Best Coin to collect: Investment wise

Which coin, or coin type do you feel has the best track record in appreciation in value? Why? Explain, Im planning to sell a few of my gold coins because I think gold has hit its peak, so I want a coin with good numismatic value (with good appreciation)

 

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I think selling gold to buy non-gold coins would be a huge mistake. Two reasons -- transaction costs and the future price of gold.

That said, if I were dead set on this tact, I would buy key date coins in widely held series (Lincolns, Morgans, etc.)

 

OKay, I just really don't trust the value of metal...say I have two coins both worth $100.00, one has $80.00 in melt value and $20.00 in numismatic, and the other has $30.00 in melt value and $70.00 in numismatic. I would think the one with higher numismatic would be more stable, and possibly increase more in the long run.

 

I have not been doing this long enough to answer, but I would think both numismatic value and metal value are both vulnerable to swings. I honestly could not recommend anything other than what Mike mentioned - I would say the highest grade key date Lincoln and Morgans would work. Seems like everybody likes Morgans. My fathers dream for winning the lottery - is finish his proof set collection, then his morgans(all MS). Nice dream.

 

Well, if you sell I hope you have no regrets. Lincoln cents or nickels, either buffalo or war nickels would be my preference.

 

Any one cent piece. Compare face values...

 

Another one of those give me advice posts.

If we knew why would we tell anyone?

 

Look below.

 

Collect what you like. But first get the hard ones first. Get the best that you can afford, or save up till you can, then get the best of that one, unless it's completely out of reach. Most people wait till they get all the rest to find out later, that they should have gotten the hard ones first. So, just pick what you like, and then find out the hardest one you need to work toward, the rest will follow. Collect any key coin in high grade, they will pay off later.
Good luck. -O)

 

If the melt value is gold related, I would wager you are going to be incorrect in the short to medium term (say 5 years).

And I am not just saying that -- I am wagering quite a significant (to me) amount of money on that very bet (i.e. I'm long on gold and platinum, to be more specific).

 

Hmmm. Interesting reply since gold has only been extremely high within the past 5 years or so and took an incredible leap, what, in early 2008?

I specifically recall when gold was around $260 an ounce in the early 90's after an amazing collapse from $850 in the early 80's and while today's prices appear impressive, those prices could go down as easily as they went up.

From a numismatic perspective, I would think any high grade key would be a good numismatic investment. Especially one that has shown "steady" increases over the past 20 years. 55/55 RD Lincolns for example might have better potential than gold.

But.........as with anything, if we knew for sure, we'd all be rich and have highly prized collections! Right?

 

I enjoy collecting Bust coins. But Semi key coins is my choice if I had to pick right now. Economy sucks, most people atleast the ones I have communications with can afford semi keys coins and just chalk up the keys to a lost or something that has to waite for a while.

 

I essentially agree with leadfoot, as I am a bit of a goldbug...BUT, the great thing about coin collecting is that you can have the best of both worlds! A lot of the gold coins have a lot of both intrinsic and numismatic value! Saint Gaudens gold coins are some of the most beautiful coins period! The incuse indians are nice too. If gold goes down, they will still retain a fair amount of numismatic value.

From there, you can move up the chain to balance your gold collection with what I see as several "levels" if you will.

1. Common Date Gold Type(AU Saint/Indian/Liberty etc.)-Mostly valued at melt-20% above melt.

2. Common Classic Head Gold(XF-ish) Or Mint State Lib/Saint( value 2x-4x melt)

3. AU $3 Gold or Dahlonega/Charlotte Liberty quarter/half eagle Gold(8x-15x melt currently)

4. XF Capped/Draped Bust $5 gold and key date indian gold(1909-O $5, 1911-d $2.5)(20x-30x melt).

These are major generalizations obviously, but as a gold type collector, my goal is to have some in all of these categories(still have work to do on this). Whatever you do, stick with certified coins as much as possible.

 

When you say "hard" I am thinking you mean key dates which will also normally be the most expensive. I know when you read articles and books most will advise you to purchase the key dates first. I disagree with that because as you look at the coins you are starting to collect experience is gained at grading them as well as what is important as far as eye appeal is gained. Better to make a mistake with a $30.00 coin instead of a $300.00 coin.

The other thing that is important is look at some coin price guide to insure you can afford what you want to collect when it comes to key dates. I don't collect them, but Mercury Dimes always come to mind. A lot of these in fairly high grades are affordable, then you have the '16D which is quite costly. Buffalo Nickels can have a very wide price range, but a couple such as the '13S typeII and '21S can be very costly (there are some others as well, but just picked out these two).

Another thing is to be patient. Nice coins can usually be found at a reasonable price eventually. Not being patient has led me a couple of times that I ended up with a coin I really didn't like. Part of the "live and learn" process I guess.

I suppose the most important things are to pick a coin series that you really like to include being able to explain why you like it. Then can I afford it, or do I really want to spend the amount required to purchase in grades I will be happy with.

 

This question comes up almost as much as how to clean coins. And as already noted, if anyone here really knew, telling everyone would be counter productive. Say someone said the Shield Nickels will jump by 1,000% next year. The rush to buy them would possilby make that happen if people really believed what someone they don't know said. You may as well ask what stock I should buy, who should I marry, what car should I buy. All such things are really taking a wild chance believing people you don't know and probably just as bad with people you do know.
However, here is my suggestion. Invest in a buggy whip company, The prices of gasoline today will surely bring back the horse and buggy. :smile:hail:

 

Collect 2005 Buffalo nickels. They are the best thing going (by the way I have a few if you would like to buy some).

 

Why, 3 legged Buffalos!

Seriously, if I was strictly going to buy type for investment purposes only (more risky IMHO), then I would buy key dates only that have significant eye appeal (and worth the associated premium). An ugly 1916-D dime, while a key date, has a higher risk of not sustaining value than a more attractive version.

 

Ack - duplicate post!

 

So true. I really didn't answer the question that was originally asked. If I knew the answer I would go out and buy them for myself. I guess it gets back to the old thing about only buy a coin if you really like it, you may be keeping it for awhile.

I will go out on a limb here and say a possible would be modern commemoratives. How much lower in price could a lot of these get? I do seriously feel this about them, but I have other things I want to collect instead. The key work here for me is "collect", that is what I am, a collector of coins.

 

Collectors that do well financially tend to share certain traits. They have a great eye for grading, they have good contacts so as to get access to quality coins at competitive prices, they truly love the hobby and spend endless hours on it.

There is a much larger group that loses money on their coins. They too tend to share certain traits. They tend to buy coins for investment. They usually don't know how to grade, don't want to learn. They have limited contacts, often buying from a single source at above market prices.

So the answer in terms of buying typical coins at full retail prices, is NONE. A collector will do well to break even after 5 years or more, if they buy at retail, sell at wholesale. A person needs an edge in terms of grading skill, or contacts, or market knowledge to do much better than that.