Coin Collecting as a Retirement Investment

For those of you who collect US coins and paper currency for many years, do you feel the paper currency rose in value faster than your coins? I have collected both and feel my paper has done better. Now I have omitted gold coins in my evaluation since the intrinsic value has gone up making them bullion pieces now, and not so much a collectors coin. But I am including all silver based coins in my statement. What's your personal feelings on this?

 

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I would not buy rare coins as an investment unless you have a lot of knowledge of them. As a matter of fact I would not buy anything as an investment unless you have a lot of knowledge of that item. Buy a coin that you are considering a good investment and then take it to a show and TRY to sell it, this may enlighten you.

There are people who make money on coins, cars, dolls, records, books, knives , guns, and about anything else you can think off. Unfortunately there are far more people who lose money on these items. Don't get me wrong, there is money to be made but I wouldn't count on it for retirement.

Have fun collecting and maybe, just maybe you will profit from it.

Lack

 

Yup. Sometimes it's just a matter of being in the right place at the right time........and finding the right dung heap.

 

Jim,
Not to pile on, but read Mark's posts closely -- this is a field where there is a huge learning curve. People like Mark and Doug have been studying and looking at coins for decades. There are numerous people like that in the marketplace that you will be competing with and dealing with for coins.
Also, one additional thing to mention is the significant handling fees like insurance, safety deposit box fees and seller auction fees if you elect to sell in an auction.
Bottom line is don't let frustration with other investments drive you to coin investing. Enjoy it as a hobby -- it is a great one!

 

Agreed. Dealers make money in coins, collectors make enjoyment, fun, and possibly friendships as their return.

I advocate a small amount of a portfolio in PM, and zero in collectible coins. Put retirement money in investments, hobby money in coins.

 

I've probably done as well investing in coins as anybody and would advise against it. It requires mostly luck to do well and it limits what you can collect and enjoy. Many series I never started because I considered them bad investments.

It might well be a good idea to try to learn to enjoy something that's up and coming but try not to think of it as investing. Try to think of it as a collection and if it does well all the better.

The problem with collectibles is that you need spectacular gains to do very well. This goes many times over if you collect low risk (think cheap) items. If you don't have quantities of things that go up 20 or 100 fold then you can't win. If you go with higher risk items (think expensive) then the spread eats you up and your mistakes can kill you.

Collectors can amass fantastic collections by just knowing the markets and picking up bargains to trade for needed coins. Collectors might make a good deal of money on high risk coins.

Up and comers might include things like tokens issued by large manufacturers or computer companies. There are still lots of world coins that are grossly underappreciated but there's no time left to find them. Things like sales tax tokens are going to be appreciated someday but then none of us may live long enough to see it. I sure wouldn't mind being able to upgrade my set to all gems. Heck, just all uncs would be nice. Almost everything made since the 1930's is very cheap, very scarce, and has had very high attrition.

But, just remember that collectibles are a terrible investment and very very few win. Most people are lucky to break even. There can be a great deal of enjoyment and a great deal of learning that doesn't require a large cost. Enjoy the hobby and invest in traditional investments like spreads or straddles on derivatives of Chinese interest rates. Better yet figure out some industry or process that will grow and invest in it. Suit your investments to yourself and your own needs and avoid putting investment money in any collectible.

Good luck.

 

To keep it short, if coins were a good investment for retirement you would have heard about it and would not have needed to ask the question.

I've been collecting for over 30 years. Compared to the 20 years I have been placing money into my 401K, I have made more than 8 times more profit on my stocks than I would have if I sold my coins today. Thats not a guess, or an estimate, but real numbers. I wouldn't gamble my future with collectibles, and thats just what coins are.
Guy