If you had $500 to invest in coins per month what would you buy?

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In that case, I don't care what you do with your money. Blow it on Barbie & Ken Dolls for all I care. You're still not going to find any coins that will turn a worthwhile profit in 5-10 years.

Chris

 

Under those conditions I would go for U.S classic commemorative half dollars. As far as I know, they haven't had a good run since 1979-80. Maybe they're ready?

 

Given the amount of money you are putting into play and the time frame that you have in mind, the best thing I could recommend is either junk silver, or common gold coins with the total price over melt value is relatively low. Either class of coins should do well in an inflationary environment, and given the monetary policy in play under Bernanke, and now Yellen, I expect that at some point in time the velocity of money will come off the historic lows it is current at and we will experience inflationary pressures throughout the economy.

 

I can 100% guarantee you one thing. Your investment will be a 100% profit for your heirs!

 

Just for fun....Classic Commems, Walkers in MS66, Capped Bust Quarters. Also look for problem free vintage type coins that have a really big price jump in the next grade, and good eye appeal. Scarcity is good. Just some of what I might buy if I had to choose coins in your price range that might have a shot at going up. But I've never been good at speculating.

 

At $500 a coin, you aren't going to be buying anything scarce. While it is possible that any particular series of coins may experience an outsized appreciation compared to the rest of the numismatic market over the next 5 years, there is no way to know which series that is before it happens.

Buying under graded coins with a large jump in the next highest grade (or possibly raw coins) isn't a bad idea, but you have to factor in the PCGS tax to get a higher grade as part of the equation. Also the amount of time spent identifying opportunities has to be considered.

 

I think I might like one of those $35,000.00 over-strike Canadian/US 1970 quarters. :>)

 

Collectable coins are a hobby. Silver and gold bullion coins are an investment if you subscribe to the theory that paper money will one day be subject to hyperinflation. One suggestion: don't get caught up in graded ASEs. That starts you in a definitive hole investment wise.

If you ever want to PM me, feel free to do so. Making investment decisions is one of the trickiest things around. Good luck!

 

I think barbers in mid to higher grades are better investments than low grade ones, if you were paying retail right now. Look for classic coins, like silver dollars and standing liberty quarters that are in older holders and under graded. Try and get older silver coins as close to melt as possible but in collectible grades. That way you at least have some investment in silver if collector value doesn't appreciate much.

 

Despite what Dave Ramsey says, some types of secured debt (e.g., Mortgages) are smarter long term investments than waiting until you can buy a house in cash. If I have a mortgage at 3.25%, and I can on average invest money at 5%+, then the smarter move is to invest and keep the mortgage. Add in the tax benefits of writing off a mortgage's interest vs. renting and the difference is even more marked.

With regard to unsecured debt (e.g., credit cards, loans for vacations, college loans, etc.) I agree with you. Get those all paid off!!

 

If I were to invest 500.00 a month in coins, I wouldn't buy over one or at the most two coins a year probably spending between 2500 to the entire 6 grand at a time on gold--in most cases St Gauden double eagles along with the occasional Indian 10 dollar piece.

Luckily, I don't invest in coins so I am able to collect what I want not what I think will make money because I HATE gold.

 

If you are asking me to invest your money, well that's easy.
Send me $500 a month
I'll invest for me... I mean, for you

why not save up a couple months and then buy a higher quality coins
The higher quality, and more rare a coin the more likely it's value will increase assuming the market doesn't drop (which is key).

If you believe coin valuations will always increase then you are all set. If you think it wavers, then purchase time is more important. If you think it's related to the economy and how much spare cash people have at the time then it's a timing thing, without knowing the future.

Just review stock markets in the past 20 years and create correlations to durable goods, bullion, coins, dollar valuations, etc. Then you'll have a good idea of the past. As to the future? well, that would be ideal to know the future.

 

Although "investing" is problematic, "parking money without losing any" is quite a realistic goal. I would be throwing it into various Classic key dates and conditional rarities, both (importantly) because I like them, and because they're the coins which stand the greatest chance of retaining value. Type coins, not necessarily specific issues, because that's how I like to collect.

 

I'm not saying wait and buy a house in cash. Buy the house, you'll have a mortgage. Your (my) goal should be is to pay it off IMHO. I understand your tax/write off plan or benefits. For me, forget it! Forget the creative financing. I can sleep better at night knowing it's mine.

 

Mexican Cap and Ray Dollars in PCGS or NGC holders in MS63-65. Easy money. MNA just was formed and the Whitman Bailey books are building a larger buyer's market.

John Lorenzo
United States
Numismatist

 

Watch the hyperbola, it only serves to cloud the issues here. No one has said there are not ways to make money in coins. You asked about investment in coins, which in general are a very bad idea, be it high dollar or low dollar. I have seen million dollar coins sell at auction later for half the price.

Now, there are a lot of way to make money in coins. As you pointed out dealers by definition make money if they are still in business, and quite a few of them make a lot of money doing it. Do you remember my first post, where I said part of the issue with investing in coins is the bid/ask spread, well dealers make money because that is their cut. But you didn't ask how to be a dealer, or even how to make money in coins, you asked about investing in coins, which is a whole different ball game.

I want to make one clarification, I don't like investing in numismatic assets, but I think it's prudent to have a small portion of my investment assets in gold/silver. But like I said, I don't consider buying 90% us coinage at spot + premium to be investing in coins, it's investing in silver.

 

If you want to put $500 a month into coins and feel pretty secure that your value will remain intact, buy Silver & Gold Eagles as close to spot price as possible...

 

Best choice imho to get at least your money back in a 5-10 year period
Buy 4 of these double Eagles each year. Just my 2 cents

 

The OP stated "to make a profit" in 5-10 years, not to "get your money back". Don't forget to factor in taxes and inflation.

Chris