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 Replies: 12 / Views: 1,109 |
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Pillar of the Community
United States
1203 Posts |
Was just handed the latest evaluation by an independent evaluator, of one of my 'lesser' sets of Buffalo nickels coins. This same company assessed the value of this set in Dec. 2003 and I just layed it asside and forgot all about it until last month. I dug it out and had them do another evaluation/appraisal of the same Bufffalo Type Collection. They just ran a second appraisel of this set and in the past two years, the value of the set in question has appreciated to a potential value of approximately 25% more than it did just two years ago. That averages a little over 12.5% per year, which will compare favorable with any stock you want to buy on the S &P board. Not bad for a old collection of nickels, now is it?  |
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Pillar of the Community
United States
954 Posts |
Not bad at all. |
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Valued Member
United States
287 Posts |
Good deal and plus you have all the enjoyment of having your collection to look at.
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Rest in Peace
United States
2684 Posts |
Dan, I've watched my own collection appreciate an average of about 25% per year over the past four years. Certain coins are appreciating at over 50% per year. Other than the esthetic pleasures of owning and physically being able to look at and hold these delightful little pieces of metal, it's also nice to know their value keeps increasing.
Anyone who invests in the stock market these days is (1) nuts; (2) a gambler at heart; (3) is fiscally suicidal; (4) has been following bad advice; (5) has insider trading information; or (6) hasn't learned about coins. The stock market is a house of cards despite its recent rise; what goes up WILL come down and speed of light is no restriction. It also demonstrates no logical predictive patterns, relies on the whims of analysts and traders (somebody in Bahrain stubbed their toe, so the market takes a dive; some analyst had one too many martinis for lunch).
I think a significant reason we're seeing appreciation of coin values is that so many have gotten out of the stock market game and into investments more substantial such as coins.
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Pillar of the Community
 United States
1203 Posts |
I happen to believe your right on who the 'new' investors may be in the coin market. There sure has been an influx of buyers in the last couple of years. As for the Buffalo collection, I also think it has been brought on by the issuance of the Buffalo nickel in the westward series, the many different buffalo on the various quarter designs over the last couple of years, and finally the gold buffalo that was just issued. The design itself has taken on awhole new meaning for a lot of people who had overlooked it in times past. How long it stays this way is anybodys guess, or if it will retain its level of price is anothe matter all togather. Like you say, it's kind of fun to just kick back and let it happen. |
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Pillar of the Community
United States
1083 Posts |
Given the fact that grading of US coins, especially uncirculated coins is so subjective, and given that the coin market flucuates with the price of gold and silver and the rate of inflation, and especially because there is no consistent, quick way to market coins if you need to sell them; coins will never replace the stock market. There is too much risk of fraud for anyone but a knowlegeable numismatist to sink the family fortune just in coins. My advice is to diversify in stocks and bonds, and spend money and hold coins because you love having them. If you luck out and make some money selling your collection down the line, it will because you took the time to learn about grading and bought and sold at the right times. You can't go wrong that way! Happy New Year! Colin |
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Valued Member
United States
256 Posts |
For close to 9 years now I have grabbed up every full-horn I could lay my hands on for a decent price. Currently I have over 250 various dates in XF or better. Not too long ago you could get them for a little bit of nothing now it seems they are getting harder to find in the dealers cases and the prices are sure reflecting it.
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Rest in Peace
United States
3730 Posts |
I'm happy for you that your coins are doing so well OldDan.
I have very few coins of real value, but those few have appreciated in value.
Our IRA has really helped us during our retirement years, and one of the big reasons is that my wife asked our financial adviser to add gold to our portfolio.
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Forum Mom
 United States
5877 Posts |
Congratulations, Dan!  I think the various new products that the Mint has introduced are getting more people interested in collecting. I think that many are starting on the modern products and then discovering the older, more classic designs which is pushing the overall market up. I believe this is why many of the "sleeper" series are now becoming in demand - like Franklins, Ikes, etc. |
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Pillar of the Community
United States
1247 Posts |
See what happens when you buy coins simply because you like them? They go up in value anyway. I never did trust the stock market. Now I think it actually scares me with those lunatic derivatives/hedge funds.  Edited by longnine009
12/29/2006 09:04 am
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Pillar Of The Community
3147 Posts |
okie-colin there is NOTHING more risky than giving someone else your hard earned money thinking they will make you some! Plan administrators and brokers get their money up front and NEVER lose a thing and until the day comes when they lose as much as the guy/gal they were investing for I will never stick another dime into stocks or a 401K, which has been described as one of the greatest hoaxes ever in America! As for getting rid of coins, I don't understand your problem as I buy and sell almost weekly and can honestly say I have made much more off of numismatics in the last ten years than I have ever dreamed of in stocks. The only REAL winners in the stock market are the rich who can get in BIG and jump out quickly. Take the profits and run as they know what will happen if they don't. Try and locate the book, "The 401K Hoax in America" and give it a read! The whole thing was set up to continue the flow of cash into the coffers of the rich. And, I might add, if it wasn't for the 401K plans throughout the nation the stock market would have crashed in the last few years. The middle class investors funneling hard earned cash into employer 401K plans every Friday, took the huge losses and saved the rich mans stock market!!! And I will also add when the stock market took the huge nose dive the RICH had already bailed out before the dive (funny how they always know) and were investing heavily in gold, silver and collectable coins! And most of them are still there! Old Dan I saw a low grade 1913S Type 2 sell for $220 last Saturday that I would have loved to grab, had I had the extra money available, as they are about as scarce as frogs teeth! And now with all the folks destroying low grade Buffalo nickels with acid the real McCoys will continue to march upward in value. I am currently working two, actually three, more sets of Buffalo nickels and I buy just about anything in Fine or better that I can get my paws on. My dealer showed me a report a few weeks ago that stated the Indian cent and the Buffalo nickels have been the best performing coins in the last 30 to 40 years! Wish I had gotten my addiction started years and years ago and do regret not ever finishing an Indian cent collection!!! Edited by crystalk64
12/29/2006 09:21 am
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Pillar of the Community
United States
2540 Posts |
Guys:
I agree that properly graded Buffalos are due for an increase, especially nice MS-65's and better date pieces. I have a 1918/7 D in G-4, ANACS that is possibly undergraded. Got it in December 2004, and I wouldn't sell it for anything. Also, a 1937 D three leg in VF-30 (now in a conservative SEGS holder) I got it in April, 1998 for $210 and now it trends for $1,100 in VF-20. I also cherried a 1930 5 leg Buffalo in 2000 for 25 cents, and it trends for about $25 in VG (mine is VG-F).
Also, picked up some MS-65's (PCGS) over the last couple of years, but, only consider those without any spots.
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Pillar of the Community
United States
1083 Posts |
Terry, I respectfully disagree. Any investment requires that someone have knowledge of what they are doing. You have made money trading in coins largely because you know what you are doing. The same is true for the stock market. Anyone who blindly turns over their saving to a 401-K plan, IRA, or anything else without understanding the risks involved is headed for a fall. No hoax, but statistically, over time, the stock market has been the best at earning a return. I think coin collecting can have an important place in a savings portfolio, but my collection doesn't pay me interest or dividends that I can live off of, like my IRA. Furthermore, unlike buying into a large mutual fund, it even more true that you better know what you are doing when you buy and sell coins. The average citizen would be like a lamb to the slaughter trying to make coins their major investment. Isn't there a criminal conspiracy case going against a large dealer that sold some state on ivesting public employee's retirement funds in coins? There are many more examples of this in recent history. My motto is to collect coins because I love them, the designs and the history. If my kids make out on them after I am gone, so much the better. Peace.
Colin
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Replies: 12 / Views: 1,109 |
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Posted 12/27/2006 7:39 pm
