Coins as investments?

Hello,

I'm new around here and have a question.

I collect silver bullion rounds and bars, but have become interested in the non-bullion coins. I collect silver bullion for the investment and there is also a pure appreciation of coin minting elment there as well.

My question is do non-silver/gold bullion coins hold their value like silver and gold does (or at least not lose much value) or is it like the rest of the collectible market where you are basically tossing money down the hole? Not that I think that the investment value that a collectible is the be all and end all, I do believe in collecting for the enjoyment of things but I just want to be clear about the outlook of the market before I jump in.

Also, what are some nice coins to start out with that are not too expensive?

 

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The best investment advice.........Don't invest in coins!
2nd best investment advice.........Don't take advice from people online

 

http://www.amazon.com/Collectors-Su...3390/ref=sr_1_2?ie=UTF8&qid=1339109493&sr=8-2 this is a pretty good intro

 

That's what I thought. Not that I wont buy coins, but at least when I do it will be because I like them and not so much for what they might be worth later.

 

It would also be my opinion that you should not buy coins for investment purposes. Unless you're very knowledgable and a little lucky, you won't make money in coins.

 

This might be the best investment you'll ever make.
http://www.amazon.com/gp/aw/d/0794821782/ref=mp_s_a_5?qid=1339121208&sr=8-5

 

Buy PM for investment, but don't overdo it.

Buy coins for the love of history, artistry, and culture.

Coins are a pretty bad, illiquid investment. Yes, at some point in the future they will be worth something, but they are not "investments". Its a very important point, as way too many dealers talk collectors into buying coins they cannot afford by labeling them "investments".

 

Yes, it's true, yes, you shouldn't buy coins for investment purposes. But, as far as I'm concerned, the more rare (in conjunction with demand) the issue is, the better the chance of retaining value is. It'd take a big shift in collector demand to lose your purchase amount in a lot of hard to find coins.
Just my opinion.

 

Money can be made by investing in coins, but it will take so long that you will never want to part with them.

 

You can invest in bullions' or buy numis at spot price, investing in bullions' is a good way to diversify your portfolio.

 

I never invest in coins, I only collect them. If I make money selling something, it just gets plowed back into the collection, safe with the thought, "this coin will always be worth fifty cents".............

 

I find coins in circulation (mainly silver), sell them for a premium, and buy older coins with that money. This way, I can't really lose money.

 

Run, Foster, Run !

 

Well, I think I'm just going to keep investing and collecting separate. I already buy bullion for investment(mostly to stabilize my portfolio), so I think I'm just going to start with silver Half-Dollars and dollars. At the least the silver based coins will have some value just for the metal, plus some of them look pretty cool. Nothing high end to start but just get a collection going.

 

I have made TONS of money in buying and selling coins, but those particular collections were geared to resale. One can do quite well by buying desirable coins that will resell well, and getting them at a low or reasonable cost. However, this process takes years and years, and one has to be willing to be unsentimental, to part with most or all of a collection. In one collection, I literally doubled my initial investment several years ago, but it took 10 years to assemble the collection, and my willingness to part with it. Sometimes, one has to work at cross purposes--coins that you know you can resell for a profit and coins you love. It isn't easy to do, but it definitely can be done. I also bought gold when it was $250/ounce, and resold it last year, so that alone did rather well. Now, I collect for my own enjoyment only.

 

The only reliable way to make money with non-bullion coins is to be a coin dealer.

It's similar to sports betting, you have to be the bookie to win !

You could luck out and buy something that skyrockets, but not bloody likey.

The only other real way is buying ultra-high end rarities like an 1804 dollar, 1913 V-Nickel and so forth. I recall as a kid collecting coins ( circa 1975) that that nickel was worth about 200k....and my parent's house was like 50k....something like that anyway, like that nickel ( one of five) was worth 4-5 nice houses.

I'm not sure what the nickel is worth now, I'll guess 4 million, and the house maybe 250k, or the nickel buys 16 such homes.

I doubt that can continue for coins. You might have done much better buying stocks than the V-nickel ?

If you deal well....You can buy for 60 and sell for 100 on numismatic coins that don't change value based on silver, gold content....like an Indian head cent....you have to churn the inventory to pay Your B&M rent and so forth. So you pay 600-700 for a coin you can sell for 1,000...as dealer

If the values remain relatively stable for years let's....on just call it an 1877 cent. The collector will not even get his money back ( maybe barely so), ten years later if the coin retails for $1500.

Coins are like stamps, comic books, sports cards, old bottles, etc.

Don't expect to profit.

Buying Silver and Gold bullion coins is WAY Different !

 

Well with the advent of Asia entering the Numismatic community I see huge potential in U.S. Coinage. I still feel that even though we as Americans buy everything from China... that they still have a thirst for American culture. Sometimes I wonder if people saying " Coins are a bad investment" actually ad to the reverse multiplier effect. The large cent market is heating up.

 

Then the grading standards change to market conditions and whims, and all kinds of high-quality Chinese fake coins abound.

You can even buy fake coins in a fake slab, nowadays !

Coins ( Numismatic) are not an investment....at least you have a chance with bullion stuff with low margins.

 

You think the Chinese want pre 1858 Large cents ? Well maybe to replicate them better !

 

If you are interested in learning more, I recommend, The Expert's Guide to Collecting & Investing in Rare Coins by Q. David Bowers (Whitman Publishing). Although the book came out in 2005, I think it is still the best single book on the topic of the potential investment value of coin collecting. I underlined "potential" because very little (beyond death and taxes) is guaranteed in life. Dave Bowers is enthusiastic about the longer term potential return on investment of coin collecting, but even he constantly cautions the reader that this return may be realized only after years of holding higher quality items that will be in demand by future collectors.

Personally, I agree with the other posts that coin collecting should best be approached as a hobby. If the coins I have increase in value over the years (relative to inflation)--great! If the coins I have remain steady in value over the years (relative to inflation)--well, it is better than a poke in the eye with a sharp stick. But I should enjoy whatever coins I have acquired for their own sake first and foremost. I do not depend (in financial planning terms) on my coin collection to appreciate enough in value so I can sell them to pay all my bills when I retire...and also because I probably would not want to sell my coins off anyway.