Coins as investments?

http://www.usrarecoininvestments.co...ecting_investing_a_box_of_twenty_the_idea.htm

I found this article interesting. but easier said then done.

 

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I was investing in silver coins for a while now. Mostly bought the very close to melt.
Recently discovered that there are some coins that I can buy for cheap and sell for a very good profit and I went for it.
All proceeds go to nice bullion coins (with premiums over spot though) as well as some collectibles I'd like to have in my collection.

Advice I'd give you - start small, think 1st, research 2nd, go around and buy -3rd. And last one - be happy with the coin you possess

 

Buy low, sell high.

 

I just realized that I have 5 huge jars of change at home...............

Until now, it never occured to me that I might have some coins in their worth collecting bug judging by the Roll Hunters forums I probably should dig through them.

 

That's how I got started!

 

Any investment is a risk, no matter what the investment is.

In so far as coins that have no PM, there's a lot of factors that must be considered such as, rarity, variety, errors, etc.

The only way to make out investing in coins, at least from what I see, is to buy and the do a quick flip for a profit.

To buy coins and hold them in hopes they'll appreciate in value, is not a wise decision.

 

I find this to be very US-centric. US coins are BY FAR the most expensive coins in the world in terms of real rarity. If I was from a foreign country, I would choke when I saw the prices demanded for US coins versus quantites available. Go to every single coin show in the US and you will find a 1909sVDB for sale. How in the world such a common coin commands $1000 or more is baffling.

I find Asian coins going through the roof, and I see ancients going up sizably. I simply don't know why Asians would wish to pursue US coins much at all. However, your point about demand is huge. If you can correctly predict upsurges in demand on any series before it happens you can profit. My early Chinese coins are probably worth 10 times what I paid for them if not more. Unfortunately I never sell, and wish they were still cheap so I could buy more.

 

Even ultra rare coins cannot be counted on as an 'investment'.
There are many cases of coins with low populations suddenly becoming relatively common with the discovery of a hoard.
Even the 1933 double eagles, which there were only 2, jumped up to a population of around 12 overnight recently.
(Of course this coin is unique in that the govt can enforce it's population at will, but it is a good example of what can happen.)

 

If coin collecting was an investment, all coin collectors would be rich. LoL

 

But we are rich. Coin collectors as a whole know much more about the history, economy, culture of the places they collect coins from than the general population. I cannot imagine myself not knowing as much about the ancient world than I do now simply due to the pursuit of coins.

Plus, it IS a fair point that our hobby does not totally consume the money we spend. WE do have a sizable residual value. I just find "investment" thrown around WAY too much by someone trying to get you to buy a coin you otherwise cannot afford.

 

I do not invest in coins. I have some PMs for investment but they represent a very small fraction of my investment portfolio. If I was pushed to invest in coins, I would go with key or maybe semi-key dates. I personally do not think any specific classic series (such as large cents, etc.) is all of a sudden going to come alive and be in great demand. TC

 

If investing was easy it would fail as everyone
negated the actions of everyone else.

 

I do a lot some extremely profitable "investing" but it always involves quick flips. Knowledge is power and I have done well after putting hundreds of hours or more in to research that frankly others don't bother to do. The only long term investing I do is setting aside a coin or two (key dates or very limited population coins) from the larger lots I purchase.

For instance, I purchased three slabbed 9/11 recovery coins and a 1 oz colorized ASE for 210$ I sold two of the recovery coins and the ase for a profit of about $100. I feel strongly that the 9/11 recovery coins will be worth some good cash when I am old and frail and since I was still making a profit I was more than comfortable with, I decided to hold onto the last one. Doing this, I will slowly but surely amass a very nice collection of handpicked coins I believe will only go up in value due to their inherit exclusiveness and my personal beliefs regarding where the silver price is going to be in 40 years.

 

What makes the future so hard to predict is that it hasn't happened yet. -My yogyism

The stock market will do whatever is necessary to make everyone wrong. -Ford?

No one ever went broke underestimating the intelligence of Americans. HL Menckhem

 

H. L. Mencken, dear fellow.......

 

Have a plan. If you're doing this to make money figure out what the fair market value are for coins you are interested in. Never pay over the fair value! Look and wait patiently for good deals.

You can definitely buy coins as an investment, but make sure you know what you are doing before you put a significant amount of money into them.

I certainly made some mistakes when I started out, paid wayyyy more for certain coins than I would now. After reading lots of metals boards ect. I now know a heck of a lot more.

 

Doesn't anyone sell algorithm software that
allows coin investors to forcast the next "WOW!"
coin?

:3three: "Buy the slab not the algorithm."