What to invest in

I'm very sorry... neither of those aspects were intended - not even in the slightest, and I'm sorry if they came across that way.

 

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Rick....I agree with you...it is really risky and that is why I suggest to collect not invest.

Now my dad is more of an invester than collector...at least that is what he calls himself...I wouln't...most of the time he asks what I think of 2 coins and I tell him what I think but in my eyes...he is a collector...not invester ;--)

Speedy

 

rick,

I found your response to be totally correct and insightful, despite the fact that I'm probably more investor than collector. But there is a fairly simple alternative for people of limited knowledge who want to participate -- only buy coins where the gold and silver bullion value is close to the total cost. A new collector can branch out from there as their knowledge and interest grows. This also addresses Speedy's concern about risk because presumably the investor would have a working knowledge of the risk associated with bullion or they wouldn't have looked at coins in the first place. At least this has been my approach so far, and it has been fun. This forum has been terrific for learning because of the patience and willingness to share that most participants exhibit.

I would imagine that masses of investors could really create a lot of chaos in the hobby by coming in with little knowledge and throwing big money at certain series, and running the prices up beyond what many hobbyists know in their hearts is correct or are willing to pay. But coins are an excellent and overlooked [by investors] hard asset class that could be near the start of something big. The next 10 years could be interesting.

 

it seems you are over-reacting to an honest opinion...

 

Your remarks most assuredly didn't strike me as either patronizing or disrespectful, but then I don't have a chip on my shoulder about the difference between collectors and coin/bullion investors.

I collect coins for their beauty and historical meaning. I try to constantly acquire, and share, knowledge about those aspects.

I invest in (or more precisely gamble on) the stock market, real estate, and startup businesses.

I give legal advice on some subjects, because I am licensed to share my education, experience and opinion on those subjects.

I refrain from giving investment advice because I am not licensed to to share my 50-plus years of education, experience or opinion on that subject.

The numismatic hobby is plenty big enough to accomodate all of us - those like me who don't consider our collections as "investments", those who combine collecting and investing, and those who strictly "investors"; so let's stick with the policy of this forum, and agree to disagree without indulging in personal attacks or criticisms.

 

That was a perfectly good thread i started,that generated some debate.

 

Speedy, Like it or not anyone who pays more than face value for any coin is either a fool or an investor? We can call it collecting all we want but we can not escape the fact we are putting money aside for a practical purpose, whether it be collecting, saving or investing. While we may not make a lot of money on many of our purchases thru the years NONE of us have the intention of LOSING on our hobby. Whether you are buying $.50 unc. cents or big money Morgans you are investing and gambling that you are building something for tomorrow. There are many many reasons to collect and a great number of ways to go about it and NONE of us will ever do it in hopes of loosing money? Call it what you want your still an investor!

 

I guess I'm a fool...even if I don't like the sound of it

I put it for collecting...and saving...I can buy quarter rolls that I won't spend but yet I will save them and then one day sell them to get my S VDB!

That is the fun with the hobby as I see it....I don't care much if the coins would drop and I would lose my money to almost face value...I would have still had fun finding them and I would still have a hobby.

I guess I could say that I'm buiding something for tomorrow...casuse I don't invest...and I don't gamble....if I had a need...like a house or a car yes I would sell some coins, if I didn't have any other way to get the money.

Sorry...I disagree with you again!!...I'm not an invester--this is a hobby...a hobby is something to have fun with...not to be worryed with wondering if I will make some $$...that is NOT fun...it will put you in the Hospital fast.

Speedy

 

Hey Terry....I've been talking to an "invester" today and now they tell me they think of me as an invester since I'm setting back for sometime down the road...now I have to find a way to get them to know I'm a collector...I thought it was funny...2 times in one day people are trying to get me to "invest" and not collect.....

Speedy

 

Spencer - have you been lying to us about your age?

Your analysis of collecting as a hobby, not an investment, sounds like it came from someone who had been thinking about the subject for decades.

I certainly couldn't have expressed my feelings on the subject any better.

 

Nope...but I have only met 1 of the members of this forum and he is also a member of WINS so I guess he is the only one that can tell you for sure!

I'm half way through my first decade of collecting and it has been a fun 5 years...

Speedy

 

I didn't read them all:

No offense intended to the members of this board, but I would NOT be asking for investing advice on an internet forum.

If you have you children and want to pursue the hobby of coin collecting, I would think now is a good time to start, considering all the variances of coins being minted over the next few years.

If you want investment advice, I would spend the money to consult a professional. You can ask him\her what they think of coins.

As flat as the stock market has been, with Congress on a drunken sailor type spending spree, national debt and domestic give away spending at record levels with no end in sight, and an official administration policy to devalue the dollar to make deficits (trade and budget) seem "not so bad", I don't think the stock market is going to go much higher anytime soon. In fact, a lot of people are predicting another "correction". Long term, stocks may be okay.

I have the bulk, and I mean 85+% of my investment in an interest income fund. I get a steady return around 5%, regardless of what the market does. Of course, with the administration policy to devalue the dollar, I will probably take an overall loss.


Find yourself a reputable financial advisor, who works on a flat hourly fee, and not a commission of your mutual fund (because they will be steering you to the stock market) and see what they tell you.

 

What I don't understand is why coin collectors insist that this hobby be an investment avenue. Sure we all hope that our coins will appreciate in value, but that is not what a hobby is all about. Before I got back into collecting coins I was a very active player in the Lord of the Rings Trading Card Game (This is a game based on the LOTR trilogy where each player builds a deck of specialty collector cards and then the players are paired and they use the cards in their decks to try to meet the winning criteria of the game.) That was a hobby too, it was a way that I spent my money to gain enjoyment. Many of the cards I owned had some value, but the reality is that it was a hobby and the money I spent was mostly wasted. BUT, I enjoyed myself! The same is true of coin collecting. Mostly I spend my money on things because I gain enjoyment from having them or persuing them. There are just much better things to invest in (return-wise) than coins. The day that I cease to enjoy persuing/collecting coins I will be gone, it is just something I do because I enjoy it. My money is being paid to enjoy what I'm doing, if at the end of my collecting days my coins have some value, then that is just an added bonus. (Really, I could gamble as a hobby, but I just enjoy coins more, and usually coins are cheaper.)

 

I agree and disagree. why do I agree? Well,for the pure hobbyist, if you start now with the boom of collector interest (including me) due to the state quarters you will get in before older coins really take off. I have a price guide from a few years ago and one from this month and i can see a where prices have gone up a noticeable degree.

Why do i disagree? From an investor's standpoint, take the nickels that have come out the last few years. I may see 3-10 keelboat, peace, or buffalo nickels each week and I play poker every thursday. What does this mean? people are hoarding the new coins in the hopes that they will be a great collector item that goes through the roof. this may cause a temporary inflation for a time, but when those coins all come back into circulation the value will come crashing down. some people look at old proof sets (60's-80's) and wonder why they can be worth less in MS conditions, and this is the largest part of it. each year proof sets average around 3 million sets produced, almost all are MS condition (barring environmental damage etc), however at the same time each year up to a few BILLION regular issue coins may be issued and most of them get circulated but proportionally, and sometimes realistically, its much harder to come across an MS regular issue than a proof.

they may make a random low mintage of current coins and holding those nickels may pay off, but i still say if you are going to invest in new coins only buy slabbed NGC/PCGS ms70 coins. they draw a huge premium and if it turns out that the coin DOES end up a low mintage? well you hit gold. (but dont stop searching new rolls for errors)

 

I will say it again,I DO ENJOY COLLECTING COINS.My very simple question was is the any particular coins that is worth investing in.I very much hope as a collector that my coins will increase in value over years to come.I cant believe the groups sarcastic, negative comments.
I made it clear i invest via the bank for my children.Occasionally i accuire coins and dont need all of them for my collection.So what do i do with the surplus,now if the group had responded with some good advice i could have put the surplus coins to 1 side for future value or dump them.EG I accuired some coins from palestine, i have no interest in them, so i checked on ebay and they were fetching good prices.So here is an example to me of investing in palastinian coins if i get any more.
I bought 100 coins for 5.00 I only wanted about 30 of the coins for my collection, but had to buy the whole 100.In the 100 were 10 coins from palestine, they were getiing 10.00 each on ebay.So is this not an example of saving the coins for future investment, or sell them on to increase my collection.
At the end of the day my kids will get my coins when in gone, wouldnt it be sad if they didnt have an interest in them and sold them only to find they were worth nothing.
It will be interesting to see how you lot rip this reply to bits with your sarcasim.

 

i really dont understand why you feel so insulted by what was replied to your post. it seemed a good collection of opinions and information ( minus a few posts). its truly impossible as was said to say "this will definetly go up", because if we could, we would all be rich. there is absolutely no sarcasm intended or contained when i make that statement, its just a simple fact. i thought that the posts i made contained good information pertaining to your question.

these are the 4 things that ive seen that effect value
1.rarity-how many were made?
2.condition-whats the coin look like, where does it grade?
3.desireability- walking half vs. key dates people love em both
4.professional grading -what company graded it? NGC/PCGS are standard

if you want to collect to collect put togather a type set 1793-current like im doing. im skipping variations(i dont worry about arrow/motto on seated etc) and getting coins i can afford even if it means it has a hole that isnt more distracting than necessary (1820 and earlier). you will always find someone willing to buy a collection like this and its one of the neatest things you could ever show your kids and say "this will one day be yours". make sure to tell them not to take it to a shop though, they get very anal and will tell you what some will pay considerably for are worthless. on a collection like this your kids should be able to get back at least what you paid.

finally any time someone guarantees me a price increase on a collectible item, it usually cues me that they are full of it and i stop listening to them.

 

skrilla, with one minor exception, I agree with everything you said.

Far more important than how many were struck, is how many survive. Example - there were 316,076 1964 Peace Dollars minted. Have you even heard of someone who claims to have seen one after plans to issue them were abandoned, and they were melted?

That comment is in the competition for most sensible remark ever posted in this forum.

 

Then collect them and enjoy it.

 

Andy, i think you've been given good advice by alot of the people here. i didnt read any of them to be sarcastic or demeaning. maybe some of them said something you just didnt want to hear? (i'm not trying to be mean!)

i'd love for any of my coins to be worth anything. i know i get excited when i find something that i think might be rare, and get dissapointed when its not. your best bet is to maybe find rare coins, those are pretty much garunteed that they will always be worth a little bit more than anothers.