Do you think this is a good investment?

Any speculator, worth his salt, wouldn't trust in this one........

 

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Okay, let me point something out here...

Does this strike you as a respectful response, particularly when coming from a child? I'm sorry if you disagree as so many seem to these days, but there is something good to be said by telling it like it is instead of the handholding in BS so common today. There's a real world out there where things aren't always fully clouds and kittens or hearing only what one wants to. Nothing the man initially (or even later) said was uncalled for or even out of line.

Respect begets respect, and questioning a thread like this, no matter where it was posted, is very, very reasonable imo.

 

Yes it did.........

One beyond his years.

 

Uhh... perhaps, Green, if you'd paid attention you wouldn't have anything to say.

 

Oh, and that was said only to make a point, @green18 .... no disrespect whatsoever was intended.

 

Buy gold with the 25c as you should get a better return much faster.

 

Is it even possible for mint employees to purchase directly from the mint at face value? Perhaps @Conder101 (due to post in a similar past thread) can clarify.

 

Thanks for your opinion, but to clarify, I'm not 8.

 

In this case it's not "bullion".

...and if you read the rest of my post carefully, you'll see that I'm acknowledged that hoarding is not necessarily the most profitable form of investing. Furthermore, I'm not suggesting that anyone do what the OP is doing. I'm just pointing out that it can be considered an "investment". Whether it's a good investment or a poor investment is a different argument.

The funny thing is, there's no shortage of people who believe they can earn a profit (and some do) by buying these sort of coins from the US Mint, with a hefty premium. Here's someone whose parents are working on assembling sets by buying them from the US Mint at face value. Best case scenario, they earn a few bucks. Worst case scenario, they lose a few. Either way, I don't think it's going to ruin their retirement...

 

A couple of points about these remarks.

The study you quoted simply compared ask prices from 1981 and 2001. It did not compare face value prices for the purchase price and then ebay or other venue prices for the sell prices as sets. In other words, in the study, there was no "advantage" afforded in the acquisition, nor any value added for assembling sets. It was just a comparison of values of the same items over time.

I think it's a fairly safe assumption that they will be able to sell their coins for more than face value when they're assembled as sets. I've seen such many such sets fetch a fair premium. The only two uncertainties in my book are: Will it be worth their time? Will it outperform the S&P 500? ...and that second question assumes they would have actually invested the money in stocks instead of spending it, or keeping it in a savings account at 0.05% interest.

...and sometimes, it's just something people have to do for themselves for the experience.

 

I read it as a respectful reply.........nothing too untoward.

 

(1) Interest rates are rising, so the era of Rodney Dangerfield's 1983 movie -- Easy Money -- are coming to an end.

(2) The Dollar is the Reserve Currency so don't bet on a collapse.

 

Isn't any investment a speculation??

Do you mean that speculation is risky and investment is safe? Or do you mean by speculation that you cash out at the end and by investment you earn as you possess? (such as an annuity or bonds)

I think anything you do has risks and is therefore speculative.

 

If my math is correct 2,000 of each mint/park would be $5,000 per year. Multiply that by 12 years and you have $60,000. Each full set comes out to $30 at face. So if they invest $24k then they will be able to build 800 sets. At $60k they can build 2,000 sets.

I do think they will be able to sell each set for more than $30, but will they be able to sell 800+ sets? And how much profit will be left after fees or costs?

 

Yeah, I made a mistake, I counted a quarter as a dollar by accident.

 

I'm actually collecting business strike state quarters. But, to up the difficulty a little and make a nicer looking set, I'm specifically hunting down PCGS MS66 coins in the flag holders. I've got about a third of them now. When I get done, I'm going to get a nice album for them. But, I've got no illusions of being able to sell them for a profit any time soon.

OP, I would take those $20-24k in state quarters and invest in a diversified portfolio of index funds comprising stocks, bonds, REITs, and emerging markets.

 

No.

A SPECULATION involves high-risk, usually when you are trying to beat time or using other forms of leverage to achieve excessive reward at the expense of risk.

When you INVEST, you let time work FOR YOU. When you SPECULATE, time is working AGAINST YOU.

Think compound interest and/or dividends compounded with stock returns over many years.

See above. Since precious metals pay NO INTEREST OR DIVIDENDS most theories of portfolio management consider them speculative.

When you have a stock that pays a dividend -- or CAN pay one (but chooses to invest in growth, i.e., NetFlix or Amazon) -- or invest in a bond, you at least get a cash return on your investment.

That's not a bad point. But there are degrees of speculation, if you consider all investing speculating.

An E&P company is more speculative than ExxonMobil.

 

This is beginning to sound like investments in Beanie Babies:

http://www.huffingtonpost.com/2013/07/25/beanie-babies-bankrupt_n_3654324.html

You have to watch the PREMIUMS to the underlying bullion value, which itself is a speculative investment that doesn't pay a dividend or interest.

 

In this case the underlying bullion value is essentially none, just the face value as they're the clad quarters.

 

I went to the Philly Mint a few years ago and you could purchase as many rolls as you liked for face value. You can also get rolls of quarters at banks.