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 Replies: 51 / Views: 16,651 |
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Moderator
 United States
23522 Posts |
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My coin investment strategies? Don't put the words coin and investment in the same sentence.
I would have no problem spending five million dollars on behalf of someone wealthy who wished to park money in collectible coins. If that person asked for any sort of reliable return on investment above break-even, though, I'd laugh in their face.  |
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Pillar of the Community
5464 Posts |
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I would have no problem spending five million dollars on behalf of someone wealthy who wished to park money in collectible coins. If that person asked for any sort of reliable return on investment above break-even, though, I'd laugh in their face. That person would obviously have money to burn. If I came across a financial adviser that wanted to invest my retirement money in coins, I would run in the other direction! Hmmmm, think about it. Financial strategies. Coin has got to be at the bottom of that list, right ahead of burn your money! One good thing, at least it has face or melt value. |
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Pillar of the Community
United States
1409 Posts |
Completely a hobby for me, my investments are elsewhere and I take them far more seriously than the hobby. I do have instructions in my will for the coins, both who should get them, and also how they should go about cashing them in if they don't want to collect or save them.
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Moderator
United States
188660 Posts |
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My coin investment strategies? Don't put the words coin and investment in the same sentence. Works for me.  |
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Pillar of the Community
5464 Posts |
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Completely a hobby for me, my investments are elsewhere and I take them far more seriously than the hobby.
You're singing my song. Quote:
I do have instructions in my will for the coins, both who should get them, and also how they should go about cashing them in if they don't want to collect or save them. Good point! I should think about doing that as well. |
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Pillar of the Community
United States
1590 Posts |
I don't know folks...if coins were not a good investment then Coin Dealers like me wouldn't be able to make any money...just sayin...
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Pillar of the Community
5464 Posts |
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I don't know folks...if coins were not a good investment then Coin Dealers like me wouldn't be able to make any money...just sayin... We all know the one caveot.... Unless you're a professional coin dealer. If I had to make a living out if this, I would have starved long ago.  |
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Rest in Peace
10197 Posts |
For most folks "coin investment" is a great oxymoron. As in any investments there are winners and losers. Those who have diligently edjukated themselves will generally do OK, as lifetime coin dealers(above) can attest. Those of the keyboard psudeo-experts with luck may take home tonight's dinner.
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Pillar of the Community
United States
6370 Posts |
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I don't know folks...if coins were not a good investment then Coin Dealers like me wouldn't be able to make any money...just sayin... Flipping and investing are not the same thing. Just sayin... |
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Pillar of the Community
United States
5854 Posts |
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I don't know folks...if coins were not a good investment then Coin Dealers like me wouldn't be able to make any money...just sayin... I don't beleive you can compare the way a coin investor make money vs a coin dealer makes money. A coin investor, in the buy and hold sense, makes money by speculating on future demand of coins. A coin dealer makes money as a market maker. They buy when someone wants to sell and sell when someone wants to buy. The difference between the bid and ask is the compensation for that service. A dealer can still make money even if a coin has a 0% or slightly negative nominal return. The investor only makes money if the price rises enough to cover the bid/ask spread. I hope it doesn't sound like I am lecturing you about what you do for a living. The only decent coin investment strategy for a non dealer that I can think of is cherrypicking which includes roll searching. A cherrypicker makes money by indentifying a mispricing. It takes a lot of time, knowledge, and experience to be able to successfully cherrypick. Over very long periods of time, it nearly impossible for coins or collectibles in aggregate to sustain returns above what can earned on human capital and financial capital, i.e., stocks and bonds. The means used to purchase coins must come from some combination of those 2 sources. If I were looking make a long term, buy and hold style investment, I would rather go directly to the source. |
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Pillar of the Community
United States
7375 Posts |
I inherited some money, and invested in coins until I ran out of money  |
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Pillar of the Community
5464 Posts |
Quote:I inherited some money, and invested in coins until I ran out of money I can beat that. I inherited some money, and invested in coins until I ran out of money .......now I'm broke!  |
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Valued Member
United States
81 Posts |
I totally agree with what D0ubl3Eagle said. There is a huge difference between being a market maker and an investor. If you want to invest, stick to stocks, bonds, and options.
While it is possible to make money cherry picking, it's hard to make a lot of money doing it since, by definition, you're searching for something that others have missed. Personally, I recently started CRH since I find it a lot of fun. I don't expect to retire on the proceeds, or even make enough ever month to buy dinner for my wife and I. If you're looking at $/hour, getting a minimum wage job would bring in more. But since it's relaxing for me, I don't worry about the time aspect nor do I expect to make a killing.
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Pillar of the Community
United States
1511 Posts |
How do you make a SMALL fortune from coins?...... Start with a LARGE fortune  . I believe I quote SSDD from years ago.... |
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Moderator
United States
188660 Posts |
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Flipping and investing are not the same thing. Just sayin... I can appreciate the distinction, but profit now versus profit later is still profit.  Collector or investor is not about good or bad, it is about personal preferences. And of course, I am still thankful to have been on the receiving end of one of your sales. |
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Replies: 51 / Views: 16,651 |
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Posted 12/22/2017 2:42 pm
