Opinions: Best $1K Numismatic Invesment For The Best Return?

Discussion in 'Coin Chat' started by JimOfOakCreek, Jan 15, 2012.

  1. mill rat41

    mill rat41 Member

    I would say nice problem free collector coins in "collector" grades. Things like seated halves and quarters in VF-XF, large cents on nice smooth planchets, bust halves in XF-Au, Barber coins in F-XF ect. When I go to coin stores they have all these in quantity, but nothing nice and problem free. I see lots of cleaned seated material, corroded large cents, and slick Barbers. Or I see expensive high grade slabs - nothing in the middle.
     
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  3. Danr

    Danr Numismatist

    Copper pennies from circulation....unc gold spouese from the mint
     
  4. pk_boomer

    pk_boomer Junior Member

    Well as a collector, return on my money isn't my primary concern when i buy coins.and frankly coins wouldn't be my "investment" of choice if i was trying to maximize my return.
     
  5. sodude

    sodude Well-Known Member

    If you want to make money in coins, do what the dealers do. Buy stuff well under market price and then sell it.
     
  6. Frankcoins.com

    Frankcoins.com Junior Member

    I just hate it when people talk about "return" on coins. When I had my shop we often had doctors and financial people that were interested in the "return" on coins without having a basic feel for what the coin market really is...or even have any type of historical interest in coins and history. A few got lucky with bullion related stuff, but most ended up overpaying for "bargain" low end slabs and selling them at a loss a year or two later, and vowing "never again" on coins.
     
  7. lackluster

    lackluster Junior Member

    I would have to agree with soduude. If you want to make money buy something you can flip or sell for a quick profit. Or you could buy some nice slabbed Morgans I got in the 80's for about half what I paid. And these were all bought at greysheet prices. You don't know a fad till its over.

    I would not recommend buying what is hot, unless you can turn it over for a quick profit. I buy things from the mint because I like the design. Also I buy classic commems, large cents and Bust and Seated material in middle grades (not BU) because I find them appealing as an older beautiful coin. If I want to make money I buy stocks because they have a much lower spread (although also risky no doubt).

    Lack
     
  8. BadThad

    BadThad Calibrated for Lincolns

    Coins are a pretty horrible "investment". In general, you pay retail and sell at wholesale. Every once in a awhile you get lucky and hit a nice home run, but that takes a lot of knowledge and experience to pull off.

    If you're intent on buying something, buy a nice, slabbed gold coin from someone reputable. Pick something specific out, do your reseach on the going prices and negotiate a good deal below the market.
     
  9. Clint

    Clint Member

    Hmmm. As most of the above, I don't think that way, either. But based on the brevity of the question and no timelines, etc., I would sign up on a numis online auction and pick up a $10 Indian eagle PCGS MS63, watching for gold to dip until I can get it for $1,000. Then wait for gold to go back up to your preferred spread and sell it.
     
  10. Owle

    Owle Junior Member

    No simple answer here. You could go to coin shows and tag sales armed with a magnifier with a point light source. AVOID ALL CLEANED AND PROBLEM COINS! Look for undergraded and PQ coins, compare price lists, etc.. Be ready to walk away from any non-advantageous deal.

    Worst investment are those dealer coins that are raw, over-promoted, cleaned and problem coins that will never grade. Also, esoteric varieties that have very thin markets.
     
  11. JCB1983

    JCB1983 Learning

    I don't understand these statement such as "coins are a horrible investment." I have price guides from the 1960's-90's and the markup in coin values is way ahead of the inflation rates. I am curious as to if some people are speaking from their own personal experience, or just never held on to a series long enough.
     
  12. medoraman

    medoraman Supporter! Supporter

    Jason, well first you have to have bought problem free coins at a fair price to begin with. That right there destroys many collectors' returns. Even if that was accomplished, then you have the fact that you will not SELL them at today's prices if sold to a dealer. You may get 50% of today's price guide.

    Couple those two facts together and you get a poor return financially. Numismatic items have their return in personal enjoyment, not financial unless you are a dealer typically.

    Lots of great thoughts on this thread OP. Now, put a gun to me head and make me answer it, I would say a superlatively high grade ancient silver coin. My choice would either be a superb Alexander Tet from an unusual mint, (maybe Babylon), or a superb example of a nicer, (not too nice as $1000 would not cover it), Roman Republican denari. Ancients have been going up stronger than US coins for quite a while now, and superb condition coins are always popular with new collectors.

    Chris
     
  13. JCB1983

    JCB1983 Learning

    Chris I was following you until you mentioned selling them to a dealer? That is just common sense. Nuismatics are a poor investment is a very bold statement. There are many a fella who are fishing and putsing around on putting greens in the carribean because of their investment in coins. Just my opinion. I really do not want to offend anyone here, I did not live during these times, but the price guides don't lie. 6.50 for a XF half bust!? Even the mention of "problem free coin." Every "problem free coin" which is now in the market, was in existance in the 60's-90's. (Old. U.S. Coinage).
     
  14. Owle

    Owle Junior Member

    The problem with unique coins like that is that they require specialized knowledge and the caveats on collecting ancients and colonial coins for example need to be magnified as the risk of buying a "unique", PQ or other investment coin that turns out to be hard to sell at the desired price level is great.

    For me the criteria would be, popularity, low risk, easily ascertained grade and value based on current auction records and good for grade. Every year we have seen type gold, Morgan dollars, etc., go through variations in price and premiums relative to the metal price. Last year a national dealer was offering $50 for MS60 or better Morgans. If you were able to get a roll of true UNCs for under $1000, paying $30 or $35 a coin, you will certainly find a profit at some point. The problem is always guessing the top, no one knows when the curve has reached its apex.
     
  15. medoraman

    medoraman Supporter! Supporter

    But the coins I mentioned I specifically chose very common coins. There are tens and tens of thousands of these around. If I wanted to quote on some unique coins, believe me I know some weird ones. Alex tets and Roman Republicans are two of the most collected, widely available ancients there are. I would venture to say every ancient auction has at least 100 of these coins for sale.
     
  16. jello

    jello Not Expert★NormL®

    :)2011 US Army Mintage gold comm only 8012 struck:eek:. with that low of mintage Gold spot price may not factor in the price of the coin
     
  17. wheatydigger

    wheatydigger Member

  18. medoraman

    medoraman Supporter! Supporter

    Well I was saying if you bought a problem coin in the 60's for $4 your return today would not be nearly as strong as if you bought the problem free $6.50 one. 50 years is a long time financially. That same $6.50 in 1962 growing at only 5% interest is now $700 Jason. That is what the price would have to be for it to roughly match inflation. Even matching inflation is not a "great return", and these coins do not even do that. If you bought the coin for $6.50, how much would a dealer pay today for it? How much would a dealer pay for a problem XF today that maybe you paid $4 for? $4 turns into $430 today, do you think its still a good investment? I have about 80 XF/AU capped bust halves Jason, will you pay me anything near these prices if I walked in today? $700 for all my common XF capped bust halves, and I would have to sell. :)

    Listen, coin collecting is a great hobby. You spend countless hours of times enjoying yourself, learning new things about history and geography, socializing with others, etc. And, when you are done, you have some value left. This is superior to most hobbies like boating, mountain climbing, race car driving, etc which are pure expense and nothing is left over. However, its a hobby, so should not be confused with real investments in which you are gambling your retired life and security on. Those are a different topic.

    Chris
     
  19. Clint

    Clint Member

    So I guess most of my coin "investments" would be more properly called modified-bullion PM investments (the hedge against inflation portion of my portfolio), since I try to pay a minimum premium over spot, and I'd always expect to be able to sell them close to spot. NOT numismatic investments. Of course if the OP chose to add the parameter of time...
     
  20. Danr

    Danr Numismatist

    you will not hear me saying that "coins are a horrible investment"- on the whole I am ahead
     
  21. Mark14

    Mark14 Star Wide Receiver

    copper isnt a great investment but if i can get 300 oz for $325 i think that i can make a profit, albeit a small profit
     
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