What's in the future for the encased cent hobby?
As I was going threw my daily ritual of searching for encased cents on eBay, I discovered an auction for an encased penny that had been, again encased into a slab. It was a fairly common piece, a 1949 Rexall Encased Cent. The grading company labeled it as a "Token" and gave the piece a grade of "MS-68 RED". The thought of slabbing an encased cent for grading had never crossed my mind. I'm still not sure what I think about it. Could this be a new twist to the hobby of collecting encased cents? Will it drive the prices of nice "MINT" pieces to outrageous amounts as it has in the coin collecting hobby? And even more, will it drive the prices of less attractive, ungraded pieces down? I am sure there will be some good debate within the club and on other levels of the coin collecting world on this issue.
I have mixed opinions about this. This could actually
benefit the long time collectors who have acquired thousands of pieces back in
the day while they were still readily available for a very small price. Many of
us have noticed that the prices and amounts people are willing to pay have risen
in this decade. But could it also drive away some of the newer collectors, or
even some of us with lower budgets? Someone odiously felt that this piece was in
such immaculate condition that they felt it was worth the cost of submission to
a grading service. My guess is that it was a dealer who gets discounted prices
from the grading company because of the volumes in which they submit items. Is
the collector willing to risk spending the amounts it costs to have their
collection graded?
My initial feeling is that many collectors collect encased cents for a variety
of different reasons. As some focus on finding as many different kinds as they
can, others narrow it down to different types, or subjects. Some collect just
pieces from their home state, just Indian head pieces, or other time eras,
Chevrolet pieces, and so on... I cannot imagine that many collect encased cents
as an investment for the future, but that could change with slabbing too?
I could be jumping the gun on this entire issue, and perhaps nothing anytime
soon will ever change because of this. But I was very surprised to stumble
across such a thing, that had never crossed my mind. And if it did take off, you
would probably see a big difference in who the people are that collect them. You
would soon get a lot of new interest in the hobby from people who never collect
encased cents before, and they would approach it with an attitude of making
money.
At the same time people who just collected for fun, or a variety of other
reasons, will start to leave the hobby. What's in the future for the encased
cent hobby? This and many other questions are sure to be asked. Many of our
questions may have to wait to be answered as we sit, wait and watch to see what
the future brings.