Buying, Selling, and Collecting Coins Part 1

Coin collecting can be a lot of fun. It doesn't matter whether you are buying a few wheat cents to fill an album or collecting rare Charlotte gold, the joys remain the same. I can remember as a kid, the fun I had with my dad searching through wheat cents and pocket change for different varieties. No, I didn't find anything rare but I did find some pretty neat varieties and I got to spend some quality time with my dad. Fishing was a way of life for my family and I, but during the winter months the streams we fished became unfishable. My dad always found something for us to do that didn't involve Nintendo or TV. What better way to pass the time than to look through wheat cents and pocket change. I learned so much about coin strikes, and grading coins just by looking through wheat cents and pocket change. We were generally looking for varieties, because in the 80s and early 90s finding a key date in change would be like hitting the mega millions. One thing I learned a lot about was strike doubling. I can't tell you how many times I thought I found the elusive 1969-S double die cent only to have my dad explain that it was strike doubling. After about the 300th strike double I finally caught on to the difference between strike doubling and die doubling. Today there are many reference books available on things to look for in pocket change. A couple highly recommended books are The Cherrypicker's Guide volumes 1 and 2, and Strike It Rich with Pocket Change. Don't let the second title fool you, as you probably won't strike it rich looking through pocket change. However, you might find some coins worth quite a bit more than their face value and have a little bit of fun while doing it. For those of you with young children, it is a great way to start teaching children about money and a great way to spend quality time without electronic devices. Who knows, it might become their job one day.

Will gold and silver prices go up or down?

Will gold and silver prices go up or down? I am sure we are not the only coin dealers that are asked this question daily. Yes, silver and gold prices will go up and they will go down. If I knew what silver or gold was going to do in advance, I would be sitting on my own island just like all of the other crystal ballers of the world. All kidding aside, I could never honestly answer that question unless I was manipulating the silver or gold market. If I did have the billions of dollars to manipulate the market, do you really think I, or anyone else for that matter, would be telling you about it? However, there is one question that I am willing to part with my opinion on, and that question is should I buy silver and gold. My answer is always the same. Yes! For thousands of years, gold and silver have been used to purchase goods, back currencies, transfer wealth etc.... Currently our paper dollar is not backed by anything but the good faith and credit of our nation. Given that our great nation is currently about 17 trillion dollars in debt, makes that statement a lot less reassuring. Most Americans, including myself, have worked their tail off their entire adult lives and want to ensure that everything they have worked for is not lost. Historically, if the dollar goes up in value, gold and silver are worth less. If the dollar has less value, then silver and gold prices go up. Thus, if the dollar becomes worthless gold and silver should become very valuable. Gold and silver are essentially used as insurance against the dollar devaluing or becoming worthless. One would hope the dollar would not become worthless, because I think food, water, guns, and ammo would be the most important items to own at that time. God help us if we ever have to live in a world like that. Don't get me wrong folks, I am not predicting the end of the dollar or the zombie apocalypse. As mentioned above, I don't have that magical crystal ball to predict future events. Heck, I truly hope that our government gets its spending under control, and the dollar becomes stronger than ever. However, I am not willing to bet my life's work on that happening. I am also not willing to dump my entire life savings into gold and silver. In my opinion, a more diversified approach is best. So that leads us to the questions of how much of your portfolio should you put into gold and silver, and when should you buy. Most financial planners recommend 10-20% of your wealth should be in precious metals. I don't have the magic number, so you need to figure that out for yourself. Do what YOU are comfortable with. Just like stocks, there is probably never a time to stop buying. Prices are gonna go up and they will go down. Knowing when to jump in and out of the markets at the right time is darn near impossible, unless of course you have inside information. If anyone tells you that they know when the best times to do so are, then respond by asking where their island is, what major bank do they own, what state do they represent, and why they are bestowing this privileged information onto you. If by chance they do answer one of the first three, you may actually want to listen. However, if you are like the 99.999999999999% of us who don't make future events happen, you will listen to your gut, try to insure your assets are protected, and be as happy as we can be in trying times.

2014 FUN Show Recap

The 2014 FUN Show was again a resounding success, albeit a little different from years past. Usually the first batch of silver eagles is released at the show, but the mint's release date came after the show. I can't tell you how many times we were asked about 2014 silver eagles (we will have them by 1/25). Most collectors were seeking out numismatic items instead of bullion, which was very surprising given the cheap prices of gold and silver. Rare numismatic items were in high demand as could be seen by record auction prices. We noticed an increased demand for high end Indian cents and key date Morgan dollars. Toned peace and Morgan dollars were sought out, but only exceptional pieces. Demand for proof-like and dmpl dollars remains very strong. If you want exceptional pl and dmpl dollars leave your grey-sheet at home because these coins bring well over sheet. Large size currency was also in high demand. Be prepared to pay well over green-sheet for educationals, chiefs, tombstone notes etc... A major change to the show was the allowing of dealers to leave on Saturday. Almost every Midwest and western coin dealer was gone on Sunday, which left the bourse area quite empty. However there was still plenty of business to be done. If the FUN show is any indication of the year to come, it will be a great year for numismatics.

1891-O morgan dollar...undesirable coin or diamond in the rough?

The 1891-O morgan dollar is one of my favorite coins. Most collectors overlook this coin because it is widely considered the most flatly struck of all morgan dollars. The coin typically comes with average to below average luster, and is easily found in grades ag to xf. So why in the world would this coin be my favorite morgan dollar? It doesn't have the vibrant luster of an 1881-S or the low mintage of the 1893-S. The main reason the 1891-O is my favorite morgan dollar is because of its rarity. Yes, the coin is rarer in mint state but not nearly as rare as a host of other morgan dollars. An ms64 can be had for $700-$900, while a 93-S can't be touched in ms64 for less than $100,000. However, finding a well struck and lustrous example of an 1891-O is much harder to find than a mint state 93-S. I have found only a few well struck 1891-O's over the years, and none graded higher than AU-55. Now I'm not saying that a well struck and lustrous 1891-O in mint state will ever bring remotely close to the amount of 1893-S in mint state. However, I have been searching for an1891-O of this pedigree for over 15 years and still haven't found one. The rarity of this coin may never be realized at any point in my lifetime, but it won't keep me from searching.

Summer Fun Show

This year's summer fun show was excellent as usual. The bourse floor was busy throughout the show. Scarcer type coins were in high demand, especially PQ coins. Fortunately we were able to find some great type coins highlighted by our purchase of a beautifully toned capped bust dime in AU58. Silver and gold was much sought after with the low price levels, and despite summertime being historically a slow time for silver and gold demand. Gold and silver saw an uptick at the end of the week, which definitely increased the buzz on the bourse floor. Stop by the shop this week to check out our new arrivals.

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Orlando Coin Dealers

Orlando Coin Exchange is located on South Orange Ave. just south of downtown Orlando. With nearly four decades of experience in trading Rare Coins, Currency, and Precious Metals, we are the authority and you'll get top dollar for your Gold, Silver, Precious Metals, Jewelry, Rare Coins, and Currency. Precious Metals are a vital safety net for many Americans when hard times hit. If you're looking to sell your Gold, Silver, or Jewelry then come in and see Jason & Jerry. Looking to buy? We have a huge selection of Rare Coins and Paper Currency as well as Gold, Silver, and other Precious Metals. We are family friendly, owned and operated. Bring the kids with you, they can look through the kid's coin bin to start their own coin collection! ORLANDO COIN EXCHANGE, 6301 SOUTH ORANGE AVENUE, SOUTH OF DOWNTOWN ORLANDO.