I need advice...

Listen to Green , buy a coin because you like it . As collectors we shouldn't think of our collections as an investment . But if you want to do what's best for you in 20 -30 years from now , pay off you high interest debts . They're costing you a lot more than you probably think .

 

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I guess I'm two face when it comes to coins. The collector side likes buying coins, not wanting to make money, but the investor side likes to make money.

That's why it's hard for me to shell out money for coins sometimes, especially modern ones.

I mean, look at some of the oddball stuff the perth and the royal canadian mint sell, I don't know if those people will make there money back on that stuff.

I guess it's hard to be both a dealer and a collector, because the dealer part of your brain always looks for things to resell for profit.

 

Who in the world achieves an 18% interest rate for 40 years. That is some high expectations that the market will produce such constant high returns.

 

My advice, which will most likely go unheeded, is to quit asking for 'advice' on how to spend your $$$, and also which coins are best for Investments, so you can make money on buying coins. My advice is to sock away some of the money you are earning, quit buying coins and other numismatic supplies until you are settled, learn more about the coins first (the old 'buy the book before the coin' adage) and pick up your coins piecemeal instead of wholeheartedly seeking out more and more to buy.

But that advice is really only useful if you want to actually have something to show for your efforts in a few years and improve your situation. Whether it is coins, or some other hobby or even just piddling your cash on everyday stuff like dvds, movies, and other enjoyable pursuits that don't last very long, the fact remains that once your money is spent, it's spent..... Learn how others learn to spot money makers before you try to do so.

 

What are you talking about? I'm talking about the interest OP has to pay on his defaulted debts. By buying 150% premium bullion instead of paying off the debt, he would need his return to offset the 18% APR that he'd be paying on the money he's borrowed.

 

didn't the OP recently state on here that there would be no more spending money on coins this year?

 

1/20th of an oz will never be worth that much 40 years later. it costs much more to make the smaller bullion coins than it does the biger ones. you are better off buying 1/4, 1/2 or a whole 1 oz'er than a 20th for investment. if you are just collecting... just buy it then. see if you can buy it on Ebay cheaper first.

 

It doesn't matter Dectecto. If you continue to pay interest on consumer debt then all your investing in is the health and welfare of a sucking worm engine. You asked for advice? Pay off your debts and then worry about investing.

 

Buy it or you will regret it when it sells out and starts selling on eBay for 10x original price. It is a beautiful coin and a modern rarity. I will bet there will not be 1000 unique owners. Some wealthy British citizen will buy many perhaps 900+ and hold them for years with no intent to sell. Your single coin may then be in very high demand and extremely valuable. Sorry had to present the other side. TC

 

NK is right, it would just end up being one of those 'rare but not particularly valuable' types of items. If you're okay with that, buy away.

 

What's the diameter?

 

I think I'm going to kill two birds with one stone.

I'm going to wait until I have around $1,000 saved up, and open a secured credit card with my local bank, then charge the coin I like.

That way I can start establishing credit, and I think it's better to use a credit card for foreign orders.

 

Tim the money you can save by not getting a 'secured' credit card is going to be better for you. Why waste the money it will cost you in fees to have that? Just start going with what you earn and quit worrying about getting 'credit' --- pay off all those debts (settle them somehow) and start putting 6 or 10 percent of whatever you earn (always, no exceptions for normal 'emergencies') aside and save up. Then open a checking account that has a debit card [which also operates as a 'credit' card, since you can use it that way, with the logo. The only ones who don't know it is not actually 'credit' are the card issuer and the stores you purchase from] attached and use that as your 'secured' credit.

 

There are no fees for the secured card at my bank, not if you pay in full every month. I only plan to use 10% of it, charge $100 early in the month, and pay it off by the end of the month. There is no fees if you do it that way.

 

It's like talking to a brick wall...
You can lead a horse to water...

 

Tim, a few things. One, NEVER talk yourself into convincing yoruself coins you buy are "for investment". Its a sucker play, something done to collectors repeatedly to get them to spend more money than they are comfortable with for just a hobby. Set yoruself a monthly budget for your hobby, and consider the money gone.

Second, limiting the mintage like that is also a sucker play. What mints do is know they might only sell 700 of an item, so they set a "maximum mintage" of 1000 to try to get more people to think, "its going to be rare, I need to buy one". Mintage are WAY lower in the rest of the world for such things than the US. I don't know if there will even be 50 people in the world collecting such items in the future.

Third, I know its hard, but wouldn't such money be better spent on either a better way to go to work, education to get a better job, or moving expenses to where there are more jobs? Just sayin'......

 

Tim,

I haven't read anything by you to indicate what your long term investment philosophy is so I'm going to suggest one for you. Start an account with Sharebuilder and buy $10 or $15 a month (or whatever your budget can afford) of a dividend paying stock (or stocks). Let that amount grow. You're definitely young enough to be able to grow a serious amount of wealth with a fairly small investment.

I would never recommend coins as an investment - a hobby that MIGHT be worth something someday - but never as an investment.

Ken

 

Good advice , for someone not in dept and paying it off with mininum payments of 18% if I heard right . Better Tim pays off that dept then take your advice .

 

I don't think it has to be an "either/or" situation. With a rational approach he can do both. Paying off debt is fine but paying off the debt won't give him anything in the future or will curtail the amount he can ultimately get to by delaying its start.

Saving/investing has to become a matter of early habit to gain the most.

 

My advice would be to create a personal balance sheet. Seeing what you own versus what you owe on paper is a big step. Attack your liabilities and watch your net worth grow. Once your liabilities are gone, it's time to start figuring out what to do with all YOUR money.