Opinions: Are State Quarters a Good Investment

Dennisl · February 1, 2002 1:44AM

If you have been reading this forum lately you have watched Mitch and I debate whether statehood quarter prices are Falling ( my opinion ) or Soaring ( Mitch's opinion). I have pointed out that Pops are exploding and that prices have significantly retreated from their high water marks and are still declining. Mitch points out the few exceptions that are getting more difficult to find as time passes.

If Mitch is correct and prices are soaring and only getting better, we have to assume that state quarters are a great investment. I personally think that prices will continue to decline. Please state your opinions. Are prices falling or soaring for the majority of statehood quartes and are they a good investment if prices are soaring.
Thanks

gary · February 1, 2002 2:01AM

Dennis,Stathood Quarters may not be a good investment in the short run,BUT,the interest is strong and will remain so for some years...That is for educational reasons not monitary,my kids look forward getting there pf69 sets each year around christmas.The MS coins are another story...BEWARE,,,,gary

wondercoin · February 1, 2002 2:13AM

As I mentioned on another thread today, while Dennis (who I "love" and do significant business with) is posting these "state quarter" threads (almost always negative in nature), he is one of the STONGEST BUYERS IN THE COUNTRY on low pop 2001 state quarters!! Yesterday, he was "outsniped" at nearly $1200 on ebay on a year 2001 state quarter coin!! He bid so high, my bid didn't even "take" in the auction (if you know what I mean about how ebay works)!! Yet, that very morning of his near $1200 bid for a 2001 coin on ebay, he posted another thread suggesting pops were skyrocketing and that coins from year 2000 which saw highs of more than $3000 were down to "$150" and that he regrets not waiting longer to buy them as he would probably get them cheaper?????? At the same time, later that day, he lost a battle on a 2001 quarter at nearly $1200!!! As I mentioned yesterday on another thread "Isn't life strange"!!

For the record, my post on state quarters "soaring" was in the form of a question and a counterpoint to Dennis' thread at the time regarding crashing prices. I have since decided to not "play these cat and mouse games" with Dennis when he posts these threads, especially when I find myself bidding against him that day at "4 figure" levels for 2001 coins!! Again, Dennis I "love you baby", but I won't go down this road no more!

Wondercoin.

gmarguli · February 1, 2002 3:16AM

I think they'll be a VERY poor investment. The mint has increased the quality of the recent coins in the mint sets, so the higher grade ones are easier to come by. How many hundreds of millions of the earlier years were salted away? They'll be searched and MANY more high grade ones will be found. It's just a matter of time. These aren't big soft silver coins that easily gets marks. They're small hard little suckers.

As for their interest staying strong? I don't think so. We've already seen a lot of the people that entered the hobby because of the state quarters abandon it.

I also think the registry set craze will die down significantly in the coming years. With PCGS grading moderns the way they do, they'll loose too much credibility and people won't want to pay massive premiums for 1-point in grade from a service that grades moderns without care. It's only a matter of time before the collectors realize what the dealers knew a while ago, that PCGS doesn't care or grade moderns consistently.

braddick · February 1, 2002 5:44AM

Short term each coin in this series will see its valleys and peaks. Long term the astute buyer- one who remains educated and watches the trends closely- will do well.
Bottom line: This series will ALWAYS remain popular and there are new collectors entering the State quarter hobby daily and most will generate toward the 'best' coins (PCGS high grade) for their appeal and scarcity.
Simply, you won't see MS68 pop explosions on a weekly bases and slowly the collector base will catch up and then pass the available MS68/67 coins available and prices that were once stabalized will increase.

Higashiyama · February 1, 2002 5:50AM

One does not need to know whether current prices are rising or falling to answer the longer term question.

As has been said many times on this board, people should proceed with caution if they are "investing" in coins. States quarters have no track record. It is hard to guess likely long term demand. It is somewhat speculative to guess ultimate high grade populations. Consistency of grading is somewhat of an issue. If "good" investment means strong likely return with moderate risk --- NO!

But, state quarters are nice things, so, as Anthony Swaitek would say, acquire for the joy of collecting. (I have a set pushed with my clumsy thumbs into Whitman albums!)

pop1 · February 1, 2002 6:07AM

This set will be looked back upon as a very desirable collection.
Remember there will be at least 100 coins in each, ms and pf, by the end of the ten, perhaps, eleven year period.
Pick up a few extras of certain date/mints. When 2009 rolls around, high grade issues from 2001, 2000, and especially 1999 will be of continued increased demand.

supercoin · February 1, 2002 6:08AM

Yes, they are an excellent investment. So far I've invested $2.50 in 10 state quarters (none of that wasted duplication worrying about those mint mark things) which I've put into a state quarter map album with my daughter. She enjoys seeing a new coin and putting it in its proper place. Even at her young age it's an opportunity to learn a few things, like names of states and where they are located.

So I've gotten a great return on my $2.50.

Beyond that, you're on your own!

kieferscoins · February 1, 2002 6:16AM

Very Risky!

Cameron Kiefer

lordmarcovan · February 1, 2002 6:31AM

LOL, Supercoin. That's about my whole strategy, too. I like the map. I even get to learn a little geography along the way.

Seriously, my crystal ball is cloudy, but I think the long term looks good for 'em. I think there will be a lot of swings back and forth before it's all said and done. Ask me again in late 2008- early 2009. Those will be the years to watch.

Typetone · February 1, 2002 6:37AM

OK, I've been quiet long enough.

I haven't collected state quarters because, 1.), I don't really like them, and 2.) I don't think they are good investments. I do believe the pops of most will continue to increase and the current high prices will decline. Some of the dates will be difficult, but I'm not sure we know enough yet to know where the rarities will be. I have seen the phenomenon of what looks rare and expensive become common as many more pieces are "found". I had unfortunately experienced that myself.

I don't say this because I don't like modern coins. I am a great modern fan with significant collections of mint state IKEs and proof Franklins. If I were looking to expand I would look to clad mint state Washingtons from the 80s. Or, I would buy more high grade mint state (but not proof) IKEs. Prices have gone up in both areas without big pop explosions. If the coins are there I would think they would be coming out.

On the Dennis phenomenon. It puzzles me as well. He seems to be talking them down, yet buying aggressively. Maybe he wants to keep me out of the way. Hum. Well America is a great place, you buy and sell what you want, and say what you want. So good luck to all.

OK, since I don't collect them, maybe I shouldn't me pontificating, but then again why not!

Cheers

Greg

keithdagen · February 1, 2002 7:13AM

I have a really nice Dansco album with the first 15, and 3 slabbed SQ's. Only have the slabbed because the Type sets require them. Otherwise, I think that this series will be too popular to collect. By that, the series will be so popular that the market will continue to be flooded with these things in high grade, and eventually, the supply will be greater than the demand and it will be harder to get rid of a slabbed state quarter than it will be to find a Sac in change.

Keith

madmike · February 1, 2002 7:20AM

Did anyone follow the Canadian Millennium Quarter program? By the time the program was over, you couldn't give those things away.

When the US State Quarter program began, I thought... Hmmmm. what if I buy a roll of each state/mintmark and save them til the end, package them in some nice attracive way and sell them!

I'm not a dealer, it only took me a year to figure out that ther'll be about a couple million folks doing the same thing. The day the last State Quarters hit circulation, you'll see and endless array of State Quarter Sets packaged in every way imagineable. Hell, QVC is probably stashing away hoards of State Quarters to sell off the TV!

It will truly be State Quarter Hell. I mean think about how many non-collectors you know that are collecting State Quarters.

In the long run, I don't know what a complete PCGS graded set will be worth, but they seem to be plentiful in everything but the absolute highest grades.

I myself am content just putting away a Proof Set, a Silver Proof Set and an Uncirculated set each year for myself. I'll be able to look back and say that they were the coins that launched my collecting hobby.

Collect what you love, they'll always be valuable... at least to you.

madmike

kyleknap · February 1, 2002 7:33AM

It would be hard to think of a worse numismatic investment, for a number of very simple reasons.

1. If PCGS discontinued the registry program, the value of these coins would plummet.
2. The MS68/69 pieces that trade for very high prices is PCGS holders would be worthless raw.
3. While a pop one MS69 may be worth thousands now, the value would crash if another was "made" which is very likely, considering the millions of these coins that are being minted, and the contantly high number of submissions.

Kyle

MS67PLUS · February 1, 2002 8:28AM

I dont know if they are a good investment or not but You must think so as you are agressively bidding on them YOUR $1127.50 BID is not to conservative.

HIGH BIDDERS FOR A 2001-D NORTH CAROLINA PCGS MS-68

egsantos · February 4, 2002 6:07AM

Dennisl

What is the idea?
Check if you made a good investment or if your hobby is to much expensive?
Mitch have reason. For who that expend $1.2 K in a coin is stange open a thread with this question. What is the deal? Market Research or Market Induction?

Edson

pop1 · February 4, 2002 7:02AM

I find all this quite confusing on your part, Dennis. Are you just "buying down" as prices change?, while still looking for the pop. 1s and 2s?
I think the answer is: if you are going to continue buying, while pointing out market discrepencies, that prices will continue to rise.

DeepCoin · February 4, 2002 8:12AM

I dont think coins are a place to invest your money. They are a great place to park some funds while enjoying a wonderful hobby, but the long term outlook is not good compared to other more conventional instruments.

All that said, I do have a roll set from the Mint of State Quarters, but I dont have any slabbed ones. Buying a couple of rolls for $32 every 10 weeks is not what I consider an investment.

There are lots of ways to make and lose money in coins. The $69K Franklin comes to mind, as does the over $200K Mercury dime PCGS touts on the Mercury registry page. Someone made some money there.

If you have some serious dollars to spend, then pick something you like, not the next hot thing coming down the pike. I wish I had the cash to chase an MS63 Walker set.

Cocoinut · February 4, 2002 9:33AM

I have to go along with Supercoin; the state quarters are a good investment if you can buy them at face value, or in mint sets, and make an MS67 or better. With the millions of each date and mint sold by the Mint in rolls and bags, there have GOT to be a lot more high grades that will gradually come on the market when those sources are seached, cherrypicked, and slabbed. Also, remember that there are a significant number of casual collectors who order proof and mint sets each year, and little else. They have never been exposed to the world of slabs and registry coins, and have no idea of the prices that such coins can bring. That will be a more likely future source of high grade modern coins for decades to come.

I'll admit to purchasing a single MS67 state quarter, mainly out of curiousity to see what PCGS called a 67. I can't say I was very impressed, and have no desire to own a complete set of slabbed coins. I'll stick with the mint sets, and coins that probably average MS64; my downside risk is $10 per set if I spend all the coins at face value.

Jim

supercoin · February 5, 2002 8:36AM

It's true that making MS67 state quarters from face value may be profitable, but I'd characterize that as work, not investing.

My point was that coins can be viewed as excellent investments from a non-financial stanpoint.

But as financial investments, I'd pass.

At one extreme, there are "safe" coins like stable priced lower-grade older issues. Lower risk, but you're not going to make any money either. From a financial standpoint, if I wanted a safe place to park some cash and have guaranteed returns, I'd buy US Savings Bonds instead.

At the other extreme, there are highly risky coins like PCGS MS68 state quarters. You might make money on these volatile coins, but the financial risks associated with them are many and varied. From a financial standpoint, if you are willing to accept such high risk, I think there are places to reap higher rewards. Buying penny stocks, for example.

Somewhere in between those extremes may be potential "investment" possibilities, but in my opinion, only if you are an astute observer of the market, and anticipating some sort of market-changing event. Not simply sitting back and hoping your coins will appreciate in value.

So, even in the best case, I'd describe it as informed speculation rather than investment.

MoneyLA · February 5, 2002 8:45AM

The true "investment value" of the State Quarters is in the number of new collectors brought into the hobby/market/business. As these new collectors spread their money and interests into other series, everyone will benefit. Frankly, I've lost money on the few pr69dcam year sets that I've bought and sold, so for me they were "losers;" but I have not bought any MS examples.

As you know I am now building a new set after the sale of my proof silver Washingtons, and State Quarters "aint it."

cheers, alan mendelson

QuickMiata · February 5, 2002 10:55AM

good lord people use common sense. Let me make it nice and clear so you wont have to think on this anymore.

Coin minted 2 weeks ago + Plastic slab = Less then a stamp

Now plug in the numbers
.25 + .05 = .30
Top value that should be payed, also note there is not one drop of valuable mettle in theses slugs

Now true 80 years from now they may be worth .40 each out of the plastic but come on stamps will cost more by then!

itsnotjustme · February 5, 2002 2:45PM

Why can't grade play a factor in the value of a modern coin? No one disputes the difference in value of an MS63/64/65/66 Saint. Whay is it unreasonable for an MS67 state quarter to be worth $20 or $30 more than an MS66 when an MS66 Saint is worth $800 more than an MS65? Saying an MS68 state quarter is worth nothing but face value is like saying an MS66 Saint cracked from the slab is worth no more then a typical raw XF/AU piece.

supercoin · February 5, 2002 3:42PM

QuickMiata, huh??

You lost me on the whole stamp-equivalency thing.

QuickMiata · February 5, 2002 4:30PM

Supercoin,
Never mind I will just stick behind more eloquent perceivers of the english language like yourself. (I'm Behind you)

Brian,
As for comparing GOLD made o'about 100 years ago to something that was stamped out by the billions yesterday. Humm, and maybe the fact that I just spent 3 MS67 quarters today and I didn't even get one cent over the face value..... well never mind, yeah your right, that quarter you have in plastic minted yesterday is worth $10k.

O by the way if you need more quarters by the thousands of any state just let me know I can get fresh bank rolls UNTOUCHED and I will only charge ya $2 a coin + shipping of course. I can almost promise you will get many MS67+ out of each roll!!! Just PM me

braddick · February 5, 2002 6:03PM

Troy, I was just listening to Howard Stern yesterday when he pointed out real men don't drive new yellow VW Bugs or red Miatas. True?

Higashiyama · February 5, 2002 6:52PM

Braddick -- is Howard Stern qualified to comment on manhood?

Brian -- premiums should be paid for high grade moderns; the only issues I would raise are (a) is the premium justified by qualitative, rather than numerical factors -- everyone needs to decide this for him/herself, but for me, after a point, the premium is not worth it, and (b) will the premium persist over time -- in many cases, I think this is unlikely, but many people have expressed alternative viewpoints. I don't buy coins as investments, but I would rather they more or less hold their value.

QuickMiata · February 6, 2002 4:40AM

Dear Miss or Mr. Pat AKA "braddick",
Now, if you want to start analyzing names then one would only have to look as far as your REAL name "Pat". Come on give me a brake I don't even know if your a man or woman with that kind of name.
And as for your post about Sterns comment? Guess that just shows you are a follower.

Please stop trying to turn this ugly. Just leave it as you payed to much for something that is only worth twenty-five cents.

By the way my car isn't red.

wondercoin · February 6, 2002 6:14AM

"Come on give me a brake I don't even know if your a man or woman with that kind of name."

Is that a "brake" for the car you're looking for, because you're heading off the road with that comment! Trust me, you wouldn't be talking to Pat that way in person

Wondercoin.

Typetone · February 6, 2002 6:25AM

Troy (there's a real man's name):

As far as I know, Pat flattened the last Miata he saw with his truck

My guess is that Pat has forgotten more about coins then you know

And, oh yes while I'm not much for statehood quarters, I'll take all the 67s you can deliver (variety of states and mint marks please) for $2 each. No, make it $4 each (wow! I'm paying 100% over). Oh, yes make sure they are PCGS certified. I'll pay an extra $15 per coin to cover your cert and shipping costs. In fact make it $20 even per coin (did I just add another 50%?). Will take up to 100 pieces. Please PM me for shipping instructions.

Typetone

To all:

Am I being too nasty?

gary · February 6, 2002 6:26AM

Troy,I think you have the wrong forum.Bitting your arm off to spite the very the very people who can and are willing to help with coin questions is not the approach I would take.....gary

QuickMiata · February 6, 2002 6:35AM

Ok I shall zip my lip, as I see the trolls are getting bait to chew on.

For now

Typetone · February 6, 2002 6:39AM

Ah, come on Quick, you got me hooked.

TT

Gerry · February 6, 2002 6:47AM

Troy – a somewhat serious reply: when someone buys a state quarter in a PCGS holder, he/she is not paying only for the quarter. He/she is paying for the statement by PCGS that the coin in the holder is of a certain quality, reflected by the grade they have assigned to it. You may often disagree with a PCGS grade. Also, you may not think PCGS’s opinion is worth extra money in a given case, but many collectors in the hobby almost always do.

While most buyers will think that your offer to sell raw state quarters for $2 each plus shipping is not a good deal, if you were able to offer them in PCGS holders graded ms67, I’m sure you could get double that – maybe more.

jdbcoin · February 6, 2002 9:40PM

I think they are as good as modern commems...WORTHLESS!!!!!

I can't believe people are paying hundreds and in some cases thousands of dollars for these worthless chunks of copper. Its just a quarter that might be worth 27c in 10 years.
Why arent the bicentennial quarters worth a damn? Same idea, right?

Some people just know how to throw their money out the window.

Opinions: Are State Quarters a Good Investment

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