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<p>[QUOTE="gboulton, post: 1010640, member: 27043"]Bullion coins are, by definition, tied to the price of a commodity. Commodity prices have the stability of a flea on crack to begin with.</p><p><br /></p><p>Not only does their price depend upon availability, production, and seasonal factors, but the most motivating pressure on their prices is, quite simply, fear.</p><p><br /></p><p>So let's see...your bullion coin is, under NORMAL circumstances, going to change price rapidly, and by notable percentages. And then, every 20 years or so (60's, 80's, Current ring a bell?) go completely bonkers one way or another.</p><p><br /></p><p>Not really a big shock that opportunities to make large amounts of money in short periods of time present themselves. Play the opportunities with even moderate skill, and you wind up being profitable.</p><p><br /></p><p>"Numismatic coins" on the other hand are tied to absolutely NOTHING. A 1914 D Lincoln Cent has absolutely connection to the price of copper. And, almost without a doubt, there's NOBODY arguing that if the government collapses, we better all have our 1914D cents on hand, since "they've always been money". Indeed, even GOLD coins like a $20 Saint are relatively immune from such thinking.</p><p><br /></p><p>The value of such coins depends upon their rarity, their condition, and the desire of collectors to own them.</p><p><br /></p><p>Their rarity will change very little, if at all. Who, after all, is out there destroying 14-D's or Saints? So...the number available's going to remain RELATIVELY fixed. if anything, it might go UP if a large cache is found...weakening the value, of course.</p><p><br /></p><p>Condition can ONLY get worse. not to say it WILL...such coins are usually protected, of course. But the condition can not get any BETTER. Its GRADE might, depending on when/where it's submitted (if it is), but its CONDITION will not. So, again...the only thing its value MIGHT do is drop, if the coin deteriorates. </p><p><br /></p><p>Collector desire is the most volatile of factors, but even this changes slowly. There's not likely to be a sudden mad rush to suddenly own 14-D's. Admittedly, it happens every so often with collectibles, as baseball card, beanie baby, or coin shops spring up en masse for 2-3 years, and then quietly fade from existence. capitalizing on this, however, requires a fair bit of luck, decades of patience, AND the desire to sell.</p><p><br /></p><p>In other words, making money as a coin COLLECTOR takes time, luck, and willingness to part with your babies. </p><p><br /></p><p>Do everything right with bullion, you make money.</p><p><br /></p><p>Do everything right with coins, you have a nice collection that MIGHT find a buyer IF you're lucky and IF you're willing to part with it.[/QUOTE]</p><p><br /></p>
[QUOTE="gboulton, post: 1010640, member: 27043"]Bullion coins are, by definition, tied to the price of a commodity. Commodity prices have the stability of a flea on crack to begin with. Not only does their price depend upon availability, production, and seasonal factors, but the most motivating pressure on their prices is, quite simply, fear. So let's see...your bullion coin is, under NORMAL circumstances, going to change price rapidly, and by notable percentages. And then, every 20 years or so (60's, 80's, Current ring a bell?) go completely bonkers one way or another. Not really a big shock that opportunities to make large amounts of money in short periods of time present themselves. Play the opportunities with even moderate skill, and you wind up being profitable. "Numismatic coins" on the other hand are tied to absolutely NOTHING. A 1914 D Lincoln Cent has absolutely connection to the price of copper. And, almost without a doubt, there's NOBODY arguing that if the government collapses, we better all have our 1914D cents on hand, since "they've always been money". Indeed, even GOLD coins like a $20 Saint are relatively immune from such thinking. The value of such coins depends upon their rarity, their condition, and the desire of collectors to own them. Their rarity will change very little, if at all. Who, after all, is out there destroying 14-D's or Saints? So...the number available's going to remain RELATIVELY fixed. if anything, it might go UP if a large cache is found...weakening the value, of course. Condition can ONLY get worse. not to say it WILL...such coins are usually protected, of course. But the condition can not get any BETTER. Its GRADE might, depending on when/where it's submitted (if it is), but its CONDITION will not. So, again...the only thing its value MIGHT do is drop, if the coin deteriorates. Collector desire is the most volatile of factors, but even this changes slowly. There's not likely to be a sudden mad rush to suddenly own 14-D's. Admittedly, it happens every so often with collectibles, as baseball card, beanie baby, or coin shops spring up en masse for 2-3 years, and then quietly fade from existence. capitalizing on this, however, requires a fair bit of luck, decades of patience, AND the desire to sell. In other words, making money as a coin COLLECTOR takes time, luck, and willingness to part with your babies. Do everything right with bullion, you make money. Do everything right with coins, you have a nice collection that MIGHT find a buyer IF you're lucky and IF you're willing to part with it.[/QUOTE]
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