Fortunately, this time I was prepared for the latest silver "rush" and bought some BU Dime, Quarter and Half rolls as well as some Eagles at great prices. I'm happy because I usually seem to "buy high" and end up "selling low." What kind of advice do you guys offer as a ceiling for silver in this bull market, and what coins are best for investments. Should one look for the numismatic hedge by buying Morgans & Peace Rolls or perhaps Walking Liberties or Franklins, and if so should BU rolls be the best short-term investment, or the less expensive circulated rolls? I'm really interested in what you guys have to say. I've collected mostly proof and mint sets in the past and have been filling holes and/or upgrading my JFKs, Roosevelts, Jeffersons, and Lincoln Cents until the latest silver rush.
"What kind of advice do you guys offer as a ceiling for silver in this bull market, and what coins are best for investments." Common date, US 90% silver coins, 1964 and earlier. This is what is listed on the Chicago spot prices. You can buy and sell them at coin stores. Bullion bars (ingots) are fine as far as they go, but they do not seem to go quite as far as US junk silver. "Should one look for the numismatic hedge by buying Morgans & Peace Rolls or perhaps Walking Liberties or Franklins, and if so should BU rolls be the best short-term investment, or the less expensive circulated rolls?" That is about three or four questions. (1) Do not confuse numismatics with bullion. Buy one or the other. Your dealer will SELL you Mercs and Walkers at a premium but most likely will not buy them at a premium. (2) Silver Dollars are a special case. Everyone likes them. They only have 0.7 oz of silver but sell for much more than bullion -- even though they are mostly as common as dirt. Everyone likes them. If you can get a good price on them, fine, but realize that your dealer can buy more than you can carry any time he wants, so if you intend to sell them at a profit, it has to be to another retail buyer, or a long ways down the road. I know of guys in the automotive factories who would buy Morgans retail by the roll for say $10 each and sell them one up on the shop floor for $20 each. (3) BU rolls are attractive because Date and Mint collectors need BU coins. Also with the craze in errors and varieties, you never know what you can find. Of course, this assumes that the rolls are "fresh" and not picked over. Maybe they are, maybe they are not, and maybe you have a better eye or more knowledge than the last guy. Again, though, if you buying BU Rolls, then that's what you are buying, and the bullion value is more like the bullion value in a 1909 Cent Type Set. The best general advice is always to hedge your bets by spreading your investments. Checking, savings, CDs, mutual funds, selected stocks, ... silver, gold,... coins, stamps, etc., common, rare, etc.,... education and training,... home, land, rental properties,... car, truck,... Take care of your money and it will take care of you. In order to profit, you have be willing to sell NOW and watch it rise and wish you had waited before you watch it fall and are glad you did not wait. One rule of thumb is to sell portions at intervals and reinvest the profits in something else entirely. So I have heard... " I've collected mostly proof and mint sets in the past ..." Nice coins. Any cameos from the 1950-1970 era?
Thanks for your advice. I appreciate all of it. I have found only a limited number of cameo proofs from the sixties, many from the seventies, and none thus far from the fifties in proof sets I've purchased.
Here is an earlier thread that I wrote about investment coins. http://cointalk.org/showthread.php?t=664&highlight=investment+coins
Sometimes it's hard not to blur the line between collecting and investing. We all want our coins to rise in value. But the simple fact is they don't always cooperate. Some go up, some go down, some do nothing. A key point to remember is that in most cases your profit is made when you buy...not when you sell. If you have a good grip on coin values and a good eye to spot cleaning or other damage, chances are you'll do well. There are some savvy investors who purchase things from me, but they're mostly speculating in gold and silver, or perhaps just buying some as a hedge against their stock market holdings. Typically an investor will purchase gold bullion like Eagles, Maples, Krugerrands, etc. Also silver bars by Englehard, JM, etc. Some of them like common date gold $20's because they have two possible upsides...bullion value AND potential future numismatic value. But these people all have one thing in common. They don't give a hoot about filling a folder with any kind of coins by date. They are not collectors. They buy solely with the idea of turning a profit in the future.
Almost without exception - the truly great collections throughout history have been put together by the person who took the time and had the patience to buy the best. Those who did this always showed a profit if an when they decided to sell. But I can't think of a single one, who when they started their collection, set out with the goal of making a profit in mind. They started their collections for the challenge, for the love of the coinage, designs, history and beauty that coins hold. Profit was merely a by-product at the end. Now you don't have to be a millionaire or spends thousands on each coin to do this. But if you wish to collect with the idea of showing a profit at the end you do need to be patient and you do need to buy the best that you can afford at a given time. For quality is an aspect that is alone unto itself and will never change. It will always be recognized for what it is. And for the discriminating collector - it will always be highly sought after.
"remember is that in most cases your profit is made when you buy...not when you sell." You said a mouthful there tradernick. That should be part of coincollecting 101, along with "know what you buy before you buy", which I've read here at this coin forum as well.
