Gold coins and silver dollars may not be in the budget anymore, but other bargains are available for coin collectors
9:25 AM, Nov. 17, 2011
Soaring prices for precious metals are adding a little shimmer to coin collecting, but the focus on the cost is also the cloud to accompany the silver lining
Soaring prices for precious metals are adding a little shimmer to coin collecting, but the focus on the cost is also the cloud to accompany the silver lining
The per-ounce price of both gold and silver have more than doubled since 2007 and some investors have turned to precious metals as a way to try to maintain their asset values. Gold was selling at about $1,756 an ounce Wednesday and silver was at about $34 an ounce.
It has also created new interest in coin collecting because one of the most popular ways to buy gold or silver is to buy coins, such as the gold American Eagle or the U.S. Silver Eagle, said Gary Lewis, president of the Fort Myers Coin Club, which celebrates its 50th anniversary this year.
“The people that are only interested in the price, they are not so much a part of the hobby because they are more like speculators,” Lewis said. “As an investment, it’s like anything. You can lose money just as easily as you can make money.”
Lewis said some collectors have had to curb their hobby because of prices.
“Everyone is on a budget these days and coin collecting, like any hobby, needs disposable income,” he said.
rican Coin. The value of gold has increased in the past few years. Today's value of 1 oz. of gold is $1,770. / Lindsay Terry/news-press.com
It has also created new interest in coin collecting because one of the most popular ways to buy gold or silver is to buy coins, such as the gold American Eagle or the U.S. Silver Eagle, said Gary Lewis, president of the Fort Myers Coin Club, which celebrates its 50th anniversary this year.
“The people that are only interested in the price, they are not so much a part of the hobby because they are more like speculators,” Lewis said. “As an investment, it’s like anything. You can lose money just as easily as you can make money.”
Lewis said some collectors have had to curb their hobby because of prices.
“Everyone is on a budget these days and coin collecting, like any hobby, needs disposable income,” he said.
rican Coin. The value of gold has increased in the past few years. Today's value of 1 oz. of gold is $1,770. / Lindsay Terry/news-press.com| Silver and gold coins are bought and sold at All American Coin in Fort Myers. / Lindsay Terry/news- press.com |
“We have a slogan in the hobby: ‘Hold history in your hands,’ ” Lewis said. “That is something special about coin collecting; you never know who has spent that coin you are holding.”
The coin club is hosting a coin, paper money and stamp show Saturday at the Elk’s Lodge, 1900 Park Meadows Drive, in Fort Myers, that will include precious metal coins and historic coins and currency, organizer Jay Chamberlain said.
Chamberlain said the rising price of gold helped shift interest to silver.
“Some of the people who used to collect gold coins have moved on to other avenues like Morgan dollars,” Chamberlain. “There are people getting into this because they think silver is pretty much an instant family heirloom.”
Morgan dollars are silver dollar coins first minted in 1878.
One upside of the price increase to neophyte collectors is that prices of many non-precious metal coins, such of recent proof sets, have dropped considerably, said Clayton Taylor, owner of All American Coin in Fort Myers.
“If you are looking to buy, it’s a good time because some things are cheaper than I think they have ever been,” Taylor said.
Lewis said collectors can find 1,500-year-old coins for about $10 and own a piece of history.
“Gold costs a lot of money and silver costs a lot of money, but don’t let that scare you away,” Lewis said. “There are a lot of other ways to get involved in collecting.” source: NewsPress
