Where to begin?

Ok so I'm sitting on a huge pile of cash, well not huge huge but about $30k in a shoe box (really...it's in a safe though) I was thinking about spending $5-$10k on coins but I don't know where to begin! I was thinking about getting all the 5oz America the Beautiful coins on the US Mint site (the P version) but $205 seems too pricey I know they say when buying "collector" coins you're not suppose to be concerned about the metal content but still who can help but not be? I don't want to buy all of them and see them drop to $180 a few months later. I was thinking of buying 1 collector (numismatic, is that the right term to use?) version of each coin like a 1oz Buffalo proof, 1oz American Eagle Proof, 1oz Platinum Proof and then the rest of it bullion but do I buy as more gold or more silver or just mix it up a bit?

 

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Begin by reading some books. Don't be so quick to throw away your cash.

Edit: I'm not a 14yr old.

 

Rather than give you advice on how to spend $5-$10K on coins & bullion, my advice is that you carefully consider the source of the advice that is about to be thrown your way in this thread. This is your first post on this forum and you probably know very little about the members here. You will have no idea if the person giving you advice is an experienced numismatist or a 14 year old kid. This community has both.

 

That can be a fun position to be in. You might do better buying those coins on the secondary market than from the mint. Many places will sell them at spot plus about 50-100 dollars premium, the mint right now has about a 250 dollar premium over the metal content. That is just if you want some examples, you might be thinking that the mints products will be lower mintage and in that case you want 2012 coins and not other coins.

 

^I was looking through Ampex and Provident Metals seems like Provident has better prices. Although I noticed they don't seem to carry the P version of the America the Beautiful coins are these available on the secondary market somewhere for less then what the mint is sell them for?

As for reading some books....that will just confuse me even more on what to buy LOL but at least recommend me a couple.

 

Here is a generalization you can live with. If you are planning to buy BULLION rather than numismatic coins, buy junk silver or uncirculated silver eagles. The fancy-schmancy 1-ounce silver commems that are $50 or $60, i.e., twice the market price of silver, when the CRUNCH comes, that premium will evaporate.

Why pay a 50% to 75% premium for Proof eagles?

No trader or speculator is likely to pay any more for the fancy coins than they are for plain bulk silver junk coins, plus junk silver is in more convenient form for bartering or small purchases (i.e., dimes and quarters, rather than 1-ounce pieces which require "making change"). Also, if you are buying BULLION, stay away from bars and rounds, as you will be in no position to PROVE that they are real. No one is likely to question old US dimes, quarters, and halves. And as for silver dollars, why pay the extra premium? See http://www.coinflation.com

None of this applies if your motivation is anything other than acquiring BULLION for the hard times ahead. I have no particular opinion about gold other than to point out that you will have to sell your 1-ounce coins to dealers or rich folks or syndicates, provided Uncle Sam doesn't confiscate them, that is. The 1-ounce coins will not be usable in everyday commerce.

 

The advice on reading books is sound and given in hopes that you will learn about coins before you buy any. There are many counterfeit coins all over and being able to determine what's fake and what isn't will come from reading about them.

Here are a couple to start with:

 

Take your time. Buy the books first. Go to a few coins shows or join a coin club. Check out a lot of the archived threads here to see what other members collect. Don't overpay for coins at auctions just because you don't want to leave empty handed.

 

More sound advice. Are you the 14 y/o kid? *snickering*

 

*I'm not a 14 y/o kid, either. But, it's so easy to get distracted by shiny objects and hype. I think the advice is to do your homework. Also, speculating is just that. This is risky and it's best not to put all your eggs in one basket. Look at what's happened to silver in the last couple of months.

 

I'm a 65 year-old kid, and I agree wholeheartedly with Paul's comment.

By the way, if you don't want to take the time to read and gain knowledge about this hobby, then I can offer no recommendations to you.

Chris

 

For future reference, I've been collecting coins since 1951, and I've seen a lot of hot investment trends come and go, from 1955-S pennies to Proof Sets to BU rolls to Franklin Mint concoctions, etc. If you go back and calculate in inflation-adjusted dollars, NONE of them sells for more today than they did when they were "hot".

One non-numismatic website to study, http://www.shadowstats.com -- you can't buy coins in a vacuum, you have to look at economic conditions too. Two years from now, if hyper-inflation were running at 10% a month, I could make arguments BOTH WAYS whether coins were likely to prove a good safe-harbor investment. Also see http://www.gata.org --

 

Ok so I'd like to mainly stick to bullion but occasionally collect collect a coin here and there. Now as for the bullion is the goal to buy the cheapest silver available, for example 1oz rounds from private mints are sold for couple dollars less then say a US Mint 1oz silver eagle, is their any reason to pay a few dollars for a silver eagles?

 

Buy US "junk" silver. I usually get half dollars (but no Kennedy's). I've put together a couple of sets of Franklins and made a decent dent in the 2 Whitman Walking Liberty books.
Plus they'll always be worth face value!
I'd also look into buying PCGS/NGC certified MS double eagles. MS62/63 examples trade at a small premium above melt, are beautiful big gold coins and have the possibility of appreciating in numismatic value.

 

You haven't made it clear if you are buying for investment, or buying to become a collector.

They are 2 very different animals.

Generally speaking, coins are NOT a good investment.
If you are out for investing your money, go to the "bullion" forum of this site and hob-nob with those guys.
They will set you straight on investing your money.
If you are not worried about your money as an investment, but just want to build something of beauty, and something your grandkids might like one day, then hang out with the collectors. Don't mix the 2, or confuse the direction of where you are going. That can be costly.

Welcome and good luck!

 

Do your self a favor and look at cheaper rental houses!

http://www.homepath.com/ for that amount of cash you could buy a foreclosure for less than a third of replacement cost. You can't get any more solid than real estate if you buy it smart.

 

That's provided the housing market doesn't collapse any further. Being a landlord is not for amateurs, and it requires constant vigilance, as well as a trusted attorney; trusted workmen, including a plumber, an electrician, a roofer, and a carpenter; plus a high tolerance for the ME-first generation that make lousy tenants. Being a landlord also pre-supposes that your tenant can pay the rent; what if he loses his job? We're not done with this economic down-cycle. I vote a solid NO to real estate. It's a 24-7 headache, and massively illiquid because every foreclosure is your potential competitor.

 

I cannot tell you how thankful I am that so many people believe the way you do!

 

Yes, sir, I will stand aside and let you buy all the real estate you want. Since I was a Realtor for 14 years, I may even have useful tips for you.

The name of the game NOW is liquidity, and real estate ain't.