US Coinage: Introduction into US Rare Coin Collecting
The Beginnings of US Coinage (in brief):
The saga of American money covers a period of nearly 400 years, from 1620- 2015. It all began when early European settlers in New England started trading with Native Americans for furs and other goods that could be exported to their British homeland The furs, tobacco, and lumber exports were used to purchase needed items that could not be produced locally in the colonies. The English mercantile system and sought to control trade by limiting the amount of “hard” money paid to them.
England consistently ignored the economic plight of the early colonists and made no effort to provide them with gold or silver coins. This meant nearly all foreign coins were accepted for purchases- French Louis, English guineas, German thalers, and the most popular of them all, the Spanish milled “Pillar Dollar” or piece of eight. The piece of eight continued to be a standard money throughout the entire colonial period and after the Revolutionary War (1783). Even after the establishment of the US Mint in 1792, the Spanish Pillar Dollar circulated in the New world to bridge the gap for domestic trading among the states because of it silver content and reputation. This would go on until the Coinage Act of 1857, when Spanish silver was officially retired tom circulation.
Collecting US Coins:
The prospects for rare us coinage are very bright now and in the future. Thousands of new collectors have discovered the rich history of the United States and its coinage in recent history. The internet and publications have provided collectors with a wealth of information that wasn’t available to past generations. There has never been a better time to explore the wonderful field of US rare coin collecting and investing.
Rare coin collecting and investing possesses the rare duality of being not only a challenging and engaging hobby, but a lucrative investment as well. Since the advent of monetary and exchange systems precious metals have been used as a form of currency. Gold and silver have withstood the turmoil of war, economic depression and revolution while holding their value and wealth protection status. Governments can print an infinite amount of banknotes, devaluing the currency with each run of the press until a single note is near worthless. They cannot however, mint an unlimited amount of gold and silver coins. Precious metals are a finite resource and therefore hold stable even in the most volatile of economic times or manipulation.
A rare coin gives an investor a tangible piece of equity; they control its every movement, and its destiny. They can choose where to store it, when to buy and when to sell. Assets can be liquidated in favorable market conditions at a moment’s notice with no shortage of buyers. The most successful coin collectors take time to learn as much as they can about specific areas of numismatics. They not only study coin denominations, designs, but what factors have made that specific coin RARE.
Here’s a bit of advice, or simply just my humble opinion. Let’s say that you have a coin budget of $25,000 per year. I would suggest that you purchase three to five really nice $4000-$10,000 coins each year rather than ten $2,500 coins. The coin market of the future will be even more predicated on high quality rather that quantity. High quality coins will become harder to find and, consequently, more expensive. The decision to purchase the best coins you can afford will prove to be very intelligent over the course of time, and quite possibly very lucrative.
Using a reputable company like Capstone Acquisitions removes the stress, and anxiety of unknowns while ensuring fair prices and a reliable company you can trust. This leaves our clients with time to enjoy their purchases, study their area of interest, and receiving timely advice on when to buy and opportunities to sell. Capturing the true spirit, and purpose of rare coin collecting. Let us know how we can help you begin your collection of history.