Proof sets as an investment.

I bought my first proof set for a price that made me satisfied, I bought a 1960 proof set. I was wondering, are pre 1964 proof sets a good investment, or are there different sets that have better potentional? And Im looking at this as a long term investment. I paid 29 for the proof set, and its silver value alone... at today's price of 29.22 (per troy oz.) equates to: 17.9665014, so the silver content is more than half its entire value. If silver raises in value, mabye 6-8 dollars, the set should raise in value 3-4.50 dollars. If my math is correct, Are these good for investment as silver with extra numismatic value?

 

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Coins are horrible investments.

I don't think you can assume that a rise in silver will generate a rise in the value of these sets. Take a morgan dollar that was worth $20 when silver was at $8 an ounce. When silver pushed up over $30 the Morgan was no longer worth any premium over spot.

 

You just said coins entirely are a bad investment.

???

 

99% of the time, yes.

There are a few exceptions where knowledgeable people can find really good deals on high end coins they know are underpriced, and then flip them for profit. However, the average coin collector would have to invest a lot of time to find those deals. If you spent that time doing something more constructive, you could probably earn a lot more money.

So let's see... Lots of time, not much chance for profit. You know what that sounds like to me? A hobby...

 

I make profit frequently on about 50 % of coins I buy, thats how Im still here. Ofcourse, this proof set was a retail or close to buy, but I never had a proof set before.

( I usually only pick coins I know I can profit on, such as under melt silver coins.)

 

Flipping coins can be profitable yes, but buying an undervalued coin with the intent of turning it around quickly is not investing in coins.

Investing in coins, as in buying coins with the intent of holding them for a long period of time is not a good investment.

 

In coins, like anything else, you don't make money selling them. You make the money when you buy them.

 

Meh - There are long term investments, and short term investments. Both are "investments".

 

agreed. I put money in buying something, doesnt matter when I turn it over, I consider it an investment. But these days its extremley hard to buy silver under spot from dealers, auntique shops and otehr stores have the answer, or non-collectors.

 

Yes, it's hard. Because there are other people out there looking for the same deal, or willing to pay more.

Typically, with investments, reward will be proportional to risk. Low risk investments come with low rewards. High risk investments have the potential for high reward. But there is yet another component: Time and effort. You can invest a lot of your time and energy researching investment opportunities to find the gems. Investing a couple hours of your time and energy searching FeeBay for the 90% silver half dollar that sells for $1 below melt is not a good investment of your time and energy, unless you truly enjoy doing it.

 

I found myself buying these more out of force of habit, rather than an investment or as a serious addition to my collection. Now I have a whole suitcase full of them and it is a real pain trying to get them sold. You need to find a YN or someone just getting into collecting. (Or on a limited budget) The only set I still buy is the silver proof. There in lies your best shot at making a return on your money. If you feel making a couple of dollars is worth your time, without any guarantee, then it is a begining point for you. If your in the hobby for any time, these will loose interest to you, as better opportunities for collecting and investing present themselves. Just don't get carried away and end up with a suitcase full, like I did.

 

We can agree to disagree here, I do not view flipping coins as an investment as their is no intent on the purchasers part to own the coin. Regardless, the OP asked specifically about long term investment in coins, which I think we both agree is not a good investment.

 

Do you talk about your car as an investment? How about your couch, or your xbox? Each of these things are durable goods which you put money into and can sell at a later time, but that alone does not make something an investment. If we took that definition of investment it would render the word meaningless.

 

...and I believe that since a coin purchased with the intent of flipping it is actually owned for however short a period of time, it is still owned and therefore an investment.

Agreed. :thumb:

 

Ok, using your own example, say it takes silver one year to realize that gain and you make your 3-4.5 dollars on a 30 purchase. You're looking at an 8% gain, at best for a year. After taxes, because we're all law abiding citizens here, right, you've actually only made a 4% gain, or about 1.5-2 dollar gain. You could have made more in that year by putting that money in a bank.

This is why coins are bad...no, terrible investments.
Guy

 

Proof sets are not an investment.

I bought a 1970 proof set for $8. That's a 42 year old item.

 

Yep, economics of opportunity costs.
In general, silver coins aren't a terrible investment in the long term, though. If the economy's tanking, the value of your investment increases. If the value on your investment is falling, the economy's doing well and, most likely, you're not having to rely on your silver.

That being said, I avoid proof sets like the plague because there's too much value tied up in something other than metal.

 

I dont pay taxes I am 11.

 

I didn't either when I was 11, but that doesn't mean you aren't supposed to if you have income... Just sayin'

 

It's a hobby if you make some money that's a plus