| Author |
 Replies: 20 / Views: 1,811 |
|
Valued Member
United States
137 Posts |
Hey! I am a beginner to the idea of investing in coins, not just collecting. Can someone help me out? I am looking for things like pros and cons, tips, basic info, etc. Thank you so much!! I want to approach the idea of investing in coins the right way!  |
|
|
|
Bedrock of the Community
 United States
24886 Posts |
The information you request simply can't be conveyed easily.  Inordinately fascinated by bits of metal with strange markings and figures
|
|
Valued Member
 United States
137 Posts |
Thank you for letting me know!!
|
|
Bedrock of the Community
United States
10472 Posts |
Quote:
I want to approach the idea of investing in coins the right way! Follow me...... |
|
Valued Member
Italy
284 Posts |
This is a very popular questions lately, has some TV program aired that talks about investing in coins?  Collecting coins is probably best left for fun and pleasure. If your goal is to consistently increase money for the future (distant or near), there are way better tools for investing. Buy stocks, bonds, funds or other financial derivatives (and then buy coins with your profits! ) Consider this example: you buy today a very nice coin for $10k. Let's say you are lucky and say you sell it in 5 years for $15k. Remove maybe 20% for fees at an auction; that leaves you with $12k. Hopefully you don't pay capital gain taxes on those. The end result is that you made $2k in 5 years. Pretty much every other investment will perform better. If you want to at least retain some kind of easy-to-return value for your coins stick with slabbed high grade or rare coins. Those will not loose -- hopefully -- all their value and might even increase but expect to loose a considerable chunk of it when you will sell (fees, time, etc). Selling numismatic coins is not cheap.  |
|
Pillar of the Community
United States
2001 Posts |
Collecting coins as an investment vehicle is not wise, however stacking bullion (silver and/or gold) can provide a hedge against inflation over the long term. If investment is your concern you would be better off choosing another venue.
|
|
Moderator
United States
187544 Posts |
I hate to pile on, but coins are just a hobby for me and not an investment. At least it is better than many other hobbies that lose most if not all the money you put into it.
|
|
Bedrock of the Community
United States
19111 Posts |
Have to agree with all above...
|
|
Moderator
United States
94666 Posts |
I buy coins and bullion rounds for fun, but in the end, when I'm retired I may sell it off- not expecting any huge profit from it, but it does hold value that can help a bit later on.
|
|
Valued Member
United States
137 Posts |
Thank you all so much!! This has really helped me
|
|
Moderator
United States
187544 Posts |
Our pleasure! I hope you continue to enjoy the hobby.  |
|
Bedrock of the Community
United States
10029 Posts |
Coins do not make good investments.
Actual example - one of many - from my own experience:
In the 70s I bought a 1950-D (key date) bickel for 9.00. According to an online dollar deflation calculator that 9.00 back then would buy 54.00 of coins today.
Currently I could get a raw 1950-D for 12.00. At 12.00 I could buy 4 (and one half!) of them today at same cost.
Morgan CC dollar were being sold when a hoard was found. Same type of calculations show the cost they were being sold for is slightly less or same as you can get one today.
Even if you choose to buy gold or silver coins, they are not an investment, they are a hedge against inflation. They will not lose value that putting away modern clad and paper money will lose with time.
|
|
Pillar of the Community
 United States
7933 Posts |
joe_77 gave a great answer with a realistic example. And note that the example is for a single $10,000 purchase.
If you are spending 50 or 100 dollars at a time, plan on having more losers than winners (after taking the costs of selling into account).
|
|
Pillar of the Community
Australia
3831 Posts |
Agreed with all the points raised above.
That said, that does not mean you cannot make money in anything. As long as you can identify what is of value at the right price, sure why not.
Coin shops exist and they have to make a living somehow.
|
|
Moderator
United States
187544 Posts |
Quote:
Coin shops exist and they have to make a living somehow. I am not a dealer, but if they are like any other store, they make money buying low (wholesale), selling high (retail), and turning volume inventory as fast as they can. They rarely sit on anything for a long time and know when to cut their losses. |
|
Pillar of the Community
United Kingdom
2868 Posts |
Many collectors will pay over the odds for a coin they really would like to own, because they are collectors, not investors. Anyone looking at a coin for investment purposes will be competing with that mindset amongst others so that adds to the difficulty in realising any sort of quick return for some coins. Same for any collectible. Dealers survive because they have customers in mind for choice items when they buy them and the bullion market is a substantial part of their business.
Those rarities that command 5 or 6 figures seen to operate under different rules where the super rich act on a whim and the volatility on prices is greater. Greater possibilities, but greater risks. Certainly not a pond I fish in. :)
|
| |
Replies: 20 / Views: 1,811 |
Posted 08/26/2025 11:49 pm
