Graded Pennies vs. Bullion Finally Answered! Maybe?

[ggg]

Howdy all. I found a 2005 Red Book and it got me thinking. I can now look at "book value" of some rare and key date pennies from 2005 and compare that to "book value" from 2011 and then compare all that to bullion. Here is what I found...

1909S in grade G4: In 2005 it was $60.00. In 2011 it is $100. That's a 166% increase.
1909S in grade MS63: In 2005 it was $275. In 2011 it is $375. That's a 136% increase.

1909S V.D.B. in grade G4: In 2005 it was $460. In 2011 it is $850. That's a 184% increase.
1909S V.D.B. in grade MS63: In 2005 it was $1300. In 2011 it is $2000. That's a 153% increase.

1914D in grade G4: In 2005 it was $120. In 2011 it is $215. That's a 179% increase.
1914D in grade MS63: In 2005 it was $2200. In 2011 it is $3300. That's a 150% increase.

1922 no D in grade G4: In 2005 it was $400. In 2011 it is $750. That's a 187% increase.
1922 no D in grade MS63: In 2005 it was $20,000. In 2011 it is $30,000. That's a 150% increase.

1931S in grade G4: In 2005 it was $50. In 2011 it is $110. That's a 220% increase.
1931S in grade MS63: In 2005 it was $100. In 2011 it is $195. That's a 195% increase.

1 copper penny with a face value of 1 cent is currently showing a "melt value" of 2.5 cents or a 250% increase.

I am using the copper bullion "melt value" to compare to the graded coin "book value" to have a more apples to apples comparison. I know that the graded coins may or may not sell at "book value" and the CTU's may or may not sell at "melt value". But I had to base this on something factual.

(On a side note. It appears that the lower graded G4 coins show a bigger "book value" return than the higher graded MS63 coins.)

I thought I would have the answer to the age old question of Graded vs. Bullion. Maybe not

[highroller4321]

You are not comparing apples to apples because you are looking at 2 entirely differnt markets.

Also do not use redbook for your prices. go to www.greysheet.com and print yourself off the dealer prices guides if you want real prices. Yes, you can't go back to 2005 and compare prices but you will get realistic prices.


If you are serious about investing in collectible coins I reccomend the book. "How to make money investing in rare coins" or something along those lines. It has a cheesy title but the book has a lot of good information on what to look for. Just because a coin says its MS62 doesn't mean that it will sell the same as the same coin in the same grade. Eye appeal, rarity, collector popularity, and several other things come into play.



It all basiaclly boils down to what YOU think is best. If you are looking at the 3-5 year time frame than I personally suggest copper pennies as bullion.

[ggg]

You have some pretty good points. Thanks. The apples to apples comparison was not to say that the graded market and the bullion market are the same. They aren't. The purpose of the post was to compare them from a raw data perspective. I wanted to use readily available information to base my prices on both markets and both markets' prices and trends. It wouldn't be an apples to apples comparison if I used what sells on Ebay for the graded coins and compare that to what sells on Craigslist for the bullion. Yep, the Greysheet is a pretty useful tool, but I haven't seen in there where they have prices for specific years and mint marks on pennies like the Greensheet breaks down year and type for currency. I will check out the investing in rare coin book. I'm glad I signed up at Realcent, everyone here has a bunch of ideas and I love to hear them and learn from them.

[highroller4321]

There are several versions of greysheet that a person can buy. I beleive the one you want is the monthly version. It breaks down by each year, mint mark, and grade of the coin. It also states if the coin moved upwards, downwards, or stayed the same since the last issue.

[barrytrot]

The red book pricing is nonsense. You would be better off just making up a price. As Highroller said, use GREYSHEET. That will give you an answer that is reasonable.

I think they have a few months of archives of the Greysheet but I don't believe it goes much farther back although some people have copies they keep and refer to. You could ask around since you only need a few prices.

Also you can't sell a copper cent for melt value very easily, whereas you would have no difficulty getting close to greysheet very quickly on the coin prices.


Also a copper cent's melt value was roughly the same and higher if I remember correctly in 2005 so that's not an increase that's a decrease there or at least a very marginal increase.

[ggg]

There are several versions of greysheet that a person can buy. I beleive the one you want is the monthly version. It breaks down by each year, mint mark, and grade of the coin. It also states if the coin moved upwards, downwards, or stayed the same since the last issue.

Cool! That's exactly what I think I'm looking for. I have been getting the weekly version, but I will check out their other versions. Thanks for the tip