Investing in gold numismatic coins

I would definitely say that the Mr. Shippee caught a good wave! He also held most of his coins for a long time - and most of them were coins that the average collector probably wouldn't be able to afford (example - I like older rare coins, but wouldn't be able to afford MS or even higher AU grades - that is unless I wanted a collection with only a few pieces - always possible I suppose). But regardless, it's really interesting to see which coins he made money on and which ones he lost money on. For example, his biggest loser was a 1907 Eagle (MS 62) purchased for $43,125 and sold for $12,225 less - a loss of 28%. His biggest winner was an 1804 Eagle in AU 58 that he bought for $18,418 and sold for $105,182! OMG! 571% gain! He held it for 8 years, so the market was really different in the 90's when he bought it, but still.....! He breaks out his financials by denomination, grade, length of time owned. It's really interesting!

BTW, one thing that World Colonial didn't mention is the possibility of inflation. Inflation, which we've not had much of since the 90's is the commodity and debtor's friend and unlike the deflationary or low inflation times we've had for the last 15 years or so, it makes all of your untitled goods more valuable compared to "money".

 

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Noticeably higher inflation will return, eventually. But first, I expect an asset price crash and if this doesn't happen first, I still don't believe it will benefit most "investment" coins anyway, not where it will repeat the performance of the 70's. In the early 1970's when inflation first increased noticeably, coins were dirt cheap. I have the '72 Red Book and though I no longer have it, also recall many prices from the 1977 edition. Prices exploded during this time up to about 1981.

Today despite the recent stagnation, the higher quality coins and many circulated early classics are exorbitantly expensive or completely unaffordable to the vast majority of collectors, even though most of these aren't "investment" coins anyway. Far fewer collectors are likely to be in a position to buy them later versus even now under these circumstances. Additionally, rising interest rates in this type of environment will almost certainly crush most asset prices. The typical person has much greater debt or is leveraged to the hilt.

 

Thanks for the reco! Just ordered a copy off Amazon.

 

True, true. Hah, the trick is to sell on the inflationary "up-cline"! Easier said than done!

 

thanks everyone for their informative responses. I am also wondering when to play at what gold price. But I am think about a combo of gold eagles and numismatic gold (common dates at MS64).

 

Hello Dimedude2 I'm basically just an old hippie With a crew cut that's listen to too much Pink Floyd. Back in 1999 when I first started collecting, I've received all kinds of advice From other collectors. And like then, they gave me a lot of good advice like you're getting today from other members. I have had members here that still say that I'm a junk collector garbage and insignificant coin collector. But I collect what blows my skirt up and basically I just like it. One man's junk is another man's treasure's. What you decide to collect is what blows your skirt up and you like. I personally do not like slab coins but I guess monetary wise there a good investment at least right now in our time. And I've also been informed silver is what you want to invest in. But I think back to the year 2000, when the work was really going good and I had a fairly good income, I started investing in gold and silver. These were all collectors pieces very little of what some members call garbage coins. At that time I wish I would've invested a lot more in those so-called coins. I should've known they were a good investment even back then. I remember one weekend at the swap meet I put up a couple of 1 /10 ounce liberties and I sold them right away and even made a little money, that should of told me back then I should have invested more in the smaller gold coins.Even today, I occasionally like taking one of my monetary 1 /10 ounce liberty out putting it in a necklace holder and wearing it on a gold chain. 98% of the time I end up selling that coin right off my neck and making a little profit. I appeal always sells the small stuff. But the choice is yours.

 

Be wary of counterfeits for numismatic gold. These are some of the most counterfeited coins of all. As such, I only buy gold from trusted dealers and, if numismatic gold, I lean heavily towards slabbed coins. Be careful out there.

 

I can say I agree with you as far as the counterfeit part goes. Indeed there are a lot of counterfeits out there, and you should buy from only a reputable bullion dealer. Now as far as the slabs coins go that's a personal choice. In a good economy you can actually make good money in slab coins, but in a depressed economy and money is tight those high values slab coins or only worth the value of what someone who has money is willing to pay you for that. And unfortunately in a depressed economy demand for these coins drop dramatically. And certain collectors take advantage of this. And when ever you need a reality check concerning the value of any United States currency. Go to your local bank whichever bank you choose, throw down a $50 gold piece and tell the teller you want change. She or he will asked you how you would like your $50 in change. Even though we know that $50 Gold coin is worth melt weight value. The bank is only going to honor what is printed on the coin. And don't get me started on silver certificates. In summation in a good economy slab coins are a good investment for resale. But in a depressed economy you will be depressed on the value of that slab coin.

 

What is a VAMmer? Also, how does it relate to buying numismatic gold?

 

If I am buying numismatic pre-1933 gold, it will be in a slab from a reputable dealer. Also, I would buy common MS64 coins, where it is a little more than the gold value.

 

I'm assembling a collection of slabbed MS-64 $20.00 Double Eagles. There are 18 of the St. Gaudens variety that you can buy for under $2,000.00. I plan on collecting all 18 of them. So far, I've acquired 5 of them (1908 No Motto), 1911-S, 1924, 1927 and 1928) at an average price of $1,717.00. I see this as a hobby, and also as a store of value in the event of the collapse of our fiat currency system.

As with collecting other coin series, you can learn a lot of very interesting things through collecting. For instance, how the mintage of certain San Francisco double eagles rose and fell in response to the California Gold Rush, and why so many of the double eagles are available in mint condition - because they were put in bags and shipped overseas to banks in payment of debts, etc.

Another good book on Gold coins is the "Encyclopedia of U.S. Gold Coins, 1795 -1933" by Jeff Garrett and Ron Guth. I found a new copy on ebay for $30.00.

Enjoy your collecting!

 

In the long term, I was also thinking about collecting the early gold commems, with the exception of course of that clunky Octagon one....

 

A great and often overlooked gold buy is the Mexican 2 and 2.5 peso. They are readily available for purchase from all the big guys, (Apmex, J.M., Provident, etc) and can usually be purchased for just a few dollars or spot.