My apologies if this message isn't posted in the proper forum, it kind of straddles a few different categories. So here's my situation. I'm 30. I tend to be a bit of a saver by nature, but I've also been a long time admirer of the coin collecting hobby. I've decided that I want to start collecting, for a few convergent reasons, as follows (not necessarily in this order). 1. I think it's interesting 2. As my wife and I are getting ready to try to have a child, it's got me thinking that it would be really nice to have an heirloom collection to pass on to the next generation (I'm still a bit steamed that my grandmother threw my dad's 1950s baseball cards out). 3. For the investment appeal. Like many, I'm nervous about inflation. I haven't changed my Roth IRA investment strategy. I'm still trying to throw in at least 5k to 10k a year into those accounts and I'm invested in stuff for the long term (target retirement 2040 funds). But I like the idea of a little inflationary hedge as well, and that's also led me here. From what I've read so far, people seem to think that if you invest in precious metals, it makes some sense to take physical possession of the bullion (as opposed to a precious metals fund or security), so that's also got me thinking of coin collecting. I was wondering if investing in silver proof sets from the US mint (state quarters and the like) is a good way to start? Gold might be a little out of my budget...I am foreseeing earmarking about $30-$50 per month in to this hobby/investment. Is that a good tactic? Some other specific questions: 1) Can anyone recommend the best vendors to purchase from? Should I buy straight from the US Mint's site? I think right now the 2008 and 2009 silver proof quarter sets are going for $28. Is there another site I should visit? 2) On the US mint's website, it says that the coins are 90% silver. Does the fact that it is 90% precious metal qualify it as bullion, or does it need to be a pure 100%? 3) Am I pursuing a reasonable strategy, or can somebody else recommend a different approach to coin collecting/investing that will fit with my aims and the stated budget? Thanks to anyone with any insight, I know newbie questions like this are always kind of a drag, but I'd love some help.
Heres what to do first, Here's what to do first, Start reading and/or subscribing to Coin World and Numismatic News each week - after about three months doing that you will gleam more than any other single source can provide as an overview of the hobby. Get a Red Book and do the same. Get a legal pad and write down each question that come to mind and answer them yourself or seek further assistance. Know that this is a huge subject and it takes any serious new comer a minimum of five years (and that's with doing the above and more) to start to get your "hands around" this hobby. Go to shows, visit shops, make contacts, ask questions. Last but most important "have fun" - for myself I care very little about coins as an investment in making money but what I do know is it's an investment in life, beauty, history, knowledge, mint production processes, marketing, trade, precious metals, personal pleasure and satisfaction - in short, United States Coinage is the history and very fabric of our nation.
I think you are on the right track with bullion coins for the purposes you state. It doesn't matter whether the bullion is 90% or 100% pure. What matters is that you don't overpay and for that, you may want to read and study for a few months before spending the cash. I personally think the uncirculated [not the proofs] American Silver Eagles at any price under $20 each will turn out to be a great bargain ten years from now. It takes no special talent to buy them.
Thanks for the feedback guys, it's really appreciated. A couple of follow up questions... CentDime, when you typed the "w" when listing those different coins, what does that stand for? Also, is there an online source that lists how many of each type of coin the US Mint will print? I was at usmint.gov and didn't see that info there, but could have missed it. Thanks.
My recommended strategy is to not buy any coins for 3 months. Buy a redbook. I saw one at books a million for $2.99. It was 2008 but that doesn't matter you aren't buying it for the prices, you are buying it for the information. Read it cover to cover. There is also a type book written by Bowers maybe, can't recall. Read that. The best heirloom a man can leave his children in my opinion is a completed 7070 dansco album. It's a US type set with the gold page. Using the info in your books, you will learn the history of US coinage and as you do, you can start to fill the album. A large number of the coins can be found on your budget. Many may require a few months of saving before you buy. Either way, it's the best way to learn the coins. In 5 years or so , once it's completed, you can then work on upgrading coins now that your income has risen and you can better afford the prices for quality samples. I've seen 7070 that cost folks $3,000 to fill and a few that cost over $8,000 to fill. Either way ..its a heirloom and legacy for your next generation.
I like gold I'm in the same boat as you (only I'm older), and I'm interested in the responses to your question. I was considering getting a few older silver coins, until I learned about all the counterfiets from China. I wouldn't buy a completed 7070 album because I wouldn't know if the coins are authentic. Since I wouldn't buy one, I don't think I could sell one. I like the silver eagles, but for various reasons I suspect gold will appreciate faster than silver in the future. So I'd lean toward the tenth ounce gold american eagles. They're about $120 each right now. I buy from SilverTowne, they're on the internet. If you don't see what you want on their site you can call them. I don't like the commemoratives because I'm afraid it could be hard to sell for value in the future. But, I don't really know much, I'm here to learn!
