There are clearly two sides to this coin. Either it shows the worst inflation ever, or perhaps a rare example of U.S. currency kicking gold’s tail.
WSJ: When is a penny worth a million dollars?
When it’s a 1795 reeded-edge U.S. penny, one of only seven known to exist. It recently sold for nearly $1.3 million at auction—the first time a one-cent coin has cracked the million-dollar price barrier.
Today’s coin market is largely defined by high-end investors grabbing the rarest of coins that infrequently come up for sale; gold bugs snapping up gold coins; and speculators bidding up prices for coins whose grades they suspect are too low, in the hopes of securing a higher grade and selling them for more money. Yet ordinary collectible coins—the nickels, dimes and quarters that are nice but not great—have fallen in value by as much as 30% over the past year, say coin dealers and auction-house executives.
“It’s easier to sell a $100,000 coin today than a $1,000 coin,” says John Albanese, founder of Certified Acceptance Corp., based in Bedminster, N.J., which verifies graded coins.
Might collector’s items be great inflation hedges? Sure seems like it in this case.