Black Cloud Over My Enjoyment Of The Hobby

I try not to have a cloud hanging over...I collect for the fun of collecting. I hope that my heirs will someday get more than what I paid for it, but I would have to live a long time I think for that to happen.

I am still hoping to get a grandkid into coin collecting one day (those already born and those in the future). I think it is clear the kids have no interest.

I don't try to make money on every purchase...I try not to lose more money than the entertainment value.

Building a set-- and upgrading-- and the hunt of buying and selling-- it is entertainment and that entertainment is worth a certain value. If I buy a cool coin today for $10 and ten years from now I sell it for $8...(not trying to adjust for inflation here)...I did not necessarily lose $2. Maybe my heirs would it I kept it and I died and that is how much they sold it for...but I didn't. I probably got twenty bucks worth of entertainment buying it, putting it series, considering selling it and then finally selling it. The entertainment does have a value.

One reason there is a difference in coins and the real estate or stock brokerage markets who are happy to work on a modest commission is because the real estate agent or the brokerage isn't having to buy your house or stocks. You set the price and if it sells the agent collects a commission. If it doesn't sell he doesn't and you still own the property/stock. If they had to buy the property/stock and then they had to try to find a buyer so they could make a profit, the margins would be much greater. With coins the dealer has to risk his own money and have it tied up for who knows how long, and he may actually have to sell at a loss. With that risk he is going to offer a below market price to protect himself.

And really how can the heirs get shafted? How much have they got in the coins? Zero. Anything they get will be a profit. Will someone who doesn't know anything about coins get as much as someone who does know a lot about coins and their values? No. Likewise if they sell a property without knowing anything about it or what comparitable properties in the area are selling for they probably aren't going to get the maximum either. Stocks are not as much of a problem because the market is much more liquid and are more fungible.

Having said all that why are you collecting coins? Because you enjoy the collecting and/or the coins? Or because you want to buy things that your heirs can sell for more money than you paid for them? If it is for the enjoyment go ahead and enjoy and don't worry about the heirs, they will be happy with whatever they get. If for the second reason, you can probably do better at building an inheritance for them in something other than coins.

Your fears will probably come true because this is your hobby and your heirs may not have any interest in them. If you collect investment grade coins, chances are your coins will appreciate(following the past trend) in time.

As for me when I kick the bucket, I will have left a detail Will for my investments, properties, life insurances and other assets. As for my coin collection, hopefully I will have sold it before I died.

I have to poke in with a different viewpoint than what has been discussed so far. Coins are not bought and sold the same way as real estate or stocks, nor in the same volume. They are sold by individuals or brick and morter stores which need to make a large enough profit to stay in business. No store in the small bussiness range with any sizeable inventory can survive with only a 6% gross margin. Too much overhead. Same for most individuals trying to make a living selling coins.
I sell, among other pond supplies, some moderately upper end koi. ($200 to $5000). People come in who are closing their pond and want me to give them $1000 for a fish because it is the same size as one I'm selling for that price. So I get to explain that 1. I won't take the fish even for free, because I can't guarantee it's health and don't have the capacity to quarantine it for a month, tying up tanks and equipment etc. 2. If they try to sell by ads on Craigslist, etc, they won't get my price, because they can't guarantee the fish, nor will they get the same number of people looking. 3. The fish may not be the same quality, despite how much they love it. I have 24" fish that are $150 and ones that are $5000. 4. I might keep a fish that size for years before the right buyer comes along for it, costing food, upkeep, medicines, electric, prorated cost of the tank ($10,000 for the tank the $500 and up fish are in, after 8 years it's STILL not paid for)
What does this have to do with coins? Unless you are selling direct to another collector who is going to keep the coins, the person you are selling them to has to make a living. He's not going to pay you what you paid. He can't. And it takes a looonnnng time to sell a big collection in small lots to other collectors to get the most money. Are you heirs going to be shafted? No. But they won't realize the same amount that you invested. Unless you have a lot of silver / gold in the collection and it goes up a lot.
Collect because you enjoy it. Buy real estate for your heirs. Then cross your fingers and hope you bought the right real estate.