| Author |
 Replies: 19 / Views: 2,995 |
Page 2 of 2
|
|
|
|
Pillar of the Community
United States
4989 Posts |
Scarce key dates rise over the long haul in line with the stock market. Marked sense... As the rich get richer they pay proportionally more for their coins. Nowadays I think you need 500 per coin for stuff rare enough to be an investment. Below that, you may see some appreciation but really the money would probably be better off in a mutual fund. For the hobby, just collect common stuff I enjoy sorting through junk bins
|
|
Pillar of the Community
United States
7123 Posts |
One overlooked aspect of investing is whatever you invest in must not depreciate, only the key dates can claim that standard. I can remember when many of the Morgan dollars brought moon money, that lasted until the banks found bags of them stuff away in their vaults, the morgan that cost 500.00 soon became a common coin, many collector/investors lost their shirts. Coins with a proven track record are the 1909-S VDB Lincoln,the 1914-D Lincoln, the 1916-D Mercury dime, the 1895-P Morgan,the 1877 Indian Head cent, etc, just take a good look through the RedBook, start from the earliest copy you can get your hands on and follow the money. |
|
Pillar of the Community
United States
759 Posts |
Buy ones where there will never be hoards found in vaults or in shipwrecks!
Seriously though, I would think there's some price trend data out there you could use in your decision making. I agree with the key date approach though. Who hasn't wanted a 1909-S VDB Lincoln when they first started, for example?
Keep in mind that it's a supply and demand thing. Are you looking US only? I'm thinking there might be some Chinese coins out there that 20 years from now you'd wish you bought.
|
|
Valued Member
United States
327 Posts |
I'm not in agreement that buying coins presently minted is a sound investment. The mint is IMO, overcharging big time for proof/mint sets and I don't expect these to hold their value. I have been seeing a lot of selling activity for less then the issue price. That is not to say that all current issues are bad investments but as others have said, you need to be selective. Not withstanding the current silver price, low grade Morgan dollars have not moved up in price for years. Age is one factor but there are many. I like the idea of high grade silver commems with low mintages. I think the prices are providing some excellent buying opportunities. Just my .02 John |
|
Pillar of the Community
United States
880 Posts |
I am with John on this one, but I'm new so don't listen to me ;). My grandfather would tell you what he's told me, only invest in the Key Dates. That's actually all he collects, he doesn't give a rat's @#$ about sets or anything. To each his own on that one though (I love my Jefferson Set).
I read somewhere that coins such as the 1856 Flying Eagle have continued to rise in price. I would venture to say that the better condition the coin is in, the more sought after it is always going to be by people with money.
|
|
Valued Member
United States
364 Posts |
What do you guys think about the zag method? I.e. what happened with the Franklins, when a bunch were melted so the remaining rose a little in value? (i.e. full bell lines). Does it pay to try and gauge what coins will become "accidentally" rare?
I don't really employ this as part of my strategy, but some of my coins could have that happen to them. I have seen some folks advocate investing in certain clad coins because the attention is off of them right now, because of the focus on precious metals.
|
|
Bedrock of the Community
United States
20753 Posts |
Regardless of what you ever invest in, remember that the liquidity of that is really important. You could buy a $10,000 coin for an investment but try to sell it for that. And just where would you try to sell it? On ebay? At a coin store? You need buyers for anything you have so having a bunch of coins that you can not sell easily is really not a smart investment. Say you need money for something right now. Your money is tied up in Coins. Now what? Your money is tied up in model planes. So now what? Your money is tied up in a car collection. So now what? Regardless of where you try to invest, remember that if you need money now, coins and similar items are not the best way to go. People every day dump valuable coins for losses due to they need money now and sell off everything. And a dealer buys it for a fraction of what you thought you had as an investment. |
|
Pillar of the Community
 Canada
9866 Posts |
|
|
Valued Member
United States
327 Posts |
I agree also. Coins should be a very small portion of your portfolio. I suppose whether that is a $50 coin or a $5000 coin would be dependent on your particular financial circumstances and liquidity but from an investment standpoint, 3 percent. For people obsessed with they hobby, that percent may vary but I wouldn't be in the hobby with investing as the highest priority.
|
|
Pillar of the Community
United States
1510 Posts |
you cant argue with Carl--hes right!
Retired USAF 1983-2003
|
|
Valued Member
United States
373 Posts |
Good topic. I enjoyed reading the responses. Half of me likes coin collecting as a hobby, but the other half of me wants to collect coins that appreciate in value over time.
|
|
Bedrock of the Community
United States
20753 Posts |
Quote:
Good topic. I enjoyed reading the responses. Half of me likes coin collecting as a hobby, but the other half of me wants to collect coins that appreciate in value over time.
And it's not just coins as I mentioned. Almost anything you collect as a hobby should really be your hobby, not an investment. If and when you pass away, in many instances relatives have no or little idea of what you have and just basically dump it all for practically nothing. A neighbor of mine in his 90's was recently taken to a place for it's time to go. (Hate to say dying). He collected model planes and his garage was virtually loaded with them. Many hundreds of them. His daughter called in a hobby store and they hauled the entire collection away for nothing. She just wanted it all out. There are probably many such stories. This too could have been coins, guns, knives, swords, cars or anything. So remember that this is supposed to be YOUR hobby, not YOUR investment or something for future relatives to just dump into a bank. |
|
Pillar of the Community
United States
1510 Posts |
My favorite part is you can hold "History" in your hand--that 1870 IHP--who owned it? where has it been? thats my favorite part.
Retired USAF 1983-2003
|
|
Valued Member
United States
373 Posts |
None of my relatives know anything about coins, so I would have to make a list of what I have (if I have any coins left at that time), and
put some websites, or something with proof of the coins' values, so coin dealers don't take advantage.
And, I also love holding a coin from 18?, and thinking who else held this coin......
|
|
Moderator
 United States
189713 Posts |
Quote:
So remember that this is supposed to be YOUR hobby, not YOUR investment or something for future relatives to just dump into a bank. Well said, Just Carl.  In my opinion, once you become concerned with your collection as an investment vehicle, you lose focus on what makes it fun. I hate to think my heirs would just dump my collection, so I do not think about it. I just enjoy it while I can.  |
|
Page 2 of 2
|
Replies: 19 / Views: 2,995 |
Page 2 of 2
|
First Page
Posted 01/11/2011 7:17 pm
