OK, here is the deal. I have a one time chance to purchase $2500.00 worth of gold coin/coins. I know that is a very small amount, but it is a lot to me. I am old and don't want to loose money nor can I afford to. What is your opinions on collector coins or bullion. I am going to do research before I make the purchase. Just thought I would check here for anyone that has a track record. I am going to take my time. Thanks for your help. I sure am enjoying this forum.
If you can't afford to lose money then don't buy any coin or bullion, period. Put the money in a zero risk investment that guarantees the principal. No matter what anyone recommends or claims to be a sure thing, if it's a coin it can lose money so if that's something you can't afford then stay away.
Have you considered an MS70 (or better MS70PL) 2017 palladium eagle? Other than that, I'd buy gold with numismatic value over bullion.
It all depends what you are looking at buying ? I like Pre-33 Gold. But in AU+ condition and not slabbed. So I don't like paying the premium related to slabbed pre33 gold. Or can get lower grade pre-33 for close to Spot. But I like better details. Or you can get slabbed if you want a really nice example, and if course pay more. Then there US Eagles, US Commems, etc and foreign gold. It all depends upon what *you* want to get and how you want to get it. For $2500 I would pick up a 1oz $20 St Gauden and a 1oz $20 Liberty for my collection for the design. Then move on to other designs after that.
Bullion goes up and down in value as the PM market. Collector coins go up and down in value due to arcane rules...burn some chicken feathers before buying for investment.
If you can't afford to lose money then don't buy any coin or bullion, period. Put the money in a zero risk investment that guarantees the principal. No matter what anyone recommends or claims to be a sure thing, if it's a coin it can lose money so if that's something you can't afford then stay away.
If you can't lose money, put it under your mattress. If you really, really want some gold, I would look at British Sovereigns or French 20 Francs. Just a couple percent above spot and easy to resell, or U.S. $5 or $10 Commemoratives from 1986 and up - they have taken a hit on depreciation and are very close to spot.
Bullion as an investment should be part of an overall investment strategy--where WHEN one investment sags another can be stepping up. Plunking money into any one thing (be it a stock, bond, precious metal, etf, mutual fund, bitcoin, etc) and NEEDING it to not go down is a bad idea. Keep it in the bank or in cash and you will lose to inflation, but perhaps slower. Buying a collectible coin (or any other collectible) is a nice way to spend hobby and fun money that has a chance of not disappearing into the ether. Collectibles run hot and cold and are not a 'safe' investment. Buying a gold coin (or two) because you want a little precious metal exposure is fine. If it's bullion then it could go up or down, but you will always have a cool chunk of gold. If it's a collector coin then it could go up or down, but you will always have a cool chunk of gold. In other words, nothing wrong with stretching a bit for a gold coin...but understand NOTHING IS GUARANTEED. That said, I really like the idea of a $20 Saint and a $20 Lib. Pretty, historical, collectible, and can be had for not too much of a premium over their gold content. And hefty. Or, look to the darkside aka non-US coins. The 20 franc size coin has many iterations across Europe and trade like bullion but with cool designs...France. Switzerland. Uruguay has a smaller one. There is the GB sovereign. Mexico. Albania. Japan (especially cool if you don't mind non-round coins of more debased gold content). Etc. $2500 will get you more coins of varying worldwide interest. Heck, throw a $2.5 Indian in too. Those are awesome and can leave you money left to buy more.
I'm with @IBetASilverDollar. You mentioned that $2500 is a lot of money to you. You then go on to state that you cannot afford to lose any money. Those two facts, taken together, tell me that his answer was the best answer you're going to get.
Okee Dokee then. Thanks for the input guys. You talked some sense into me for my particular situation. I like collecting average circulated silver coins that don't sell much over melt and spring for a uncirculated or proof silver coin every now and then. And, the money I spend on them is just considered entertainment money and I don't worry about the prices. If it ain't broke, don't fix it. Not looking to gain anything except passing the collection along to the grandkids someday. Not soon, I hope. LOL
I agree with the comments from others, but I'll add one more observation: "one time chance" always makes me suspicious. Sure, one time chances come along -- but there will always be others in the future. Meanwhile, in the present, "one time chance" is a favorite tactic to get you to buy something before you have time to think about it too much. What does "too much" mean? "Enough to realize that this is a great deal for me (the seller), but for you, not so much..."
With the way the economy has been going lately both gold and silver keep inching down. If the tax bill passes and does provide the economy another boost, barring any unforeseen world event or disaster it's likely both continue to go lower for awhile. Even with a spot jump with average gold coins/bullion you're looking at getting maybe spot from a dealer if that or perhaps a little more if you sold them yourself. I'd put the money in a savings account if you can't afford to lose it, you may not generate much interest but you won't be essentially gambling with money you can't afford to lose.
Well it looks like Ibetasilverdollar got the best answer marker, so he will be responsible for answering all questions on this thread from Newbies. With honor comes great responsibilities!
