Looking for opinions

Good day guys! So I'm looking for everyone's opinion on what they would do.

Okay. So I don't make very much money. Enough to spend about $40-$50 every two weeks. I've just started collecting coins as a hobby and also as an investment for my baby girls college. In my first post I mentioned paying $17 for a Chinese Panda worth $40. I've found a buyer at $40. So I'm going to the coin shop to spend that $40. What should I do. Spend $40 on scrap in hopes silver goes up or should I buy a Morgan around the $40-$60 range. Thanks in advance

 

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Do you rent or own your home?
Do you have enough in the bank to make those payments and other daily living costs for 6 to 12 months if a catastrophe should befall your family?

 

I rent. I have a tad bit saved but nothing to save me from a catastrophe for 6 months.

 

If it were me, I'd hang onto the $40 and look for more opportunities like the $17 Panda. But I'm kind of mercenary that way.

If you'd enjoy having a Morgan, then it probably makes sense to buy one.

If you want to multiply your money (like by spending it on scrap "in hopes silver goes up"), buying retail stuff at your local coin shop probably isn't the best approach. The dealer needs to make money, and since he knows more than beginning collectors do, you're unlikely to find him selling anything for less than it's worth. (He may well have some stuff that's underpriced, but until you know more than he does -- at least in one or two specialized areas -- you'll only find it by luck.)

Now, having said that, scrap silver may be an exception -- dealers also have to move a lot of material, and if they get a big pile of junk silver, they may not take the time to search through it. That gives you an opportunity to "cherry-pick" better coins out of the junk. Again, though, you need knowledge and experience -- to know what coins are better, and to identify problem coins (like a better date coin that's been scrubbed or polished).

If you have time to spend on the hobby, though, do it! That's how you get knowledge.

 

The first thing you must get out of your head is that coin collecting is not a good investment vehicle. You might as well have your daughter start working a part-time job when she is a pre-teen and have her save all the money she earns for college.

So, you're going to make a profit of $23 on the sale of the Panda. Good for you! However, putting $40-60 into the acquisition of a Morgan isn't too smart. You'd be EXTREMELY lucky to find a decent coin that will increase in value in time for your daughter to start college. And, what would happen if the price of silver dropped or remained pretty much the same?

Before you start making decisions about how to spend your money in this hobby, I really think you need to learn more about it. You got lucky with the Panda, but it isn't always going to be that easy.

Chris

 

It's a dealer I got the Panda from. He said he paid $15 and gave it to me for $17 same day. Great guy in my eyes. That gives me hope that he'll keep giving me deals. So I do really like Morgan's. My purpose of buying them is to stockpile for "her" savings. And scrap is just to try to make some.

 

Heroin dealers do the same thing.

IMO, considering that you don't seem to have a lot of discretionary income, a bank account will treat you better.

 

Maybe I'll just keep to myself. Thanks

 

I want to repeat what Chris said...coin collecting is not an investment strategy. Is fishing, restoring cars, biking, or whatever else a sound investment strategy? No. They're hobbies and should be enjoyed as such. Consider your coin purchases as money spent and gone. Collect what you find interesting and that you're passionate about and you'll get your monies worth. That's my two cents.

 

if all you want to do is invest for your girls collage tuition, then talk to an accountant and open a fund account and deposit into that each month and reinvest dividends and interest, if you want to go with coins i'd say purchase .999 fine silver govt. coins (ase's, maple's, ect.) and try and stack between 60 and 100 ounces a year...

 

buy some coin books first. get a feel of which designs stand out more for you. even world coins are fun. some coins can go up in value, but this takes time 5-20 years...and even then you just might break even. the so called investment is the fun you get out of this hobby (the hunt for a coin, the history of the coin, the completion of a set, the coin you have been hunting for and finally being able to buy it, talking with other coin collectors about coins) . flipping a coin for profit is hard work and you have to have a buyer.

 

That is your next mistake. Some people just don't like experienced people telling them they're making a mistake.

Chris

 

First thing, don't be thin skinned. Many people on here are more blunt than they have to be, but that comes from squabbling among ourselves. 1) Coins, in general, are a lousy investment and a fair gamble...may go up, may go down, may remain the same. 2) It takes money to make money and you aren't starting out like Mitt Romney or Donald Trump. Hope you read this far, cause there IS a way to make money...coin roll hunting (CRH), you can buy rolls of coins from the bank, search them for something that is worth while (having your daughter to help) and then return them,,,low investment, no risk.

 

Hey, one last thought. If the silver bug has bitten, check out govmint.com for $16.95 American Silver Eagles.

 

Maybe it was the way you said it Chris. I asked because I want experienced people to tell me what they think. Not to tell me I'll have better luck making her work for her tuition. Here's my opinion, that was rude. There were some very insightful comments that weren't rude. This is why people are afraid to ask questions.

 

I wasn't being rude. I was merely trying to make the point that your daughter would probably earn more money working than you would "investing" in coins. I can't help it if you couldn't grasp the analogy.

Chris

 

Loud and clear bud

 

BEFORE you spend that $ 40.00, make sure you have it in hand from the buyer of the Panda.

Dave

 

Very insightful : - )

 

OnEWB,

Please understand that the vast majority of people who "invest" in coins lose their shirts, just like "investing" in any other commodity. Even trained professionals rarely come out ahead in coins. Does that surprise you? Maybe you've listened to a few too many radio or cable TV ads. Listen to those who have the experience. There is no "investing", only "speculating". Profits on coins CAN be made, but it is a point of EXTREME IRONY. It sounds trite, but it is also true. Those who profit from their coins seldom had that as a goal. Those who had profit as a goal, usually took a beating. It's true. A few even took their own lives in violent fashion.