Hi folks. Locally there has been a big push by our mint of collector coins. When I say collector coins, I mean coins that have no purchasing power themselves - they were never meant for 'monetary' circulation. They are very pretty, and made of gold with a selling price of over $2000 for a set. The little I've read seems to suggest these coins are not a great investment, and usually drop to the value of the metal. Is this correct? Similarly bullion coins, like our esteemed krugerrand, usually drop to the value of their base metal - ie so much wieght of gold only. What's are your thoughts on this? I have precious little money to invest in decent coins, and I would not like to hitch my buggy to the wrong wagon...so to speak...
Yes, non-circulating legal (NCLT) tender (one that is as you said, struck for collectors, such as the American silver eagle, which is one ounce of silver, but has a denomination of $1 on it) is collectible, but generally, unless collected for designs, etc, such as the Chinese panda gold coins.
I'm not sure I would go for the collector coins, especially at a price point of $2000. Many, although to be fair, not all, have indeed dropped in price after issuance. Just ask the Royal Canadian Mint about that. I would be more inclined to take a chance on silver than gold, though. We have a few Britannias that we think are gorgeous. I've been careful not to spend too much for them.
I would not invest in coins. The more "precious" your money the more secure investment you should have and that should not be coins. Buy coins because you like them and you want to collect them.
