Enjoying coins is my main driving force in collecting, but I would not say that one always looses money with this hobby. Better coins in higher grades grow in value with years, doubling their value every 5-7 years. The BU coin bought for $10 some 15 years ago would cost about $100 today. I doubt that you can find the same return on your long term investment with a bank or pension scheme. Direct sale to a private collector is always better, but then you have to travel a lot attending conventions, numismatic clubs' meeting, or networking with collectors. EBay is an option, but apart from mentioned listing and final value fees, there are also PayPal or bank fees which a seller needs to take into account. For non-US sellers PayPal fees, including very unfavourable exchange rates come to another 5%, unless the seller opts for a Private PayPal account and does not accept credit card payments.
I agree that it isn't necessary to have an attitude that collecting is likely to lose money in the end. But it takes a little different mindset than most pure collectors have. If you determine that your goal is to complete sets of coins paying current greysheet prices no matter what they are, it becomes tough to break even. If you determine to only buy what appears undervalued at the time and have the dicipline not to overpay, it becomes much easier [but you will probably never have a collection that will be admired by anyone]. I disagree that high grade coins can be counted on to double every 5-7 years [implying a 10-15% growth rate]. It is just as likely that anything that has rapidly increased in value over the past decade is now overpriced and will be financially unrewarding over the next decade at least. An alternative thought is that high grade coins have appreciated so much relative to their low grade counterparts that the gap is more likely to narrow than to continue to widen in the future. ...but please remember that this is only my opinion and should not be counted on by anyone. Price forecasts are alway, by necessity, guesses. I'm more of an investor than collector, but I like coins.
Hey folks, I thought I would give my two cents on this subject! The fees involved with all of the parties noted, is exactly why I started selling coins at a local Flea Market! I can sell a $100 coin for $90 to $95 depending on the market trend for this particular coin and after paying my booth fee (selling space) of $20 per day plus $15 for a 3 Month (90 day) License, I will come out getting somewhere between $88 and $93 for the coin. Note: These returns are estimated and will be up or down depending on how many coins I sell a Day, a Month and the 90 Days in which I have my current License and the demand for the coin. If I sell more coins then my return is somewhat higher! Things to consider when considering to sell coins at a Flea Market: Does the Buyer base support such a venture? Does the Flea Market get more than just local buyers? Will I be able to expand my Customer base and contacts with this venture? If the Flea Market is open on Saturday and Sunday or Friday, Saturday and Sunday (plus Monday Holidays), which Days are the best for selling (i.e. more people and more people spending more money and yes, there are days that are better than others and times of the year that are better than others!)? Will my return on coins be sufficient after considering my costs (fees and Licenses) and time and will I be able to re-stock ? Do I have enough coins and enough of a variety of coins to spur interest in Flea Marketer's (people that travel to several Flea Markets over the weekend looking for good buys)? There are a few other things to consider such as weather and cover! Although Flea Market selling has it's good points, it also has it's bad points! You have to deal with a lot of folks that have no idea what a coin is worth, lots of people with lots of questions and weather that is not condusive to getting Buyers to show up. You also have to deal with people that are going to work you for a better deal on a coin or lot of coins. I still use eBay but have reserved it's use for higher dollar items that I cannot sell at the Flea Market or for very special high dollar items that I want to have more visibility (more buyers) that eBay can provide. Unless you have an eBay Store, then you will always have to contend with the higher selling fees. Frank
Don't misunderstand me, I'm not saying that collectors lose money. I'm saying investors typically lose money. But that's because most collectors tend to know what they are buying, they study the subject and know a good price from a bad one. They the coins they like. And most of the time they buy coins that other collectors like. And so when they go to sell them it's easy because other collectors want them and so they get a good price for a good coin. Investors on the other hand seldom know much, if anything at all about coins. They don't really study them and learn about them because they don't enjoy doing so - all they care about is making money in the end. And usually all they have to base their decisions on regarding which coins to buy is the advice of the person selling them the coin to begin with. And that is not always wise So unless an investor is very lucky or finds a very good and trustworthy dealer - they usually don't make the best purchases. And when it comes to coins, you don't make your money when you sell them - you make your money when you buy them A bad choice actually. For those who purcahsed BU coins 15 - 18 yrs ago have taken a 90% loss in many cases. In 1989 common date BU Morgans were selling for around $1500 each - today those same coins are $100 - $150 each.
Very wise words Doug:bow: A good gold dealer friend of "ours" out in California once gave me these words of advice "because he liked me and thought I was a genuine collector based upon our many exchanges of correspondence" - I TELL MY CUSTOMERS ALWAYS BUY A GOLD COIN WITH SELLING IN MIND. HOW EASY IS IT TO SELL? IF NOBODY ELSE WANTS IT, MY SUGGESTION IS NOT TO BUY IT NO MATTER HOW NICE IT IS OR LOOKS. IF THE GOLD COIN IS EASY TO SELL THAT IS WHAT YOU WANT TO PUT YOUR MONEY INTO" Man I'm glad I have good friends............
If you want to see a dealer drool, just walk in and say you are an investor looking to buy some coins. It's a lot of work to figure out what might be undervalued and appreciate in the future. There just aren't that many things around that qualify because the market is highly efficient. Most of the time, a person who wants to "invest" in coin should probably stick to bullion coins sold with small markups - and be prepared to hold them for a long time. Most of the "investors" are more properly defined as "speculators" anyway.
