Is Coin Collecting Dead As An Investment?

Pistareen is precisely correct.

If you want to consider your coin collection to be an investment, then you have to treat it as such. That means you purchase the best quality in classic material you can afford, preserve it, and put it by for decades. I'm of the opinion that it's not really 'my' coin collection, it belongs to the family. It may not be sold for 50 or 100 years, in order to get the full benefit of appreciation. You can obtain a great deal of satisfaction in building a collection in that manner, even though I will be long gone at the time it is sold.

It also means I'm not buying anything from the world's mints that was issued after, say, 1965. If I want to have a secondary collection that is just for my personal enjoyment, and not to be considered as an investment, that's fine, but we should not delude ourselves or our families as the worth of our collections. The album of Lincoln pennies is fun, the slabbed items are the investment.

Like others have said: Unless you're a professional dealer or trader....forget it! If I had to make a living out of coin collecting or investing in coins, I would have starved long ago.

I never met a financial advisor that said but coins in your portfolio. If it was, it's at the bottom of the list. I would venture to say, it's not on the list at all.

I would dump my entire collection into a slot machine before I would ever consider it as an investment.

The more you study and the more you learn, the better equipped you'll be to actually "invest" in coins for an above-average long term return. Many, many intelligent collectors have done so for decades and even centuries. It's no different than in any other hard-asset field (fine paintings, sculpture, and so on) or even financial assets. You have to know your subject, and if you do, you can make money.

Stamps are very much dead as an investment unless they are the elite stamps that are sought after, and well as to coins - maybe not so much.

I do it because I seen my first 1930 penny way way back when it was a few hundred bucks and was captivated and been collecting ever since.

I don't have a big collection, I place the focus squarely on quality and will scout for months (and save) until I find a premium example of what I want, then I spend a small fortune on that coin.

I have all Australian key dates except the mule halfpenny and I guess I will bequeath them to someone in the family.

One coin I that is not an investment is the 1923 halfpenny - mine purchased 10 years ago is cheaper today, maybe that's a recession thing, I don't know.

Best of luck to you.

It's not investment but I'll give you my financial advise in three words, and I won't even charge you! "GET DEBT FREE"

NOTE... What about all those poor souls who invested there hard earned with the Rare Coin Company..1.8 Million dollar fraud..FAAAARc..

- I find this topic interesting because I've often thought about it myself.

- I agree with many of the posters who have replied "yes" and "no."
If you're going to buy because you "like a series, or the dates/themes for" your kids than I'd say "no" (not a good investment). If you're seriously considering collecting coins as an investment- then the kids (or series) should be the last criteria that would guide you. As a few posters eluded to: you need to know your stuff.

Now, I'm not replying from a coin buyer's (or collector's) perspective but rather from someone who collects (buys/sells) Canadian paper money. I'm also NOT primarily an investor but also a collector- so take my opinion with a grain of salt. Be that as it may: an investor should be buying (& selling) "well." That means (I believe) putting the most money he/she can afford to the highest graded rarest note (coin) he/she can afford. {Forget quantity & focus on quality} Remember that people don't necessarily buy simply what is rare- but what also is popular (or has extreme eye appeal).

In a lot of cases (esp online) you'll want to turn to TPG material because you cannot inspect the note (coin) in person and that TPG grade ensures you've got something highly graded by a 3rd party. If you're seriously considering the hobby as an investment vehicle you must brush up on your grading skills so you know what you're buying.

The other factor not yet discussed is: when and where you buy (& sell). When I first started to buy online (from ebay) I felt the market was pretty "hot" so a lot of the material I bought back then has probably sat "idle" as an investment (& may even have depreciated). Because I never consider what I buy as "junk" I'll either sell it (to break even) or "gift" it to my nephews/nieces (see them appreciate it now).

However, I've learned from my past mistakes and have bought more and more material while the sellers market was "soft" and I believe got some fairly good "deals" on special numbers, and rare change-overs, series. However, generally speaking I avoid "deals" like the plague because most often there's something wrong with the note (coin) when it is being sold undervalued (pressed or soiled).

Since brushing up on what's collectible (& what's not) I've also found some "beauties" issued right from the bank (for face value). These rare items should spell "nothing but profit." However, do I dump them now or hold onto them until the market is itching for them?

I've also turned to buying people's collections (i.e. where you buy). I usually offer a fair price (which is much less than book) to people who are eager to sell. I have yet to sell any of this "stock" but be assured I will make a small profit on the notes when I decide the market has improved enough to sell.

Now all of the above depends on "when" so again- lets hope the world economy doesn't unravel into the toilet- or otherwise everything I wrote here is meaningless! LOL

I agree when it is said that rare coins will always be in demand.