Can investing and collecting go hand-in-hand?

Yes  says Larry Schutts on BloggingStocks.  Every year he has given his brothers a new American Eagle Silver Proof dollar (featuring the same Adolph Weinman design as U.S. half dollars between 1916 and 1947), which the US Mint has issued since 1986.  Having told his brothers for years that the coins would accumulate value over time, he recently decided to test that assertion.

Larry concludes that (excluding the 1995 West Point Dollar which was part of a limited edition set also containing four gold American Eagle proofs ) the dollars have collectively gained 200% over their original Mint prices.  Not bad if it’s an investment you’ve had pleasure from owning as well.

From the article:

“Where we have really seen a shortage is in the ‘fractional’ coins — the American Gold Eagle, Canadian Maple Leaf and South African Krugger and coins that contain a tenth, a quarter and half-ounce of gold,” said Bob Campbell, owner of All About Coins in Sugar House. A year ago, Utah coin dealers could hardly give away such coins, said Campbell, a former president of the American Numismatic Association. “Now they are in high demand and we can’t seem to get enough.”

From the article:

“Coin collectors are often advised to buy the key coins in a series first, as these are the coins most likely to appreciate. Yet, despite the wisdom of this advice, few collectors actually follow it.   A key coin is just what the name implies: It’s the key that unlocks the door leading to set completion. Without this coin or coins, you’ll never fill all the holes in the album.

Of course, that’s also true of the most common coin in the set, but the difference is that the common piece is nearly always attainable, in any condition you desire. The key coin, on the other hand, is often simply not available when you want it, or it may not be readily available in the grade you want.”

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=6327