Coins are bad investments because....

Let me hear this one. I see it all the time in here that coins are a terrible investment, but if I look at some older price guides, most of the values have increased. I am talking more about key date coins or coins in high grades for a series. I'm not hoping to go buy a few rolls of "unsearched" wheat cents on eBay in hopes in 5 years they're worth a few hundred dollars or get all MS/PR70 Eagles or anything.

Coins of example.
Lincolns
1909-S VDB
1914-D

Mercury Dimes
1916-D
1921
1921-D

Quarters
1917 ty1
1924-D
1932-s
1932-d

I know there are lots more that I haven't mentioned and maybe it was the big boom with the companies that invested in coins that scares everyone, but I guess I don't get it....

So why are coins a bad investment?

 

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If you have knowledge and experience in coins they will be fine investments.
Just like Stocks, you need to know about them and not just buy any one for no reason.

Invest in what you know is the best idea IMO.

 

Well there are a whole bunch of reasons, but for starters, I would say the real world spread between buy price and sell price is a real killer.

 

the 1916 D Merc is listed at 450.00 in XF condition in 1967. Today it is listed at $6200.
If you invested 450.00 in the S&P 50 years ago it would be worth $47,000.00. If my math is correct.

 

if you bought a key date Jefferson Nickel in 1967 for 22.00, it would be worth 16.00 today. Thats a bad investment.

 

Comparing camels to fruit baskets...

 

Exacto!

For as few "winners" that there are, there are many, many more losers on the investment scale.

 

I don't see coins as bad investments at all but there are some collectors who think because they buy a key date they are automatically gonna make a profit and that dog don't hunt. In fact that dog, don't even sniff around.

 

If you bought $450 of corn flakes in 1945, they'd be worth $21,000 today, but I don't hear folks calling them a "good investment"

 

Buying low and selling high is really only way to make money from coins.
Other than that, I personally wouldn't rely on coins for investment purposes.

 

too much vig on coins

 

From a contrarian perspective, isn't
overwhelming negative sentiment a
a good sign? :devil:

 

If you sold them as a 'pure food organic substance' produced before the big atomic testing of megatons proportion and organic chemical pollution of the environment, you could grind them in a powder and add to greek yoghurt and ..."presto ebay'.

 

1967 sp = 100 today sp = 1700 450x17= 7650. s&p would be worth less than $7650 actually because I rounded up from 90 to 100. Really they are close to exactly the same

 

#16

Or sell them when people sprout a
third ear where their nose used
be, before GMO corn.

 

If you stick to the sure things you will make money with the quick flip. I'd call the gold buffalo reverse proof a sure thing. The Army half dollar was a sure thing, the 5 coin silver eagle set was a sure thing. the 2012 proof and mint sets were also a sure thing. An astute person can make money if they are willing to go for the sure thing and flip it.

 

With that, one never ever, ever tells what they paid lest the be branded a scumbag.