Author Topic: What are the most expensive purchase prices of fiat and non fiat coins?  (Read 946 times)

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Offline barsenault

I'd be interested to know what the most expensive purchase price is between fiat and non fiat coins.  I wonder if a fiat coin is somewhere in the millions and a non fiat is somewhere in the thousands?  I think that may be the case?  Not 100 percent sure.  Has anyone ever seen a non fiat coin sell for a million?  Link please? 
The following users thanked this post: badon

Offline badon

Excellent question barsenault.

There is no difference. One of the world's most valuable coins is a PRIVATELY MINTED non-fiat 1787 gold Brasher doubloon valued at over $10 million USD. Another one would be the only surviving large size (about 5 oz) gold ancient coin that has resided in museums for centuries, but is widely believed would sell for $10 million or more if put on the market at auction. There are many other ancient coins that have high valuations, and in fact most of the coin types ever minted throughout history are all non-fiat. Coins were invented approximately a thousand years before fiat was invented. Standardized non-fiat monetary objects that were not minted in a coining process and technically aren't coins, but ARE numismatic, are much older, probably pre-dating fiat by 50'000 years at minimum.

In the modern Chinese coin (MCC) market, the most valuable coin at one point was a non-fiat 1 kg silver Munich panda that sold for a price in the hundreds of thousands of dollars (I think it was the first "big money" coin), and as you already know, prices are continuing to rise in the MCC market as the market matures. Being fiat or non-fiat is NOT a coin investing fundamental, and that's why they NEVER determine the price of a coin reliably. Being interesting (popularity) and rare ARE coin investing fundamentals, and they ALWAYS determine the price of a coin.

Generally speaking, the profits are higher in MCC non-fiat coins because most people in the market believe wrongly that fiat is required for a coin to be a coin, so that leaves a lot of coins with above average profit potential. You can see this in the similar prices for older fiat and non-fiat coins with similar popularity and rarity, that aren't currently or recently part of a sector rotation. For example, a fiat 1995 1 oz gold panda proof has an actual mintage of 555, and is currently valued somewhere around $8000 in high grades, give or take a kilobuck or two.  The non-fiat 1988 1 oz gold panda Basel expo Au version has an actual mintage of somewhere around 400, and is currently valued somewhere around $8000 in high grades, give or take a kilobuck or two.

There are exceptions. An interesting one are the 1982 gold pandas that are all non-fiat, and have high mintages and surviving populations for their era, but they have some of the highest prices of all the gold pandas, and they're considered "key" not because of rarity, but instead because of popularity. Popularity (being interesting) is the only coin investing fundamental that can beat rarity. The 1982 pandas are popular because they're the first year of issue for the pandas, and many wealthy people feel it is psychologically important to begin a panda collection with the first year of issue.

Nobody cares that the 1982 pandas are non-fiat, because fiat versus non-fiat is not a coin investing fundamental. They may not realize it's not a coin investing fundamental, but they follow the rules whether they know the rules or not, much like the laws of physics. Anyone who tries to break the laws of physics could get hurt or killed easily, and the same is true of people's financial fortunes if they try to break the laws of coin investing fundamentals. Of course, my entire investment strategy centers around exploiting the failure of most people to understand this. I sell overpriced fiat, and buy underpriced non-fiat. Rinse and repeat.

Offline badon

I split this topic from here:

Re: Scary-low prices in ebay auctions

Offline badon

« Last Edit: 2016 Aug 24, 08:33:58 PM by badon »

Offline trouble

Take the opportunity that non fiat collectors bases is smaller than fiat mcc. The non fiat price still reasonable Low if use mintage as measurement. Once the collectors bases or few big buyers dump in Mio dollars for collection which will push the price up fast and you will get very high profit as comparing to fiat.

However, I view inventory turnover is crucial if you are sellers. Also take into consideration of liquidity of coin collection. You might loss money by selling at wrong time due to short of cashflow. Others are making profit but you making loss. This can happen.