Wheat pennies?

A lot of people think that cointalk is not the place for your misadventures and rants, as well as other posts about how you are always the victim to the present circumstances, and attempts to try to turn statements of ethics by others into a post where if you give the most off the wall example possible, you are looking to garner acceptance of unethical conduct. And you are saying his post is unacceptable????????? No thanks, not buying.

 

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No, you missed the point again you herniated disc - this is not the place for you.

 

LMAO! :3three:

(I'm sorry...I know you're serious, but your comment just hit my funny bone!)

 

Okay time for some more info.

The average circulated grade of a Indian head cent..let's go with fine.

Now let's pick a newer, heavily minted year...1907, over 100 million.

Price? $4.50

Now let's look in the 1992 red book. Same grade and year.

Price? $1.50

So in 21 years, the price grew $3.00...EACH. That is 3 times value in 21 years.

The 1907 IHC was 85 years old in 1992, and 106 in 2013.

Let's take the most common wheat cent, 1944, over 1.4 billion minted.

Price in VF is 10 cents. Per the 2013 RB.

Same year and grade in the '92 is ...10 cents.

So the price has not change in 21 years time. While the price of a IHC went up 3x.

In 1992, the 1944 cent was 48 years old, and in 2013, 69 years old.

So it will take another 16 years for the 1944 to be the same "price age" as the 1907 cent in the 1992 red book.

However, the 1944 had a mintage about 10x higher.

So if we go on math alone, in 16 years, the 1944 will be worth 15 cents ($1.50/10).

However, the IHC cent is a design in itself, because in 1909, both the reverse AND the obverse changed, while the wheat cent to memorial only changed reverse.

So...30 years from now, we SHOULD expect the common wheat cent to be worth 15 cents each. The 3x price is conservative, due to the fact the last wheat cent was made in 1958, while the last IHC was 1909.

So If I were to collect $5,000 worth of wheat cents, divided over the course of 10 years, that's about $41 worth a month.

That would be 500,000 cents at the end.

So by age 51 (how old I will be in 30 years), that $5k would be worth $15k.

 

Problem is that I can go buy problem free Fine 1907 IHCs for 75 cents each. VFs for me will go about $1.25. Redbooks are not the definitive answer to that as they give inflated prices and are not accurate on pricing as you seem to think.

 

5k becoming worth 15k is a horrible return in 30 years time.

avg circulated IHC's are not fines, more like good-4...and often with some problems.

don't plan on coins to make money, esp. very common coins.

 

That is very low for fine grade IHC's. That's more like an Ag-3 price.

Where can I buy at that price ?

 

Well, then what IS a better return? I don't trust PM's or stocks.

 

putting your money in a savings acct and not spending it!

 

Before worrying about a return on your money, don't you think your creditors deserve their money be returned?

 

Well, that's a good question, Tim. But it depends on what you are looking for. And what risks you are willing to take with your money to achieve the return you look for.

Nothing is able to be foretold, regardless of the number of people who say or insinuate that they can. Even people who manage money can only say what they've done in the past. For investments, past performance is NOT a predictor of the future.

But for people who are able to increase business for a company, that talent is, in many cases, transferable from business to business. No one is going to know what the PM market will be in the future, or the stock market, or even which commodity or type of business that will be strong. All you can do is pick the best for you at the time you do so.

You might want to re-evaluate you're "trust" of the stock market. As it is generally the best investment OVER TIME (historically). After all, we are a capitalist country, and stocks can be seen as a measure of a company's health and wealth.

I personally think that if you can get employed with a company where you can direct a percentage of your wages into a retirement fund (401K) and the company does matching funds. (For example, you can put up to 8 % of your paycheck into the fund and the employer either matches fully up to 4 or 5 or 6% or does 1/2 up to 4 or 5 or 6%.) That's like either (a) getting "free" money from the employer or (b) a hedge against your paper losses if your picks on how to spread your funds doesn't work well.

You can put all your money into "bonds" as those are relatively "safe", but without the attractiveness of a higher return. Or just do a mix.

You should read some books and then start to strategize what you might do and why and track those imaginary investments. See how they do.

 

yes wheat centss sil go up. see my why NOT to invest in copper cents thread here: http://www.cointalk.com/t223131/

 

Stuff your money under the mattress.

 

The copper Memorials may go up, others may include memorials that are DD, or wrong planchet. I know how you feel about the interest that one earns. A joke too. Just go to the bank and go through rolls on coins and pick out the good ones.

 

Stocks and PM's both are risky,

My neighbor had 20k invested into a great company. The company tanked and his stock was worth pennies on the dollar. He lost over 15k on the deal.

My friend that's a "bullion buyer"...bought over $20,000 worth of silver, at $49 an ounce, thinking it would keep going up. To this day he is still sitting on it (must hurt to sit on a pile of silver ).

Anyway, risk is very important to me, so what would have the best rate of return, and have little to no chance of going toast, as in loosing everything invested in it?

 

Savings bonds.

 

For virtually every investment out there, risk is proportional to return. You have to take a high risk to get a high rate of return. You can opt to take a medium risk for a medium return. Or, you can choose no risk for very little to no return. One way to hedge your bets a little is through a thorough understanding of what you're investing in.

There are a lot of investments where your chance of losing everything is very small, and have an OK rate of return in the long run. Broad index funds are a good example. Buy an S&P 500 index fund, and most of the S&P 500 companies would have to go bankrupt for you to lose everything. Is that possible? Sure it is. Is it likely? Not at all. For a little more risk, but a little more return, you could choose a sector fund where you believe that industry has good potential in the near future. Say medical, or energy.

 

Tim: Life is a risk. You don't want to triple your investment in 30 years, that is no good.

at 21 , as you say you are , and without direction ( seemingly)....maybe join the USAF for a stint....if they will take you....they don't killed in Afghanistan like Army guys. Then you could go to college for free, you seem to write using good English skills.

You should be able to save a decent chunk of change in the military as a single man.

you are just stuck in neutral now, wheat cents are going nowhere.

even if you 90% silver coins which traded at about 3X face value for most of the mid to late 70's ( let's say 1978) and held them until now 25 years later at about 21X face, thus multiplying your money by a factor of 7....that is only a decent return, not great.

 

Theoretically, if the US was to go into a depression, as occurred in 1929, wouldn't they become useless?

 

They're already close to useless based on current interest rates, but they're also close to zero risk.

If we go into a depression, savings bonds would be just fine. That's actually when savings bonds were first introduced in the US, during the Great Depression. If our economy collapses and we see hyperinflation, then savings bonds would be useless.