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<p>[QUOTE="Clawcoins, post: 3208430, member: 77814"]When you buy a brand new coin directly from the Mint (US, Canada, etc) you are paying not only for the metal, but also the design and engineering process.</p><p><br /></p><p>It's just like buying a car. What happens when you buy a car and drive it off the lot?</p><p><br /></p><p>The value of it drops.</p><p><br /></p><p>No one wants to pay in the secondary market for the design and engineering process. Thus, as it exchanges hands the valuation may drop. I say may, because what also may happen is that there may be a spike in the secondary market for a short time and then prices may drop. Then there may be certain rarities which may also create demand. But long term if it's value after 8 years is stagnant or downwards I would think the "investment" should be removed unless you think it's metal price will increase. Although as years go past and inflation sets in it's price may go up. Although in times of financial stress it's value (due to lack of demand) may crumble.</p><p><br /></p><p>If you purchase really rare coins (such as from when Canada/US first became a nation those coins I would consider an investment. But, keep in mind, in times of country/global financial turmoil do not expect much from those investments. You have to wait for the "economic good times" and hope that coin collecting increases in popularity.</p><p><br /></p><p>In other words. Do you homework. Study the history and prices of coins. Then consider that most other financial (stock market) investments will make a coin investment look foolish over that long period of time.</p><p><br /></p><p>(1) So if you invest $5k in modern commemoratives what will it's valuation be in 30 years?</p><p>(a) if you are lucky $5 assuming a good amount of inflation.</p><p>(b) in current dollars maybe $3-4000 in a good economy with relatively stagant PM prices.</p><p>(c) in current dollars maybe $3-4000 in stagnant economy with relatively high spot prices.</p><p><br /></p><p>And if it's a "true" investment, don't forget to reduce any capital gains by the taxation rate.</p><p><br /></p><p>(2) will you ever be able to make $20k on them?</p><p>(a) If you quickly learn to FLIP certain coins that may be possible to double your money on some coins. But that is Short Term, not Long Term. </p><p>(b) If for some reason PMs skyrockets beyond belief, who knows. After all, when the zombies attack ... well, who'll want to buy coins anyways?[/QUOTE]</p><p><br /></p>
[QUOTE="Clawcoins, post: 3208430, member: 77814"]When you buy a brand new coin directly from the Mint (US, Canada, etc) you are paying not only for the metal, but also the design and engineering process. It's just like buying a car. What happens when you buy a car and drive it off the lot? The value of it drops. No one wants to pay in the secondary market for the design and engineering process. Thus, as it exchanges hands the valuation may drop. I say may, because what also may happen is that there may be a spike in the secondary market for a short time and then prices may drop. Then there may be certain rarities which may also create demand. But long term if it's value after 8 years is stagnant or downwards I would think the "investment" should be removed unless you think it's metal price will increase. Although as years go past and inflation sets in it's price may go up. Although in times of financial stress it's value (due to lack of demand) may crumble. If you purchase really rare coins (such as from when Canada/US first became a nation those coins I would consider an investment. But, keep in mind, in times of country/global financial turmoil do not expect much from those investments. You have to wait for the "economic good times" and hope that coin collecting increases in popularity. In other words. Do you homework. Study the history and prices of coins. Then consider that most other financial (stock market) investments will make a coin investment look foolish over that long period of time. (1) So if you invest $5k in modern commemoratives what will it's valuation be in 30 years? (a) if you are lucky $5 assuming a good amount of inflation. (b) in current dollars maybe $3-4000 in a good economy with relatively stagant PM prices. (c) in current dollars maybe $3-4000 in stagnant economy with relatively high spot prices. And if it's a "true" investment, don't forget to reduce any capital gains by the taxation rate. (2) will you ever be able to make $20k on them? (a) If you quickly learn to FLIP certain coins that may be possible to double your money on some coins. But that is Short Term, not Long Term. (b) If for some reason PMs skyrockets beyond belief, who knows. After all, when the zombies attack ... well, who'll want to buy coins anyways?[/QUOTE]
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