I have gotten interested in using precious metals (gold, silver, platinum) as a storage of wealth. Since doing so, I'm falling into a trap I never thought I would— becoming interested in coins past their melt price. I'm looking at the 2018 Mexico 5 oz Silver Libertad Antiqued Finish (w/ Box & COA). Is buying such an item at $169/coin make economical sense? Is the resell value likely to stay there, or are people overpaying for this coin just because they enjoy it? I'm trying to wrap my head around if it's possible to use coins like this as a storage of wealth that is unlikely to depreciate or lose value. Can some of the pros help out this novice? I'd like to continue to use PMs and coins as a storage of wealth (I hesitate to call them 'investments'), and it'd be even better if I can have some fun while doing so. Thank you,
IMO bullion coins such as your describing are just bullion. A lot of people collect them and will pay premium prices for them. I have paid 10x melt for coins that collect, but I wouldn’t pay that for a bullion coin. It’s all up to the collector.
In my opinion, no. Should you take that coin to a dealer to sell it, he's not going to care about the exotic finish, beautiful box or COA. He'll probably offer you somewhere around spot. Same goes for the TPG graded proof 70 cameo whatevers the TV coin guys are hawking. It's like putting lipstick on a pig — they're still just bullion coins. Owning PMs as an investment is fine, but my advice would be to keep them separate from your numismatic pursuits.
"In my opinion, no. Should you take that coin to a dealer to sell it, he's not goingto care about the exotic finish, beautiful box or COA. He'll probably offer you somewhere around spot. Same goes for the TPG graded proof 70 cameo whatevers the TV coin guys are hawking. It's like putting lipstick on a pig — they're still just bullion coins. Owning PMs as an investment is fine, but my advice would be to keep them separate from your numismatic pursuits." [Can't tell why the quote was not appropriately inserted] Well put. This has been the hardest decision to make for me, because I originally started to collect coins for their numismatic value, but then branched out to silver stacking. If you buy a coin as a PM investment, then buy as close to melt. If you buy a coin for their numismatic value then that's it: buy it for its history and beauty, not for its PM content.
Also well put. Yeah, I think things get muddled when people allow PM investing and coin collecting to overlap. No reason a person can't pursue both, but keep them separate.
Consider this. The U.S. Mint just released a 5 ounce coin (Apollo 11) with a mintage of 100,000 for $224. The 5 Ounce Antique Finish Libertad has a mintage of 2,000 and you can buy for $155. In the end, both are 5 ounces of Silver if you only consider the "bullion" content. In the long run, I would speculate that the Libertad will increase in "collector" value faster and at a higher rate. Right now, the 2014 (key date) 5 ounce Libertad with a mintage of 6,400 is selling for over $200. I think I paid $149 for mine back in 2015. This is the first year for the new Antique finish and with a low mintage, I would not hesitate to buy one. If fact I plan to get all sizes if possible. I already have the one ounce on order. Not for the "investment" reason, but because I like to "collect" them. The potential to increase in value is just a happy bonus.
Actually, numismatic coins are a far better investment then bullion issues. I am not in the hobby for investment, or to make a quick buck. My main reasons are the enjoyment one gets from collecting, then all the historical background, provenance etc. Back to my point, if you bought 10 Krugerrands 20 years ago for $3000US, today if you would sell them today you would get 13K for a 10K profit/ not counting inflation. Had you spent the 3K on a FDC Roman aureus of Emperor Trajan Decius in 99/ that would be going for 15K at auction for 12K increase. Gold been stagnant lately, but numismatic rare coins appreciate 15% per annum.
No, numismatic coins do not appreciate that much, if at all. In fact, silver rare coins have fallen dramatically in value since 2008, while gold coins have fallen in real terms. https://www.us-coin-values-advisor.com/Peace-Dollar-Prices.html https://www.us-coin-values-advisor.com/american-eagle-gold-coins.html Base-metal rarities are no better. https://www.us-coin-values-advisor.com/flying-eagles-1856-1858.html
I haven't seen Roman silver fall at all in the last 3 years. Gordian III denarius (rare) coins are still higher than they were 10 years ago.
Yes, US coin values have even dropped/ they where way overpricedto begin with. Great example the ridiculous prices for MS 1857-S Double eagles, thousands are being salvaged from SS-Central America. World/ Ancients have been going up, just check sixbid auctions. We are NOT talking about modern proofs/ sets. Here is one of my coins. I won this from Tkalec in 2006 for 9K, recently a second ex. sold in Swiss auction for 45 K. My coin sold in Bank Leu auction in 1975 for 1200 Sw francs.