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SouthCapeCoins

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  1. We'd like to invite any collector with an interest in South African coins, and particularly rare South African coins, to contribute to this dedicated thread and help keep it going. Share pictures, ask questions, source your favourite rare coin. We really want to see what South African coins people outside of the country are collecting, and advise if people have any questions. To get the ball rolling, we've posted a few interesting pictures of some really beautiful, very rare South African coins. Enjoy! Looking forward to seeing what you have in your collection. Till then, Cheers, Georgia
  2. Thanks for your interest in our articles, it's great to see how different people feel about Pedigree coins, and what significance theirs holds for them. @ART - how far are you along with your 'one coin, one note' for each country? What a fantastic project/challenge/aspiration. Good luck with that.
  3. A pedigree coin is one that has a documented history of who has previously owned it. Generally, the further back the pedigree goes, the more potential value the coin has. Some exceptionally rare coins, especially those with pedigrees that can be traced back to the date of issue, are even more highly valued. Take for example our nation’s finest rare coin, The Single 9. The fact that it is the only coin of its kind in existence, coupled with the fact that one of its previous owners was King Farouk of Egypt, means it has one of the most notable pedigrees of any rare coin. In numismatics (the study or collection of money, coins or medals), having a pedigree to a ‘name’ coin collection adds a lot of value. For example, coin collectors in the US find the Eliasberg, Newcomer, Col. Green and King Farouk collections particularly attractive because of their highly respected pedigrees, which often span decades. When you’re looking at the pedigree of a coin it’s important to note information such as when it was last sold and how much it sold for. Generally, a coin with a fairly recent pedigree is more valuable than a coin that has an old pedigree. This is because if a coin was last sold a long time ago, its previous selling price becomes irrelevant in today’s market valuation. On the other hand, having a pedigree can also have a downside. For example, a potential buyer might question why a coin that was purchased for R10,000 a short while ago, is now being sold for R20,000. For this reason, some sellers might choose not to include the pedigree when putting a coin on the market. There is little doubt however that having a good pedigree adds to the attraction of owning a rare coin. It describes the history of a coin, confirms its quality and value and perhaps most importantly, especially for coins that are exceptionally rare and/or old, it indicates the legitimacy of the coin. A pedigree can also have a personal significance and while one collector might prize a specimen from one particular ‘name’ collection, another might find value in a different ‘name’. Either way, knowing that the coin you possess once belonged to someone famous, or infamous for that matter, is a huge attraction. At the end of the day, the value of a pedigree coin lies in its historical significance as well as the intrinsic value of the coin itself. Purchasing a pedigree isn’t necessarily expensive, but most serious collectors feel that they need to have at least one in their personal collection.
  4. Rare coins, as opposed to gold bullion coins, aren’t ever reminted, which means that this exclusive market revolves entirely around the availability, liquidity, supply and demand of coins that have already been produced. In this post we’re going to look at how these factors affect and determine the value of a rare coin as well as its official grading. Rare coins have developed an international reputation for being one of the most liquid assets of all collectable markets and historically deliver a high ROI, which is why it’s important that you understand these evaluation aspects before you start investing in what is generally considered a lucrative market. The Coin Liquidity Factor The liquidity factor of a coin basically comes down to how quickly a coin should or would sell under normal market conditions at an auction, through a private seller or through a dealer. The liquidity factor was first developed by JT Stanton (President of PCI Grading Company) and is based on a scale of 1-5. A liquidity factor of ‘1’ indicates that a coin would be difficult to sell (on the market for an extended period of time) or would sell for less than its recommended value. A liquidity factor of ‘5’ indicates that that a coin would sell quickly for the recommended value, or even inflated value in some cases. Bear in mind that highly active market conditions also help inflate the liquidity of any coin. Added to this, liquidity is aided along by a 24-hour online world audience. At any given time, anywhere in the world, there are coin dealers, investors, collectors and hobbyists online, ready to buy and sell. One thing you need to give serious consideration to before you purchase a rare coin is its long term realization. You need to be sure that the coin(s) you invest in are going to give you the best ROI possible, so find out as much as you can about them before making any decisions. For example, what have they previously been bought and sold for, how long do they generally stay on the market for before selling and what is its general annual ROI? The Coin Supply Factor As we mentioned before, rare coins are no longer minted, so their supply is based purely on what has already been manufactured and what is available. The supply of rare coins, as well as any reduction in market availability, is affected by a number of factors: either the coins are put into circulation; they are melted down to extract the original metal content; they are lost or irreparably damaged through careless storage or handling; they are donated to museums or they are held permanently in private collections. Once all these factors are taken into consideration, it becomes clear why particularly valuable rare coins are so hard to source and why, if a collector does have one, they are rarely put on the market. The Coin Demand Factor Put simply, the higher the quality, condition and rarity of a coin, the more valuable it becomes and therefore the more in demand it becomes. The general consensus is that the rare coin market has four levels of demand. The first level considers the ‘face value’ of a coin. For example, a silver dollar minted a century ago could still be used today to pay for something that costs a dollar. The second level considers the price of the metal that a coin is manufactured from, although with rare gold coins this is only one factor in the valuation of a coin (alongside rarity, preservation and age.) In contrast, the value of a Krugerrand lies purely in the intrinsic value of the metal it’s manufactured from, if the price of gold goes up or down, so does the value of the coin. The third level considers how much a collector is willing to pay over the intrinsic value of the metal of a coin. If the coin is a particularly good specimen, rare and highly sought after, its overall value is going to be considerably high. The fourth and final level considers the future realization of the coin and for the more serious collectors and investors is possibly the most important level of demand. What has the coin previously fetched in auctions and what is the average annual ROI you can expect to receive from it? Once you’ve had the opportunity to assess the liquidity, supply and demand of the coins you are interested in, you can decide whether it will be an appropriate investment for your portfolio or collection. It’s important to remember though that with rare gold coins their value only ever appreciates over time. Hope you enjoyed the article. Remember to go and 'like' our new Facebook Page for a chance to win a 1898 Sammy Marks Penny valued at R45 000. See you there!
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