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- - 300 Pennies into 10 Million Dollars (http://goldismoney.info/forums/showthread.php?t=331111)

RatHoler | 12-14-2008 09:23 PM
300 Pennies into 10 Million Dollars http://www.bloggingstocks.com/2008/1...-rare-pennies/ At one time or another, we have all dreamed of turning pocket change into millions. A California man actually made it happen last February, though, when he sold a collection of 301 pennies for $10.7 million. Of course, they were not just any pennies. The set contained virtually every variety and subvariety of U.S. cent minted in the classic period between 1793 and 1814. Van Nuys resident Walter J. Husak had been assembling his early coppers for 28 years and estimated that they cost him a little over $5 million. That is a lot for a coin collection, but it ultimately netted him a profit of close to $200,000 per year and that is a return anyone can appreciate. As with any investment-minded collector, Husak was doubtless torn between the desire to put together a complete collection of early cents and the hope that they would increase in value. He chose the path that usually finds the best equilibrium between aesthetic satisfaction and monetary gain by going high end. He acquired attractive specimens in the most advanced grades possible, very often locating the finest known examples of given varieties. That led to ownership of coins like the 1793 and 1794 "about uncirculated" specimens shown below, which sold for $632,500 each. The pictures are from the Husak Collection catalog, produced by Heritage Auction Galleries. Husak began collecting coins at the age of twelve, showing early acumen when he bought six Indian head pennies for $12 and then immediately sold the single valuable piece for $15. He disposed of his early collection to buy a car and make a down payment on a house, but re-entered the hobby in 1980 with the purchase of an 1804 large cent. His aerospace business subsequently prospered, allowing him to pursue all the penny varieties generated by the variable early American coin making process. He managed to acquire all but three, and then hung on to them, sparking feverish demand from an avid collector community that had not seen many of the rare types for years. The need to pay off some real estate debt finally led to Husak's decision to sell and he admitted that he was "scared to death" of losing money on the collection. He need not have been. The Heritage sale represented a one-in-a-lifetime opportunity to bid on many of the coins, and quite a few realized multiples of previous records. There were no breaks for family members, either. Husak's daughter, Trina, was a bidder and reportedly paid about $20,000 for the two coins she won. Wife Patricia was said to have put the entire experience into perspective by noting that her husband would probably start collecting something else. Way to go, Walter! Investment-oriented collectors salute you.

Cassius | 12-14-2008 09:38 PM
Re: 300 Pennies into 10 Million Dollars $200k/yr sounds good but not in view of the $5m investment... 28 years to double your money? Gold has tripled in the last 5! But if he enjoyed it then I'm sure it was worth it for him.

Jekyll7 | 12-17-2008 12:37 AM
Re: 300 Pennies into 10 Million Dollars $200k/yr on a $5m investment isn't that great, but remember that the collection was built over time, not bought in one shot. It's not like putting $5m in the bank for 3 decades. I would also imagine there was a lot of pride and enjoyment involved in building and owning the set. Again, as always, the "finest known" and "highest certified grade" coins prove to be the ones to own.

TomD | 12-17-2008 09:37 AM
Re: 300 Pennies into 10 Million Dollars You can't estimate the return because you don't know the time frame under which the money was cycled in. Loke most projects, probably the money was front end loaded but you can't know that. He did better than I, at least with the money I had in the market I'd happily settle for break even.

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