Precious metals have been in an erratic trading range although they seem to be entering a steady pattern with a slight upward bias. If the Fed does not allow the money supply to contract as QE2 (the second quantitative easing) ends, which I doubt the Fed can risk based on the recent economic data. I strongly feel by late summer we will see some healthy upward action again.
Beware: these metals markets will trip you up if you try to trade day to day, so don’t risk the mortgage money on them. Better yet, put your excess Federal Reserve Notes into some nice rare coins. I have reviewed Lincoln cent pricing prior to World War II in nearly all grades. If you look at this popular series depicting our heroic 16th President you will find over time there has been a very nice value appreciation
with the entire series. A word of caution should be given in terms of higher Mint State grades that are red or near red. There are many of what I like to call trap coins in the marketplace and even the most reputable third-party grading houses have been fooled by the alchemy of certain coin doctors. The grading companies are often so paranoid about coloration on all copper issues that they often question the color of legitimate coins in self-defense. A while back I laughed at one submission where several original rolls were submitted and in three cases two or three coins came back as questionable out of a 50-coin bank sealed roll. Go figure.
It is often very difficult to gauge the correct price for high-grade red Lincolns as the market can be distorted by the pursuit of registry coins where the same exact coin will bring far more if it is in the correct brand holder and this can go in either direction. My advice there is to stand clear and be patient and let the market settle.
Actually, my recommendation unless you wish to make a lifetime specialty of it, stay away from red copper coins and pursue nice brown or red-brown coins. You will not have to worry about colors changing, or the market mood for the more sophisticated bright red issues at any given time. The price differences on a better date can range as much as 500 percent in some cases based on eye appeal and that is a lot to risk on an item that can change due to environmental effects. On a single coin that difference can be stated in prices ranging from near $10,000 to upwards of $50,000. That is a lot of cabbage to risk on eye appeal where the next collector may prefer the color of the coin that was lower priced in the first place.