1970s Baume & Mercier Watch in 18K Gold

1970s Baume & Mercier Watch in 18K Gold
Photo Credit: ChronoMate

1970s Baume & Mercier Watch in 18K Gold

Buy It Now Price: $1,399 (price as of 2019; item no longer available)

Pros:

-A solid 18 karat gold case, synthetic sapphire crown and tonneau shape make this 1970s Baume & Mercier dress watch (reference 37095) a prime investment candidate.

-With a length of 37 mm (1.46 inches; including the lugs) and a width of 26 mm (1.02 inches; excluding the crown), this vintage Baume & Mercier has proportions that are very similar to that unisex 1980s icon, the Must de Cartier tank wristwatch.

-Originally founded in the Swiss Jura Mountains by the French brothers Louis-Victor and Célestin Baume in 1830, Baume & Mercier became an established international player in the watch industry by the late 19th century.  During the 20th century, the company developed a reputation for experimenting with unconventional styles that were both avant-garde and timeless.

-This 1970s Baume & Mercier watch is triple signed – a very desirable attribute for a vintage wristwatch.  The Baume & Mercier logo or name is present on the watch dial, case back and movement.

-1960s, 1970s and 1980s solid karat gold dress watches are an amazing bargain in today’s vintage watch market.  They can often be found for only $2,000 or $3,000 – less than the cost of many new mid-range luxury watches!

-This 1970s Baume & Mercier dress watch sports a 17 jewel, manual-wind caliber BM775.  Like many vintage luxury watch makers, Baume & Mercier did not produce their own movements, but instead outsourced that part of their business.  The BM775 movement is actually a rebranded 2512-1 from the Swiss watchmaking giant ETA.  These dependable movements had a long-running, 39-hour power reserve and were produced from 1975 to 1983.

-This vintage 1970s wristwatch is in beautiful original condition, with no evidence of a refinished dial, over-polished case, or other tampering.

-If I could, I would buy this watch in a heartbeat and dump it into my IRA or 401-k.  Although this investment strategy isn’t possible because the IRS forbids antiques in retirement accounts, this 1970s Baume & Mercier would still make a superb savings vehicle.

-The classic lines and minimalist design philosophy evident in this vintage Baume & Mercier dress watch is a refreshing change of pace from the excessively bold styling of many contemporary diver and chronograph watches.  Sometimes less is more.

-The fact that you can pick up a lovely 1970s Baume & Mercier wristwatch in solid 18 karat gold for only $1,400 is simply absurd – especially considering that the melt value of the piece is around $700 (with spot gold at $1,275 a troy ounce).  The asking price of this elegant watch is currently less than the cost of a single share of Amazon (AMZN: $1,887) or Booking Holdings (the parent company of Priceline – BKNG: $1,844)!

 

Cons:

-Although perhaps lacking the cachet of some luxury watch brands (Rolex, Omega, Audemar Piguet, etc.), Baume & Mercier is still a desirable (and largely underappreciated!) watchmaker.

 

Read more fascinating Antique Sage vintage watch spotlight posts here.

-or-

Read in-depth Antique Sage investment guides here.

What Makes a Good Numismatic Investment?

What Makes a Good Numismatic Investment?
Photo Credit: Tom Woodward

What makes a good numismatic investment?  What makes one collectible coin steadily increase in value year after year, while another languishes in price for decades at a time?  It is a deceptively simple question.  But the correct answer could ensure windfall profits for the savvy hard asset investor.

In order to properly explore this question, we first need to define what makes a coin desirable.  In reality, coins are miniature works of art struck on tiny metal blanks.  And like any other artwork, the best coins are impressive, imparting a deep sense of beauty and gravitas to the viewer.

Although there are a number of subjective features that can endow a coin with eye appeal, there are also some that are thankfully objective in nature.  The quintessential numismatic investment will tend to share these desirable objective traits.

First on the list is size.  The diameter of a coin is analogous to the size of an artist’s blank canvas.  It is hard for a painter to produce a masterpiece on canvas that is 6 inches by 6 inches.  Likewise, it is difficult for a die engraver to cram a compelling design onto a coin that is only the size of a U.S. dime – 17.9 mm across.

It is the behemoths of the coin world that really wow us.  People are absolutely smitten with large coins, like old silver dollars and pre-1933 gold double eagles.  And it is easy to see why.  These remarkable coins are not only dripping with history, but also luxuriously massive.

And this trend holds true if we examine ancient coins, too.  It is the chunky Athenian tetradrachms and substantial Roman sestertii that fire the imagination of Classical numismatic enthusiasts.

Of course, size isn’t everything.

The metal that a coin is struck from is every bit as important as its size – perhaps even more so.  The rule of thumb is very simple here: the more valuable the metal, the more desirable the coin.  So gold, the king of metals, sits atop our numismatic investment hierarchy, followed by the other metals.

All else being equal, a coin struck in gold is more valuable than the same coin minted in silver.  And the same holds true for silver versus bronze.  This is because precious metals hold an eternal charm that transcends time and culture.

In addition, coins struck in gold and silver are higher denomination pieces that were more likely to have circulated among important people and institutions.  For instance, a medieval British gold noble coin of King Edward III, might actually have been held by Edward III!  And although there is no way to know for certain who might have touched which coin, a good numismatic investment always has a bit of whimsy or fairy tale in it.

Speaking of ancient and medieval coins, age is also a factor in numismatic desirability.  A very old coin allows the viewer to cross a metaphorical sea of time and connect emotionally with a past culture.  In my opinion, however, age usually has a relatively modest impact on a coin’s desirability, especially compared to size or composition.

So when we put all of these attributes together, what do we get?  What kind of coins are a good numismatic investment?

Simply put, you want to buy relatively large coins that are made out of silver or almost any size coin that is made out of gold.  Lastly, older is better than newer, although only marginally.

We can check our thesis by examining the U.S. rare coin market.  Which types of coins are most popular with collectors and command the highest prices.  If we ignore ultra-rarities and key dates, we find that pre-1933 gold coins, old silver dollars and many varieties of silver half dollars stand above other types of U.S. coins in terms of desirability.  In addition, older pieces, such as late 18th and very early 19 century coins from the early years of the U.S. Republic, have an added dimension of desirability.

So if you are looking to make a numismatic investment, large coins struck from precious metal are the way to go from a big picture point of view.

I do understand that there are very dedicated niche collector groups for Indian Head pennies, Mercury dimes, Buffalo nickels and many other smaller U.S. coin series.  But personally, as an investor, I would leave these coins to the collectors.  They lack the necessary “wow” factor for investment purposes.

So where do I see value in U.S. coins right now?  Well, I very much like AU-58 NGC and PCGS certified pre-1933 U.S. gold coins that possess good eye appeal.  AU-58 coins are usually significantly less expensive than MS-60 to MS-62 examples, but typically look much better than them.  This makes many series of AU-58 coins potentially good investments.  I would, however, avoid gold dollar coins as I think these are far too small with a diameter of only 13 mm (0.51 inches) to 15 mm (0.59 inches).

In addition, I think that slabbed Morgan silver dollars in MS-63 or better condition are finally poised to ascend in value after moving sideways for the last 25 years.  Morgan silver dollars have everything going for them.  They are large, photogenic coins with a stellar design that really encapsulates the romance of the American Old West.  And with the exception of the anomalous 1921 date, they are all well over 100 years old at this point.

I also have a surprise sleeper hit: proof American gold and silver eagle bullion coins.  50 years in the future, no one will want to own most U.S. coinage from the 1970s or later.  This is because silver was removed from circulating U.S. coins in the 1960s, leaving us with a miserable base-metal token coinage.  Instead, American gold and silver eagle bullion coins issued from the 1980s onwards will be seen as the only convincing numismatic investment of the period.

American eagle bullion coins are struck by the U.S. Mint from pure, .999 fine silver and 22 karat, .917 fine gold.  The collector’s proof versions are not only struck multiple times to ensure a crisp, frosted finish, but are also much scarcer than the run-of-the-mill uncirculated bullion variety.  They are appropriately massive as well; a 1 troy ounce American silver eagle coin is both heavier and larger than a Morgan silver dollar.

What makes a good numismatic investment?  It is a question well worth asking – and one that I hope I’ve helped you answer.

 

Read more thought-provoking Antique Sage coin articles here.

-or-

Read in-depth Antique Sage coin investment guides here.

French Pre-WWI 18K Gold Mesh Purse

French Pre-WWI 18K Gold Mesh Purse
Photo Credit: jewelry-halfprice

French Pre-WWI 18K Gold Mesh Purse

Buy It Now Price: $2,067.06 (price as of 2019; item no longer available)

Pros:

-This opulent solid 18 karat gold mesh purse is from the French Belle Époque, a period of European culture and artistic dominance between 1870 and 1914.

-This pre-World War I French gold mesh purse measures 3 inches (7.6 cm) long by 2 inches (5.1 cm) wide.  Even though it is fairly compact, the purse weighs a heavy 35.8 grams (1.15 troy ounces) due to its solid 18 karat gold composition.

-This French gold mesh purse is in the Louis XV style, which was characterized by elegant ribbonwork, garland and fluting.  The Louis XV style first gained popularity during the late 18th century, but then experienced a revival during the late 19th century.  For those who are interested, I recently featured a charming set of Louis XV style French silver liquor cups that have many features in common with this mesh purse.

-This elegant French antique has period appropriate hallmarks.  It has been stamped (twice) with the Mercury head hallmark, indicating it was made in France, but then exported abroad.  This hallmark also guarantees a gold purity of at least .750 fine, or 18 karats.

-Dating a piece like this can be a bit tricky due to its use of a revival style, but I believe this gold mesh purse is from the late 19th or early 20th century.  In any case, I am certain we are dealing with a pre-World War I antique.

-The delicate ribbon and fluting decorative motif covers not only the outside of the rim, where it is easily visible, but also the inside of the rim, where it is less visible.  This is a sure sign of quality.

-With a current gold spot price of $1,290, this antique French purse has a melt value of just over $1,100.  This means the purse’s asking price is only 85% over its bullion value, which is quite reasonable in light of the item’s superb craftsmanship and age.

-This French gold mesh purse is in perfect condition, with no damage or visible wear!  Antique metal mesh purses are prone to developing snags and holes over the decades, so finding a pristine example is always exciting.

-$2,000+ might seem like a lot of money, but I assure you this sublime treasure is a worthy investment.  I would not be surprised if in future decades people talked wistfully about the days when you could own such a superlative piece for less than $10,000!

 

Cons:

-This gold mesh purse has a maker’s mark (initials: R.G.), but I have been unable to identify this goldsmith yet.  Determining the artist who created this masterpiece would increase its desirability.

 

Read more fascinating Antique Sage miscellaneous spotlight posts here.

-or-

Read in-depth Antique Sage investment guides here.

Let’s Explore my Latest Antique Silver Investment

Let's Explore my Latest Antique Silver Investment

I love antique silver.  It combines beauty, utility and intrinsic value in a way that almost no other antique can.  So it shouldn’t be surprising that I occasionally browse eBay, Etsy and other online platforms looking for the perfect antique silver investment.

What I intend to do in this article is walk you through my thought process as I hunt, research and purchase my latest fine antique silver investment.  In some ways, this article will be similar to my spotlight posts, where I examine the investment pros and cons of a specific antique or vintage item.

My process starts with looking through hundreds of antique listings online.  Of course I narrow down the search to a specific category beforehand.  In this instance, I was interested in vintage silver cigarette cases.

Cigarette cases were popular from the late 19th century through the 1960s.  Smoking exploded in popularity during the 20th century and cigarette cases quickly became a de rigueur personal luxury accessory – much like today’s smartphone.  As a result, a lot of high-end, solid-silver cigarette cases have survived.  Better yet, the nicest ones were decorated with chased or engraved designs and occasionally accented with applied gold monograms or bejeweled thumb-catches.

High-end cigarette cases are premier investment-grade antiques.  But the market for them is in the dumps right now for a few reasons.  First, there is more supply than demand because a smaller percentage of the population smokes these days.

In addition, relatively few people have figured out that vintage cigarette cases are an easy and stylish way to store business cards, credit cards, money, pills, or any other small items you might have.  This keeps demand down and prices low.

Finally, the poor economy has crippled discretionary spending in the antique market.  There is far less casual and impulse purchasing in the industry than before the 2008-2009 recession, which suppresses the prices of many antiques.

In other words, these are ideal conditions for me (or you) to make an antique silver investment.  You always want to buy when prices are low and an asset class is hated; not when it is popular and expensive.

So I visited eBay and began looking through their listings.  First, I narrowed my price range to between $50 and $200 and excluded keywords like “silver plate” and “silver plated”.  This helped to eliminate the riff-raff cigarette cases that aren’t solid silver.  It also excluded pieces where the seller was asking for an unrealistically high wishing price.

What my search did show was the meaty middle, where there were dozens of high quality silver cigarette cases at reasonable prices.  A good rule of thumb is that decent specimens start at around $60, although these low prices can usually only be found in an auction format sale.  A good selection of really nice cases is available (in both auction and buy-it-now formats) between $100 and $200.  Of course, the best of the best can be more expensive than $200.

Once I had narrowed my search results, I started looking at listings.  And I looked…And I looked…And I looked some more.

I typically search through about a thousand listings to find 10 that I like.  Out of those 10, I might seriously consider purchasing 1 or 2.  That is an ultimate hit rate of 0.1% to 0.2%.  In other words, 1 out of 1,000 antiques qualifies as both investable and attractively priced.

In this instance, I saved a few that I liked to my eBay watch list.  But I was still on the fence about making a purchase.  A couple days later I woke up to a 15% eBay flash sale and decided it was time to make a move on my antique silver investment.

I eventually zeroed in one vintage silver cigarette case in particular: an elegant Mid-Century Modern Danish case by the firm of P. Hertz with a buy-it-now price of $135.

The eponymous company was founded in Copenhagen in 1834 by the Danish silversmith Peter Hertz.  After winning a series of international jewelry/silverware exhibitions (Malmo in 1881, Liverpool in 1886, Paris in 1889 and Chicago in 1895), P. Hertz went on to become the official jeweler to the Danish Royal Family in 1906.  P. Hertz is still around today and continues to be the Royal Danish court jeweler.  However, the company ceased producing silver items in its factories in 1960.

This vintage Danish piece was not only stunning, but also in a near-perfect state of preservation – a true antique silver investment.  The condition was superb, with no noticeable dents, a close, tight fitting lid and a completely intact hinge.  These are all common problem areas for vintage cigarette cases, but were problem-free on this example.  Even the original elastic band that held the cigarettes in place was still in good shape.

The case featured a linear design motif consisting of parallel horizontal lines across the middle of the case flanked by shorter vertical lines towards the top and bottom.  The overall effect was quite appealing, while also being absolutely typical of the 1930s and 1940s.

The hallmarks were also appropriate for the period and country of origin.  The case had the “P.HERTZ” mark, along with the company’s logo (a crown).  The piece also had the assay master’s initials “JS” (Johannes Siggaard), which should appear on every hallmarked piece of Danish silver made between 1932 and 1960.  And finally, the case had the Danish “Three Tower Mark”, which guaranteed a minimum purity of .826 fine silver (although higher purity silver sometimes bore the mark, especially in the mid 20th century).  Both the Three Tower Mark and the assay master’s initials were double-stamped (once on each half of the case), indicating that the two parts were independently tested for their purity.

However, the most impressive attribute of this Danish antique silver investment was the build quality.  The case was very solid, weighing in at a hefty 206 grams – more than 6.6 troy ounces.  This gave it a melt value of around $80, which means I would only be paying $55 for the artistic premium of the piece.

And it had a lot of artistic premium.

It was obvious that an incredible amount of care had gone into the creation of this handheld masterpiece.  The case’s linear design was chased in high relief and perfectly executed – a sure sign of quality.

In addition, the interior rim had its own engine-turned diamond pattern (visible in the photo below).  This was interesting because the decoration wasn’t visible unless the case was open.  The average silversmith will cut corners on the underside or non-visible parts of an item.  Only a truly dedicated silversmith working on a premium piece will bother to add decorative highlights to a hidden area like the inside rim of a case.

1940s Danish Silver Cigarette Case - Initials

When P. Hertz says they are the official jeweler to Danish royalty, they aren’t kidding.  These guys made a stunningly good silver cigarette case – one that would definitely qualify as an antique silver investment.

The buy-it-now price for the piece was $135, but after deducting the 15% eBay promo code, I was down to $114.75.  I felt that this was a steal.

The only potential issue was that the seller was an antique dealer located in Moscow’s Tagansky District.  As a result, the shipping was a prodigious $22.  The high shipping cost did give me pause, but then I asked myself, what would a reasonable shipping cost have been for something located halfway around the world?  $10?  $12?

Would I really bust the deal over a shipping fee that I felt was $10 too high?

The answer to that was no.  I chose to swallow the uncomfortably high shipping charges because the extra cost was trivial compared to the future return potential of this gorgeous antique silver investment.  At a grand total of just $136.75 delivered, I felt it was still worth every penny.

We live in a very unusual time where it is possible to buy rare and valuable tangible objects for stupidly low prices – sometimes as little as $100 or $200.  This can make it easy to become complacent, leading us to mistakenly believe that the good deals will always be available.

I assure you however, that they will not.  Someday, prices will skyrocket and the ridiculously low prices for fine, investment-grade antiques will disappear.  When that day finally comes (probably in the not too distant future), we will all wish we had bought more when we had the chance.

 

Read more thought-provoking Antique Sage editorial articles here.

-or-

Read in-depth Antique Sage investment guides here.