I was wondering what your guys thoughts were on the current coin market. We had that thread not too long ago concerning purchasing power in the recession and how it is affecting your collecting and I wanted to expand that into something else. Do you guys feel that now is the time to stock up on those more expensive coins that you have always wanted but could never afford? I collect very few modern sets but have noticed that many keys are going well below what they were a year ago. I have seen major dips in the reverse proofs as well as coins like the 95-W ASE; however, it seems to me that these coins have bottomed out and are once again on the rise. Not too long ago I was able to end my hunt for the AGE reverse proof. I ended up paying $2600 for a PCGS PF 70 (I know, I know about the 70 but for such a small premium I got the 70 over the 69). Now I see the same coin going for about 2900 to 3400 one month later. Is now the time to buy? I believe so myself and am now hunting down many keys I was passing up only about one year ago.
That my friend is based not on the market but your own personal pocketbook... Yes coin prices as a general seem to be lower than 2 years ago, and gold is much higher than it was when 1/10 AGE were being sold for $94 from my bank... But you have to decide if it is a good time for yourself(longterm)
XX.X% of people on CT will say coin investments are a bad thing... If it is the right price, it's a good investment.
For anything to be a good investment, the investor has to know not only when to buy / invest, and also when to divest/sell. Collectors usually make poor investors in the area of collection because they are good at having desire to buy, but very poor to want to sell and realize their gains. They basically become hoarders rather than investors. Those that have true investor mentality ( they would sell their best and favorite coin in a minute if the pre-determined profit margin was there, or at a loss if it fell below their stop point) can do OK if they are disciplined. IMO. As to your question on key dates, I think that can be a successful plan if one can determine which series people really are interested in. Although I would prefer otherwise, I think more collectors are going the way of modern coins, rather than the classics. Some are just collecting toned coins, no matter what series, some only commodity type silver coins, etc. I really don't think anyone knows for sure. There are some very astute investors in the bullion section, but you have to determine which are and which aren't. I passed on some key date ( had the cash in my pocket) at the last show because the fire was not there. Good luck. Jim
I think it may be a good time to pick up that coin (or coins) you have always wanted for your collection. TC
Early commemoratives are/were generally considered soft, but you couldn't prove it by looking at eBay. Maybe they've warmed up. I'll have to check Teletrade and see how they're doing there.
Year in year out you cannot go far wrong buying nice grade collectible coins. My definition of that is XF/AU Bust, Seated Liberty, Indian head cents, large cents, halfpennies, etc. I say that since there is never enough to promote, they aren't "investment grade" so do not get promoted that way either. Promotion means something will go up too fast, meaning it can also go down just as fast. I would also put AU/lower MS early commemoratives. I would stay away from more modern coins if your experience in the coin market is just a few years. I have seen modern issues rise and fall over and over too many times to ever think they are a good long term investment unless you know better than 90% of the collector base. The older stuff in collectible grades always have a buyer, regardless of what fad is in style.
buy if you can is my motto these days. There is a ton of softness in the market that can be exploited.
I'm always in a buy mood for the right coins. Now, that said, I don't always have the cash on hand. Just tapped out my coin fund with the purchase of one of those "key" coins, so back to window shopping and fund replenishment. Keep in mind I buy for my collection not for investment. Pretty sure I won't be the one selling my coins......
There are always coins that are undervalued and overvalued. Try to learn to like the former and if you have the latter consider selling. Beyond this just collect what you enjoy.
Like was already said, buy if and when you can. I never buy based on anything other than whether I want the coin or not. If I want it, the current economy or hot or cold coin market has no bearing whatsoever on my decision. If you have to ask, you may not be in a position to make such choices though, meaning it's nothing anyone but you can help with. Guy~
Guys I never mentioned investing what so ever. I was getting at the point that if many people say prices are going down then now is the time to buy whatever the keys are to whatever series you are collecting. It's very true that chances are they will rebound nicely but that was never my point here.
I understood what you were saying. Reread my reply to you. I never mention investing only collecting. This is definitely a good time to buy but you still need to be patient because investors are still out there competing for the same coins as you are in auctions and in the marketplace. TC
TC, I should have mentioned in my reply that I wasn't including you. You were perfectly spot on in what I was thinking.
I agree Topcat, that is why I was suggesting buying collector coins, items only collectors care about. I try to stay away from items promotable or promotable grades unless I know they are not being promoted right then. It seems most promotable coins are being hit right now, so my money would be in old fashioned coins until the hoopla in the others has died down. Everyone gives good advice, that being to collect coins not invest in them. That is only half the truth though, since by definition any coin purchase is an investment to a degree. Therefor, you also have to remember investment rules when buying. Those rules are real money is made when either the market hates something or is oblivious to it. Once the market likes a certain thing, the easy money is gone and the risk is heightened. I would say generic BU Morgans, late US issues, US Gold, etc are very high risk right now. I would wait to collect those, and collect unpromotable coins for enjoyment right now. Either that, or just buy what you like and don't worry if the price goes down in the future.
