Appreciating Value

Interesting post.

And back then Silver was worth nothing an ounce.

If Silver were still at $3/ounce, I would imagine that 1962 proof set would be worth about $8-$10 today - so it would have negative appreciation.

As others have said in this thread, metal value (especially for silver) actually determine the future value of a lot of post WW2 coins.

 

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Personally, coin collecting is a hobby to me and NOT an invesment. Coins don't provide any income while you hold them and they cost you more to store and keep them. They can be a store of wealth though. If dealing in gold and silver they will follow the metals market value. As for "investing" nobody has a clear crystal ball on what coins (if any) will appericate and what demand and supply will be in five years.

There is a surefire way to make money in the coin market. Buy coins below the value they can be sold for. That's how dealers make their living. However, that requires a lot of work and the margins can be slim.

 

I agree. But it is difficult to put away enough of them to make a difference when the market eventually begins to pay-up for them.

 

Making money in coins is easy. All you need is a lot of knowledge, a lot of common sense, a lot of time, a lot of work, and most of all a whole lot of luck. Buying coins cheap in this hobby is very very easy to do. Even hot coins can be purchased pretty reasonably most of the time but the coins that are out of favor or have never been in favor can be had for a song in most cases. A businessman buys and sell coins for a living and most will deal primarily in what's actually being bought and sold; hot coins. There are lots of specialist dealers who buy and sell in niches as well but dealers all make money buy the spread between buy and sell. Few have the luxury of being able to set aside very many coins for appreciation but most dealers do attempt this to a greater or lesser degree and usually with coins of the sort they normally deal with.

A collector has a lot more latitude for making a profit but much less opportunity because obtaining full value is far more difficult for a collector.

There are many ways to make money but I believe the surest is to obtain far out of favor material at as low of prices as possible and wait for it to get in favor. The first thing to learn is what dealers pay for coins. Look at the buy prices of the major dealers and this will give you a sort of feel for minimum prices. Get in the habit of grading conservatively (very conservatively for world coins) or you may be disappointed when you go to sell.

There's still huge pootential in a lot of moderns but don't forget these are getting more attention than they once did so there aren't going to be a lot of overlooked issues any more. But if you pay attention you'll pick up little tidbits like the fact people have been finding a lot of recent date half dollars in rolls. This might imply that a lot of people buying the recent halfs are cherry picking out the best and spending the rest. With the small mintages maybe just having uncs will suffice. Maybe the mint sets can be more attractive.

The trick is to learn how these markets all work and pay attention. Get ahead of the curve and pray your luck is good.

 

I think you are right about this but it is not for your reasons. What is happening happens all the time. Modern is a flowing term and what we once called modern is now getting older. The big difference now is that there was a silver cutoff.

A 1965 quarter is now 45 years old...
A lot less "modern" then in 1995.

 

Try to remember that coin collecting is a hobby. To make money with coins is really touch and go. No method to know what is going to be valuable in the future. Sort of like if you only knew to buy a 1957 Chevy in 57 and put it away for today. So what car would you put away today for tomorrow? Same with any coins. One worth $10 today may be worth $1 tomorrow or $100.
If your just looking for an investment, I always suggest buying Buggy Whips. With gasoline prices what they are, I predict the return of the Horse and Buggy soon.

 

That's really it. I will agree to the fact that Franklins are taking a hit. I put a lot into a BU set and it's done. But some of the coins I paid $40 to $60 for can be bought now for $35.
Your older common stuff will creep up eventually. Too many collectors already have enough Walkers and Mercs.
There is some play with the moderns going on now too. I got a Lincoln unc.
comm. dollar at the opening price about $35 before sellout. That coin sells for $75 now. The 09 high relief AGE with box was $1,300 and they fetch $1,600 now. I did get the boy scout dollar and maybe that will go up.

 

from me

but the difference in my case was i stuck to gold coins below melt

 

That should be pretty safe then

 

I would say yes they always go up in value,if you can buy it at the right price.

 

Step 1: Buy coins

Step 2:

Step 3: Profit

Best business model ever

 

yes you should try it its amazing how many gold coins you can buy certified and below melt. some of them are even a century or two old

 

In general (for run-of-the-mill coins), I would say that around 70 years is the point where you noticably see increases over inflation. Five years ago you could still get nice Unc 1940-1945 Mercury dimes for around $5. The prices are starting to rise now.

If you want to stay ahead of the curve, silver coins from 1960-1963 seem to be a bargain. I picked up an unopened box of eighty (80) 1962 mints sets two years ago for cheap!

Anyone can seach individual sets and reseal the envelopes; you can't open a Mint sealed box without anyone noticing. I suspect a truly unsearched Mint box will begin to show a nice profit in 20 years or so.

 

I think that only works for stealing underpants, doesn't it?
:thumb:

 

hahah

 

The best way to invest is to watch me. Whatever I buy, do not buy. My investment never go up.

 

Mine always go up fifty or a hundred fold.



Of course most of them haven't yet. :whistle:

 

I have some older proof sets from 57, 59, etc up to 64. I don't know how much they cost when the US mint sold them but they're still affordable on ebay today. I've seen some half dollars go for $10 easily so maybe if I was to break them up I could sell them separately for a profit. Someone said it was a crapshoot and I have agree!! :bow:

 

If you're looking for a good 5 year investment, I'd invest in stocks. Mid-cap companies that are growing their business at a decent clip. I won't talk about what I personally hold, as this isn't the place, but I think the next 3-5 years should be pretty good for stocks before the next bubble.