Collecting for the profit?

This is a difficult question. If value were not considered, I would have to re-evaluate my budget - but I would still collect, in some fashion or another.

The way I generally figure it is that if I can sell my coins at break even - I'm more than satisfied, because I can use that money to make other purchases in my hobby. But if the resale goes down, I figure the value in my enjoyment of owning them is worth something - I pay 8 bucks a ticket for a movie, and I can't resale that... but I still see movies - same logic applies.

If I sell to another collector, I don't really want to make a profit - again, I just want to break even. If they are a collector, I want them to be able to enjoy it like I have. If I sell to a dealer, and I manage to make a profit, I guess that's ok. They are, more than likely, looking for inventory that will make them money - so whatever they pay me, they have, if they are any good at their profession, already factored in a profit margin for themselves.

 

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that's exactly right. And if the fat of the fad followers buy into coin collecting, the exact same thing will happen with coins as with beanie babies, pokemon cards, and so forth... By and large, these people buy them with the expectation that they will make millions by opening up their online stores, and so forth. But every market, even coins, follows the biggest fool theory - eventually you reach the biggest fool, and nobody else will pay more for that coin, and that guy doesn't want to stomach a loss... the whole game collapses - it has happened with coins, and it is in the process of happening again... where we are in the process is the matter of debate.

As for the currency devaluation - I doubt it would have much an effect on the rare coin market, except that it would take more money to purchase the same coin. But actually, I think the reverse tends to happen... when the value of money goes down, it takes more of it to purchase the same thing. Rare coins aren't tied to the actual face value, so the actual market value should have very little effect.

 

Great question OldDan

Short answer, YES!

I'm a bit of a hybrid collector I guess, I collect mainly b/c I like this or that coin, primarily error coins. As an error collector, I too enjoy the hunt, particularly just looking through pocket change and bank rolls.

At the same time, I'm not one to ignore the opportunity to turn a quick buck. With all the hype about the state quarter series and the nickel series, i've bought a few extra sets with express purpose of resale. If the bubble bursts, then I've got hand-me-downs to start my kids' (when I have them ) Collections. Otherwise, I'll sell them to pay for my own collectings.

 

To answer your question Dan...I'm a collector.

Funny thing is though, I'm always looking for deal or comparing what I pay for a coin as compared to its stated value. With that said, I have never sold a single coin from my collection.

There are times I will just sit and study a given coin in my collection, in awe by its appearance/luster/strike,/etc; putting it down and picking it up several times as I need to have just one more look. I'm addicted.

 

I collect because I luv coin, investment is a "Plus"

 

...of course, it isn't surprising that the investment aspect is so important to people. Even the Redbook has a section on "Rare Coins as an Investment" right up front. It's tough to ignore the issue.

 

This may be the only time you will ever hear me say "ignore" the book!

 

Being very new to collecting coins (I actually inherited some interesting coins from an uncle) I have found that I enjoy the hobby for not just the collecting part but the learning part just as much. Most of the coins, with the exception of a few, have no monetary value, but I intend to keep them all because Unlce Joe kept them. Since I receieved the coins, I've done a little collecting of my own and I find it a throughly enjoyable hobby. I have started buying some mints sets for 2005 to put together for our new grand daughter. I don't really care about the value, if they go up or down, I just enjoy the idea of have a complete set to someday share with my grand daughter.

I have no experience in buying coins so I am buying what appeals to me visually, mostly ASE's. For the all the rest, I enjoy looking through change and keeping what looks like a nice example of a particular coin. I have spent many more hours reading about coins then I have actually done collecting and the reading (this forum is an excellent place to learn) is just as enjoyable as finding a nice circulated coin. For some I imagine there is plenty of money to be made, for people like me, it's about the coin itself and idea of sharing something that has a history to ponder. Before it's over I will probably own more books and magazines about coins then I will coins, I'm planning to attend my first coin show in August (and I'm leaving my wallet home so I don't get tempted to buy things I know nothing about) but I look forward to "looking" as much as anything.

I appreciate everyone here who shares their pictures and their knowledge, it's made a huge difference in how I collect.

Carmella

 

I collect for the sheer joy of collecting, for the hunt and the history behind them. It may sound corny, but I like thinking about the fact that I am holding something that has survived the ravages of time and imagine the persons(important or otherwise) who've handled it at various points in time. For this reason I buy mostly coins that have been in circulation. AU or even MS coins are nice to look at and show to friends and fellow collectors but are just that to me, presentation pieces that show what the coin looked like when they were struck( i.e. reference).

I like holding my coins and as a consequence, slabbed and sealed proof sets have lesser appeal to me but I still buy them for collecting and reference purposes.

I never sell coins that I collect(knock on wood). Knowing that I acquired something at a bargain and finding out that it has much value feels good, much akin to the joy of conquest but not for future profit. I may trade one that I have a lot of duplicates of, but never for cash. That's the pack rat in me. My friends have at times called me a hoarder but I just love collecting them in whatever grade as long as they interest me.

I collect a lot of things aside from coins and I am partial to old metal objects, some of the things that I also collect include Old Keys, Old Padlocks, Old anvils, bronze sculptures, swords, helmets, guns etc.

 

Look at it this way. I enjoy playing cards with my buddies. We could play cards for jelly beans or we could play for money. We are both playing the same game, but now that "money and value" are added to the pot instead of jelly beans, it makes the game more interesting and enjoyable.

So that is the added bonus of collecting coins...add that to the thrill of the search, the thrill of filling a slot, the thrill of holding history in your hand, the thrill of artistry found over a very small area...and finally the thrill that everything I mentioned is actually worth something is icing on the cake.

BTW...my house rule when we play poker. No chips, no plastic...just hardcore U.S. coins. We play with Kennedy's and Sac's only. I like the sound of them as they are added to the pot. Of course they don't sound like a silver piece (a Morgan dollar from the Old West), but they look "good" when you see gold and silver colors in the pot.

 

everytime I see this thread, I think:

If I were collecting for profits, I would be REALLY bad at my hobby...

 

I am a collector. I collect silver dollars and they are with me until I pass away. I love the flashy cartwheel effect and weight. Silver is a wonderful medium for coins.
Having said that, would I still collect? You bet I would and my guess prices would be lower and more affordable.

 

That's what does it for me. I like to think about how much that silver dollar or 2 bit piece meant to the person who possessed it, and what it's value was. And what it's seen. the history. I like my ugly old roman coins just because they were here and in use way back then. And they're still here. They'll be here long after I'm gone.

as far as the profit factor..... I figure, if I can sell some coins I don't collect, I can buy more coins I do collect. So I'll buy whatever I think I can sell later for more money than I bought it for. sometimes I'm right, sometimes I'm wrong. If I didn't sell them, I'd swap them somewhere.

 

All I think about is the fact that I can move on to another coin and I don't have to look for this coin anymore. All leading up to the end goal of having ever one of them.

 

Bad examples

In Italy you have until early 2012 to change those pre-euro coins; in Spain the redemption period is not limited at all for the latest pre-euro series. And in Germany no DM coin or note ever loses its face value. Now had you written about Portugal, France or Luxembourg ... hehe.

As for the initial question, no, I do not collect coins to make a profit. And a coin dealer that prominently points at the possibly increasing value of some piece is a dealer that I am likely to avoid in the future. On the other hand, if I come across an attractive coin that seems overpriced to me ... well, I do not want to go bankrupt by collecting coins either

Christian

 

The profit aspect of it doesn't enter into it for me, in fact I wish I coul djust update my sets with coins from change and proof coins every year rather than having some work to do on older years. Plus I'm not making a profit at it anyway. That being said, I am considering searching some half dollar rolls. Maybe I would actually find some coins that are worth more than face value. It would be a real thrill for me to find a Franklin half. Of course I wouldn't sell it after that, it would be too nice of a memory of the time I found it in a roll! One of my favorite coine is a 31-S Lincoln. It's in beautiful shape, must have hardly seen circulation -- except for a deep scratch right across the obverse! That's as fun for me as if it were MS-65.