Considering Purchase Of An Investment Coin

I like this reply~

1914D, MS65RB
Dimes: 1921 MS65, 1921D MS65, 1942/1 or 1942/1D MS63+

However, I'll mention that from what I've read, what you really want is the key dates of those early large coppers, and they can't be had for $4k in mint state.

I'll also add that my research says that those key date early large coppers do well in ANY condition over time.

I completely agree with shadow on this. There actually ARE many deals to be had on ebay, and quick profit turnarounds even after fees can occur if you know what your doing. However, I agree that this shouldn't be purely for investment and you shouldn't mortgage your house to buy and sell on ebay. It should be done with "fun" money, that you would otherwise take to a casino and realize that you could also take a loss.

ROI is as much a function of demand as rarity. There are some issues whose fan base is recession-proof, either due to the relatively deep individual pockets or the broad level of commitment to the issue. Early copper and Dollars (Draped Bust at newest). Seated dollars in higher grade. High-grade CC Morgans. Upper-end Bust Halves. 19th-Century Proofs, although 2C/3C/Dime/Quarters might be iffy.

You did not mention that strict ROI was a paramount factor in your original post, which is good because it's unrealistic to expect that any coin will inevitably equal the ROI of the same sum of money in a more "traditional" investment vehicle. Not that it can't happen, but there are no reliable indicators of whether it will.

But, indicating that it's an "investment" coin implies that it needs to be liquid in the market. So consider demand, as well as supply.

Give A thought to the 2008 proof gold buffalo collection. Four coins of very low mintage, classic design but certified proof condition and you have a certain bullion value behind the numismatic value. You may have to go over four grand for the full set of four tho

But that's just me

beagle - I have to say, I get your point but on a certain level I completely disagree.

I really enjoy analyzing data (for some reason... at least when it comes to coins) - and for me one of the most enjoyable things I've done is figure out which coins I want to be "invested" in. Obviously, this is a small portion of my overall "investment" portfolio, but spending the time to figure out which coins perform over time helps me to understand and MORE enjoy the hobby. I know if I spend $50 on a non-performer that I'm spending it for the enjoyment, but the process has given be much more specific collecting goals, and I have to say I enjoy it a lot more now!

Before, it was just a case of "oh, that's neat - I should get one of those". And that was fun. But now, having a better understanding of what really works for me after spending the time and thinking about it from a real "investment" perspective, it's a lot MORE fun because I understand things a little better. =)

It's REALLY easy to spend $4000 on $2000 worth of coins that may never be worth more than $3000 in 20 years. It's also not that hard to spend $4000 on coins that may be worth $15 or $20,000 in twenty years. But which is more fun?

There's nothing wrong with having fun collecting coins - but it's a lot more fun when you have a more comfortable feeling that you're not getting burned. That's my Two Cents: tink-a-tink.

Delaner, I understand where you are coming from and maybe I didn't explain myself well enough. It is my understanding that $4000 is to be spent on one coin as part of a retirement portfolio. I think that is a mistake. Any retirement counselor will tell you that diversity is the key to successful retirement investing. I understand that this is probably not the total portfolio, but odds are that $4000 invested in a diversified mutual fund, etc, will in the long run probably bring a much higher ROR than one coin, plus you minimized risk.

On the other hand, if you have an extra $4000 ( I wish) that you want to spend on your hobby that is another matter. You decide you want it spend on one special coin, you do the research, and you make the purchase. As far as I'm concerned that is what coin collecting is all about. One thing that I would be sure about is that I could afford to lose the $4000 if things go south

I just don't believe in combining my hobby with my retirement portfolio. This is just one man's opinion and I am sure that not everyone agrees with me.