$200 for dirty, old coin or shiny new coin

I see it again, popping up here in comments, where people are assuming collecting is the same as investing. It's not. I don't invest in coins as a collector, just like I don't collect the stocks I invest in. You simply cannot be both, regardless of how you think. You either collect, because thats what you do, or you invest. But, it's like driving a dull, hot spike into my eye trying to explain that, even though it's pretty simple.
Guy

 

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Yes, but we also need to overstate this point either, though.

While I post that coins are not great investments, and agree with Doug and others, we do need to be careful not to shoot ourselves in the foot here. One of the great advantages of our hobby IS the fact we are not wasting away money like most hobbies. If a person's hobby is gambling, drinking, taking dancing lessons, fishing, etc etc one must admit this is all money "down the drain" as it were. One of the strengths of coin collecting is that there IS a return when you are done with the hobby. Is this overplayed by dealers hoping to make additional sales? Yes, absolutely. However, its a fine line between dissuading a new collector to not put his 401k funds in rare coins and overdoing it and driving potential collectors away thinking any money spent on coins isn't any better than going fishing.

Personally I do not care how much my coins are worth since I will never sell. My wife will probably have a smile on her face, though, (well, hopefully not just because I am gone).

Chris

 

That is what makes it akin to fishing...it's a passion that costs money but is more fulfilling and rewarding than a profit could ever make it. Thats collecting.

 

But, I would say the value of my fishing gear versus costs of renting cabins, boats, lures, etc etc would make my net fishing "return" somwhere south of 1% if I pass away and my wife sells my fishing gear.

Counting just my coins and coin books, (not PM), I have been at this long enough I imagine the return would be at least 100% return. Yes, my advantage is I was buying EF/AU bust halves 20 years ago when they only cost $30-50 a piece. I did not do "well" with my money put into coin collecting, but its orders of magnitude greater return of capital.

Chris

 

I agree 100%, Chris.
Guy

 

So, to be a collector you have to lose money? No way.
One very much can be both a collector and an investor. People like me who sell coins they don't collect in order to own coins they do collect at a discount or for free, we are both.

 

You don't have to lose anything. But if the bottom line, or profit is all you're obsessed with as far as coins are concerned, then no, you are not a collector, you are an investor. None of us like to lose money. There is a difference between trying to profit from the experience, and not caring one way or another.
Guy

 

But as it has been stated before, you and I are not the vast majority in "Coin Collecting", Most spend just over or under retail to have those coins that they MUST have for their collection, or another way to say it, is they are "Collector" because their only bottom line is that they enjoy collecting up to the max they can afford. You and I are more akin to the "Dealer" mentality, we buy when it is the right price, we sell to generate the funds for our hobby. Now even as a "Dealer" this doesn't mean we do not like certain things and/or put those things aside to collect... but our Primary interest is money in and money out, not "Collecting".

 

To further describe why 90+ percent of the time collectors lose money is because they never wish to sell and only do when they are in a financial dilemma and than they are obviously not selling at the best possible time and are probably on a time constraint to liquidate the collection and generate the cash they need in that dilemma... or maybe they die and chances are the next of kin has no clue in the world what to do with "the collection", so they take it to what ever B&M and accept what ever they are offered and call it a day. These examples are not even touching the thousands of "collectors" whom spend tons of money on coins that aren't worth their value at the time purchased or ever.

 

Great points.

I like to think I make good buys, and I even buy lots at times. However, I have never sold a coin in my life, (except once some junk silver I had laying around, maybe 1% of my total). I have given hundreds away, but not sold. You have a buy/sell mentality, which is great for you. I have a buy/buy strategy. Even stuff I no longer collect, like SL and Bust halves, and my other US coins, I simply cannot part with. That is why collecting is like a disease.

Chris

 

For me the point is equally split between profit and collecting what I like. For this reason I do not sell the best coins I come across, even if it means not making back what I originally spent on the group of coins that particular coin was part of. Having that coin is preferrable to making even a big profit on a quick flip. I will sell it when I get a better example.
And I wouldn't say I completely follow the dealer mentality either. I keep many coins that I know will or already have decreased in value. i.e. high end Russian coins that I acquired when the market was peaking a few years ago. I knew they would depreciate from when I got them, but kept them anyway because they were scarce and very nice examples. I don't just temporarily collect coins until it's the right time to sell.
I agree that I would be in the vast minority, but I do know of a few other people I deal with and/or bid against that are the same way. I guess it's because we were collectors and hoarders long before we began selling.

 

Do my eyes deceive me?

Did Frank just agree with Doug?

2x?

 

Why don't you research on that thing first, okay? To make things in for sure.... no regrets afterwards!!