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 Replies: 44 / Views: 4,422 |
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Valued Member
United States
284 Posts |
Carl, I couldn't agree more. My coins are my hobby and my passion, but more than likely will be a cash source for one of my kids/grand kids when I go, unless another collector emerges in one of them.
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Moderator
 United States
188660 Posts |
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True jbuck BUT as I mentioned if you really think about it, your coins are an investment for someone that you leave it all to. Although not puchasing for investment reasons, they are an investment for the future owner. Sort of like all your possesions that someone will inherit or aquire. I prefer to think of them as a legacy; something to be continued not sold. Of course I really have no say, but it is what I prepare and hope for. |
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New Member
 United States
10 Posts |
Wow! A lot of passionate collectors here. While I don't have the "collecting" gene, one thing that long-term coin investing can and is satisfying in me is my need to constantly learn and research. I probably find the research and history of coins as fascinating as many of you ... but I'd sell pretty much anything at the right price  . Except for a few sentimental items. And like many of you, unless I'm fortunate enough to precisely time the exhaustion of my estate with the time of my death ... my heirs will wind up with the coins. |
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Pillar of the Community
Canada
3692 Posts |
Shoot for sleepers. Semi-keys are the way for me. They are coins that have a small following with the belief that they will one day be big if enough interest sparks. Condition is also a huge factor because as coins get melted or sold as bullion, the higher grade coins will always be worth a little more.
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Rest in Peace
United States
9104 Posts |
 , ChesapeakeSmitty and Because |
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Rest in Peace
United States
9104 Posts |
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the typical 8% return. Wonder if the stat refers to collections like Pittman and Norweb, which would be a bit like using Warren Buffet to describe typical stock market returns.
I remember once reading the market basket that Salomon brothers used to get their ridiculous 30% annual returns. For an investment to work it has to be repeatable and scalable. If an idea makes $10,000 a year and requires 40 hours of work a week, you're limited by the number of hours in a week--you'll never make $50,000 a year. Same with stocks. If you bought a call contract on such-and-such, you'd have made 792% return in a week on your $100 investment. What good does that do for the other $99,900 in your portfolio that remained uninvested? Same with their list. Maybe this coin went from $100,000 to $130,000, but if one only comes on the market every five years, how do you buy it today? Remember the guy who collected just about everything in the best condition he could find? When he started, there was almost no premium on gem and superb coins*. When he sold, he got millions on a collection that cost in the low five figures. *I can recall mint bags of Morgans, your choice $3, PLs for (gulp) $3.50! |
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Pillar of the Community
United States
3276 Posts |
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Yes, I know - "Coins are a bad investment."  Have you looked at any older price guide for coins and compared it to the latest Red Book? Pretty much every single coin have gone up in value. I think coins are a great investment. I could never part with my collection, so in a sense it is not an investment, but I'm sure my collection will grow in price as the years pass. |
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Rest in Peace
United States
9104 Posts |
Quote:Have you looked at any older price guide for coins and compared it to the latest Red Book? 1964 Stack's buying prices svdb $125 vf 2001 dealers buying prices svdb $275 vf 37 years, 2.2 times, 2.2% 1.022^37=2.24 times Interest rates back then, 5% 1.05^37=6.08 times Did coins go up? Yep, less than half as much as a savings account. PCGS 3000: 1/20/2012 $67,515.16 +0.16%â-²
May 1989 $181,088.48 -62.66%â-¼
Jan 1970 $1,000.00 +6661.99%â-² You did well if you bought in 1970 and sold out 19 years later. In the 23 years since, you lost two-thirds. |
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New Member
United States
10 Posts |
murrellington, Yes, I'm repeatedly told that coins are a bad investment. But then again, I was also told the same thing regarding bullion when I bought gold at $800 and silver at $8. I love great and varied advice, but I never invest or ignore investing until I do my own verification and research. You could say that stocks are a terrible investment. The S&P 500 is actually less now than it was in December 1999. However, Apple has risen ~2000% during that same period. I'm looking to find the "Apple" of coins. I suspect it will be harder than stocks because, even though stocks are greatly influenced by psychology, coins seem to be even more dependent upon the fickleness of collectors. That's where the advice of "collectors" and tracking of trends is immeasurable. Maybe as I continue my quest I can post my theories to give collectors the chance to shoot them down and me the chance to learn. Here's one that's been on my mind for a couple of weeks ... Very high-grade state quartersTons and tons of people started collecting State Quarters. Will there be enough who eventually want to upgrade their collections to the highest grades, some of which are still fairly cheap, but not very plentiful? Will there be enough who decide to put their collections in the PCGS registry and attempt to collect them all in the highest grades they can afford? For instance, 2002-D Tennessee in MS68 lists for $120. It's the highest grade possible with a PCGS MS68 population of 171. 2008-P Hawaii is highest at MS67 with a population of 251 and lists for $35. Of the millions who collect State Quarters it just seems to me that there would have to be at least a few thousand who get the "bug" and start competing for these coins. Go ahead ... shoot me down  . |
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Moderator
United States
188660 Posts |
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While I don't have the "collecting" gene, one thing that long-term coin investing can and is satisfying in me is my need to constantly learn and research. I probably find the research and history of coins as fascinating as many of you ... I can definitely appreciate and respect this.  |
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Pillar of the Community
United States
2335 Posts |
Quote:Tons and tons of people started collecting State Quarters. Will there be enough who eventually want to upgrade their collections to the highest grades, some of which are still fairly cheap, but not very plentiful? Will there be enough who decide to put their collections in the PCGS registry and attempt to collect them all in the highest grades they can afford? For instance, 2002-D Tennessee in MS68 lists for $120. It's the highest grade possible with a PCGS MS68 population of 171. 2008-P Hawaii is highest at MS67 with a population of 251 and lists for $35. Of the millions who collect State Quarters it just seems to me that there would have to be at least a few thousand who get the "bug" and start competing for these coins. Go ahead ... shoot me down It's entirely possible that the demand for high grade State Quarters could increase dramatically in the future. Even if you believe the "list price", which is a whole different discussion, the fact remains that there is a huge untapped supply of high grade State Quarters that have been saved by roll collectors. If real world prices ever got high enough to justify the expense of slabbing you can bet that supply will be unleashed. Edited by trdhrdr007
02/22/2012 2:02 pm
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Pillar of the Community
United States
5832 Posts |
Quote:It's entirely possible that the demand for high grade State Quarters could increase dramatically in the future. Even if you believe the "list price", which is a whole different discussion, the fact remains that there is a huge untapped supply of high grade State Quarters that have been saved by roll collectors. If real world prices ever got high enough to justify the expense of slabbing you can bet that supply will be unleashed. I concur with the above statement! I definitely would stick with a series that I know or study upon one that interest me, modern State Quarters have been coined in the millions, there's no shortage of supplies, the ones in 67 or 68 aren't rare. It just how many got TPG slab with that number grade, if I have roll of Hawaii State Quarter in MS-68 and have it slab, wouldn't that change the market pricing? |
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Moderator
United States
188660 Posts |
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If real world prices ever got high enough to justify the expense of slabbing you can bet that supply will be unleashed. If that supply is unleashed too quickly, one can expect the prices to fall back down as well. |
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New Member
United States
10 Posts |
So you think people saved a lot of rolls? I would have thought that knowledgeable collectors would have already broken open their Connecticut, Massachusetts, South Carolina, etc. rolls to see if they have that $7,000-10,000 MS69. And amateurs would have stuck them in an album. I looked on ebay last week and did see rolls for sale. Mostly bags of quarters though. And I probably shouldn't be too worried about an MS68 coming out of a bag of quarters. So the next question is - what is the likelihood of an MS68 or 69 coming out of a roll of quarters? I would have thought that most quarters that were going to be submitted for grading would have been submitted shortly after they were released. trdhrdr007, No, I quickly learned not to believe in the "list" price. I mainly look at Heritage or Teletrade auction results and what a coin "sells" for (completed listings) on ebay. |
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Pillar of the Community
United States
3276 Posts |
Well what I mean is, if I were wanting to go out and look to make an investment, coins wouldn't be my first choice. But if it becomes a passion and a hobby, then the investment part is just an added bonus.
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Replies: 44 / Views: 4,422 |
First Page
Posted 02/21/2012 1:53 pm
