Would you buy a share of a coin?

Responding to the OP, I would not. Sorry, but this hobby is simply REPLETE with cons over the decades where money is sent to someone, profits predicted, the money disappears in the lifestyle of the promoter. Rinse and repeat. Collectively, this hobby has a horrible reputation for such scams.

Why? Probably due to such huge valuation differences in tiny grades, the fact it is a cash business for many areas, etc. It simply has a history of shady deals and tons of people getting duped. For me, I buy a coin or PM, I get it in my hands and worry about security myself. Anything else is simply too risky.

The last time something like this occurred Merrill Lynch had a fund of collectible coins. It helped fuel the MS65 common coin boom in the late 80s, and lost its rear in the subsequent early 1990s collapse in the market. No fraud, but a horrible investment idea, except for those who got paid to manage it.

 

Log in or Sign up to hide this ad.

And, of course, those who sold into it, especially near the peak. Ah, to have sold a bunch of coins at those prices, and put the money into gold at its price. Or, better yet, AAPL.

 

There are a couple of companies that specialize in buying expensive collectible items and then selling shares of them. People buy shares in the hopes that when the item is sold, they will make money. Certainly not a new concept, is it? I guess the draw is bragging rights. "I own part of James Bond's Aston Martin," or some such thing.
https://rallyrd.com/collections/
https://collectable.com

I can see someone buying 10 shares of something and then refusing to let their shares go when the company is offered a bazillion dollars for the item. Can't sell it because the guy is holding 10 shares. LOL

 

I imagine they have the ability to force everyone to sell, whenever the entity who runs it decides. That begs the question how effective is this as a speculative item? One good thing about such things is you can time when you sell to manage your overall tax exposure. Buying shares like this could lead to a gain exactly when you don't want it.

 

I believe that when a buy offer is made, a proportional vote is held by all owners as to whether to act on said sale or not, so I guess if you have a 50%+ owner, it is purely up to them.

 

In this case, 60% of the shares have to vote to sell. If it sells, the management company gets 2.5% of the price off the top.

Cal

 

Some of us are like misers wi' our dosh an' don't share well wi' o'ers.

 

Owning a share of a coin would be like owning shares of companies, which is a pain. Coins are supposed to be fun.

 

FPNI (First Post Nails It!)

I see what you did there

Anyway, this idea of selling shares of an object like a coin, a bullion bar, or an expensive bottle of scotch as another example I saw recently, is just absurd to me. This is the problem I have with NFTs, which I'll admit I still don't fully understand. I'm trying to get there for my own education.

What I do see so far is another way to get people to trade money for nothing while the person receiving the money also holds all of the value. Phasing out private ownership; not cool.

I've mentioned it before, I get that there is some irony in making this statement while at the same time I have numbers in an account saying that I own shares of companies.

Just like the coin cannot be split up, companies can't part with my percentage of the physical assets so I can hold them myself. They would be worth much less that way. It's a necessary evil as it relates to stocks, but I'd rather not have all the other things I "own" be that way.

 

I got into a deal once where 2 brothers-n-law and I bought 3 hogs to raise for meat. One died. Still haven't figured out the math they used to determine that mine was the one that died. Sitting this one out.

 

NO!