Coins to invest in??

I like to buy job lots of mixed to get one specific coin.I can often sell the surplus for the money i paid it, and more often than not more.

I think its wrong for some here to say that people shouldnt look at getting a return on there coin purchases.A lot of collectors start to specialise in a very tight area and become experts within that area.So who better to know and spot a bargain than an expert.A coin dealer cant possibly know everything about it all unless they too specialise, though most are general dealers, same goes for antiques or paintings or any kind of collectables.What im trying to say is there is no reason a collector shouldnt also look on his purchases as an investment if he has done his homework.And you dont make the profit when you sell you make it when you buy.

Im no expert in coins but im not a fool either, i purchase bullion as a protection, i wouldnt jump into any coin purchase without first known the going average price that its selling for then i look to get buy it at well below what a dealer is selling it for.This is not only possible its actually very likely with a bit of study.The people that jump in without thinking are fools and they would be fools in any other walk of life or hobby or whatever.

Saying all this there is also nothing wrong with buying something you like at full dealer price,though i just wouldnt do it you can most likely still find that coin you desire cheaper if you do the leg work.

 

Log in or Sign up to hide this ad.

I don't think anyone has made that statement.

As one of the most vociferous objectors on the forum to treating coins as an investment, the point of what I have said repeatedly is that the future value of specific coins is not capable of accurate assessment, and buying for that purpose is more like gambling than true investing.

I have also objected to the giving of specific investment advice by people not legally qualified to give it. Someone pointed out that licensed investment advisers are sometimes crooks, but the possibility of bad advice from unqualified people is even greater than the possibility of bad/fraudulent advice from folks who have satisfied some basic requirements and are subject to supervision.

Of course we all hope that our collections will hold, and even increase, their value - IMHO that just shouldn't be the fundamental purpose of acquiring coins.

 

I am with Roy on this one. You will notice in all of my posts regarding investments that I have suggested that if any dealer is stating investment coins, you should run.
The FTC is very strict on whom may offer investment advice. This is done for a reason. Predicting the future is not quite as random as throwing a dart at the board, but still has many factors that are involved.
There is nothing wrong with wanting to make money on coins, but if you were to follow the example of the major collectors that made great money like Bass and Eliasberg, you will find that they were first and foremost collectors obtaining the best examples that they could afford. They did not make the purchase with the intention of resale. They bought them because they liked them.
Any purchase should be made because you enjoy the coin. Be it for the beauty, the history, or the ability to hold something wonderful in your hands.
Buying coins with the sole intention of making huge profits is kin to playing the lottery. Many of the subpar grading services rely on the bargain shopper, and for the most part, the buyer ends up losing. There are possibilities to buy lower than wholesale on many coins, but this does not guarantee profits. You have to consider why the coin is being sold so cheaply. While it is possible that the owner does not know what he has, it is also possible that whatever price guide you are using is out of date.
Knowledge is experience, and this is the only way to truly enjoy your hobby. Buy coins for their own merit, and invest in other areas with the advice of those qualified to give it.

 

i think the coin market is far diffrent in the uk, for one thing we dont have too many high value coins,coins a lot rarer and older than usa coins just dont make the same money.I think there is a risk of crash in some usa coins,especially in the high end coins.This is realy where the risks in buying are.If your only paying 10-50 pound a coin or whatever youve nothing to realy worry about at all and a crash i coin prices will never realy affect you.You buy for enjoyment

Its when your paying 5000+ for coins where your in danager of losing money.The high end seems subjected to greater swings in price and seems to run in bubble cycles.And this is exactly the place where there bought for investments.

iIf your not paying much more than face or 5-6 times bullion value youve realy nothing to worry about.

 

i doubt any coins are bought for 5000+ for anything but investments

 

The only 3 series that I know that are truly investment coins all fetch more than million dollars.

1913 Liberty Nickel
1933 St. Gauden
1804 Bust Dollar

All others are routinely bought by collectors. Anyone remember the guy who paid 50 to 75 thousand for the sac/washington mules.

 

well gdj i dont believe for a minute the coins you bought for over 5000 each that the resale value never came into it.

 

OOPS, I posted too quickly.

GD has the right idea when it comes to buying coins. Spend lots of time cherry picking, and then buying only the best. The end result....having some of the most beautiful examples of coins that I have ever seen.

 

That was you!?

 

yeah i know gd is very knowledgeable as far as ive ever seen since being on this forum.(in my past account too )

i think the oint im finding hard to put over is the higher the value the more risk involved and also the more investment resale comes into it.For most collectors resale is not realy a issue, i doubt most collectors have very few coins over 100 usd

 

Since I don't know "most collectors", I can't speak for them. However, in my own circle of friends and acquaintances there are a couple of dozen (non-dealers) who own dozens of coins above that range, and several who own dozens of coins valued at more than US$1,000 each.

I don't discuss the value of my collection publicly so I won't comment on whether I am in one of those groups.

 

i would find it very hard to pay over 1000 usd just for a coin, i think i first need to own the house outright and have the pension fund built up before cdoing that

 

A lot of us have been there, done that my friend; and judging by the folks I have seen at coin club meetings and at shows, I'm probably closer to the average age of collectors than you are.

 

That brings up a point that really gets my goat. Some think you have to spend a certain amount of money to be called a "serious" collector. I'm sure you've seen ads for coins in the thousands and it will say somewhere in the ad that the coin is only for serious collectors. When did the thickness of my wallet start to determine how serious I am as a collector?

Many sink thousands of dollars into old cars, boats, guns, jewelry, clothes, countless other hobbies, all long before the house is paid for. For some, its coins.

 

not me i dont

 

This is perhaps the most interesting thread that I have read in the forum!!!

And as I was reading the thoughts and advice of the more knowledgable, I reflected into my past and present purchases,, Having done so I find a mix of both attitudes some coins I bought as a speculation others I bought for the joy of the coin,I will probly always collect this way ,,,

I have some coins that I check in the price guides everytime a new one comes out, these I suspect are the coins I bought with a speculative notion, and then there are the ones that in the last several years I have not looked whether they have increased or decreased these coins would be the ones that I purchased for the pleasure of owning them.

Its really not that hard to seperate the two !!!

Thank You Guys for all of the great conversation.

Rick

 

I agree. Serious collectors are the ones who study. I know collectors that own more books than coins. That is serious in my perception. The value of a coin is determined by the owner, not the price guides.
I have a worn two cent piece that started me on this life long journey that I would not part with for a million dollars.
I recently gave a love token to my girlfriend, and even though the price tag was very cheap, the value is priceless.

 

The very first coin i bought was a worn out 1850 large cent that looks like it was beat with a hammer. I paid $10 for it from another kid in high school in 1986. It's probably the only coin I will never get rid of.