- #COINS ARE MORE VALUABLE THAN NOTEA HOW TO#
- #COINS ARE MORE VALUABLE THAN NOTEA PROFESSIONAL#
- #COINS ARE MORE VALUABLE THAN NOTEA SERIES#
They did that back in the 1960s with regard to those silver coins. The other thing they do is announce that they are no longer going to mint the coin in question out of that metal. They are now collectively called “junk silver.” They also did it with pennies and nickels in 2007 I believe. They did that with silver coins-dimes, quarters, and half dollars-back in the 1960s. When the melt value of a coin exceeds the face value, they outlaw melting or exporting it. We went through this before with ‘junk silver’ He paid $1 million and got $1.6 million worth of copper and nickel (nickels contain both of those metals). The Federal Reserve delivered them to his warehouse in Dallas at zero cost. In the first chapter of his book Boomerang, Michael Lewis tells how Kyle Bass bought $1 million of nickels when the melt value of them was 8¢ each. It would be a cheaper way to get silver or nickel or copper or zinc or whatever the metal was.Īnyone who buys coins when the metal in them-called melt value-exceeds the face value, makes an instant profit. and around the world would stop buying them in the normal metal market and would just buy the coins at the bank. Why? Because if they did not, users of those metals in the U.S. First they make it illegal to met or export the coins.
When that happens and stays that way, the government usually does two things. Illegal to melt or export and no more minting That happens when the price of the metal in the coin rises so high that it costs the government MORE to buy the metal and do the labor and shipping of the coins than the face value of the coin. And they really hate it during the times when commodity prices rise to the point where they LOSE money making coins. They do not like coins because coins cost more to make than paper or plastic sheets. In other words, governments want the melt-value-to-face-value ratio to be as close to zero as possible. If it was up to government, all currency would be paper (or plastic sheets as some countries now use). Then, after World War I, governments tried to get rid of specie, which I will define as high melt-value-to-face-value ratio coins. They were worth their face value because they contained that value of metal in the coin. That ratio was the whole idea of the coins. It used to be that all coins worldwide had a high melt-value-to-face-value ratio. They used to all be high melt value to face value ratio coins because acquiring high melt-value-to-face-value ratio coins in another country and bringing them here would be expensive and is probably illegal in the country that mints them. Turned out there were two, and they were right here in the U.S.: the penny and the nickel. It occurred to me that it would be really neat if somewhere in the world there was a circulating coin with a high melt-value-to-face-value ratio.
#COINS ARE MORE VALUABLE THAN NOTEA HOW TO#
When I was researching my book How to Protect Your Life Savings From Hyperinflation & Depression, the light bulb went on in my head. coins with a high “face value to melt value” ratio.
coin and paper money prices and to get a general idea of what you have, please see: What’s It Worth? For more detailed information, see Frequently Asked Questions About Coins & Paper Money.On melting circulating U.S.
#COINS ARE MORE VALUABLE THAN NOTEA PROFESSIONAL#
Therefore, before you can accurately price your coins, they must be graded by a professional numismatist (coin dealer) or better yet (and for higher value coins), one of the third-party coin grading services such as the Numismatic Guaranty Corporation ( NGC) or Professional Coin Grading Service ( PCGS).įor basic U.S. While the date and mint mark can easily be determined by a novice and mintages and popularity information can be found with a little research, it takes an experienced numismatist to evaluate a coin as to grade. For more info on grading, see: Coin Grading Chile or Columbia).Ī coin’s grade is based upon an evaluation of its present condition or state of preservation in relation to that which existed when the coin was first minted. Popularity can apply to the coinage of entire countries as well: While almost all United States coins enjoy strong collector demand, coins from countries with a limited middle class and therefore a relatively small number of collectors, (such as Peru or Bolivia), will bring less than coins from countries with a flourishing middle class that has many collectors (ie.
#COINS ARE MORE VALUABLE THAN NOTEA SERIES#
A particular date and mintmark from a more popular series will bring more than an issue with the same number of surviving specimens that is not as popular. Relative rarity brings collector demand for that issue into the equation. Classic Commemoratives & Government SetsĪbsolute rarity is related to the number of pieces of a particular issue originally minted and how many of those survive today. Silver Coins: When They Ended and What They’re Worth