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Collecting Coins Vs. Collecting Bullion.

 
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Author Previous TopicReplies: 12 / Views: 1,153Next Topic  
Pillar of the Community
United States
2098 Posts
 Posted 09/14/2016  2:39 pm Show Profile   Bookmark this topic Add Connor to your friends list Get a Link to this Message
I am not sure what section of the forum to post this without getting biased opinions. Let's say we have two people that have $5,000 apiece. One person invests $5,000 in coins (it is your choice for the type of coins) and the other invests $5,000 in bullion (it is your choice to the type of bullion). At the end of 10 years both decides to sell. Who do you think will come out on top with more money after selling and why? What type of coins/bullion would you purchase?

I understand that this is a hobby to most and you don't buy to resell.....but in this case you do.

I am curious to see the different answers...
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United States
94382 Posts
 Posted 09/14/2016  3:02 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
To make a small fortune in coins, start with a large fortune.

If I am going to invest in physical metal (I am not), it would be bullion and not anything with a numismatic premium.

Just my opinion.
Bedrock of the Community
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United States
53614 Posts
 Posted 09/14/2016  5:25 pm  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
The price of bullion reflects many concurrent variables - it should be acquired and sold during appropriate circumstances, not simply bought today and sold automatically in 10 years. This leaves everything to chance or luck - not skill.

So the answer to your question must be to invest (with knowledge) in individual coins so that the skill factor indeed comes into play, like with all sound investing.

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Australia
13496 Posts
 Posted 09/14/2016  6:06 pm  Show Profile   Bookmark this reply Add Sap to your friends list Get a Link to this Reply
I would say "coins", but not coins in general. Choose the coins that have a long track record of going up in price: the "key date" rarities and high-grade examples of the classic designs that have been popular with collectors for decades. Because they are popular with both collectors and investors, there is more of a buffer against a sudden price collapse than for bullion, for for other things that only investors are buying.

Given the two options in the OP, I would try to find a single coin worth $5000, and buy that. For Americans, that would probably be something like a Seated Liberty or Morgan dollar in high grade. I would expect it to easily beat world bullion prices after 10 years.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
Pillar of the Community
United States
689 Posts
 Posted 09/14/2016  7:02 pm  Show Profile   Bookmark this reply Add BuckeyeCoinGuy to your friends list Get a Link to this Reply
I'd like to turn this into a game like fantasy football.

Fantasy coin buyer, because who doesn't like spending someone else's money, even if it is imaginary.

Either work with an advertisement of a paid sponsor (sponsors) or just eBay to get coin prices. We'd need some standardized parts and ideally parts with some price volatility to make it interesting.

Let users buy / sell coins and bullion in a fantasy market.

Something like that.

Might be a good way to get users to look at the advertisers that support this place even.

Maybe even get a sponsor to give away some prizes.
Valued Member
United States
112 Posts
 Posted 09/14/2016  7:07 pm  Show Profile   Bookmark this reply Add TroyWhite to your friends list Get a Link to this Reply
Connor buying one $5000 coin could be "putting all one's eggs in one basket..." What if that coin falls out of favor, or if it is graded and the population raises?
Bullion is for the protection of one's wealth as the central banks of the world print electronic "money" backed by nothing to infinity. So for diversification how about
buying a $1000 coin, $1000 silver bullion, $1000 gold bullion, $1000 mining shares and $1000 index that follows the CRB?
Bedrock of the Community
United States
17900 Posts
 Posted 09/14/2016  7:45 pm  Show Profile   Bookmark this reply Add moxking to your friends list Get a Link to this Reply
Classic silver commemoratives in MS-66 or 67 depending on nearest top pop.
Bedrock of the Community
United States
20018 Posts
 Posted 09/15/2016  11:12 am  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
I suggest you stick to Bullion. This would mean more coins for me.
just carl
Pillar of the Community
Canada
1746 Posts
 Posted 09/15/2016  11:53 am  Show Profile   Bookmark this reply Add ace_ftw to your friends list Get a Link to this Reply
I think that you are trying to paint 2 different pictures with one can of paint.

to make money in bullion or in numismatics, you need to buy low and sell high (duh) however bullion is a known commodity sold anywhere world wide for centuries. Numismatics (might be traced back to ceasar) but as investments is relatively new.

What people collect today, was unheard of 5 or 10 years ago. (graded proofs, or even graded bullion)

If you are thinking of buying these and sticking them in a time capsule and waiting any specific time frame you are only going to loose.

as mentioned buy low, sell high. Meaning you need to CONSTANTLY looking at the trends and searching for deals to buy, and places to sell. To make significant money you will most likely need to buy and sell multiple items over that 10 year span.
Bedrock of the Community
United States
11935 Posts
 Posted 09/15/2016  3:12 pm  Show Profile   Bookmark this reply Add GR58 to your friends list Get a Link to this Reply
In my opinion

To make money on coins, you have to learn how a dealer does it.

You have to learn how to buy coins at a price where you know
you can resell them for more than you paid.

For bullion .... You have to keep it until the price goes up.
Some keep bullion until it goes up a certain percent.

Putting a time frame on it ... Does not work
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United States
6030 Posts
 Posted 09/17/2016  01:29 am  Show Profile   Bookmark this reply Add Finn235 to your friends list Get a Link to this Reply
Invest in anything like an investor, not a collector.

Key dates and extremely high grade coins are big investment, low risk items. They may keep pace with inflation, but mostly will store value and nothing more. There are of course fluctuations in demand (like in the 50s and 60s) that can impact prices, but it's safe to say that the 1909-S VDB market isn't going anywhere.

The real money to be made is in being at the forefront of a fad, or stocking up before one takes off. Some are predictable--the guys who snatched up the 2015 March of Dimes sets for $65, graded them for another $50, and flipped them on eBay for $500+ knew what they were doing. Some are less predictable, like the surge in prices for all things Marcus Aurelius and Commodus once Gladiator was released. Greater payoff sometimes means higher risk.

Investing in bullion just comes down to doing your homework. Stay on top of world events well enough, and you can generally predict about when precious metals (or industrial metals for that matter) will soar or take a dive. Time has very little to do with it, compared to timing.
My Collections:
Roman Imperial
http://goccf.com/t/348979
Japan Type set Tokugawa + Modern
http://goccf.com/t/348999
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http://goccf.com/t/322087
Valued Member
Lithuania
363 Posts
 Posted 09/17/2016  02:04 am  Show Profile   Check giedrius's eBay Listings Bookmark this reply Add giedrius to your friends list Get a Link to this Reply
The first question is: are You collector or investor? And then two different ways are.....
collector with the deep knowledge of his theme can buy much more expensive items than investor in bullion.
Catalogue of Lithuanian half-groats 1495-1529 http://goccf.com/t/282866
Edited by giedrius
09/17/2016 02:10 am
Pillar of the Community
Norway
1358 Posts
 Posted 09/27/2016  07:20 am  Show Profile   Bookmark this reply Add UltraRant to your friends list Get a Link to this Reply
The great disadvantage of such a game is that there are too many factors involved which are outside the control of the participants. First and foremost, the precious metal value, which differs per day and seems hugely impacted by 'worldly' occasions like politics, the economy, wars, incidents, accidents and even the weather. Also, interest in bullion collecting as saving and coin collecting as hobby seem to be impacted by these factors: huge uncertainty leads to more interest in collecting PM where coin collecting flourishes with stability and a booming economy. So if I bought silver around 1980 and had to sell it 10 years later... I would have lost almost all I invested.

If I had to buy my stock today, I'd probably invest in key date coins, as PM is relatively extremely expensive, especially gold, to buy right now for the mid term. I expect prices to drop as soon as there's a new president in the US and Brexit has been concluded, and if Putin and Erdohan didn't start a war.

Ask me the same question next year and I might invest in something else.
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