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New Collector Wants To Make Some Wise Investment Decisions.

 
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United States
79128 Posts
 Posted 11/12/2019  4:49 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
I don't regret my purchase.


Hobbies need to be enjoyed. Otherwise, it is just work.
Pillar of the Community
Canada
2845 Posts
 Posted 11/12/2019  6:03 pm  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
@joh882, I would advise you to start the hobby slowly. Dip your toes in first before you plunge in. By starting off with this dollar, you are setting yourself up for an expensive disappointment. Most of us have regretted some of our earliest purchases.

if you get this 1948 dollar, what do you plan to get next?
Pillar of the Community
Canada
1026 Posts
 Posted 11/12/2019  7:15 pm  Show Profile   Bookmark this reply Add 1cent to your friends list Get a Link to this Reply
Buy solid, dividend paying stock, and purchase coins you have a passion for with the quarterly cheques. When the counterfeiters perfect their trade, nobody will know...because they will be that good. There's also going to be a lack of well-heeled buyers to drive prices in the future. Collect for love of the hobby, not money!
Pillar of the Community
Canada
2232 Posts
 Posted 11/13/2019  07:21 am  Show Profile   Bookmark this reply Add doubleeagle59 to your friends list Get a Link to this Reply
Personally, if I was investing towards a twenty year time span, the no brainer investment would be silver bullion.
Pillar of the Community
United States
673 Posts
 Posted 11/13/2019  09:19 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply

Quote:
Personally, if I was investing towards a twenty year time span, the no brainer investment would be silver bullion.


I would reconsider this, as this is definitely something you have to think about. The price of Silver has risen and has fallen.

https://silverprice.org/silver-price-history.html

While it looks like you would have earned 6% over the 20 year life, you have to take into account the inflation rate so that initial investment was worth almost 50% more compared to today's dollar value. And if you have purchased silver in 2010 and held it for 10 years you would have lost value. I'm not saying don't hold silver, long-term its keeping up or close to the value of inflation, but like any speculative investment you have to know when to hold and when to sell.
Edited by hfjacinto
11/13/2019 11:26 am
Pillar of the Community
Canada
2280 Posts
 Posted 11/13/2019  10:17 pm  Show Profile   Check Wade's eBay Listings Bookmark this reply Add Wade to your friends list Get a Link to this Reply

Quote:
Quote:
INVESTING in Coins is foolhardy at best .

That is a straight answer. Have fun collecting, but do not think you will make any profit. It sucks, but it's true.


Truer words rarely spoken, collect for the love of it, nothing else.

I've spent a bunch (a bunch to me, too much for some, and a drop in the bucket compared to others) on my collection.
I've learned to be disciplined in my buys (with the odd "gotta have it no matter what" purchase).
I am confident that if I sold today that I would re-coup my "investment", maybe even make a few $$$, but after considering inflation and future selling fees I would be happy to break even.

If you want to invest... buy property. Coins will continue to be made (along with beanie babies and postage stamps), but no one is making any more dirt.

IF you decide to invest in coins, other than making it a very small part of your portfolio, buy the highest quality you can afford, even if it means 1 exceptional coin instead of 25, or 100, of an "everyday" issue. And/or go for gold and silver content.

Or, if you like coins, then collect what you like and just enjoy them. A collection does not need to be "valuable" in order to have meaning and give you satisfaction.
Valued Member
Canada
182 Posts
 Posted 11/13/2019  11:41 pm  Show Profile   Bookmark this reply Add twoods to your friends list Get a Link to this Reply

Hi Joh882,

Welcome to the hobby, I've often thought about posting a similar topic to yours here on the forum.

I agree with most of the replies you've received...it's tough to make money investing in coins.

Many of the common coins have declined in value due to a number of factors (fewer people entering the hobby, material from estates flooding the market, etc.)

Having said that, there are some areas where Canadian coins have appreciated in value...the truly scarce and rare material has been drawing strong bidding at auctions of late...some of the coins I've noticed with high prices are the lower mintage Victorian ones in higher grade, and the early high grade specimen coins which also had lower mintages...

It seems that the very high grade coins usually attract attract a lot of attention when you are selling.
It's important though to set limits when you are purchasing coins, especially through online auctions since you don't know who you are bidding against.

There are people here on the forum that are far more knowledgeable about the hobby than myself who can help you avoid first time mistakes. Be cautious, keep learning, and keep asking questions, the people here are a wonderful resource and are correct in saying that ours is a great hobby to be part of...

Best of luck to you
Pillar of the Community
Canada
1003 Posts
 Posted 11/14/2019  05:20 am  Show Profile   Bookmark this reply Add purelywasted to your friends list Get a Link to this Reply
I have a bit of a different philosophy on coins as an "Investment". There is the capital appreciation component and there is the non-financial component. The financial component is easy to calculate, but what is the value of a hobby that you can turn around and sell at the end, eg. coins have a permanent asset value. Compared to something more active, where all you have left is the memory.

If I spend $20,000 on coins, in 20 years I'll have an asset that is probably worth $20,000. If I spend $20,000 on golf, in 20 years I'll have an old set of clubs worth $50 if I am lucky. With both hobbies, I'll get enjoyment, memories and some good times.

For me, the financial return is more than just capital appreciation.

I agree the 1948 would not be my first choice. I would rather pickup 4-5 nice vickies.
Valued Member
Canada
435 Posts
 Posted 11/14/2019  08:18 am  Show Profile   Bookmark this reply Add tamarin to your friends list Get a Link to this Reply
Well, let's hope silver bullion has a future. The cemeteries are full of silver investors. I like the story and continue to accumulate but that zeal that arrived so many years ago has faded. Now it's just a habit. And once more, collect what you like but give weight to eye appeal. When your collection is sold in the future, grade will count but eye appeal will score.
Pillar of the Community
Canada
792 Posts
 Posted 11/15/2019  10:35 am  Show Profile   Bookmark this reply Add punman to your friends list Get a Link to this Reply

Quote:
IF you decide to invest in coins, other than making it a very small part of your portfolio, buy the highest quality you can afford, even if it means 1 exceptional coin instead of 25, or 100, of an "everyday" issue


I agree. Playing along with your 1948 silver dollar example, for the price of an MS62, you could buy about 65 MS60 of the 1949 dollar. Neither one will be likely a great investment, but when you go to sell the 1948, you will have dealers/clients willing to buy. Try finding a dealer willing to buy 65 of the 1949s all at once and see what you will get - most will not want to buy at any price as they have so much stock already - and it will take you forever to sell one at a time on eBay; likely at a substantial loss.

I'd take the one 1948 over the sixty-five 1949s in a heartbeat.
Valued Member
United States
222 Posts
 Posted 11/15/2019  12:16 pm  Show Profile   Bookmark this reply Add beachnut to your friends list Get a Link to this Reply
All good advice.
Collect for the love of the hobby, not as an investment.
Pillar of the Community
Canada
1026 Posts
 Posted 11/16/2019  1:40 pm  Show Profile   Bookmark this reply Add 1cent to your friends list Get a Link to this Reply

Quote:
If you want to invest... buy property.


This is a good point too. In many urban centers, property valuation has roughly doubled every ten years. Older, modest starter-type homes around here are in the $400,000-$450,000 range, and many areas in Vancouver and the GTA surpass that. The average home price is now around $750,000 here. If you didn't buy something while it was cheaper, it's very tough to get into something now, unless you have a fairly lucrative job.


Quote:
The cemeteries are full of silver investors
LOL that is a great quote, and true! I've also met plenty of gold miners who are "on the verge of the mother lode!"
Pillar of the Community
Canada
3682 Posts
 Posted 11/16/2019  3:09 pm  Show Profile   Check Libertad's eCrater Listings Bookmark this reply Add Libertad to your friends list Get a Link to this Reply
Doesn't that also mean you pay more in taxes?
It's like having a sweet Ferrari but you pay more in insurance than in gas.

This topic is kind of a great question. Most Canadian coins are in the 2 to 3 figure price range. Gold gets into the 4 figures, but then the mint ruined the 1912-1914 gold pieces kind of recently. 1948 silver dollar? Newfoundland gold? What is good? Without a good solid answer to this topic we all know where coin collecting is headed in 10 years. If that's the case I hope we see another silver bull market so that the real collectors hold onto good historical stuff and just let the rest go.

And, say, how is the common man supposed to invest in a home when there are more cost-effective investments out there? Why put all your eggs into the same basket, for which you have to do repairs and upgrades? Simply put, why buy 1 unit of gold @1470 when you can buy 85 units of silver@17.30? The obvious reason would be because it's gold, d'uh, but silver has a lower cost-per-unit. It's easier to get into AND OUT OF silver than it is gold than it is Canadian coins than it is Canadian mortgages. Mortgages are liabilities. They are long-term debts. Silver is OWNED immediately. A house is not.
Edited by Libertad
11/16/2019 3:28 pm
Pillar of the Community
Canada
4376 Posts
 Posted 11/16/2019  6:14 pm  Show Profile   Bookmark this reply Add john100 to your friends list Get a Link to this Reply
A home in Canada is tax free, as is the Tax free savings account, but these are investments coins are a hobby.
Valued Member
United States
324 Posts
 Posted 11/16/2019  8:19 pm  Show Profile   Bookmark this reply Add Lionel90 to your friends list Get a Link to this Reply
An investment has a time to buy and time to sell. As I get older I have less desire to sell my coins (I like them) so that may fall to someone else Who doesn't know about coins. Stocks, bonds, or real estate could be easier to sell at full value while coins can be a little confusing.
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