Coins, a sound way to invest for retirement.

The best possible investment you can make is in a highly marketable skill.

 

Log in or Sign up to hide this ad.

Thanks for the advice...I just enrolled in "Monkey Gladiator" school.

(Please don't change your avatar...or this post will make no sense)

 

:dead-horse: :headbang: :desk: :computer:

 

Not all coins are good for investment. Sure, most key dates and rarer coins will eventually rise in prices and I wouldn't disagree with that. But to stretch it to all coins, I disagree. I've seen prices falling down.

 

Investment in things like coins or art often require a fairly long time horizon. In other words, I wouldn't invest my "rainy day" funds in coins.

 

Detecto, I think you're one of those people that love to be abused...

 

:headbang: $5 in 1970 gets you $12 for a US coin.....
In 2010, you would spend around $28 to purchase items that totaled $5 in 1970 (relative purchasing power based on the Consumer Price Index for US)


In 2012, $5 saved in 1970 would be worth:$44.70 if saved in a short-term asset.
$123.00 if saved in a long-term asset at a term of 30 years.
$250.11 if saved in a S&P portfolio with dividends reinvested.

$233.00 if saved in a gold portfolio.


(www.measuringworth.com)

 

Coins are a hobby. Don't loose track of that. When the day comes to sell, you will get part of your money back. You can't say that about most hobbies.
Sorry Tim but you don't have a clue about what you are talking about.

 

I would like to mention that with inflation, if you have a 2.4x increase from 1970 to now, you have lost money. Acorrding to http://www.usinflationcalculator.com/, a dollar in 1970 is equal to 6 now. So, if your baseline is $1 in 1970, or $6 now, and it "increases" to $2.40. That means that you have lost $3.60, over a course of 43 years. So, perhaps that isn't the best investment after all. Even your world coin example is only an increase of about 3.5x, which, again, with inflation, is a decrease. With a baseline of 1$, you have $3.50 now, which is a loss of $2.50 over 43 years. Inflation is not kind to even the best possible outcome of your theoretical investment...

 

So the silver trime I bought in about 1970 for 4.00 that is now valued in the red book at about 42.00 wasn't a good investment?

 

Not compared to a decent stock portfolio. It was certainly better than tucking four greenbacks under the mattress, and probably better than putting it toward a CB radio.

 

I buy silver and gold coins because I love them and they are a reasonably sound investment. Whether they gain or lose money depends on when you sell them. I also invest in stocks. I think coins are much more fun and enjoyable than stocks.

 

I'm Livin' Large Lee.........

 

C'mon Ken , you've made Billions collecting coins , tell us your secret .

 

lets start a coin investment sca.. i mean scheme right here on CT we could all do with a few extra bucks

 

The I word (invest) should never be used when speaking of coins.

 

Never mind, was a post pointing out how the prices from 1970 didn't keep up with inflation, but I see it has already been done.

 

Yep, I agree that thinking of it as an investment is not a good idea, there are a lot worse things to spend money on though, and most people will spend money, not just hoard it in the bank and stocks. Very few of the things that we spend money on for enjoyment ever hold much resale value, coin collecting is one of the few examples. But, thinking of coin collecting as an investment can be dangerous because that can be used as a justification to spend more than one can afford IMO.

 

Tim: Much better for you to save for college or pay down your debt/bills on time than to invest in coins at this stage in your life. TC

 

Sure it was & congrats on it:thumb:;
I'm not saying coins can't be a good investment, many are, as yours proves & I'm sure there are many folks on the forum who've done quite well with coins over the years, including myself.

My point though was, if someone thought coins are investment because a US coin worth $5 in 1970 is now worth $12 & every coin value in the redbook has gone up in 43 years --> an inaccurate view of facts that lead to an inaccurate conclusion. A dollar invested in anything in 1970 would have to increase by about 5.62 in order for it to be worth the same in 2010, so an actual increase in value would have to be 5.63 or more based solely on the US CPI.

Now I think I'll :taped-shut: on the subject & go back to looking at coins:smile