If I wanted to Buy, should I go CC or Draped Bust

JackTrout

Hi folks, Jack Trout here, just wanted to ask if I had about $2000 to $4000 to invest in a coin should I buy a $5, $10 or $20 Gold Lib CC or buy those lovely 1796 to 1803 Draped Bust Dollars and go Early dollars, what are the trends right now, as I don't know which way to go but come back in April to Mt Shasta and would like to buy a nice coin that I can sit on for 20 years.

I would like it to be PCGS graded, so I know what I am buying.

Any suggestions out there?

Jack Trout from Chile

mercurydimeguy

I just got this in the mail, my most recent purchase so I'm a bad person to ask for advice

I also love CC coins (not that I don't like early Bust dollars)...there is something about Carson City history...

Here's a link to my CC Type set (I still need to image the 50C piece)...hopefully it will inspire you/sway you

Link to CC Type set

roadrunner

I don't really care for the CC gold pricing or the early dollars. I think there are plenty of those out there and not vibrant or growing collector demand (maybe steady but not growing imo).

For $2K to $4K I'd probably pick a nice Liberty $2-1/2 to $20 gold type set in MS63/64 grade. These are the cheapest those guys have been in 8 years. If the price of gold rises again over the next 3-10 years, I thing the premium of any of the CC gold in this price range will get eroded. I think $2K to $4K would be better spent in one or two nice 62-64 Saddle Ridge S mint $20's. As far as the Liberty type set in MS64 - you could do that for around $4500....or $3500 in MS63. I think the 64 is the better deal on the $2-1/2 and $5. MS63 or MS64 on the $10 or $20 is a coin flip. For the amount of gold one gets in the $10's, I think they are the best combo of gold vs. price vs. collectiblilty. I think the CC's and early dollars are solid coins that will hold their value well over the next 20 yrs. They will probably be slow gainers though rising with general inflation. If I had $2K to $4K to spend on coins at this very moment my order of choice would be common date MS63 $10 Libs and Indians, then MS64 $10's, then MS64 $5's, then MS63 $20 Libs, then MS64 $2-1/2's. Size matters. It's why I like the $10's. The MS63's sell for a 30% premium to their spot gold value and they are far less available than the $20's. You'd be hard pressed to find that in any 80-100 year old choice unc US silver or gold coin. Even MS63 Morgans sell for a 200% premium to spot. The MS63 $20 Saints and Libs carry a 12/15% premium to spot, but are quite common vs. the smaller denominations. The gold coins are far more liquid than early dollars and you can know exactly what those gold coins are worth on any day of the week based on numerous buy/sell prices available from Heritage, Rarcoa, etc. The commission to buy any of these gold coins will be about 3-5%. The bust dollars will probably run you 10-15% on the spread.

In my own area of specialty I'd probably pick a real choice VF 1872-s quarter to sit on for the next 20 years. Downside is minimal and I think the date is as rare as any of the CC quarters that cost multiples of this date. If you do some research on particular coins you might be able to find something in early dollar varieties that could give you more potential down the road. You need to find an area that hasn't been trampled over by collectors and speculators over the past 2-10 years leaving little untouched. While I love Carson City coins too, I think they've left the "as rare" S and O mints behind for the time being. But they have been slowly catching up over the past 20 years. Is there an untouched area in early dollars or CC's? I don't know. There has been a lot of attention placed on those coins for decades. A lot of people say they want to put stuff away for 20 years but how often does that really happen? Not often from what I've seen. I've only owned one top quality coin for >20 years. And frankly, if I had sold it after 8 years I'd have gotten more money for it. I'd look at the 3-5 year horizon and ensure that whatever you buy you can get out from under it and no more than a 10% hit. If I had to buy a gold CC I'm make it a choice XF original $20 Lib at $2,000 or so...at least it has $1325 of gold in it. Though if gold rises to say $2,000/oz that CC will probably be worth $2675 tops.....less % increase than the price of gold. In the area of getting something for "free," I'd be on the look out for MS64 or MS65 $10's and $20 Libs that are not yet stickered (ie fresh coins coming back to the market in >5 years) and have a good shot at getting stickered. I'd love to buy a fresh MS65 $20 Lib for $3300 knowing that if it stickered it would be worth another 25%....same comment for MS65 $10's. There are lots of ways to stretch one's dollars.

Find good value in what you like. Ensure the coin is a no questions original - problem free specimen. Be fussy. You only get the chance to do this right one time. It's far easier to do it wrong. I'd keep in close contacts to my local dealers that are known for getting quality coins in from time to time. My interests would be in finding something fresh, choice, and scarce to the market. If it ended up being a draped bust half rather than an early dollar, so be it. Finding a dealer you can trust and really work with on your quest is not that easy.

AnkurJ

I like the Draped Bust series . CC gold has jumped in price the last few years and might be due for a correction.

roadrunner

<< <i>I like the Draped Bust series . CC gold has jumped in price the last few years and might be due for a correction. >>



That seems sort of odd at first since the price of gold has fallen from $1900 to $1300. You'd think that would have shrunk the prices of CC twenties. In any case, generic choice and gem dated gold has been crushed.
I like the draped bust dime, quarters and halves myself....scarcer than the dollars. But newer collectors tend to gravitate towards the "big-ness" of the early dollars. They are more impressive looking. I like the 1795 FH dollar
as a two year type coin....and is attractive enough in F-VF grades. That's what I'd look at if I had to choose an ED.

deltadimeman

draped bust small eagle dollar

AnkurJ

I agree completely. The Flowing Hair dollar is a lovely design!