Coins as small investment?

Coins CAN BE a fabulous investment. They can also be a horrible investment. The worst part is that which turns out to be the case is primarily not up to any choice you make. The central question is what will future demand be.

 

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As always,

Actually, I have to say I would accept it. I would love to have a VF 93 S Morgan and ulgrade my 1916-D to an Xf. Would love nice early 18th century silver dollars! Unlike other hobbies (traveling, flying drones, golf) coins at least retain value that people paid unless they got ripped off by an unethical seller.

 

Until the human population growth slows down by 5-10% per year, I would bet on developable property or housing near popular population centers in reasonable states that value such. Ninety percent of housing units we own are less than 2 miles from a major university and a regional medical center complex. Northeast of San Diego would be an example, but Oregon might suit many as well with a lesser starting cost. Jim

 

I completely agree with Larry on this. Coins should be looked at as a hobby. Hobbies cost money, and typically don't make you money. The nice thing about coin collecting, is that while you may not make tons of money from it, you shouldn't loose much, either. Almost a hobby that pays for itself.

Morgans are an extremely popular series. Except with me. I have an uncommon opinion of the Morgan series, in that, while they are popular, there are also too many (in my opinion) available for the market to sustain itself indefinitely. Numismatics may not be in the dumper like philately (stamps), but the younger crowd isn't as enthusiastic about coins nowadays like they were not too long ago, and those folks with the enthusiasm isn't getting any younger. IMO, there will come a point where the available coins (Morgans) far outweigh the number of interested collectors, and the market for them (which was artificially made in the '20's and '30's), will collapse. One thing that worries me about Morgans like the '93-S, is what if another X-thousand of them are uncovered in a bank vault or someone's hoard somewhere, and many believe there are still large 'undiscovered' hoards yet to be released. Breen reported that he knew someone that had a sealed bag of '93-S, which may or may not be true, but there is still a potential of them and others being out there. If that was to happen, how badly would the value be affected?

I also have a much different view on the old Silver Commemorative Series. I really like the set on a personal level, as I like the stories behind each issue, the artwork of each, and just think it's a cool series. I especially like the fact that it's pretty much at the lowest value it's been since the '70's. In other words, I think the series has pretty much hit rock-bottom, and will only go up in value. Even if the interest in numismatics declines to extremely low numbers, most mintages in that series have such low numbers (less then 50k, and some as low as 6k), that I think interest would pick up because of the low numbers. In other words, they are scarce to begin with, and have been overlooked recently because of the huge beat-down they suffered in the 80's, folks are wary of them, but I think eventually the scarcity will overcome that fear.

I'm probably wrong on both accounts, but Morgans bore me, and Commems I truly enjoy, so I put my money and my beliefs in what I like.

My suggestion? Buy what you want, because you want to, and not worry about it from an investment side. Coins, like Larry said, are a good place to park your money with minimal risk, and potential for good returns. And buy the best grade you can afford.

 

We have seen this play out - 1903-O Morgans.

1959 Red Book - $400 in Unc.
1964 Red Book - $ 30 in Unc.

(Yep, both are on Ye Olde Bookshelfe) And I moved them all just 3 months ago, too.

 

I was going to reference that, but for some reason, I can never remember which Morgan it was. Thanks. What hoard/bank release was it?

 

Found it:
http://www.us-coin-values-advisor.com/Incredible-Tale-of-the-1903-O-Morgan-Silver-Dollar.html

 

The 1950-D Jefferson nickel had a peak, then downfall in price when I was a kid. Can't remember why, though.

 

The 1950-era roll hoarders started dying off and those coins became a glut of individual specimens through the magic of roll opening.

It is STILL very unusual to see a well-circulated 1950-D. They all seem to be at least mid-AU's and better.

 

Well, ya didn't waste that money on booze, candy, or clandestine meetings with women (men?), so I guess, of sorts, what you have is an investment. Ain't gonna make you no money though. Oh sure, you may realize a slight profit on your holdings (down the road) but coins, in general, are not a good investment unless you know how to play the game, and I hazard (dear fellow) you lack that capability. I do as well, along with many of us here........

 

Because the speculators jumped in.......

 

You mean there's more to collecting coins than just money? Who in their right mind would appreciate a preserved piece of 100+ year old history and the story it holds? Sounds like some nerd stuff


Edit: but indeed I have wondered this same thing. I'm no where near being able to purchase multi thousand dollar coins, but I've wondered how they hold value over time.

I've always wondered how silver coins hold their worth over time. I know they're mainly worth their weight in silver, but with the way coins are produced and continue being produced these days, wouldn't that make the market for silver struck coins rise over the next few decades? Not only for their silver weight but just from coming from a time where money was made with real precious metals?

 

No offense taken. I know what you mean

 

Definitely nerds

A point was touched on earlier in the thread that I’ve made in other threads before which is if ultimately some money is lost on a sale it’s not that big of a deal. If I buy something today for 900 and sell it for 500 in a decade I basically rented it for 40 dollars a year, my Netflix bill will have been bigger during that time.

So many hobbies and things we spend money on every day we get none of the money back when we’re done. At least with coins we get some back. That doesn’t mean throw money away on terrible purchases of paying 100x it’s calue but if someone truly enjoys what they bought worry less about the money and more about enjoying it. There is a value to getting to own it for that time

 

If I was going to buy 4 figure coins I would focus not on key dates, but key types. By this I mean type coins, mostly late 18th / early 19th century, that are scarce or rare regardless of grade or date. They will always be in demand and also have more potential for worldwide demand, versus key dates that only have their "mystique" within the US. The 1796 Small Eagle Quarter would be a prime example as well as the early silver dollars the OP mentioned. I might even throw in a colonial or two such as Massachusetts silver.

I agree with the previous posts that coins are a lousy investment, but if you stick to what's both rare and in demand and throw in some eye appeal you hopefully won't leave too much money on the table and may have some scores.

 

Buy what you like and enjoy them. No one is promised a tomorrow and 20 years is a long time period. New hoards are found, collectors die and their family liquidates those collections at bargain prices. Depending on future economic conditions it could be very difficult to sell those coins. This holds true for any non liquid investment.

 

Yes, but finding the right buyer might entail consigning to an auction house. Might not be profitable in the end.

Coins are nice if you are careful and may appreciate well, but it is not always the better investment over other things.

 

KIDDING! Good stuff.

 

WHAT??? BLASPHAMY!!! LOL, yeah these were hoarded, promoted, and there's a lot of them available.

I like some of his choices, yet he completely ignores the rare moderns being produced by the US Mint, as we speak. There have been many produced in recent years, that can be had for a song, with mintages so low they're poised to "go to the moon" given future increased demand. Classics or moderns, for the most part, we're all gambling on future demand.