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 Replies: 18 / Views: 9,052 |
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Pillar of the Community
Australia
762 Posts |
I justify the money I spend on Numismatics by telling myself that I'm not spending money...I'm investing money.  This may be partially true but in reality I would have to sell an item for me to get a capital gain and I can't see myself doing that any time soon. The pleasure I get from coin collecting means I will be happy even if I break even. A few stories I have heard lately have got me thinking about how you would actually realise a profit from coins. I heard a story on a different forum of someone who bought a 1930 Penny in 2005 from a coin dealer and then needed money to buy a house in 2011 so sold it on ebay for a $7000 loss. There is also dol787 and his Australian Lunar Series. https://goccf.com/t/108597It confirms the old saying that we hear so often " A coin is only worth what someone else is prepared to pay for it". So how do you make a profit from coins as an investment? With all the Auction house fees your item need to have appreciated by about 20% plus inflation just to break even!  |
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Pillar of the Community
Australia
841 Posts |
 cobba and that's why I've asked questions about investing and the like and to tell you the truth I honestly don't think I'm any further ahead as it just gets too confusing so I think I'll stick with circulation coins for now  One day I hope to have one or two nice coins..good luck with it roo |
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Valued Member
Australia
318 Posts |
I don't have a good answer. I collect because I like to collect, though in the back of my head I'm thinking in 40 years time they could fund the retirement! (Though would like to hope that I would be in a position to pass on coins to interested kids and grandkids, rather than selling).
In 50 years I would imagine everything would have valued significantly!
I don't think coins and banknotes are the go for short-term investment opportunities.
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Pillar of the Community
 Australia
762 Posts |
Quote:
I don't think coins and banknotes are the go for short-term investment opportunities. Probably not even a medium term investment unless you are lucky. I too hope that I can pass on my collection rather than sell it. It makes me wonder though what the collecting community will think of NCLT in 30 or 40 years time. By then there will be so much of it around that I can't see it being seen as anything more than bullion. |
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Valued Member
Australia
191 Posts |
I make a bit of money out of coin collecting (nothing too major and I'm sure if you added up the hours I spend doing it, I would be earning well well well below minimum wage), having said that it's a labour of love. I am not making money by investing in coins over the long term, in the majority of cases I just make some money out of noodling and some savy buying and selling. I do loose some money on coins I sell but I find in the majority of cases if you do your research (buy using good mediums and sell using good mediums) and are prepared to wait there is some money to be made.
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Valued Member
Australia
191 Posts |
In the true sense of investing there is money to be made if you are prepared to hold onto a single coin/banknote. If you have the cash to buy a proof sovereign, proof pre-1955 penny or 20 through 1000 pound banknote they will always go up in value over time because they are rare and will always be in demand (unfortunately collectors like myself can only dream of owning coins like those). Other coins will generally go up in price (with the exception of decimal coin/notes, which go up or down, it really depends which issue you are looking at), pre-decimal coins over time (10-30 year period) always go up in price.
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New Member
Australia
12 Posts |
hi guys/girls sighned up then got a job over in england on the games work, back in ozz now bought some good australian coins there,i think the rear ones are good invesment. and silver you will never losse on
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Moderator
 Australia
16827 Posts |
Quote:
So how do you make a profit from coins as an investment? With all the Auction house fees your item need to have appreciated by about 20% plus inflation just to break even! Wiser folks than me have said that the easiest way to make a small fortune selling coins is to start off with a large one. Here are three tips to make money in coins: 1. As with all "investments" (or, more properly, "speculations"), the trick to making profits is to buy low, and sell high. Coin dealers make their profits by buying coins at 50% to 75% of their "book value", then selling them for book value or more. If you're buying coins at book and selling them at book, you'll never make any money. 2. Wait it out for the long haul. Six years is nowhere near long enough to guarantee a good return. As MoR said, guaranteed profits for rare coins (and I mean the true classic rarities, not the flash-in-the-pan fashions of modern mint products) only come about after decades. In that sense, coins typically offer less of a return than other long-term investment strategies (such as the share market), but still better than inflation and with less risk of a sudden collapse just when you want to sell. 3. Choose your sale market carefully. That dude sold his genuine 1930 penny on ebay? Seriously? With all the fake 1930 pennies on ebay these days? I tell everyone I can meet to avoid ebay like the plague unless they really know their coins, especially when buying and selling high-ticket items. Some things with a very small niche market, such as rare medals or tokens, might do better on ebay than in a brick-and-mortar auction because ebay reaches a wider audience, but the truly high value stuff benefits the most from the guarantees, checks and balances a reputable auction house can deliver. 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
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Pillar of the Community
United States
1151 Posts |
Buy Low - Sell High .....
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Pillar of the Community
Australia
652 Posts |
IMHO, there is little profit to be made in decimal currency. As has been said by others, it is the love of the hobby that keeps me going. My grandkids might make a healthy profit some time down the track, unless I go skiing first. LOL
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Rest in Peace
United States
9104 Posts |
 , juztin! Coins are not a good investment, paper money less so. This is a hobby, not a retirement program. |
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Pillar of the Community
Australia
877 Posts |
Those who collect (not just coins) because of an interest in the items often amass a collection that has appreciated in value -but they usually don't want to sell up.
Those who collect as an investment only are often disappointed. The only ones making money from these collections are dealers and advisers who are "helping" to build the collection.
My advice is collect as a hobby and, if it turns out to be a good investment too. then that is nice.
Jeff
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Pillar of the Community
Australia
1295 Posts |
Quote:I heard a story on a different forum of someone who bought a 1930 Penny in 2005 from a coin dealer and then needed money to buy a house in 2011 so sold it on ebay for a $7000 loss. It's folly to use one example as reason for or against an investment. If you'd bought bank shares 4 years ago and sold them today they'd be a terrible investment, if you'd bought bank shares 20 years ago and sold them today they'd be quite good. If you'd bought silver in 1980 or in April last year and sold it today it'd be a terrible investment, if you bought it 4 years ago and sold it today it'd be fabulous. It's all about timing, buying the right item at the right price and choosing to sell it in the correct manner. In 2005 (probably right through to 2007 or so) 1930 pennies were at the PEAK of their prices. Couple this with the fact that the seller chose to sell on ebay (probably about the worst way of selling such a coin) and a loss was inevitable. My belief is that if you know your series and buy judiciously coins can be a good investment. If you buy knowing nothing and follow the advice of coin dealers blindly then you are a bunny and any investment return is pure luck. No better than the lotto if you ask me. I don't collect for investment reasons. I collect because I love the hobby. As it happens some of my buys have been excellent and will realise excellent profits when I sell. On the flip side some of them have been poor buys and will likely never see a profit. But I don't care because it's a collection. Not an investment. Edited by markn
01/23/2012 01:55 am
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Valued Member
Australia
312 Posts |
It's a long run game. You need keep those babies at least for 10 years above before you will be able to see profit.
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Valued Member
Australia
318 Posts |
I've been pondering this thread for a few days since my last post. And have come to somewhat of a more 'on the spot' conclusion. Ultimately if you buy a coin now and sell it years down the track, if you've purchased wisely you will break even at worst. In this sense, coin collecting is like a bank, you won't make much interest by having your money in the bank, but you won't lose. I think coins are the same.
Let's say then as the 'retirement' plan if you did sell your coins for what you paid for them, breaking even, then the lump sum you will get will still be substantial. If that money was in the bank, for me anyways, I'm sure it would have been spent on something dumb I wouldn't need.
- And think of all the enjoyment you get 'banking', I love my yearly cataloging and valuing and remembering coins and thinking about the 'hunt' to put them together.
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Pillar of the Community
Australia
762 Posts |
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And think of all the enjoyment you get 'banking', I love my yearly cataloging and valuing and remembering coins and thinking about the 'hunt' to put them together. totally agree If some time in the future I break even or if I never sell my coins I'll still consider that I am ahead because of the pleasure they have given me. Having said that I'm sure we would all agree that part of the please of coin collecting is tracking down that rare item, getting a great deal on a key date or just watching your collection appreciate in value. I agree though that coin collecting as an investment is a long term proposition. |
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Replies: 18 / Views: 9,052 |
Posted 01/22/2012 06:12 am
