagle
value: $7.6 million
This $20 gold coin derives its value from a minting error and historical quirk. The original design required multiple blows to create the eagle in high relief that former President Theodore Roosevelt wanted.
The first 1907 mintage coins are valuable for the history behind them and their ultra-high relief design. The US Mint released an Ultra High Relief Double Eagle gold coin in 2009 featuring the design of sculptor Saint-Gaudens.
Coin 6: 1804 Bust Dollar Class 1
value: Over $3.8 million
Another example of a coin minted as a diplomatic souvenir is the 1804 bust dollar, and the date of manufacture was 1834 or later, three decades after the date on its obverse. The various classes of the 1804 dollar reflect the original official strike as subsequent strikes, including clandestine strikes.
Coin 7: Canada’s $1 million gold coin
value: Over 4 million CAD
The Canadian government minted a 100 kg (3,215 ounce) coin in 99.999 percent pure gold. The sheer weight of gold pushes the coin’s value above its face value at the current spot price. The Royal Canadian Mint explains why they created the coin: “Because we can.”
Canada produced five of these coins containing over 1,000 pounds of gold. It increases the prestige of Canadian coinage and earns the Royal Canadian Mint a place in the record books.
Most investors will never own a coin that big. However, Canadian gold coins and bars are attractive collectibles and can be part of a retirement account.
The Canadian Mint also sells a 10kg Spirit of Haida Gwaii coin with a face value of CAD$100,000. Haida Gwaii is a group of Canadian islands referred to as the Galapagos of Canada.
Coin 8: The Australian one tonne coin
value: 53 million AUD
To eclipse the Canadians, the Perth Mint in Australia produced a coin containing one tonne of gold (1,000 kg). The coin features a kangaroo and a portrait of Queen Elizabeth II and is undoubtedly one of the most expensive coins in the world.
How do I invest in gold?
Although you may never own an extremely valuable coin like those listed above, gold coins are still a smart choice for investors and collectors. Gold will likely hold its value despite inflation and may even appreciate if demand for gold increases.
You can invest in gold by buying individual coins or entire lots of coins through auctions. However, buying tokens requires in-depth knowledge for collectors.
For example, slight variations in a coin’s condition can drastically affect a coin’s collector value. Externally similar coins can therefore have very different values.
A simpler approach to buying coins is to buy gold bar (bar, bar or coin) for its value as a metal. Many people invest in physical gold bullion to protect against inflation and use bullion to hold their wealth in physical, tangible form.
Fortunately, the IRS exempts bullion from tax rules for collectibles such as gold jewelry, art, and memorabilia. This exemption allows investment firms to borrow physical bullion. As a result, you can enjoy the tax benefits of an IRA and the security of investing in gold.
The Oxford Gold Group helps investors protect and grow their wealth by making it as easy and safe to buy physical gold and silver for their IRAs and home delivery as bonds or stocks. That’s why investors have turned to the safety of gold and silver and the Oxford Gold Group. Call 833-600-GOLD or visit us OxfordGoldGroup.com to receive a free copy of Your Precious Metals Investment Guide.
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