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<p>[QUOTE=&quot;physics-fan3.14, post: 4666675, member: 19165&quot;]“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”</p><p>― Sam Ewing</p><p><br /></p><p>Do you account for inflation when you track the value of your coin, or the price you paid for your coin?</p><p><br /></p><p>If you don&#039;t - you should. Let me tell you why. Let&#039;s say that you bought a coin on the day I was born, in 1985. Let&#039;s say you paid $100 for that coin. In 2020, that same $100 would have the same purchasing power as $240 dollars.</p><p><br /></p><p>Now, let&#039;s say you sold that coin tomorrow for $150. If you weren&#039;t tracking inflation, you might think to yourself that you made $50 on that coin. You might be feeling pretty good about your purchase. After all, that&#039;s 150% of the purchase price!</p><p><br /></p><p>Unfortunately, your sale didn&#039;t keep up with inflation and you actually lost $90.</p><p><br /></p><p>Now, for most of us, the financial aspect of our hobby is relatively insignificant. We buy and we sell coins, and we study and we talk about them because it is enjoyable and relaxing to us. Making money on these coins isn&#039;t a big deal, and losing a few dollars when we sell isn&#039;t really going to make a difference. However, for some of us, our collections are becoming a relatively significant financial commitment. I personally am not considering my hobby an investment - but I can&#039;t ignore the financial aspect of my collection. I have to treat my money wisely, and make decisions about how I spend and prioritize my money and savings and investments. For me, considering the cost of inflation and how it impacts my collection (especially when it comes time to sell), is a very important factor.</p><p><br /></p><p>So, how do you calculate the inflation-adjusted cost of your coins? Well, there is a handy calculator available right here: <a href="https://www.usinflationcalculator.com/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.usinflationcalculator.com/" rel="nofollow">https://www.usinflationcalculator.com/</a></p><p><br /></p><p>However, I track my inventory in a highly customized Excel spreadsheet. What I&#039;ve done is imported the data here into a tab in my spreadsheet: <a href="https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/" rel="nofollow">https://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-2008/</a></p><p><br /></p><p>To calculate the inflated cost, use the simple formula:</p><p><br /></p><p>Inflated cost = Original cost * (Current year CPI / Original year CPI)</p><p><br /></p><p>For each coin&#039;s entry in my spreadsheet, I record the original year of purchase, and the original purchase price. I then use the convenient &quot;vlookup&quot; formula in Excel to pull the data from the table and calculate the current years price.</p><p><br /></p><p>As a younger collector, all of my large purchases have been in the past 10-15 years. However, even in the past 15 years there is an 8% difference between my original price and the inflated cost of my collection. That difference will only continue to grow. For some of you who have been collecting since the 60&#039;s (or maybe even earlier), this difference can be eye opening ($100 in 1965 would be $818 today...) </p><p><br /></p><p>So, tell me - do you account for inflation when tracking your coins? Should you?[/QUOTE]</p><p><br /></p>

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