Allow 3 to 5 Years for New Issues to Increase in Value

Question: I recently purchased, direct from the Royal Canadian Mint, a gold $100 proof coin containing 91.7% gold and 8.3% silver. The face of the coin has Elizabeth II with the reverse reading “Peace-Paix” with olive branches entwined with a branch of maple leaves. It comes sealed in plastic, a leather presentation case and a certificate of authenticity, numbered, inside of the case cover. The purchase price in U.S. dollars is $245. It is very beautiful but I am curious about its investment value. I notice gold is fluctuating on the market, and I would like to know what I could expect from a reputable dealer.--M.B.D.

Answer: Most coins purchased for investment purposes require a three- to five-year period to appreciate in value. That’s because there is a bid-ask price spread. Because your Canadian coin is a new issue, it’s really too early to determine how this coin will fare. If you were to attempt to sell it today, it would probably bring from $175 to $225 from a dealer. However, it might well be worth considerably more than the purchase price in several years.

Right now, the hot coin for collectors is the new U.S. proof silver eagle and proof gold eagle. Both of these coins, sold last November, are just now reaching the marketplace. Last week at the Long Beach coin show, the proof silver dollar, issued for $21, was being offered for between $50 and $60. Prices on the proof gold eagle ranged from $750 to $900.

You might wonder why there’s such a wide price spread. The reason is dealers are testing the market. They don’t know at this time what such new issues are actually worth. Collectors who want to be the first on their block to own one might be willing to pay more than someone willing to wait for the price to come down. On the other hand, if collector interest outweighs supply, then those purchasing early will end up paying less than those who wait.

This holds true with your Canadian commemorative, except that the market is not as volatile as it is with the American proof eagles. Eventually, these new issues will enter the mainstream of numismatics and achieve trace records that collectors and investors can bank on. That’s why many seasoned numismatists concentrate on earlier issues and gain the added benefit of historical perspective both financially and numismatically.

Q: I have four new 1985 dollar bills, the numbers being in consecutive order, except one where the green print is missing on the face side. Missing are the green numbers on the lower left and upper right sides; also the Department of Treasury seal over the ONE. Does this bill have any value above $1?--N.R.L.

A: Yes. Your four bills, sold as a set, are worth about $20 to $25.

Q: What is the market price for a complete 1984 Yugoslavian Winter Olympics coin set? It consists of 15 silver coins and three gold coins.--E.R.

A: Your set has a catalogue value of $837.50. You can expect considerably less in the marketplace, where dealers often pay half the catalogue value. The reasons are complex, but basically a dealer has to leave room for a profit, so he, too, may have to sell under catalogue, because his funds are tied up until he can find a buyer. However, highly desirable coins often will sell over catalogue. This is especially true for prized rarities.

Coin News

For those who may never have owned a $500-million Treasury Note, the Bureau of Engraving and Printing is making it possible to own what may be the next best thing. A reproduction (pictured) of the largest U.S. bill ever issued is being made available in conjunction with the American Numismatic Assn.’s Mid-Winter Convention, Feb. 27-March 1 in Charlotte, N.C. Mint souvenir cards with the bill are $4 by mail. Request item No. 940 from the Bureau of Engraving and Printing, Mail Order Sales, Room 602-11A, 14th and C streets S.W., Washington, D.C. 20228.

A series of seminars on “How to Invest in Rare Coins” is being conducted by Robert Badal. The series includes a session Wednesday from 1 to 4 p.m. at Ventura College, telephone (805) 656-5163 ($25); March 7 from 1 to 4 p.m. at Santa Monica College, (213) 452-9214 ($25); March 19 from 7 to 10 p.m. at Golden West College, (714) 891-3991 ($18); March 21 from 9 a.m. to noon at Pasadena City College, (818) 578-7261 ($20); April 11 at the Learning Tree, Thousand Oaks; from 9 a.m. to noon (805) 497-2292 ($18), and April 25 from 1 to 4 p.m. at Rancho Santiago College, (714) 667-3097 ($25).

Veteran dealer Joel D. Rettew has moved his operations to Newport Beach and is specializing in Professional Coin Grading Service (PCGS) evaluations for customers. PCGS appraisals cost $22 per coin. Rettew’s Rare Coin Investments is at 1000 Bristol St. North, Newport Beach, Calif. 92660; telephone (714) 833-1800.

Coin Letter

Your Jan. 8 column mentioned a large copper medal honoring the U.S. frigate Constellation. These medals were advertised nationally, perhaps by the Smithsonian, 15 or 20 years ago. The advertisement: “Thousands of special copper medals, newly minted from parts of the United States frigate Constellation, now berthed in Baltimore, will provide lifetime free admission to the Navy’s oldest vessel for the fortunate owners. The medals, struck from copper spikes used in the original construction of the ship in Baltimore in 1797, are being used to raise funds nationally for the restoration work required to put the Constellation in original condition. The medals are being distributed on the basis of one for each dollar donated.”

--E.E.R.

To G.M.B.: Re previous answer concerning an Indian-head quarter eagle. You are right. The answer should have said $175 and up.

Don Alpert cannot answer mail personally but will respond to numismatic questions of general interest in this column. Do not telephone. Write to Your Coins, You section, The Times, Times Mirror Square, Los Angeles 90053.