Buy and Hold - 1895 Proof Morgan Dollar - 60 year 10.4% Annual Gain!
Zoins
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A PCGS PR67+ CAM CAC that last sold in 1960 for $500 is being auctioned by Great Collections. As often happens, it was owned by a collector who recently passed away and is being auctioned by his son.
With a PCGS Price Guide price of $175,000, this is a 10.4% annualized gain over 60 years!
- Article: https://www.coinworld.com/news/us-coins/2019/03/proof-1895-morgan-dollar-enters-spotlight.html
- Cert: https://www.pcgs.com/cert/36984321
- Auction: https://www.greatcollections.com/Coin/688967/1895-Morgan-Silver-Dollar-PCGS-Proof-67-CAMEO-CAC-Toned
Pretty nice results for a coin. Let's see where this ends up.
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Comments
Shouldn’t a reported annualized return be based upon what the consignor ends up netting and not the price guide price for a coin that has not yet sold?😉
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Depends. It’s the difference between unrealized and realized gains. With stocks you can measure unrealized gains without selling.
And here, we need to wait until April 7th for the actual sale price for the realized gains.
Nice looking example of a common coin
What is the value of $500 in IBM common stock bought in 1960?
Using average price for 1962 and including splits but NOT dividends, $500 (44.68 sh) of IBM would become 3,351 shares worth $465,487.01 at the end of 2018 (average price for year)
The same $500 in IBM in 1947 would not be worth approximately $32 million.
Kind of like that slogan " Movies Are Your Best Entertainment" = MAYBE
Is it not possible to use the same year, 1960, for a better comparison?
The 1962 stock is more than the coin, but not an order of magnitude more.
What was that coin worth in 1947?
I used $500 invested in 1962 'cause that's the year that was quickly available. IBM average price was $11.19.
in 1947 the share price was about $3.30, but I don't have split data until 1964.
Is it not easier to know a coin that would likely be valuable over that amount of time vs a stock?
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
It's also worth noting that it looks like $500 is the uncirculated price guide price from 1960, so comparing price guide prices may be even more fitting.
Here's a photo from the GreatCollections auction.
Anyone call these Liberty Head Dollars today?
Of course no unc. pieces are known to exist.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Lol. I totally read that image wrong. The price is $625 for the proof and just $350 for an Unc. Of course, since there are no uncs, I wonder how they got to that price.
At $625 price guide, he got a 20% discount.
I remember viewing a set of proof silver dollars (Seated and Morgan) at a show in the late 60s or early 70s. I actually helped the owner put them away after the show and held the 1895 in my hand. He commented that he overpaid when he bought it for $8.10 because it was the last one he needed to complete his set. If my memory is correct the same collector also had dozens of proof pastern dollars also.
Those were the days. I have a Stack's Numismatic Guide dated 1941 that lists the 95 in proof for $7.50 and a 1947 Star Rare Coin Encyclopedia indicating B. Max Mehl will pay $5.00 for one, meanwhile he will pay $25.00 for a 1903-O.
it's crackers to slip a rozzer the dropsy in snide
Nice looking example of a common coin
where did that come from?
a bit unfair to compare to a specific stock looking back. There are lots of stocks one could have bought in 1962 that are worth 0 today. Comparing to an index is more fair.
No more than comparing a specific coin's price appreciation. In this instance, both stock and coin have been thought of as "blue chip" for a long time.
As far as proof Morgan’s go, it’s a common coin
951 coins at PCGS and NGC. That's more coins that are believed to have been minted:
PCGS Pops:
NGC Pops:
It will be interesting to see what the final price will be..... be sure to follow up here... Cheers, RickO
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That same $500 from 1960 would be worth $4,270 based of CPI inflation. A 3.7% annual gain.
The 67+ CAC Morgan proof looks 10 times better than a certain NGC Proof 69 Trade Dollar that is floating around out there. I'll take this common coin over the uncommon, graded 3 points too high, TD.
Oh great, another alt
This is a very cool coin that came out of the woodwork. Many people have been saying there's no more fresh-to-market coins - but they are still out there. Not as many as 20 years ago - but they are still out there.
In hand, the coin looks just like the photo - absolutely superb. The half dollar is pretty nice too - I don't have a photo of that yet - but will tomorrow or Tuesday.
Regards,
Owner/Founder GreatCollections
GreatCollections Coin Auctions - Certified Coin Auctions Every Week - Rare Coins & Coin Values
We should look at the return of buying Sears stock in 1960 too! :-)
Owner/Founder GreatCollections
GreatCollections Coin Auctions - Certified Coin Auctions Every Week - Rare Coins & Coin Values
Hey Ian, what half dollar?
Point here is what did you buy and when, and when did you sell? Both IBM and Sears were good investments for a while, and then Sears went the way of the buggy whip with a hedge fund smart guy instead of a passionate retailer person running the show. Same for coins - one could have loaded up on BU rolls of 1950-D nickels and 1960 small date cents in the 60's only to watch their value plummet. Or you could have bought most key date or early coins and made money. Some did better than others.
I believe in the old saying: Most coin investors loose money, and many collectors make money in spite of themselves.
==Looking for pre WW2 Commems in PCGS Rattler holders, 1851-O Three Cent Silvers in all grades
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I read a good article a while back about Sears being the Amazon of their day. Their catalog business disrupted retail and drove many companies out of business. Much later on, they stopped innovating. Leveraged buyouts saddling the firm with debt didn't help.
Yep. And re-read Claychaser's comment.
The better comparison is - $500 invested across the NYSE (index fund) in 1960 vs. $500 invested across the coin market. The stocks have done a lot better.
There's a lot of talk comparing this to stocks, but is the better comparison $500 in the coin or $500 playing golf
It is a nice return. Not sure if the buyer in 1960 was smart or lucky but clearly it worked out for him. Perhaps 60 years from now the coin will sell for $61 million and we can have the same discussion again.
LIBERTY SEATED DIMES WITH MAJOR VARIETIES CIRCULATION STRIKES (1837-1891) digital album
It work out for his offspring.....he didn't realize any of the gain....
This ended up at a 10.74% annualized again or even more than the 10.4% estimate in the original post.
The results are a 17% premium over the PCGS Price Guide:
You can’t calculate the gain unless you know what the consignor netted.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Yea, well how much fun is holding IBM stock?
There is always a lot of talk about our coins not being an investment, and to a degree that is correct. But, one must calculate the enjoyment we have along the way with any any return on investment.
And that is impossible to quantify
Dead Cat Waltz Exonumia
"Coin collecting for outcasts..."
I doubt his heirs are second guessing or displeased at his $500 investment "only" growing to approx. $200,000.
Philadelphia ?
Coin club had a 65 &63.1895 morgan proofs ....it was magic to hold them..... forget about roi