Is coin collecting an investment?

Just one word...Beanie Babies...

 

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Sorry to say it, but impossible. No collector or dealer will always be able to ensure your purchases will not lose value. I freely admit many of my purchases have lost money, but I simply don't care. My hobby is for my fun and enjoyment, and if I lose money whatever.

NEVER use investment money on your hobby. Yes, our hobby tends to have inherent value if done correctly, but it is a HOBBY, not an investment. Way too huge a buy/sell spread to rely on it as an investment. Bullion, if done correctly, can be part of a portfolio, but coins are what you spend hobby money on it.

 

My personal collection is just for my enjoyment. But I do make my living in coin related stuff.

 

I love history and this hobby lets me hold history in my hand. For me it is about spending money, not making money.

When my late dad once asked me if I thought my newly acquired Alexander the Great tetradrachm would increase much in value in the next few years, I told him that when it was made it was worth the equivalent of four days wages for a labourer. 2,338 years later and it is still worth the same.

Probably not the best investment unless you consider what it represents!

 

As everyone has already mentioned, coins are not the best investment. Having said that, they are a better investment than other hobbies such as stamp collecting, refurbishing old cars, beanie babies, etc. Here are my ROI's versus my coin collection (1993 to Present):

REIT's 8.87%
Import/Export Fund 7.37%
401k (despite the latest fall) 7.27%
403b (despite the latest fall) 6.36%
I-Bonds 3.26%
Coin Collection (including freebies) 0.91%
Money Market (0.30%)
Silver ETF's (-4.8%)

The current weighted average as of 25-Dec-2018 is 5.98%. I invest in human ingenuity (equity markets) and save coins for fun.

 

I worked with a gentleman back in the 1970s whose wife "collected" Franklin Mint pieces. She had hundreds! Knowing I was a numismatist, he ask me if I thought they were a good investment, to which I emphatically said "no way!" Unfortunately his wife passed in 1978 and shortly thereafter the price of silver went to the moon. He took the entire collection to a coin store and sold it for $30 an ounce. He brought the cash from the sale to work and plunked it down on my desk saying, "guess you were wrong!" Bottom line here is you never know, and blanket statements sometimes get you egg on your face.

 

When buying precious metal it is true. But, building a collection of each nonmonetary piece would not be wise. In your case it worked out good.

 

sure, just read my last 5,000 posts

 

Invest in kittens like my mom