Need Investment Advice

I’ve been collecting coins since I was a kid. My Grandfather gave me some really nice Morgan and Peace Dollars, and I was hooked. I’ve been checking my change for decades and have a nice collection of coins I‘ve found. But I’ve never made a major purchase.

I’m looking to change that. I want to purchase one of my favorite coins, a MS65 or higher, red, Indian head penny. From what I’ve seen, I can expect to pay $ 700 and up depending on the date.

So here is where I’m looking for your advise.

Where are coin prices historically? As with all investments, They can go up or down, I’m hoping for up. But I don’t want to buy in what might be a bubble, I haven’t watched coin prices, so they could be low as far as I know.

Could I get a better ROI if I pay a lot more for a rarer coin ?

I’ve never bought from a coin dealer. Are the prices firm or can you negotiate?

There are several coin grading services. Are some better than others?

I’m looking forward to your opinion’s. I’m still learning and really appreciate advice from experienced collectors.

 

Log in or Sign up to hide this ad.

Unless you have deep pockets and a crystal ball, coin collecting should not be considered anything more than hobby.

Chris

 

+1. In the long run and if you are looking to maximize ROI, you should probably consider more traditional investments. Unlike traditional investments, however, coins are a lot of fun. Kinda like my Harley, now that I think about it.

 

Some of the best sources for pricing information are the auction houses (I look at Heritage and GreatCollections) and the grading services. You can also search completed listings on eBay - make sure to look at sold, not just ended.

As for the investment side of things, coins are generally not an investment vehicle. Buy what you want, buy what you like. It's difficult to gauge the market and make money as a collector. The dealers who make lots of money deal in millions of dollars in inventory yearly and sniff out privately held collections that haven't seen the light of day in years. $700 isn't going to make that happen.

 

No deep pockets, but I love coins.
Guess I need to figure out how much I love coins.

 

And I guess to half-answer your question, if you are looking to maintain value, key date coins will always be key date coins. Research the type you want, buy a solid example of a key date, and you shouldn't have trouble when you go to sell - just keep in mind, when you buy as a collector, you pay retail. When you sell as a collector, you get wholesale.

Rick Snow and Charmy (the Penny Lady) would be good dealers to browse if Indian Cents are your thing.

 

One last note, as a collector of 19th century copper myself. If you pony up for red vs. red-brown vs. brown, keep in mind you are likely paying a premium for the color. In some cases this can be significant. To protect the value, it is crucial to keep the color from changing, so humidity and temperature will be big considerations. A brown coin in a red holder won't fool anyone.

 

There's your answer!

 

Great advice.

 

Stocks, bonds and bullion are investments. Collectible coins are a fun hobby for the average guy.

 

Average guy? Speak for yourself @Santinidollar.

 

LOL.

 

I'm t

Wow, the average guy has more money than I have

 

I had an uncle with a crystal ball...kept him out of the army

 

4F

 

I'm not going to speak to the investment aspect of this, but I will say that if you're not picky on the date, you can get an MS65 RD IHC for well under $700. Look here, for instance.

Take your time, be picky, and look at at least 20 coins before you even think about buying one. Get an education. Maybe read a book or two. You won't regret spending the extra time on your first purchase.

 

http://www.thepennylady.com/coins-for-sale.html?cat=7

 

Naw...B-flat I think...when he coughed.

 

Please don't look at coins as an investment, but rather as a hobby for discretionary cash. There are so many ways to lose money and so, think of what you're doing in terms of keeping some of your principal while deriving joy from ownership. If you happen to make money later upon sale, then consider yourself unusually fortunate.

This would be a good resource for you to study up on recent auction prices and the retail PCGS price guide:

http://www.pcgscoinfacts.com/Hierarchy.aspx?c=44&title=Indian+Cent