The Adelaide Pound - A Buyer's Guide

ON THE INVESTMENT POTENTIAL OF THE 1852 TYPE II ADELAIDE POUND
Whether profit motive or collector interest drives one's desire for numismatic acquisition, there is no doubt, I think, that the cream of our industry is Australia's rare and historic coins and banknotes. Holey Dollars and Dumps, Adelaide Pounds, Square Pennies, rare gold, silver, and copper proofs and patterns, the 1922/21 threepence, the 1923 half penny, and the 1930 penny make up what is generally considered the connoisseur's collecting interest. Nevertheless, in recent years, large superannuation firms and lucrative tax benefits have helped to increase interest in our national currency, resulting in rocketing prices and spiralling returns for select examples. This increased investor interest has drawn many coins beyond the price range of the average collector, and continues to provide greater and greater average returns to those agents in possession of them.
With respects to Australia's investment rarities, of my particular interest is the Type Two Adelaide Pound. This article will analyse the investment potential of Australia's first gold coin, beginning with an evaluation of its relative rarity amongst its valuable brethren, and concluding with a dissertation into historical and recent trends in its price.

RELATIVE RARITYAn industry leader posits that around two hundred Type Two Adelaide Pounds remain in existence, and are in an average grade of Extremely Fine ; at any given time, about three per cent of its population is on the market either in dealers' catalogues or in auction. Many inferior pieces have been mounted, while other specimens are poorly struck, especially around the rim and in the legend. When placed side by side to other numismatic rarities, it quickly becomes clear that Type Two Adelaide Pounds do not appear as frequently as 1930 pennies and 1923 half pennies, but show up in greater numbers than rare proof sovereigns and half sovereigns, and Square Pennies.
An interesting comparison lies with the 1855/56 Type One Sydney Mint Sovereigns, which are Australia's first official gold coin. Both the Adelaide Pound and its official counterpart are scarce or rare in any grade and, for pieces in Extremely Fine, relative prices have historically hung in between 1.05 and 1.20 (that is, the Extremely Fine Type Two Adelaide Pound has historically been valued at five to twenty percent more than an 1855/56 Sydney Mint sovereign in Extremely Fine). In a discussion with Belinda Downie, of Coinworks, it was generally agreed that the high relative price between Adelaide Pound and Sydney Mint sovereign was a market anomaly that did not account for each pieces' absolute rarity. A collector and investor demand deficiency was cited as the cause.
Between the Type Two Adelaide Pound and the Square Pennies, the Penny is clearly the winner. Since 1994, twenty-one Square Pennies, one hundred twenty-three Dumps, sixty-five Holey Dollars, about three hundred and fifty 1930 pennies, around six hundred 1923 halfpennies, and one hundred twenty-three overdate 1922/21 threepence have appeared in Noble Numismatics' auctions. At the same time, almost one hundred Type Two Adelaide Pounds have appeared in those auctions since then; around fifty of those pieces were in Extremely Fine or better, and only three were graded Uncirculated.

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Orignal From: The Adelaide Pound - A Buyer's Guide