Why Are Proof Sets Worth So Little?

[1960texan]

I'm just now geting into the hobby. I've been looking through the Whitman blue and red books, and was shocked that most of the proof sets appreciated so little in value. Is there a reason for this?

 

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[Mackaydon]

Lack of demand

 

[oldhermit34]

More and more people are collecting coins the last few years. Proofs are very beautiful and pleasing to look at. More people buy them, so the mints produce millions of them for good profit.

 

[Siegfried Schlagrule]

Proof sets are sold first to the public via advance orders limit five sets. The mint gets swamped each year and many people have their orders canceled. This causes prices to rise in the first year of issue as people chase them. Many folks also buy five hoping that a variety or rarity is in their set. Within two years all of the speculation purchases are dumped on a market where all the people who wanted it have already bought it. In order to sell the prices begin dropping. Eventually they reach their true value which bears little resemblance to their initial cost. If you look in the Coin Dealers Newsletter you will see that older proof sets are only about $2 difference between bid and ask prices. If you want to truly invest in coins buy five rolls of each denomination coin each year at the bank for face value. If the value goes up collect your profit. If it doesn't go up spend the money buying this years coins. For an example see the price guide prices for BU rolls of the nickels that have been issued the last four years or so. siegfried schlagrule

 

[1960texan]

Mackaydon, oldhermit34, and Siegfried Schlagrule,

Thank you all for the replies and advice. This is a great forum!

1960Texan

 

[oldplacesnofinds]

Proofs are made to collect. So, most likely they are not being lost or spent which means they will always be a lot of them around.

 

[cosmic]

They are handle carefully and packed.. Since they receive special treatment they are not as valueable as a perfect coin meant for circulation that receives no special treatment...