The benefits of investing in coins

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Doug, c'mon, really? You didn't understand that the use of "rare" in that particular phrase was to emphasize the difference between a common date and a key date being more rare? My entire posts have been about key dates, which I specifically mentioned in BOLD.

So in any event, you countered my points with arguments about rare coins which didn't apply to my discussions about key dates being a good investment. So yes, even though I'm always happy to agree to disagree :hug:, but in this case we weren't event discussing the same thing in the first place.

 

For the most part I buy what I like. But I watch things and sometimes I get a feeling that something will be a winner (like the LP1 2009 Lincoln rolls) and I jump in. I am not always right but the down side is small and the upside can be a 4 or 5 fold increase. Maybe try to keep your down side low. I think that the 2009 mint sets look good because of those copper satin finish cents, I could be wrong but the most I could lose would probably be $5 per set, and the upside could be really good. I may jump in on those (no household limit on those). Anyway that is how I have been thinking. I may flip those LP1's or I may keep them, any thoughts on that?

 

What a great thread, I have really enjoyed reading everyone's thoughts, thank you.

 

I have two favority sayings about successful investing from the Stock Market/Mutual Fund area:

- Bulls make money, Bears make money and the Pigs get slaughtered

- Never fall in love with a stock.

 

Yep.

 

Doug, All this is exactly true about investing in stocks, real estate, or most anything - they are no different! So IMO investing in key dates is no different.

 

And in the case of stocks and bonds, the buy-sell spread is typically a fraction of what it is for rare coins.

 

I certainly agree with these two points above. The bad thing for collectors who approach the hobby from a profit making perspective is that they fall in love with their coins. This leads to separation anxiety when selling, and disappointment because they may see more value in their pieces than the buyer. Talk about unhappy outcomes!

 

Doug, If you're talking about the actual paper those stocks and bonds are printed on, give me a break! But the type, quality, value and risks of these types of investments are all very different, as are houses, property, and land, they are all different from each other, not equal at all. And though they are not "subject to the whims of collectors," the value of many stocks are certainly subject to rumors, news snippets, congressional discussions, ideas, actions of certain corporate executives, press releases, all kinds of uncontrollable events, both national and world wide.

Yep, and mine with yours.

 

I believe Catbert hit the nail (right) on the head , Coins are BAD INVESTMENTS for MOST 99% of Collectors!.
Collectors are going to make all the wrong investment moves even if they pick the very best coins. They are going to Love them to much to sell, or not part with them when that right time comes, or die and the next of kin is going to go straight to the pawn shop and their eyes are going to light up when they are offered a few measly $100's for the whole collection... etc... etc...etc.
And on the other hand, someone whom is only going to buy coins to be diverse and not collect, isn't going to study as hard and love those coins enough to even know if they have the very best of the best. So Coins = Poor Investment, With the exception of maybe a few Big Wig Dealers whom know the best and sell the best.. but might invest a little on the side to make a big sell later if an idea pays off.

 

And from a collectors stand point I know these things to be true, because time and time again I will get a crazy deal on something I do not collect and I could sell it and make hand over fist, but than I like it so much, in the collection it goes...

 

S&P, Morningstar, Moody's, etc...they're sorta like "grading" companies aren't they?

 

Knowledge, patience, and self-control go a long way toward being able to make money at whatever you decide to buy or invest in.

 

If you really like learning about the subject and enjoy the coins and such you may do ok. But that is probably true with anything. My brother used to really be into cars, he would buy a used car work on it a bit and turn a profit, but he liked doing it and hung out with other people who liked cars and spent time on it. You can do well with anything that you are really in to (coins included).

 

I like Danr's response and will agree with that. Kudos!