Newbie ripped off by TV Coin Shows

Hello,

I wanted to buy some coins as an investment and gift them to my twin 9 year old sons. It came to my attention after reading posts on this site that I probably paid way too much money. Could somebody please recommend a reputable internet/online dealer or two or three as a means of purchasing coins.

I am 50 years old so everything I buy I want to make sure they stand a better than average chance of appreciating in value over the next 20 to 40 years. Because of the age gap I need to purchase items sooner than later as my health is not to good and I want Adam and Eddie to have something to remember me by.

Please also recommend posts or threads that explain the "Grading" principle. Feel free to recommend a newbie starter set and then lead me in the right direction fiscally to start to increase my portfolio.

Remember because I have twins I need to buy two of each item selected. Also, except for the overpriced items purchased on TV - I have very little understanding of coin collecting and need help from the forum into making me a wiser collector.

Very Truly Yours,

Ed

 

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What kind of coins are you looking for? From my experience, casual collectors seem to like Morgan Dollars the most.

If you're looking into grading and whatnot (Probably the best way to go for the inexperienced) you'll wanna stick to coins in slabs by PCGS and NGC. For those, you can buy them just about anywhere you want. I'd stay away from anything being shipped from China, though. I'm sure others here will elaborate further.

 

Thank You Merc Crazy. I really don't know what coin I should collect or focus on. Do Morgan Dollars appreciate well over time. Will my sons make more for them when they decide to sell in 40 years then I paid for them in the next few weeks? I don't want break even coins as I'm sure the majority of the forum would not a break even investment.

 

Morgan Dollars in BU condition are great collector coins, because you can get an Uncirculated (BU) piece for around $30-$40. I got my 1921 in a Air tite for $25, choice BU. Also, Peace Dollars are good as well. Mercury Dimes and Wheat cents are cool as well.

 

Just to elaborate a little more on what Merc Crazy stated: While you can find good deals sometimes on coins that are not graded, you can also lose big time if you receive a counterfeit or cleaned/damaged coin. Sometimes it is hard to tell even for a person with experience. The book ANA Grading Standards is a good book that shows photos of coins in various grades, and is a great source of information.
If you are buying coins for someone's inheritance, the best reasons to buy coins in slabs from NGC or PCGS is the resale aspect. If your sons at some point decide to sell what you have left for them, there is a lot smaller chance they will be taken advantage of by a buyer. It will be easier for them to determine the value, as the condition, date, and other details will be clearly labeled on the holder. These two reputable companies trade regularly sight unseen and bring top dollar over a coin that is raw and/or self graded.

One more thing: There are a lot of price guides out there for coins, some of them are over inflated. If you are planning on spending serious money on coins, recommend getting your hands on a copy of coin dealer newsletter. This is a dealer price sheet and you might not always be able to get coins at the prices listed, but you know close to the amount a dealer might have paid, or will pay in the future.

 

Thanks for the input Coinguy56 and USmoneylover. You make a strong case for grading of coins. Do I contact them on the internet and then send my coin for grading. PCGS and NGC are the two top companies for valuing coins it seems.

 

I have to log off for the rest of the day and will be back 9PM EST. Thank You for the insight!

 

Since you have no idea what you are doing and think that possibly someone can give you a one or two sentence synopsis on what would be a good investment gift, I can say with assurance that this simply will not happen. There are NO sure things in coin investments except to those that have the knowledge about what they are doing. That knowledge cannot be accrued by reading books but requires years in the actual field where some deals are won and some are lost. Today's popular (and expensive) coins can be lost in the dust of tomorrow's popular coins!

My advice to you is to simply pickup MS or PR69 examples of the bullion coins which were available during your sons birth years. MS/PR69 coins in reputable third party graded slabs will cost you a bit more than raw coins but they should fair better in the long run. At the very MINIMUM, they'd have the current bullion value of the coins.

Typically, these coins would be 2001 Silver Eagles, 2001 Gold Eagles, and/or 2001 Platinum Eagles. Some were minted in fractional values up to a full ounce ($5, $10, $25, $50, $100) while others were only made in 1 ounce coins. One of each would make a very impressive inheritable collection.

I would advise MS/PR70 coins BUT the premiums would be a bit stiffer and that premium MAY or MAY NOT be there for your sons. Again, MS/PR69 coins would At the very MINIMUM, retain the current bullion value of the coins. About the only thing you might have to be concerned with is if some scientist out there does figure out how to turn Lead into Gold!

You will have to shop around and please don't simply settle on the first seller that has these availale for you. During your shopping, presumably at coin shows, you may pick up some valuable information which may in turn light your fires of knowledge so that you could pass a reasonable collection on to your sons.

Good Luck.

 

I'd recommend you ONLY buy coins that are already PCGS/NGC slabbed. you don't want to spend $30 on a coin and then spend $20 to get it graded/slabbed. People have already done that out there, and you might have to spend $10 more for the coin in the problem-free slab, but that's worth your peace of mind. You don't want to get taken buying a bunch of cleaned coins to find out in 40 years that the price indeed doubled on the coins, but that you have to cut the price in half because the coin was cleaned - for example.

 

Yep.

And remember, if it sounds too good to be true, it probably is.

 

19Lyds makes a good point about what will/won't appreciate. No one knows for sure. But from what it sounds like, if these coins are something for your sons to remember you by, getting them involved could mean a collection that means more to them in sentimental value than resale.

 

Best to calmly not buy anything for awhile until you learn something about coins and what not to buy. A couple books that will help you immensely are "the official Red Book" by R.S. Yeoman and "The Coin Collector's Survival Manual" by Scott Travers. You can't go wrong with those two books and you can use them for years to come. Do the world and yourself a favor and stay away for the CoinVault and all that BS.

 

If you get a RedBook, the prices are CRAAAAZY inflated.

 

I strongly agree with this. Unless you really know what you're doing, you should buy coins already slabbed by one of those companies as that is the safest way to go.
I also agree with what T-Bone said. No one can guarentee you that anything will be a big money maker. Usually folks around here recommend coins only as a hobby, and not an investment. Do it because you enjoy it, and share the experience with the kids. That should make it worth while. Any money made in the the process would just be a bonus.

 

I'll give you another take since you're "investing" and not collecting. Don't buy them HOARDS of coins! Sell the junk you have already bought. Take that money and whatever money you're planning on spending and buy them ONE coin each. Each coin should either be what's called a "key date" and/or gold. In 40 years from now, those are about the only types of coins that should be worth substantially more (a reasonable certainty).

Secondly, don't try buying over the internet. Find a reputable coin dealer in your area (or drive to one). Call ahead and tell him what you're planning on doing and make sure he has the inventory/suggestions to help you meet your goal.

Whatever you buy.....DO make sure it's PCGS or NGC certified. This will make is MUCH easier for you and much easier for your kids should they need to sell the coin someday.

 

Bullion coins....nice and safe..just like a savings bond

This is exactly what i was thinking right out of the gate once I read the 1st post on this thread.

 

ebay is good but be careful of fakes and stay away from the t.v. ads

 

agreed. bullion is good too

 

Welcome to the neighborhood, Ed!

If you want to buy coins for your twins as a legacy from their Dad, by all means, do it. But, do not buy coins as an investment for them. For the most part, coins in greater abundance, regardless of demand, barely keep up with inflation. For example, Morgan silver dollars continue to be one of the most popular collectible coins. Yet, a common-date Morgan silver dollar in MS64 that is 105-130 years old has increased in value very little over the last 5 or so years. There are far better vehicles to use for a decent return on your investment.

If you want to leave them some coins, how about a birth date proof & mint set and throw in a birth date proof & mint set for the years good old Mom & Dad were born too!

Chris

 

In general, coins are not a good investment. It can be very difficult to make money from coins, especially if you don't know what you are doing. Even the most astute collectors find it difficult to profit from their collections. A huge obstacle that all collectors face is the difference between retail price (the price you pay when you buy coins) and wholesale price (the price a dealer pays you when you sell coins). If you choose to sell your coins at auction there are fees to pay (typically around 15% at most auction houses).

Most of us around here recommend collecting coins for personal enjoyment; if you make money when you sell your coins consider that an added bonus.