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<p>[QUOTE="medoraman, post: 3168255, member: 26302"]Are you taking into account simply inflation? I am not asking to take into account performance of an investment portfolio versus coins, (making the comparison even much worst), but just simple interest. Almost all "profit" from the vast majority of collections I have ever seen was simply due to precious metal appreciation, (which is a substitute for inflation). If you take out precious metal movements away, it is very rare to see a collection actually make money.</p><p><br /></p><p>Think about it. Everyone overpays when they start out. They buys overpriced coins at times because they are in a mood and like it. What about the fakes? Those are all 100% losses. Couple this with the 30-50% disparity between buy price and sell price on most coins, and it is simply too much to overcome and "make a profit".</p><p><br /></p><p>As a Finance and Accounting guy though, I would like to make a point. The POINT of coin collecting is not economic return. It is relaxation, enjoyment, and knowledge. If collectors understand THAT, then every one of them "makes a profit", since the enjoyment they get from collecting should be commensurate with what they spend. If that is true, then whatever the little bits of metal sell for when you part with them is effective ALL profit. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 3168255, member: 26302"]Are you taking into account simply inflation? I am not asking to take into account performance of an investment portfolio versus coins, (making the comparison even much worst), but just simple interest. Almost all "profit" from the vast majority of collections I have ever seen was simply due to precious metal appreciation, (which is a substitute for inflation). If you take out precious metal movements away, it is very rare to see a collection actually make money. Think about it. Everyone overpays when they start out. They buys overpriced coins at times because they are in a mood and like it. What about the fakes? Those are all 100% losses. Couple this with the 30-50% disparity between buy price and sell price on most coins, and it is simply too much to overcome and "make a profit". As a Finance and Accounting guy though, I would like to make a point. The POINT of coin collecting is not economic return. It is relaxation, enjoyment, and knowledge. If collectors understand THAT, then every one of them "makes a profit", since the enjoyment they get from collecting should be commensurate with what they spend. If that is true, then whatever the little bits of metal sell for when you part with them is effective ALL profit. :)[/QUOTE]
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