Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
$1,000 To Spend on One Coin....
>
Reply to Thread
Message:
<p>[QUOTE="Tom B, post: 1853838, member: 11854"]I cringe when I read these types of analyses. The point about investing in stocks may be very true, but the selective use of numbers (I wouldn't call it statistics) pretty much invalidates most or all of the points that are trying to be made.</p><p><br /></p><p>Yes, $7,000 in a DJIA weighted fund would have performed well from 2004-2014, but it would have required that one have purchased a DJIA weighted fund and not individual stocks that the investor might have favored and would also have required that the buyer would hold the fund for the full decade without selling while the DJIA went down quite a bit in the 2007-2009 time frame. Neither of these is a given.</p><p><br /></p><p>Also, the numbers for coin values quoted are simply a PCGS price guide and are not real-world auction records. The auction records are much more valuable than numbers that PCGS publishes as a price guide. Auction records show that in 2004 the 1909-S VDB in MS65RD (I am using RD because that is the PCGS page that is shown) sold on average at around $5,400 and in 2013 at around $4,900. It's definitely less, but the 9% or so drop is somewhat softer than he 14% drop shown in the chart.</p><p><br /></p><p>Additionally, the choice of coin is somewhat arbitrary. Why choose the 1909-S VDB and not the 1909-S IHC? If the 1909-S IHC were chosen with the above parameters we would be talking about a coin that sold around $4,500 in 2004 and $5,800 now or a gain of about 29%. The choice of coin to use in the analysis is critical as is the realization that these coins are not entirely interchangeable and that one piece might sell for $7,000 around the same time that another sells for $5,000; that aspect is not always present in stocks of the same class, fund or company.</p><p><br /></p><p>Lastly, many folks find investing in stocks (or bullion or other commodities) to be rather sterile while collecting (investing) in coins is great fun. This is not addressed in these charts.[/QUOTE]</p><p><br /></p>
[QUOTE="Tom B, post: 1853838, member: 11854"]I cringe when I read these types of analyses. The point about investing in stocks may be very true, but the selective use of numbers (I wouldn't call it statistics) pretty much invalidates most or all of the points that are trying to be made. Yes, $7,000 in a DJIA weighted fund would have performed well from 2004-2014, but it would have required that one have purchased a DJIA weighted fund and not individual stocks that the investor might have favored and would also have required that the buyer would hold the fund for the full decade without selling while the DJIA went down quite a bit in the 2007-2009 time frame. Neither of these is a given. Also, the numbers for coin values quoted are simply a PCGS price guide and are not real-world auction records. The auction records are much more valuable than numbers that PCGS publishes as a price guide. Auction records show that in 2004 the 1909-S VDB in MS65RD (I am using RD because that is the PCGS page that is shown) sold on average at around $5,400 and in 2013 at around $4,900. It's definitely less, but the 9% or so drop is somewhat softer than he 14% drop shown in the chart. Additionally, the choice of coin is somewhat arbitrary. Why choose the 1909-S VDB and not the 1909-S IHC? If the 1909-S IHC were chosen with the above parameters we would be talking about a coin that sold around $4,500 in 2004 and $5,800 now or a gain of about 29%. The choice of coin to use in the analysis is critical as is the realization that these coins are not entirely interchangeable and that one piece might sell for $7,000 around the same time that another sells for $5,000; that aspect is not always present in stocks of the same class, fund or company. Lastly, many folks find investing in stocks (or bullion or other commodities) to be rather sterile while collecting (investing) in coins is great fun. This is not addressed in these charts.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Coin Chat
>
$1,000 To Spend on One Coin....
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...