I need advice...

The Royal mint is selling a 1/20 oz gold proof coin.

The price, with shipping would be about $180.96.

Yes...this IS more expensive than even a 1/10th oz from the US...BUT...

There is a mintage limit of 1,000 pieces.

Now, with that said, if one were to put this up for 40 years, would it be worth more than paid?

I am seriously interested in this coin, but I don't want to sell it when I'm 61 for less than I paid for it.

The 1,000 mintage number does seem attractive.

 

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Ya want it it ya buy it brother. No need to put it out there as this should be a 'gut feeling' within you. Curtain call downside.

 

The collector side of me wants it, but the investor side of me wants to know if such a low mintage piece would be worth buying to profit a little on when I sell off my collection at an old age.

 

If anyone truly knew what the value of a certain coin or precious metal would be a few decades in the future, they would be VERY VERY wealthy.
Only time will tell if you would get out what you paid for it. Chances are you probably won't hold onto this coin for 40 years anyway, you will probably sell it when you think gold is at it's high point.

 

This seems to be the type of scam you rant about. Would you pay $350 if there was only 500 pieces? The mint is taking advantage of you by artificially limiting the number made. But as Green says........

 

You're too blasted young to worry about old age.........

 

What do you mean artificially limiting them? I thought the US mint does the same thing, making only so many of something. Are you saying more of these will be made, but it's just marketed as not?

 

I meant that they set the limit. It isn't a time limit, or die life limit, they just said the limit is 1000... so that is an artificial limit. It is done to increase the premium, otherwise why would they not issue 100,000, or even more? Because there are a limited number of possible buyers at that pricing. But as Green said, do what you want, but maybe shares of GE would probably be a better deal for 40 yrs, IMO.

 

If you are going to invest in gold then buy it at the right price and for the gold itself not limited edition items. The problem is that the other 999 people are thinking the same thing you are and they will sit on it. So 40 years from now there will be 1000 perfect proofs which will keep the value down except for the gold price. Take that money and invest in bullion.

 

I agree with desertgem. Set aside money now that you will need when you are 65. I started saving at age 33 , and seven years later I can now buy a house in every state except the one I live in

 

That seems like the wrong question. If, after 40 years, the coin is worth a few dollars more than what you paid -- or even double or triple what you paid -- it would represent a terrible investment.

Over forty years, a nice, safe growth fund should give you at least a tenfold increase.

If you want to build equity over time, choose a conventional investment. If you want the coin, buy it, but don't think of it as an investment.

 

Your right, I shouldn't let investing get in the way of collecting.

 

40 years of 18% compounded interest on $180.96 equals to $242,000. Unless your "investment" can outperform that, you're better off paying some of your bills with the $181 than buying overpriced bullion, regardless of intended rarity.

 

Fight the urge.

 

I suppose the people who buy things from the US mint, don't expect much for a ROI, right?

 

I'm curious about that 18% compounded interest..

 

Detecto, look up GDX, it can be had now at $23 from a 52wk high of $52. It seems like you want to have some skin in the game.

 

Are you saying it might be low for the OP's situation? I assumed 9% usury law interest rate on personal loans for Illinois coupled with maximum 100% penalty in a lawsuit. Given that he's openly stated being in collections and in default, 18% seemed on the low end of assumptions.

I don't think OP has access to a brokerage account. He might be able to convince his parents or siblings to invest for him, but I still say the best investment would be to repay his debts at 18% interest.

 

I have it narrowed down to 3 other items as well I was contemplating, wondering what other UK collectors would prefer.

http://www.royalmint.com/shop/2013_UK_Coronation_5_pound_Silver_Proof

http://www.royalmint.com/shop/The_2013_United_Kingdom_Commemorative_Proof_Coin_Set

http://www.royalmint.com/shop/The_1953_and_2013_Coronation_Crown_Two_Coin_Set

 

Back to the thread starting post, if you think more than 100000 people will be collecting the 1/20 troy 1 GBP series in 10 years, then you should buy it. Otherwise, it will never be able to justify the 150% premium. Just look at your experiment with low mintage Maundy coins you had to sell at a loss. Low supply means nothing if there's even lower demand.