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 Replies: 24 / Views: 4,128 |
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New Member
Canada
40 Posts |
Since when does one collect coins thinking he/she will make money? Its a hobby. Maybe when your dead and gone your family can sell them...
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Pillar of the Community
Canada
650 Posts |
I agree you collect for the fun not for making an income.The income side would be the effort of being a dealer. As an investment it is pretty poor in performance,consider a 1948 1$ with a low mintage of 18780 my 1974 Charlton lists it in Au at $300.00 the 2000 edition lists same coin $950 and the 2010 at $1750 that's about 8% annual.A 1958 death dollar mintage 3 million was 8$ in 1974,$7 in 2000 and 2010 is $20 in ms so not much more than melt value,the silver content is what lifted the value.
There is no value to the metal in modern circulation pieces.
The best return in coins is the enjoyment you get from it and the value does go up for the classics.
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Pillar of the Community
United States
2408 Posts |
I remember the hundreds of trips to my local banks when I was a kid; tellers knew me by name. I built a decent collection just by searching through rolls, and my dad's pockets. I never paid above face value... That was pretty smart I thought.
In retrospect, I always kept a mercantile justification in the back of my mind. The coins would always be money that I could spend if I ever needed to. I would never *lose* any money because I never paid more than face value. Finding silver coins and pre-1937 and scarce coins was a bonus.
But had I considered all the recurring costs over the years; equipment, catalogs, 2x2, albums, etc, insurance, depreciation - and inflation... perhaps I wasn't doing so well financially speaking.
And the cost of time. Time spent studying, researching, searching and handling the coins.
Should I factor these other things, then I would never have found enough rarities in a reasonable time frame to ever justify a tangible profit. And beyond the cost of selling, there is also the cost of sacrificing other, more essential things in life.
So like any other hobby, it's a personal experience. And in that respect, there is no right or wrong. But if you look at it purely as an investment then you are probably setting yourself up for some serious disappointments in the future.
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Pillar of the Community
Canada
617 Posts |
I like to see the coins that I have go up in value. Not so much for the resale value but as an indication that what I have might be a little scarcer than the average coin. There have been a few times when I've seen a coin go from say $49.95 to $200.00+ (such as the square beaver) and thought to myself "boy I'm glad I bought that coin when I did because it sure would be hard to find now"
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Pillar of the Community
Canada
576 Posts |
It's tough to consider coins an investment. Modern or otherwise. Granted, there is a high end market out there that's out of reach for most of us. An MS arena where only the best coins are bought and sold. There's ample wiggle room there. But if you're buying better circulated coins, time might not be friendly. Myself, I have an excellent collection of circulated older Canadian coins. Very few that I've purchased in excess of 60% of trend. Many that I've purchased for 10% of trends or less. Why trend prices remain inflated I have no answer; anyone who's willing to do some legwork can always buy sharp, circulated examples for far less. The nub remains: if I'm only willing to pay up to 50% of trend on the vast majority of acquisitions, what are dealers going to offer me or my heirs in the future?
Edited by tamarin
02/08/2010 11:08 am
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Pillar of the Community
United States
2408 Posts |
tamarin
Good comment. I think you have your answers.
One point on "Granted, there is a high end market out there that's out of reach for most of us."
Consider the growing forgeries out there and perhaps you and I don't want to be in that market either.
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Pillar of the Community
Canada
576 Posts |
Canadian_coins, in the end the best reason for collecting coins is that you enjoy it. Investment shouldn't be a major consideration. The forgeries out there are indeed a warning to anyone considering a more expensive purchase. It's especially true of higher grade raw coins. Yet, raw coins built the hobby and are still my favourite. I see a slabbed coin and wince. I want immediacy and these protected coins are also protected - from their owner.
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Pillar of the Community
Canada
1051 Posts |
Think of it this way - a circulated 1960's silver dollar with no collector value has risen 1000% in value in 45 years. That says less about the value of coins than it does about the nature of dollars. I'm a firm believer in buying the best you can possibly afford, and going after the really key stuff (in addition to simple, fun sets on the side). My strategy isn't to make lots of money, it's to hold onto the coins I've worked to buy long term, and to hopefully have them preserve some value over the years.
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Pillar of the Community
United States
2408 Posts |
1cent, I see your point. Metal content plays a huge role also.
However, 1000% can be misleading.
The same $1 in 1960 (I'm assuming is what you've implied in your analysis) invested in a Term Deposit @ 8% would be worth 5 times that much today.
So, as of today, keeping the 1960 dollar wasn't such a good investment. But we never know about tomorrow...
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Replies: 24 / Views: 4,128 |
First Page
Posted 02/06/2010 01:40 am
