I invest in coins.

Close to 40 years ago the 1903-O morgan dollar was THE key and worth the same money as a new car back then. THEN.... a few 1000 coin bags of 1903-O morgans were found stashed in a government vault and the price dropped like a used tissue.

That would be like somebody finding a few bags of 1893-S morgans today.

This is definately the exception to the rule but there you go.

Dave in WV

 

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In 1964 a 1950-D nickel was worth $130 in today's money. In 1995 it was worth less than $3. Today it's back up to $10. This coin was considered the best investment in all of coins back in it's day. There were only a couple million available and people figured it was a sure thing since there were 20 million coin collectors and we were growing. Then the coin shortage hit and the government took many steps to discourage coin collectors. The roll market collapsed and there weren't any buyers for this coin as an investment and the collectors all had one. No matter how well thought out a plan is, it is worthless until you can sell the coin for more than you paid. Times change and collectors change. There are no sure things.

An increase in silver and gold do not automatically translate to higher premiums for silver and gold coins. This happened in 1980 because those with profits were putting them back into silver and gold coins. If metals went up now there would be fewer people with profits and they might buy copper coins or world coins or even something outside of collecting altogether.

 

"best financial advise I never used"

I love that line Andy.

The toughest part is deciding what percent of the collection should be bullion and what percent for the historical and sheer enjoyment of possesing coins that interest me. Personally, I grapple with these questions constantly.
Tho I don't subscribe to the $1000 gold and $100 silver theories, you are correct about being prepared for what the future holds...be it land ownership, raising a garden, livestock, hunting or coin collecting; all these pursuits can bring satisfaction and a sense of enjoyment and well-being; as well as leaving something for the generations who follow us.

Just my 2cents-
WN

 

I agree with those who have posted by saying that as far as pure investing goes gold coins are a good way to go.

Do you think pre-1933 gold coins such as St. Gaudens are better to buy for investment purposes or plain old gold bullion.

I confess that I am a coin novice and that I am in it to turn a profit over a 40 year period. I also love coins I guess thats why I hoard everyday pocket change. I seperate pennies, nickels, dimes and quarters into big tin cans for when i retire I can go through and hopefully find some treasures. Wish my grandfather had a barrel full of wheates that he could have saved from everyday change, he would have made a 300% profit as I had stated before as people are buying wheats for 3 cents as advertised in the newspaper.

I can only afford to invest 2-4 grand a year in coins as I do not have a ton of extra loot around.

Please note the one St. Gaudens I bought which is a MS63 went from 650 to 725 on the PCGS price guide in only 3 months. I consider that to be profitable investing.

Thanks for letting me share.

 

Well if you are looking for correct values, do not use PCGS. More often than not, published collector price guides are way too optimistic. As an example generic St. Gaudens in MS 63 have a dealer bid of $570. While PCGS or Trends or whoever may state prices over $700 it will take a wish and a prayer to receive that kind of money in today's market.

Earlier GDJMSP made the statement that anyone interested in the investment side of coins MUST know the market. That is the most true statement made in this thread. mmarrotta also made the suggestion that investors should follow the example of the dealers. Work on volume and small gains on a regular time frame. That is also good advice.
With coins, a proven track record is the best to follow. Don't try to reinvent the wheel.
Having optimism is great, but don't let it allow you to cloud your judgement. Knowledge is the best key in this hobby.

 

Most people making a living in coins are businessmen and are buying and selling as frequently as possible. But coin prices can move sharply higher or lower and this is going to attract those who will try to get in ahead of the curve. I'm likely one of the most successfull at this and I wouldn't advise it. This was supposed to be a three or four year "investment" and that was 32 years ago. It has required tremendous amounts of effort and time and still the process is hardly complete. While I have hundreds of nice gems which will return great profits, most of these are not the pop tops that bring the moon money. Most are much more ordinary gems and there is still little demand for them. So still I'll have to wait to get the maximum return on them. The point is that I guessed "right" and nailed it. I should be in hog heaven but the return is coming far too late to do a lot of good. There are opportunities throughout the coin and collectible markets but the only way to win big is to get there first. Many times people get there first and then collectors go off in a different direction. Or they get there first but collectors are seeking something just a little different (maybe varieties instead of gems). Or you can get there first and wait a lifetime for anyone to come.

This is why collectors usually do better: They learn about what's rare and will seek it out. They have some of most everything is their specialty. And if they like and enjoy it then others probably will too.

There are still many many rare and scarce moderns which sell for peanuts. This won't always be so.

 

Thanks for answering my post cladking.

I would like to ask a question?

Do you like the longterm growth for modern commems particulary the 1986 statue of liberty and 2001 Buffalo?

These are two coins that I think have good potential over the long term.

 

Each "investor" is well advised to answer such questions for themselves because they have different needs and different opportunities and because luck is a huge part of being successful. You might want to consider that usually collectibles with established track records do best. The best collectibles tend to be things which are ubiquitous but were never really saved. They are items with great attrition and no attention. Eventually more and more people begin to realize that a part of their lives has been eroding in availability and condition. When choosing items with high availability and low attrition, then great time may be required. The entire modern arena is growing so it's hardly impossible that coins like you mention would get more attention in high grade.

Use your best judgement and keep your eyes open.

Good luck.