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 Replies: 19 / Views: 2,113 |
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Pillar of the Community
United States
830 Posts |
I invest in other things. Coins I collect for the sheer enjoyment of collecting.
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New Member
United States
26 Posts |
I invest in an asortment of things.  The Mac |
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Pillar of the Community
United States
1031 Posts |
As a coin collector I can't except the thought that coins are not a good investment. If I didn't buy coins the money would have been spent on something else that physically wouldn't be here right now. Diversification is what I believe in. Mutual Funds, Stocks, CD's, Savings Accounts and coins. I only buy the coins that I want (which means most coins). If the market crashes and the banks go under, I have my coins. It's kind of like wine. If you have a wine collection and all goes the wrong way, you still have something to enjoy. Invest in what you enjoy and you will never go wrong. Listen to someone else and you just might.
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Pillar of the Community
United States
834 Posts |
The only ones that will make huge amounts of money investing in coins are the wealthy.  Bruce.  |
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Pillar of the Community
United States
2254 Posts |
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Pillar of the Community
United States
834 Posts |
Tights.
Yes it does my friend.
Bruce.
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Valued Member
United States
487 Posts |
I do a fair amount of investing and what got me back into collecting coins was the under value of silver. We are using over 100,000,000 ounces of silver a year more than we are mining. There has been about 7 to 8 times as much silver mined as gold. Using that ratio silver should be selling at $85 an ounce instead of $14. Companies that use silver are going to pay what ever price they have to to get the silver they need. I read one article that stated there is actually more gold above ground than silver at this time because so much of the silver that has been mined has been used and is unrecoverable.
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Pillar of the Community
United States
1173 Posts |
Coins are an investment. They have specific value (face value or melt value) and can readily be exchanged for goods and services. Of course, actual collectible grade coins, are worth far beyond face or melt value. Now...are they "good" investments? That's a difficult question to answer, because so much depends on the investor's needs and goals. How liquid do you need your investments to be? How much risk can you tolerate? What ROI (return on investment) are you expecting to achieve? One thing that is nice in the world of coins is that you don't need a ton of money to carefully buy selected coins and to increase your investment from time to time. The worst part about coins as investments, IMHO, is that they are not very liquid (they're not easily converted into cash) especially as you get into more and more expensive coins, and their values can be pretty volatile as collecting particular series comes into or out of vogue. ebay and other online sites have made it easier to liquidate your coin holdings, so maybe I'm a dinosaur in my thinking? But I know that I can buy/sell stocks or shares in mutual funds literally within a few minutes of sitting down at a computer. Just some thoughts... |
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Pillar of the Community
United States
2254 Posts |
quote:
The worst part about coins as investments, IMHO, is that they are not very liquid (they're not easily converted into cash)
But Hunter, they ARE cash.  |
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Valued Member
United States
346 Posts |
I'm definitely glad I put all of my cash into my coin collection. It's already grown in value since I started seriously collecting about a year or so ago.
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Pillar of the Community
United States
1173 Posts |
OK, tights, ya got me!  |
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Valued Member
United States
204 Posts |
Anything can be a good investment or bad investment. The amount of time you spend researching before purchase and then monitoring post purchase will directly affect the outcome. Even the best researched investments can yield poor results, but if their performance is tracked periodically it minimizes the downside.
I collect modern silver bullion coins because of their value in silver, their high liquidity, and the high quality designs available (many at close to their silver value). There are no guarantees that silver won't go back to $4 an ounce (as when I began collecting) and I won't wind up with a bunch of nice looking low value coins, but I can live with that outcome. If you wouldn't be happy having a particular coin for a long time (hoping to get your money back), I'd advise against buying it the first place.
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Valued Member
United States
159 Posts |
I collect coins as a hobby and an investment. I believe that "investors" should try to think like collectors, and "collectors" should try to think of their coins as investments. To say that coins make for a bad investment is simply not true. I own some coins that have appreciated 100,200,300, even 500% in the last few years! I've maintained for some time now that the coin market is going to get hotter as the Statehood Quarter series nears completion. I don't usually make predictions but I think that there could be a big spike in that series prices in the next three years. There are many pitfalls associated with any investment, I recommend reading as much as possible before you buy. one advantage numismatics has over some investments is the fact that some incredible bargains are out there. I recently purchased a group of buffalos for $175 on ebay that a local dealer offered me $1,000 for. Imagine a yard sale selling Wal-mart stock for $8 a share! |
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Pillar of the Community
United States
2254 Posts |
quote:
OK, tights, ya got me
Just playin'  |
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Valued Member
United States
69 Posts |
Coins are a blast to collect, and can be a very good (or not so good) investment. I try to do some of both collecting and investing. For collector coins, I buy what I like because I like it. If the prices for that particular type or series take a dip, so be it. That hasn't happened much for me, but it can happen.
For investment coins, RESEARCH is key. While past trends are no assurance of future performance, good research can lead you in the right direction. Diversity is also good. If you have three or four different types of coin investments, good performance of one can offset a loss in another. Personally, I feel that there are still a lot of good deals to be had, and that the coin and precious metals markets in general have a lot of upside potential. ~Jim
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Replies: 19 / Views: 2,113 |
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Posted 04/15/2007 6:29 pm
