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Is Coin Collecting Dead As An Investment?

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Pillar of the Community
United States
4624 Posts
 Posted 03/12/2018  10:07 am  Show Profile   Bookmark this reply Add USSID18 to your friends list Get a Link to this Reply
It's not investment but I'll give you my financial advise in three words, and I won't even charge you! "GET DEBT FREE"
Proud member of the Black Sheep Squadron!

Valued Member
Canada
369 Posts
 Posted 03/12/2018  5:54 pm  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply
Was it ever an investment?

If your goal is to invest, then you need to look at the buy/sell spread for any given investment. For precious metals, the spread is less for wafers or bars vs. bullion coins at any weight level so a metal investor would hold bars or wafers. If you want to multiply your results, purchase the stock of a reputable mining company.

Coin collecting is a hobby. You should collect what interests you and what you enjoy. For some that is Doulton figurines, others collect classic cars, for those of more modest means, car models. I enjoy collecting coins; I am drawn to their aesthetic, the history, the backstory of the coin's creation. While a fairly un-interesting coin series aesthetically, I personally am drawn to the series of James II Irish Gun Money from the 1689-1690 period... The whole concept of melting scrap brass, church bells and the odd cannon to provide a period version of quantitative easing is fascinating.

There is money to be made but as other posters have commented, it is usually in high grade, rare circulation coins. Buy mint product, be it from the Perth Mint, The Royal Mint, the Canadian Mint or any other national mint and you will realize a net loss in value over any short or medium term. The mints have squeezed the maximum value out of the product at the initial point of sale. Most RCM silver proofs sell for approx 5x bullion value; it will take a long time for bullion silver to rise sufficiently for you to recover your buy-in price. In addition, most RCM silver proofs are minted in sufficient quantity that there is no real supply constraint that may cause value to climb. The Royal Mint and Perth Mints have similar markups and mintages.

Finally, most mints have not come to terms with the threat of low cost counterfeits that are flooding the market... nor do they really care that much. The threat of counterfeit coins has impacted and will continue to impact the market for raw coins and there are even a few threads on this forum where respected TPG companies have been accused of certifying counterfeits.

If you want to collect coins... treat it as a hobby... enjoy the hunt, revel in the history and build a knowledge and experience base from the learning that goes along with the pursuit of any hobby.

If you want to retire comfortably or leave a nest egg for future generations, there are many paths you can follow... I just don't recommend coin collecting if that is your goal.
Valued Member
Australia
116 Posts
 Posted 03/15/2018  11:45 pm  Show Profile   Bookmark this reply Add serenitystan to your friends list Get a Link to this Reply
NOTE... What about all those poor souls who invested there hard earned with the Rare Coin Company..1.8 Million dollar fraud..FAAAARc..
Valued Member
Australia
268 Posts
 Posted 03/16/2018  04:15 am  Show Profile   Bookmark this reply Add CoinOS to your friends list Get a Link to this Reply

Quote:
If you want to collect coins... treat it as a hobby... enjoy the hunt, revel in the history and build a knowledge and experience base from the learning that goes along with the pursuit of any hobby.


Yeah, that's what I do.

It's a hobby. I'm far too honest to be a coin dealer.

Love the hunt, yup.

Revel constantly in the history.. far out.

Knowledge increasing daily..soon I'll know everything.

Also I collect silver coins because silver will always have value, even if the world's economies implode and all is lost - I know one of my 1932 florins will buy me a happy meal.


..and when a coin collector is hungry ^^ that's what really matters.
Pillar of the Community
Canada
812 Posts
 Posted 06/01/2018  5:57 pm  Show Profile   Check walk2dwater's eBay Listings Bookmark this reply Add walk2dwater to your friends list Get a Link to this Reply

Quote:
Of course people also buy because they like the coin plain and simple (which I have done because I like a series, or the dates/theme for my kids), I'm looking at it from an investment view. Thoughts?


- I find this topic interesting because I've often thought about it myself.

- I agree with many of the posters who have replied "yes" and "no."
If you're going to buy because you "like a series, or the dates/themes for" your kids than I'd say "no" (not a good investment). If you're seriously considering collecting coins as an investment- then the kids (or series) should be the last criteria that would guide you. As a few posters eluded to: you need to know your stuff.

Now, I'm not replying from a coin buyer's (or collector's) perspective but rather from someone who collects (buys/sells) Canadian paper money. I'm also NOT primarily an investor but also a collector- so take my opinion with a grain of salt. Be that as it may: an investor should be buying (& selling) "well." That means (I believe) putting the most money he/she can afford to the highest graded rarest note (coin) he/she can afford. {Forget quantity & focus on quality} Remember that people don't necessarily buy simply what is rare- but what also is popular (or has extreme eye appeal).

In a lot of cases (esp online) you'll want to turn to TPG material because you cannot inspect the note (coin) in person and that TPG grade ensures you've got something highly graded by a 3rd party. If you're seriously considering the hobby as an investment vehicle you must brush up on your grading skills so you know what you're buying.

The other factor not yet discussed is: when and where you buy (& sell). When I first started to buy online (from eBay) I felt the market was pretty "hot" so a lot of the material I bought back then has probably sat "idle" as an investment (& may even have depreciated). Because I never consider what I buy as "junk" I'll either sell it (to break even) or "gift" it to my nephews/nieces (see them appreciate it now).

However, I've learned from my past mistakes and have bought more and more material while the sellers market was "soft" and I believe got some fairly good "deals" on special numbers, and rare change-overs, series. However, generally speaking I avoid "deals" like the plague because most often there's something wrong with the note (coin) when it is being sold undervalued (pressed or soiled).

Since brushing up on what's collectible (& what's not) I've also found some "beauties" issued right from the bank (for face value). These rare items should spell "nothing but profit." However, do I dump them now or hold onto them until the market is itching for them?

I've also turned to buying people's collections (i.e. where you buy). I usually offer a fair price (which is much less than book) to people who are eager to sell. I have yet to sell any of this "stock" but be assured I will make a small profit on the notes when I decide the market has improved enough to sell.

Now all of the above depends on "when" so again- lets hope the world economy doesn't unravel into the toilet- or otherwise everything I wrote here is meaningless! LOL
Edited by walk2dwater
06/01/2018 6:03 pm
Pillar of the Community
Australia
540 Posts
 Posted 06/02/2018  10:31 am  Show Profile   Bookmark this reply Add wwwww to your friends list Get a Link to this Reply
@stan - people lost a lot more than $1.8M, that was just the amount stolen (not fraud but criminal theft) by its director Rob Jackman.
CCF Advertiser
United States
39 Posts
 Posted 02/16/2020  10:47 pm  Show Profile   Bookmark this reply Add Paradime Coins to your friends list Get a Link to this Reply
I agree when it is said that rare coins will always be in demand.
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