Coins to invest in??

Ok

Ok guys, I agree with GD's thoughts completely. Since my collection is made up of cirulated coins that are inexpensive. I thought it would be nice to buy a high grade slabbed coin once in a while. Something that I really love and would enjoy for years to come. I am not trying to be a dealer or or trader, and do not have planns to try to turn a quick buck. The coins I would buy will remain in my collection till the end. If they happen to appreiciate good. There are quite a few coins that I am interested in that I either would not be able to collect the whole series or would not want the whole series. My interest in these coins might be because of a hisorical fact or just the art of the coin itself. I would love to have a few examples in a high mint state. Meanwhile still plugging along with my other collections. I am not talking about super expensive coins here either. A few hundred $$ would be the limit, but when you consider that the other coins in my collection cost between $5 and $40 buying a high mint state coin for a few hundred will be a big deal for me.
I see nothing wrong with this at all.
I am asking here on these forums because I know there are experienced collectors and dealers here.
Maybe I worded the original question wrong.

Thanks Tony

 

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As I told Tony in a PM, and I want to share these thoughts with the forum, there is a fine line between collecting and investing. I am not talking about investing in coins as the equivalent of a retirement fund or life insurance policy. Buying a coin today and finding out 2-3 years down the road that it has increased in value is a thrill. This does not mean that the coin will be or should be sold. It's just part of the enjoyment of the hobby. The chances of the increase in value being more than a very small percentage are slim. But there are a lot of collectibles that can plummet in value; coin collections tend to hold their value or show a slight increase as years go by.

I am 100 percent against investment in coins as part of a financial plan for life. I simply do not believe that relying on the increase in value and then the need to find an honest dealer or find a way to sell them yourself is a stable plan. ND is absolutely correct. This is a business that caters to hobby customers. I am new enough at this business to know that I have a lot to learn, but have been in it long enough to also know that it requires a tremendous amount of work to succeed. This is not a business for someone who is looking for a "get rich quick" scheme. For anyone who has a love of the hobby and a respect for the collectors, this is simply not possible. JMHO

 

My 2-cents...

Actually, I think you have a valid question. I respect that the Moderator feels a bit differently and I completely understand and even largely agree with his response. In large part, going after coins for investment potential could be highly speculative.

Personally, I have made a deliberate decision to move some of my liquid assets into coins (especially after the "blood bath" I've taken in the stock market in recent years). I've been avidly watching the coin market for years (and I've collected for about 30 years now). It basically trends up. Occassionally, there's a whacko period where things will spike and then come back down. I don't believe now is one of those times. The value increases have been relatively steady and gradual (in many areas).

Much to the disdain of fellow collectors and dealers everywhere, I'm nervous about purchasing most "key dates" because their values seem to be much higher than other coins that I deem more desirable and have much lower mintages. This might be poor reasoning, but I also want to enjoy what I collect/"invest" in. I just want to scream when I hear a dealer tell me than an SVDB has high demand and low supply. BULL-LONEY (though, I'll agree about the high demand part)! Look at a coin show bourse; you'll tend to find decent examples of this coin on many tables. Next, look at the pages of SVDB's available at any given moment on eBay. That coin has been turned into a commodity. It's far from rare and it's definitely not scarce. Simply put, that's an example of a key date that is everywhere!

I specialize in Early Proofs (1858-1889; mainly 1860-1873) in the 2-cent, 3-cent nickel, 3-cent silver, half dime, and some 5-cent nickels. Why? These coins are underdogs and apparently always have been. Who knows, maybe they always will be, but I'm guessing that they probably won't have the bottom fall out of them because they're relatively cheap and have extremely low mintages. Basically, this means that only a very tiny percentage of coin collectors even care about these coins. If even a puny slice of the current U.S. coin collectors gained any interest in early proofs any existing supply could dry up over night. Again, this could be wishful thinking. However, these coins are stunningly beautiful, most of the are very scarce or downright rare, and as I mentioned before, if you buy right, they have some decent value built in for the future. Don't forget, not only are those mintages low (just based on looking at the Red Book) but they Mint tended to melt down many unsold proof sets/coins and the overall survival generally is half or less than half of the actual mintage.

Just my two cents on the issue. I'd love to hear what others have to say about my thoughts.

 

Invest

Hi Prethen, Since I am the question asker I wanted to reply to you.

As I stated in my previous posts, I would not buy a coin unless I liked it and it became part of my collection. I would never just buy a coin for it's present or future value. I just want to add a few high grade coins to my collection.
I agree about the SVDB they are all over the place and in demand but not rare.
As for the Early Proofs I am looking into them too, you're right that they are scarce and the underdogs, I happen to like underdog coins myself. One thing I like about the proofs is that they are less expensive than some of the keys. I am thinking about doing some kind of slabbed type set now. Those proofs are tempting though.

So as I said before as long as I enjoy the coin and it's part of my collection I'm happy.

Regards Tony

 

I want to know how many investors go to investment forums and ask what stocks they should 'collect'?


c'mon... that was funny

 

Not

NOT, (PLAY NICE GUYS)

Tony


Edited by ND

 

hmmmph... I guess I can mark you off the VIP list for my books signing 'How I Became a Comedy Genius'?

Don't say you know nothing - like everyone here, you are learning as you pursue your interests, and this is a very educational forum for a very educational hobby. The fact is there are differences in collecting and investing - as well as some similarities. There are similarities to investing in all aspects of life, ie risk vs. reward.

But I think most people here believe that the reward of the hobby is appreciation for what you have, not how others appreciate what you have - that is the nature of investors and coin dealers.

People here are hobbyists... There is no risk when you buy for enjoyment (save those few purchases that we occassionally regret, and we've probably all made them).

 

Most collector's will want their collections to appreciate in value. That is just human nature.

I do agree that early proofs are one of the most undervalued areas of numismatics. This does not necessarily equate into they will appreciate in value just because they have low mintages. Value is based upon collector appeal.

 

"Personally, I have made a deliberate decision to move some of my liquid assets into coins (especially after the "blood bath" I've taken in the stock market in recent years). I've been avidly watching the coin market for years"

I have always made money in the stock market know matter what was going on for the simple fact that I do my own research and always avoid what's hot. It's an old saying "If someone is pushing it, its to late to buy" and "if it needs to be pushed then it could never take off" Now there are magazines and talking heads on TV saying which stock to buy. Like I said before, stay away. That is what caught so many people in the tech stocks. I suppose the same is with coins. It makes sense to ask around for a good broker that you can trust to make your stock transactions with speed just as it makes sense to ask around for a good coin dealer that you can trust to have the product that you think you are buying. However, it is foolish to let another person to pick your stocks such as it is foolish to let a person choose your coin. After all, if it is a sure thing to go up drastrically why would they be selling and not buying.

 

That's what I like about this forum. I can always count on getting interesting and informed responses to a question.

Yeah, I know we have some very good moderators here, and their shared experience has taught me a lot, but Coin Talk has some of the best members of any coin forum that I have been a part of.

You all are a great bunch of folks, and I am proud to be associated with every one of you.

 

Ok

OK I give up, As I said in a much earlier post my question was phrased wrong to start with. yes I agree that the members here are a great bunch of knowledgeable collectors. I have learned alot on these forums since I got back into collecting.
I too follow the stock market and have done Ok with it. I know every investment is a risk.
I recently got back into colecting, I am not a green, just starting collector. I am just trying to refamiliarize myself with different subjects.
Though I have collected for a long time I really never followed the "Coin Market" per say, I was never interested in whats hot and whats not, I buy to add to the series I am working on.

So from now on I am just a collector,, which is what I am anyway.
With limited funds I might add, that's why my collections are of circulated coins.

Buy what you enjoy!

Regards Tony

 

I'd like to clarify that even though I made a conscious decision to "invest" in "rare" coins for the future, most of my holdings are still in the stock market or in the equity of my house. I still read the business section every day and keep careful watch of my stocks. I'm a "buy and hold" kind of guy, but I'm no fool. I make sure to turn around my portfolio when I think it's necessary. The same goes for coins. When I chose to start going down the early proof path, I bailed out on all of my modern proof commerative and bullion coins. Ironically, I made a little money on the bulliion coins but lost on virtually every modern commerative. Go figure!

 

Hello Tony, I guess that I will weigh in here as well.

I have watched a lot of advice given, and it may well be good advice. However, one thing that people tend to forget when they see big dollar signs in their eyes is the ability to liquidate and thus, to take advantage of that investment. If, for example, gold goes up that high, there will be few people who may be able to buy it or even who may WANT to buy it while it IS up that high.

That is why I would stick to silver. Another thing that I have noticed is the increase in activity with with proof and mint sets, as well as single high-grade coins. In addition to these, for those who are able to take advantage of it via acquired knowledge, ancient coins are taking off big as well.

Just my two-cents worth. Hope it is helpful. Regards, John

PS: Perhaps I should say that this is what I would say to those who ARE thinking in terms of coin-collecting as an investment. I am not in it for that purpose myself. I am in it because I enjoy it in many ways.

 

I've read many extremely smart things from previous posters, but let's not forget that not everyone can invest in real estate or advanced technology. Buying stock brings double taxation, corporation income tax, if any, and your personal income tax on dividents, if any.
In my opinion, buying silver coins below melting value is much smarter then keeping your money at bank getting 1-2% interest a year, which doesn't even cover inflation rates.

 

Hello Vlad,

Yes, there are opportunities for the average Joe in terms of coins and/or precious metals on a smaller, but steady scale. And, it pays to think of things in terms of comparing them to things as you said, various interest rates, etc.

The small guy CAN come out ahead with a rather simple strategy. Thanks for sharing your thoughts on this issue. Regards, John

 

Investments

There are only a few good investments here on earth. Number one is Land, number two is Real Estate, and number three, if you got the guts, invest in yourself as a self employed business person. Not Coins. Coins is something your kids will hopefully enjoy after you are gone or inheret and sell for a small percentage of what they are worth to some coin shark.

BWJR

 

if your going to invest then buy 100 oz silver bars, if your going to collect then buy whatever you like at the best price you can fund it to all the publications and websites ect.However personaly i have bullion and i have coins each is a seperate thing to me and the two dont meet.

 

I truely beleive if I invested in precious metals because of a bad market or God forbid, a crash...no one is going to have the money to BUY my investments. Once the market is stable and people have money again, they will sell at hopefully a profit.