Coins As Investment? - Which Are The Safest Coins?

The Obama coins are worthless. Stay away from anything on tv or in the mail.
Investments, two words. Key dates.

acloco,

Seriously, Buffett said that? Must be the context, because that's exactly how he's made billions.

Anyway, Fredward, with all due respect, I recommend you fore go coins and bullion unless you have much more investment experience than your message implies. If you must dip your toes in the bullion pool, stay in the shallow end for now. I'd recommend 90% silver coins or perhaps common date half eagle gold coins. Best of luck to you.

OneBowl - yes, he does do that, but he is not hedging his bet on an unknown. He buys companies on the known.

THINK. If anyone here knew the answer to that, do your really think they would be spreading it all over the place. Think of investing as a horse race. You know who is going to win so if you ran around telling eveyone, the odds keep going down as everyone bets on that one. Same with stocks, bonds, mutual funds, coins, Beanie Babies, flashlights, etc.
However, in some instances it works just the opposite. If everyone ran out to buy a 1909S VVDB Lincoln Cent, the prices would sky rocket until everyone realized it's to late. Then the prices would start to drop due to no one looking for one.


And that too is mostly normal. Any item can only be sold over and over so many times for a profit. In most instances you buy something and if you try to resell to soon, you may well loose.
Of course I do have a great idea. You send me all your money. I'll attempt to invest it wisely. If I make a lot of money, I'll at least tell you about that. If I loose all your money, I'll tell you that too. Either way you loose.

I don't know if I would be willing to jump into PM's right now with a large investment. I walk into a local coin shop and but 1 Silver Eagle every week. Most the time if I make any side money or tax free money, I buy some silver. The only time I stray is if I need a new toy.

I don't care if I every sell any of it. I collect them and plan to leave it all to my children. If I acquire enough and the prices are at a level it could change the standard of living for my family I'll sell. Until that time comes I will just enjoy it.

So, I just read the link about midas coins...

and here's the thing on coin dealers (as opposed to coin shops)-- coin dealers are the ones hyping about inflation and how the world is going to collapse and so you better buy their stuff. I liken them to used car dealers. A car is on the lot, it's pristine, it was only driven to church by the little old lady, etc etc etc. You buy it, a month later go to sell them that same car, and suddenly yours is a piece of junk that they'll "take off your hands" for $100 trade in toward that next wonderful car they have.

Coin shops on the other hand are different. Both will buy low and sell high, because they both have to keep their lights on and employees paid, but one is for the unwary who listen to their late night infomercials on talk radio, and one is for the hobbyist who knows a little something about what he's purchasing. You can still lose money at a coin shop, don't get me wrong, but you won't generally see the 50% markup issues, because customers going into a coin shop are generally more well-informed and they know they can't get away with it.

But never, ever go purchase from somewhere that has doom-and-gloom ads on talk radio or late night infomercials. That's a sure sign you're going to lose your shirt. Never buy from somewhere that is hawking one specific coin over all others, as this is usualy going to be the one with the highest markup. Never purchase from somewhere with high-pressure sales tactics.

SO.. if you're going to go to a retail establishment always go to a coin shop not a coin dealer... look for BBB ratings, ANA memberships, etc. Do your research ahead of time, maybe do some comparison shopping and AVOID the type of place mentioned in that post.

A few other items of note:

-Any US coinage that is colorized or otherwise "decorated" is going to lose value. US mint does not do colorized (yet?) and 99% of US collectors view after-market colorizing as damage, not as something good.
-As a general rule, any coins not minted by the US mint or other recognized governmental entities are going to lose value (This includes Franklin mint, national collectors mint, et al). Certain other mints you might do OK, like Canada for instance, but positively do not buy a set of coins from some other countries like Liberia. (Don't ask me how I know about that, my Liberian $5 coins that I paid $5 each for are worth about 8 cents)
-Any "flavor of the month" coin-- ie Obama coin, or Tea Party coin, or Elvis coin, etc is almost assuredly a loser.
-Never buy something brand new which is marketed as a "collectible" or "commemorative" coin from the getgo (the sole possible exception would be direct from the mint, but even then is iffy). Commemoratives, even those purchased direct from the Mint, often trade at or near bullion value. Proof sets tend to drop or minimally appreciate. SOME proofs from the US mint are good, but as a whole I'd stay away.
-personally I would never by an ETF, because there is some speculation that the companies putting them out do not have the physical metals to back them up.
-If you're looking at this from an investment perspective, remember too that you have to add in other fees such as storage fees (or safe deposit box fees), and then taxes if you sell them...

Note: He's asking about investing in precious metals by way of coins and is located in New Zealand.