"Investing" in Coins

What is the cause for the pressure of financial gain in numismatics and "investment coins"?


Strike it rich, hot coins, value increase. We have all heard it before. What is the cause?


1.) Financial appeal to novice collectors


a) Fraudulent sellers

Many novice collectors are lured into financial traps by online markets or wrongdoing dealers. To cover up any scheme, they focus on how rich you can get! How rare it is!

This hype makes the unsuspecting novice become overly excited for what they have bought or been given.

Solution? Do your homework



b) Online hype

Imagine this, you log onto your computer, click on YouTube to watch the next episode of PCGS grading basics and in your recommended videos is videos that looks like this



"SEARCH YOUR POCKET CHANGE FOR RARE VARIETIES"

" $500,000 RARE NICKEL DISCOVERED, DO YOU HAVE ONE?"

"VALUABLE SILVER COINS, SEARCH FOR THEM NOW"


This is what I am going to call, extreme over hype. Video creators simply make flashy thumbnails that may not be fully accurate. All for the views and subscribers. They may not be completely wrong and they may mean no wrong, simply the viewer is caught up in the excitement and they keep on clicking and watching potentially misleading videos.

Solution? Look past the flashy ads and use reputable information


2.) Long Term Financial Gain

The next one is less common but more acceptable,the people who intentionally purchase coins and predict what will happen and hope to make a profit. To an extent this is acceptable because everyone has a hope to make a little money. But it is extremely unlikely to successfully predict what the rare coin market.

3) Market Advertising

Silver mints, major dealers and US mint all have their methods of marketing and advertising. Reminding people that it doesn't take rocket science to create a good collection. Which is true but it may take the common sense out of collecting. I think that novices trust hat they are buying to much and then become devastated when others tell them they made a bad deal.



Conclusion- Coin overhype is a marketing tool towards new and novice collectors. Nothing wrong with it as long as all parties know all the facts. Thanks for reading!

-CB

 

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One of the greatest truths of this hobby is that people who collect coins with the idea of making a profit, virtually never do. Those who eschew any profit motive, and collect for the enjoyment of fine specimens, ALSO don't often personally profit much, but their heirs can, unless they get preyed upon by an unscrupulous dealer.

 

There is a lot of hype out there, some true, some not, but all are rare exceptions to the hobby. However, even though coin collecting shouldn't be thought of as an investment, I think that it's ok to consider what potential value the coin could have in the future in order to make smart and informed decisions. But nobody can accurately predict the future, for proof of that just take a look at the past.

 

coin collecting for investment is thee saddest way to collect coins. If you collect like that and are very wealthy then ok. I find coins so interesting, the aesthetic artistic point of view, historic, grade rarity, mintage, and stories from other coin collectors so much fun. The thrill of the hunt is fun. There are many shady dealers out there that kill coin collecting for novice collectors. On the other side of that coin pun intended I have my favorite coin dealers that I trust to teach me more about coins and what to look out for (good dealers). Coins can raise in value over time, but you have to take into consideration that if you sell to a dealer they will automatically buy your coins at a lower price because they have to make money on your coins. It all depends on your coins rarity and mintage and demand.

 

I invest in the stock and bond markets. That’s enough upset stomachs for me. Buying coins and putting my collection together is pure enjoyment.

 

No crypto?

 

My rule of thumb is NEVER, EVER "invest" in any collectibles. Buy them for what they are, what joy it gives you. IF you or your heirs happen to make a profit on selling, then whatever. When purchasing, however, it should be the joy it gives you now that is your "return", and you "use up" the value you paid for the coin in your satisfaction. If this is true, then you have already gotten your money's worth.

Conflating "investing" with collecting is a tried and true method for dealers to get you pay more than you should on your hobby. Always guard against this mindset IMHO.

 

Not with your money, buddy.

 

I'm thinking of buying a bunch of those Bitcoin "prop pieces", just as a lead-in to teaching about how nothing can pretend to be something.

 

..coin collectors who fancy themselves as dealers often become their own best customers...

 

This is true for almost any "hobby" business. I used to work in a Music shop, boy it was hard to pass up some of the guitars that would come through, and sometimes I didn't. I've got a Jeff Beck signature model Fender Strat tucked away that I couldn't resist, along with 3 other guitars I really didn't need.

 

haha! you're singin' to the choir friend.

 

I knew and encountered a number of folks who had their behinds saved (at least to some extent) by the silver run some years back, but a repeat certainly isn't something that anyone should count on. Sadly, some of the same people didn't hesitate to jump right back in instead of learning their lesson. One thing pretty much all had in common was the fact that they focused on price instead of quality, didn't want to learn, and/or allowed themselves to see only what they wanted to.

There's another lesson somewhere in there for those willing to see it...

 

Ha... I do wish I had about five more of the Gibson RD basses that I bought in 1977 for $180.00.

 

I have bought a few things with a mind that they would increase in value, but the overwhelming amount of items I have bought have been for my personal enjoyment. I saw mentioned on CoinTalk that the 2016 100th Anniversary of the National Park Service half-dollar was the lowest mintage of the modern commemoratives. I bought one for $25 and thought I would hold on to it. I should check and see what they are selling for now.

 

I have a feeling clad halves among commems will be seeing some really low mintages. Even lower than we see now.

 

Yeah, like most us commems continue to put in lows for a long time. Trying to catch a falling knife can be done, but dangerous.

 

The 2016 clad half Parks were the lowest, now 2nd lowest to the boystown. Ogp's seem to be in the $50 range.