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Replies: 42 / Views: 3,717 |
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Pillar of the Community
United States
3294 Posts |
a thing that makes coins a tough investment is that they are not all that liquid, meaning if you need money fast, coins are probably only going to bring a limited % of their true value. Stocks on the other hand, are very liquid, you can have all your value from your stock within a day or two.
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Pillar of the Community
United States
1391 Posts |
ammarabdulfattah, I see you are new here so consider this post a public service. Being rude and insulting on not tolerated on these forums. The moderators are good at keeping it down. You see have justcarl has over 9600 posts. Yeah, he would not have lasted that long if he was insulting you. I don't know if English is your primary language or how well you speak it, but justcarl was joking with you (I know that humor is harder to get when a language isn't your primary language). It is called deadpan humor. He does it with a lot of people.
Here is my point, you complain he doesn't know you. Before you go off next time think about how you don't know the people here either. He was just being friendly. People from all over the world use this forum so you will have to get used to different personalities and cultures.
Now, as for your post. You say you know it is a hobby, but then go on the say that you are collecting information for your dad to invest. Tell your dad it is a hobby.
Some people make money with coins but a lot of people loose money.
If you are worried about inflation you can always go with gold or silver. The U.S. mints silver 1 oz. eagles and different fractional amounts of gold. There is also U.S. "junk silver" that is old circulated silver coins.
If you want to take a chance many of the older classic U.S. coins have slowly increased in value over the years. Some of them are heavily counterfeited so watch out. You can get buy them certified though. General rule is that rare coins are going to stay rare, and as long as there is market demand they will hold their value. The thing to understand is that you are at the whims of collectors though. A series could become unpopular and neglected in a short time.
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Valued Member
 Egypt
139 Posts |
allranger, I have never insulted anyone on this forum, I actually love this forum even though I am new to it. And if it is humor then I didn't get it. I got it as an insult. Yes I do not know all the people on here and that is exactly why I never try to judge anyone's opinion. And all respect to justcarl, I mean his opinions helped me a lot in many matters over here and I appreciate that but just the way he came of to me I took it as an insult. Like using the words "it's a joke" "coin collecting is a hobby not an investment!" It is like he is judging me for asking the question. And yes English isn't my mother tongue but trust me I know when somebody is cracking a joke. About my dad, he doesn't collect coins and he isn't into coins like me. It was a simple question of what should I do as an investment and I thought the best way to know is ask the pros in here and thats what I did. That is all.
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Bedrock of the Community
United States
36901 Posts |
Quote: Almost a joke. If anyone knew the answer to that, they wouldn't be sitting here answering you. They would be sitting on their own private Aisland, with beautiful women fanning them with Palm leaves from their private forest. Or they would be sitting in an air conditioned, private club, with people waiting on them for everything. Your question is sort of like asking I want to get rich fast, what should I do next? Coin collecting is like any hobby. Might be a decent investment and might just as well have you go broke or close to that. This is a hobby. Not an investment thing. I don't look at investing in coins as get rich quick scheme, because it is not. You invest money in nice items with the hope that when you sell you receive more than what you put in, and at a higher return than what inflation has been. It should also be considered as a long term, 5 years or more. Like every investment, it goes through cycles. Items get hot and increase, then cool off and decrease but usually not as far as down as the start of the increase. Quality and rarity are the key. If coins were not considered good investments, you would not have major auction houses like Heritage, Stack's Bowers, and a boat load of others still doing business. They only handle investment grade coins.
Edited by IndianGoldEagle 06/26/2012 1:11 pm
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Valued Member
 Egypt
139 Posts |
IndianGoldEagle, I agree with you. If you invest in coins it must take many years. For example, people in 1878 when Morgan dollars first came out, never knew that high graded Morgans would sell for such high amounts 130+ years later. I saw a Morgan with a reserve value of $110,000.
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Moderator
 United States
189948 Posts |
Quote: And if it is humor then I didn't get it. I got it as an insult. ammarabdulfattah, just carl's sense of humour is one that you will get used to and I hope that it will not scare you away from here. 
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Bedrock of the Community
United States
20753 Posts |
Quote: Anyway Thanks for taking the time to insult me.
Really, truely sorry you completely misunderstood what I was getting at. IF everyone is always excessively serious about everything, they end up getting ulcers or worse. My answer was only to explain that no one really knows how to get rich on a hobby such as coins. Nor almost any hobby such as collecting stamps, cars, pens or anything. Saying things like laying around on somewhere with nothing to do due to all the money one could have is just a sort of thing called exageration. Possibly due to my age, very old, I no longer take most anything serious any more. I do take coin collecting a bit on the serious side and usually attempt to help as many as possible with this hobby. Still it is fun at times to just blurt out something silly in hopes that it is taken that way. Not sure how it is over there but almost everyone I know likes to have fun and enjoy life since we are way to old to worry about trivial things any more. Stick around here and you'll see many comical type replys and stories. Many here too do have a sence of humor.
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Pillar of the Community
United States
8904 Posts |
Quote: ammarabdulfattah, just carl's sense of humour is one that you will get used to and I hope that it will not scare you away from here.  As an aside: IMO, most of us on this Forum are not investors so we may be the wrong ones to ask your question. I, for one, quickly realized a long time ago I will never make money from this hobby. I just love old coins and have found I like old coin collectors, so this Forum works out GREAT for me!! Plus I learn something numismatically new almost every day! 
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Bedrock of the Community
United States
20753 Posts |
Quote: I just love old coins and have found I like old coin collectors, so this Forum works out GREAT for me!! Then you should go to the coin shows I go to. I sometimes wonder if the coins are older than many of the customers or the other way around.  One more thing about coins as an investment. Nothing shakes a person up more than trying to resell a coin they recently purchased for a certain amount. They then find out how this just isn't for the faint of hart.
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Valued Member
 Egypt
139 Posts |
just carl, it's fine. I'm not upset at all right now, thanks for replying. Also like jbuck said you're special sense of humor will take time to get used to :P You are one of the most informed numismatists I have ever had the pleasure to learn from, and I have a huge amount of respect for you. I'm also sorry if I said something that upset you. I'm sure if I do stick around I will learn more and more by the hour :)
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Valued Member
 Egypt
139 Posts |
Quote: Then you should go to the coin shows I go to You are so lucky for having coin shows and auctions. We have nothing of that around  .
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Pillar of the Community
United States
1391 Posts |
ammarabdulfattah, excuse my ignorance here but I am not very familiar with Saudi Arabia or the culture. Is there just no coin collecting or no interest in collecing or what? Is it a cultural thing? I thought that Saudi Arabia was wealthly enough to support coin collecting. Also, way were you looking for specifically American coinage? Is that easier to get in SA? Or is it a preference? Just curiosity on my part, feel free to ignore the question.
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Moderator
 United States
16679 Posts |
I know many dealers, all of whom tell me how they barely break even, especially at shows (table, space costs, etc) My local dealer makes a killing on bullion. I sell myself online and once in awhile, shared tables at shows. I do it because I really love to do it. I have not gotten rich of it in the least. Little profit, sure, but some coins I'm breaking even. To me, it's the joy of collecting/selling. Like I said, I do like some keys to hold onto though.
swcoin.ecrater.com
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Valued Member
 Egypt
139 Posts |
allranger, thanks for asking :) First of all as you might have noticed, I'm Egyptian but I do live in Saudi Arabia. Yes you are right, Saudi is a very wealthy country, but at the same time, most of the people here are ignorant of many civilized ways and hobbies. I mean they have the money to buy Ferrari's and Lambo's but they won't appreciate the engineering. Get what I mean? Many are like this here but many others are well educated and much more civilized. I live in a city called Taif, if you want to google it. This is probably the city where all nomads and Bedouins originated from. Most of the Saudis here don't appreciate things like hobbies, except soccer or doing crazy stunts with expensive cars, let alone collecting coins. As a result, Not much interest is paid to coin collectors or anything related to that. I live in a compound of about 500 people at least, and I think I'm one of 5 that collect coins :P I'm the odd one out. There are other cities which are much more civilized. Such as Jeddah it lies on the coast of the Red Sea and has a large population of many nationalities and different backgrounds from all over the world. You can find specific coin shops there, but yet a few of them only. About American coinage,I love them. I love how they look and how they are organized. And I love their legacies too. They aren't found here at all and so I have to buy them online. Which as you might figure out, REALLY EXPENSIVE. Anyway that is it I hope this long reply answers you. Sorry if I went a few times off topic :P Also thanks for asking. I like that we can share our backgrounds and cultures over here :)
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Valued Member
Canada
183 Posts |
Let me see,I don`t smoke or gamble so what I do with my extra $$$$ after my bills are paid monthly,I BUY American Morgans and Canadian pre 1967 silver dollars.At least I have something to show for at the end of the year.Interest on your savings in your local bank is a joke.
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Replies: 42 / Views: 3,717 |