Coins are bad investments because....

I knew it, I knew it, my financial advisor asked me if I was risk tolerant and I told him I was and he got me into lottery tickets. I feel like such an idiot

 

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True. However, I recall when the 2001 Proof Sets were selling for over $120 each! Today, they're back down to $20 and not even attracting bids at $9.95!
http://www.ebay.com/itm/2001-US-MIN...D&orig_cvip=true&rt=nc&_trksid=p2047675.l2557

 

Folks, an "investment" is something which will pay for itself over the "long run".

Coin "investments" are really tough to find and generally speaking, you need a lot of money to begin with.

Coin "flipping", on the other hand, is not really an investment as much as it is an opportunity.

I remember reading about the Army Half Dollars on these very forums which even posted a website where they could be purchased for $49.95 and then resold on eBay for $79.95+!

That was an opportunity and not an investment since, from the investment aspect, that very same coin is not selling for anywhere near what it HAD been selling for.

On the other hand, Legend Numismatics bought a 1913 Liberty Nickel for around 4 million and later sold it for around 6 million. Investment? Not in my opinion.
It was a flip.

 

I don't know that I'd heap the whole coins as an investment thing on dealers.

In fact, most dealers I know give the same advice as I did.

People get carried away at times because they think that if something has a dollar value, that it is a commodity.

Nothing could be further from the truth.

 

Certainly true, and I do not wish to lump all coin dealers together, but many do jump on the investment band wagon. David Hall, who is supposed to be a respected member of our community has been doing it for years in his Private buisness, David Hall Rare Coins. Look at this little blurb from his site.... Absolutely disgusting IMHO. I really like the part where the "only real downside" is low inventory.

http://davidhallrarecoins395.weebly.com/rare-coins-with-david-hall-shrewd-investing1.html

 

you should try it a third time this time I will be ready with the money when u sell

 

Kentucky said: ↑

Did you enjoy collecting and having them?​

This makes me feel immensely better.

 

It reads as if was written by a ten
year old.

 

The best investment imo is a successful self-employed business. The next is a good job with benefits.

 

Every millionaire I know has achieved that status through running their own business. I am talking about stuff like HVAC and plumber.

 

this makes me feel better

 

I know a few of them, but also a lot of ceo and cfo's. There is no right way in my book. Trick is to get ahead of the game, make your money work for you rather than paying interest to others. The biggest commonality I find with self made millionaires is they usually live beneath their means, and don't waste money on the frivolous things so many Americans now believe are "essential".

 

,,,and they work hard- many 12+ hour days

 

Those who believe in the stock market
have a decisive advantage here. It's
nearly impossible to state why I believe
the S&P is a complete sham without being
flagged for politics. Can I at least say this:
David Stockman/Youtube. Shadow statistics.
I agree totally that coin investing in the past
could suck-start a Peterbuilt.

I don't believe that what was, what is, will
be, much longer. That the environment
around us that killed hard assets in the 80's
and propelled financial assets is flipping 180
degrees. Even paranoid, secretive hermits
that we are will be a decisive advantage when
the zombies come out to play.

If there is something that will negate any
advantantages that might advance the
prospects of coin investing paying off, it
will be peoples' faith , or lack of it, in the
grading game. And making money in coins will
still be hard. Why should any investing be
easy? If it was easy everyone would do it
and negate the whole process.
We're the only ones who can screw
this up now. And we probably will.

It's right there in front of us:

"Strength becomes weakness,
weakness becomes strength."
Sun Tzu

 

Coins are NOT a bad investment.

They can and do increase in value.

However, buying coins as an investment is a bad idea.

Buy because you like them, have fun, and if you make money when you sell, hey it was great

 

All said, buy what you like - look at coins at art if you wish,

 

The art on coins and especially
medals, really shines compared
to the art world's "art."

 

That is because they would be stale

 

Another thought on the topic of coins as investments; it is interesting that some claim pure motives, i.e. they only bought coins that they liked, not to make money. Question: if this is so do these same people ever lose an opportunity to take advantage of a $$$ profit on their carefully purchased nice coins? I seriously doubt it.

I was reading an article on "peace of mind" by Robert Ringer ("Winning through Intimidation") who gives the example of the extremely successful Jim Blanchard, coin investment promoter:

"I remember Jim once telling me about a guy who had shafted him out of a lot of money. I asked how he could be so calm about it, and I’ll never forget his response: “I'’ve found that it’s disarming just to smile, be polite, and act as though nothing is wrong. " https://robertringer.com/peace-of-m...82d8a9a54739cd4ee5f2a3bb7015645b911209e4a4e5f

Easy to do when you are rolling in dough....I know a fellow who was shafted by the company buying an MS67 $2 1/2 Indian (common date) as a "rare" coin sure to appreciate as the new "suckers" rolled through the investment gateway.