Rare Coin Investment Strategy: Build a Type Set Posted by Adam King on October 22, 2012
Generally speaking, segments of the coin market tend to appreciate together. While it can happen in rare cases, specific coin issues hardly ever separate from their counterparts and surge in value.
The coin market usually witnesses demand and price escalation for an entire series or market segment. Good examples include high-end Mint State Morgan silver dollars, MS-64 and higher $20 Saint-Gaudens gold coins or high-grade Barber design coins.
It is fairly difficult to predict when these collecting and investing trends will enjoy popularity and buyer demand in the coin market. The promotion of particular coin types through influential writings can stir a buying popularity for particular coin types that are relatively easy to find, including the MS-64 $20 Saint-Gaudens gold coins or common date MS-65 Carson City Morgan dollars. The coins are sought after by investors and the market price rises subsequently.
In the current market, it is well known that market forces within the economy will direct a buying demand to rare coins as a hedge against inflation, which prompts a surge in demand for investment quality coins.
A type set allows coin collectors to capitalize on their investment strategies in investment quality coins over a period of time that accommodates vastly different markets. A type set is a group of the various design types of each monetary denomination, for example gold coins in denominations of $1, $2.50, $5, $10, and $20, which encapsulates gold coins from different historic periods.
A well-rounded type set of silver coins includes an example from the designs of Draped Bust dollar with Small Eagle Reverse (1795-1798), Draped Bust dollar with Heraldic Eagle Reverse (1798-1804), Gobrecht dollar (1836-1839), Seated Liberty dollar (1840-1873), Morgan dollar (1878-1921), Peace dollar (1921-1935), and modern dollars.
There are many nuances in investment quality and certified coins, therefore working with a competent and certified coin dealer is a recommended strategy. By purchasing selected coins within a type set, being aware of the nuances, appeals, and historical draw of the coins in the set, investors can maximize their investment potential in the certified coin market over the long term.