Coins as Investment: Good Idea or Bad?

I view money spent on coins as part of my discretionary budget/entertainment budget. I could blow that money on a lot of stuff, but if I spend it on coins I'll probably get more out of it than if I spend it on, say, chicken wings and beer (I suppose this is debatable).

With that line of reasoning, coins would be a better "investment" than wings and beer, since I'll have something to show for it in the long run. That said, I wouldn't make an actual significant investment in coins though for the reasons others have stated.

 

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And you are such a reasonable guy...

 

When I sold all of my Morgans and Classic Commems, they were listed at 99c start. Overall, I made a very nice profit because the quality was there.

Chris

 

Coins are a wonderful investment vehicle--for enjoyment, education, beauty, history, politics, art....

 

Ultimately the point is, bullion has a clear-cut worth, well-defined, according to spot, that can be turned to cash, rather easily. It is a high-demand commodity. The 'worth' of numismatics is more vague, elastic and fickle, not clearly defined, with only relevant comps to go by, like land. And generally the more work you put into the sale, the better the sale.

On Chris' point of doing well with the 99 cent auction - pertaining strictly to ungraded coins - I find if it's high-demand, well-conditioned, well-photographed, and well-described U.S. constitutional silver, the 99 cent'er is a safe bet. Anything else could end up a bargain hunter's dream.

 

Author, author!

 

If you aren't willing to overpay then you don't REALLY want it.

You have a lot to learn about buying modern mint stuff. Yes, you aren't being ripped off by TV scammers, just mostly being ripped off by the US Mint. Typically you can buy most US Mint stuff in the aftermarket a lot cheaper than you can get it from the Mint. Sure for your kids it will be pure profit, but by buying in the aftermarket you can get them a whole lot more for the same outlay of money

Because the proof set means one item to inventory, one item to find a buyer for and sell. Breaking it up and selling the parts individually means a lot more paperwork, a lot more time and effort trying to find buyers for all the individual parts and probably a much longer time before it is all gone. All that extra time and effort requires extra compensation. In business it is important to keep the money turning quickly Selling a proof set means one sale individual parts means many sales over a longer period. The money is tied up longer so you need more in income to justify it.

 

Really glad to hear it.

 

Seems like I saw somewhere that someone priced out a Mercedes as separate parts and the price was phenominal.

 

I guess I should have mentioned that they were all graded by NGC, PCGS and ANACS (old white holder) from MS64-MS67 but most at MS65 or higher.

Chris

 

That is why car theives/strippers make so much money.

 

In fact, it has been my experience — as it has been for many here — that the patient bidder, the very patient bidder, can find a bargain elsewhere.

 

Back in the 1960s, my mother asked me why I wasted all of my money on LP record albums. In 1999, I put my copy of the Pink Floyd LP box set, The First XI, on eBay; it sold for $648. While mom wouldn't listen to me back in the 60s, I, at last, had my own personal vindication. I may never have that sort of fortune with my coin collection, but I enjoy looking at it, just like listening to music.

 

The issue with proof sets and mint sets is that everyone who wants one buys one (and multiples for future investment) so the demand is more than saturated shortly after time of issue...the next thing is the huge number of issues (see Canada, Nieue, Isle of Man and dozens of other countries plus our own) coming out annually so that no one can collect them all and the cash drained from real numismatics is a big piece of the lethargy in the market...I have been taking tables at area shows...the worst experience is when the TV buyer comes to your table to sell their coins and collect their profits from their shrewd investment and accuse you of being a crook when you offer them what the coins are really worth...with tens of thousands of overhead to produce shows, keep in mind that you cannot promote rare coins - they have to be available in big quantities and at low prices to cover that overhead...

 

Listen to @Santinidollar

 

I cannot comment on modern coins and my comments may only be valid for ancients coins. When I was very young someone told me that if you wish to invest you should only use money that you can afford to lose. Investment is at best a gamble and investing in coins no less. I am in the process of liquidating some of my coins and I can tell you I have done really well on some and have been taken to the cleaners on others. The coins I have done well on are coins that are popular but generally scarce and in high grade. The ones I have generally done poorly on are generally low value coins and coins that in areas that are not too popular. Also coins that I have owned for many years have generally done better. Right now I am buying coins I have always wanted to own. I am not sure I will be able to hold on to them for enough time so that I can beat the wholesale to retail spread. At this point I really do not care. I am having fun owning some really great coins. Like this one

 

I have never had an interest in ancient coins but that is a masterpiece of art and commerce.

 

If you're an investor who likes to buy and hold, and you're knowledgeable enough to pay an appropriate price for any coin you buy, then I think coins can be a good investment. I've bought and sold a lot of coins over the years and have nearly always made money on my "investment." Plus, I've usually enjoyed the coins while I owned them.

 

Nah. Even if I REALLY want something I won't pay more than I think it's worth. I've done it numerous times. One can go bankrupt really quickly otherwise.

 

So . . . would we consider 'junk silver' [and by 'junk' I mean grades below fine] a bullion or numismatic investment or both?​