Sell them now! The 4 coins that are expected to lose their value by the end of 2024
Most of the remaining disruptions caused by the pandemic are finally settling four years on and that process is being felt in the coin collecting market.
The covid-19 pandemic upended life for people around the world and sent many of us sheltering in place at home. Some of us took the opportunity and spare time on our hands to begin dipping our feet into making investments with online trading, cryptocurrency and even coin collecting.
The flurry of activity from these new investors caused a surge in valuations for some of those investments. But once the dust began to settle, so too did the frothiness of the markets that were impacted. That readjustment is being seen now in the coin collecting market to a degree.
Sell them now! The 4 coins that are expected to lose their value by the end of 2024
Ted Ancher, Director of Numismatics at coin dealership APMEX told GOBAnkingRates that during the pandemic the valuation of rare coins “became somewhat inflated.” The pricing of sought after coins “sort of reached the highest points they ever reached.”
Now the market is “resettling” in his opinion which can be evidenced by how the value of a Carson City uncirculated silver dollar in GSA packaging changed before, during and after the pandemic. Prior to the covid-19 disruption it sold wholesale for roughly $175, then shot up to $300 as the virus worked its way around. However, today its value has slid down to around $285.
Those who waded into coin collecting shouldn’t necessarily panic about short-term fluctuations though he says, coin collecting is a long-term investment strategy, think decades.
Given enough time rare coins are likely to appreciate in value, but usually slowly. But there are other events or practices that can knock down the value of rare coins
One of the main factors that can drive up the value of rare coins is their rarity. So when a pile of them, what’s referred to as a hoard, is discovered that can drive down the value of the same coin with the same date and mint mark. Likewise, if someone stumbles across a shipwreck ladened with treasure the market can be flooded with what were once rare coins.
Two such examples of this happening occurred in 2023. One was a shipwreck discovered off the coast of Sardinia where between 30,000 and 50,000 ancient bronze coins, known as follis, dating back to the first half of the fourth century were recovered.
Another was ‘The Great Kentucky Hoard’ containing over 700 rare gold and silver coins from the Civil War era that was unearthed by a farmer. It included “a cache of U.S. gold coins dated between 1840 and 1863 consisting of $1 Gold Indians, $10 Gold Libertys and $20 Gold Libertys—even including a few 1863 Gold Liberty Double Eagles, a super-rare date that is scarce in all grades,” stated GovMint, who along with their Scare & Unique Division had exclusive rights to sell the hoard.
A treasure trove of coins flooding the market isn’t the only thing that can drive down coin valuations. Every now and then a person may luck out at an auction, snapping up a rare valuable coin for a steal.
This may have an effect on what the market thinks that coin is now worth. But Ancher says that doesn’t mean you should sell off your collection.
Also, don’t clean your rare coins. While a polished coin may look pretty, what it will do to the coin’s value will be ugly. It could slash its value in half, or even more.