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 Replies: 9 / Views: 1,719 |
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New Member
United States
46 Posts |
First off, let me begin by saying I purchase my items based on the coin and what I like--not necessarily for a future profit....but as I expand and grow my collection, I ma increasingly focusing my purchases on the best that I can buy for the price. with that said, I have heard reference to the fact that the best "purchases" for increased "investment profits" are high grade coins. ....what is now considered the level of high grade? ---MS65 or better? PR70?...full steps/heads/bell lines?
thanks
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Bedrock of the Community
Australia
21786 Posts |
I am forced to agree with the proposition that there are far better investments than coins. Better to collect them, simply because you enjoy the hobby.
Sometimes, the best you can buy for the price is
what you have to consider at the other end of the grade spectrum,
because that is all what your budget will allow.
Nothing wrong with that!
Over a period of decades, such a low budget strategy can still give rewards well above the inflation rate.
It can still pay to be humble and to happily accept coins in F or VF condition.
That has been my experience, anyway.
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Pillar of the Community
United States
5825 Posts |
Quote:
I am forced to agree with the proposition that there are far better investments than coins. Better to collect them, simply because you enjoy the hobby. This is the general feeling among longtime collectors and dealers. And even if you disagree you'll find that MS-65 should NOT be included in investment coins unless the population report shows none better. Look at the population reports and go for the best. As for PF-70, that's artificial; resubmit it several times and you'll probably get a fair number of MS-69. |
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Moderator
 United States
23522 Posts |
Quote:
This is the general feelingproven experience among longtime collectors and dealers.
There, fixed that for you.  All of the above is true. An MS65 1893-S Morgan is a solid investment, but the same in an 1880-S is inconsequential. And that is as close to generality as your question can ever be answered because prices, like everything else in numismatics, are completely subjective. Supply (usually) doesn't change but demand sure as heck does. |
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Rest in Peace
United States
4078 Posts |
Edited by bpoc1
04/21/2015 4:15 pm
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Bedrock of the Community
United States
20753 Posts |
 The only thing I can say is try to remember that this is a hobby. Use it for fun, education and lots of 0ther things. However, if you continue to think of coins as an investment, someday you will be sorry. |
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Pillar of the Community
United States
1704 Posts |
Modern coins come from the Mint in MS 69/70 so how can these be investment grade when the grade assigned is basically the mood of the grader at the time he is looking at the coin? Investment grade coins, to me, are the 19th and 20th century coins at or near the top of their population reports and are either mintage or grade rarities for that year/mint. An investment grade coin does not necessarily have to be uncirculated.
I like old coins. I buy what I like at the moment. Most of what I buy would not be considered investment grade and I don't care, I am a numismatist not just a coin accumulator. I study the the coins I collect. Why did they strike the number they did, what was going on economically in the country then and such.
I do not fill albums or folders just to complete a series, I have been there and it does nothing for me now. I do acquire Capital Plastics holders, preferably ones no longer made, and fill them. They are, to me, a very nice way of storing them and I do not have to open a cover then turn a page to see the reverse. It is just more convenient for me. I have both raw and slabbed coins, I really do not like coins in a slab but, there are reasons for why I do not crack them out.
Sometimes I sell something to pay for something else and typically I do not get what I paid for the coin sold but I don't care. I will probably not sell my "permanent" coin collection before I die and will leave instructions as to whom to take my coins to for liquidation. These are the dealers who I trust will not rip them off.
I keep a record of what I paid for each of my coins along with photographs of every single one of them so whoever gets them will know exactly what they are and what they are worth. That in my opinion is the single most important thing many collectors do not do and it puts their heirs at a disadvantage when they decide to sell the collection.
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Moderator
United States
23522 Posts |
Quote:
I keep a record of what I paid for each of my coins along with photographs of every single one of them so whoever gets them will know exactly what they are and what they are worth. That in my opinion is the single most important thing many collectors do not do and it puts their heirs at a disadvantage when they decide to sell the collection.
Not to mention it may actually help rather than hurt when it comes to calculating cost basis. Relevant to the original question here is the fact that Gyrene may have coins which will be worth less when he passes than when he bought them. Probably not in his case 'cause he ain't the dullest knife in the drawer when it comes to coins, but the market is quite capable of being that fickle. Silver didn't recover its' 1980 peak until something like 2008. |
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Bedrock of the Community
United States
11951 Posts |
Investment grade coins. The problem with buying coins as a investment is when you have to sell them. If your buying coins at market price it may not be possible for a collector to sell the same coin and make a profit. You have to look at how you, as a indivual, will sell your coins. Will you sell to - a dealer - online ...like ebay- auction All of them will take a percentage. That percentage can be from 15 to 50 percent. For you to buy investment grade coins and plan to sell sometime in the future, the market would have to increase a good amount just for you to break even. High grade coins have not always increased in value. In the past I have seen some MS 65 Morgan dollars sell higher than they sell for today. I get to see a lot of people selling coins. The ones that have bought coins and only had them a short time, 5 to 10 years or less, are shocked to find out they are getting less than they paid. Edited by GR58
04/22/2015 06:32 am
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Bedrock of the Community
Australia
21786 Posts |
Actually, I am happy to buy a coin in Fine condition only, simply because there is none better available. That can especially apply hammered coins.
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Replies: 9 / Views: 1,719 |
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Posted 04/21/2015 08:58 am
