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 Replies: 17 / Views: 2,385 |
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Valued Member
United States
74 Posts |
either one or the other: bullion or numismatic items?
This is my current problem. I have a lot of money invested in stocks, CDs, mutual funds, my IRA, etc.. so I give my excuse that buy coins and bullion is my way of diversifying, but when I have an honest conversation with myself it's hard to justify in my head.
I do love what I buy and have, and collecting, roll hunting, etc makes me extremely happy, so I am good with it. I'm just curious as to what type of money people are spending, or should I say what percentage of income you allot yourself for this hobby?
Where or how high should I limit myself? Right now I'm at roughly 4 times my monthly salary on numismatics and bullion.
Thanks for bring so much to this forum. I love this place! I'm addicted because of YOU!
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Pillar of the Community
Australia
7096 Posts |
I would hate to analyse what percentage I spend on this hobby, It would scare the bejesus out of me if I did
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Pillar of the Community
United States
7840 Posts |
 Although I do enhance my "allowance" by selling some of my "other" coins & paper currency. Edited by oih82w8
03/02/2012 11:22 pm
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Pillar of the Community
United States
4897 Posts |
Tough question. Numismatics are not an "investment" for me. Bullion,in terms of speculation, are about 10% of investment funds. If that makes sense?
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Valued Member
 United States
74 Posts |
I understand what yall are saying. amida17, that's where I'm aiming to get. My concern right now is that with the election year here, that the market is going to go up, which will lower PM prices due to the less of a need to hedge stock/mutual fund positions, and I also enjoy purchasing numismatically valuable coins with bullion so I get a better deal, and then I can recoup the spot of the bullion I purchased if I deem necessary. However, I can't seem to stop buying right now, even though it is against my investment philosophy.
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Bedrock of the Community
Australia
21786 Posts |
When I was paying my mortgage, my coin purchases were limited by an annual budget.
I was lucky. I had already acquired a couple of nice ancient gold coins before I committed myself to a mortgage. That was before 1976.
During the period of paying the mortgage I was spending $500 per year.
After 1990, I was free!
Now, I am retired, and within reason, can spend anything I like, Even so, I have a lot of fun looking for bargains for less than $10. Numerically, coins of this value or less make up more than half of my collection. Like most, I enjoy the fun of the hunt!
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Valued Member
United States
284 Posts |
No more than I can afford to lose. If coins and bullion took a dive tomorrow it would still devistate me, but it was extra money that I used anyways so it wouldn't kill me at least.
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Pillar of the Community
United States
1195 Posts |
Whatever cash I get from the household and other recycling, plus the few bucks that grandpa gives me when he is especially grateful for my help with whatever we do on the ranch, goes into my "Colectables fund"
I haven't bought anything for a month and a half. I have some stuff to recycle, but have not had the time to cash it in.
Edited by argentum
03/03/2012 01:52 am
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Pillar of the Community
Canada
1554 Posts |
 I think the more passionate that someone is on any Hobby regardless of what they collect, they will spend more money in relation (ratio/proportion) to their love of it! Glenn  |
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Valued Member
United States
114 Posts |
As far as the amount of time I spend on my coin hobby, this tends to be 15-60 minutes every evening after I've taken care of everything else in my life. This is the time I spend on CCF. I always learn something every time I log on, and it is awesome to learn from some of the experts in the field. As far as bullion versus coins, I don't own any bullion. I consider my coins as a hobby, I buy them to keep forever and pass on to my family, not as an investment. Unfortunately, I have a severe chronic recurring case of "Dansco 7070 itis"  and am at the point that I will have to spend 100's of $ per coin on the earlier issues to acquire a coin I want to keep for life, and not want to upgrade the moment I buy it |
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Pillar of the Community
Australia
7096 Posts |
Quote:
I think the more passionate that someone is on any Hobby regardless of what they collect, they will spend more money in relation (ratio/proportion) to their love of it!
Glenn
Hit it on the nail mate  |
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Bedrock of the Community
United States
20753 Posts |
So much depends on your age with the type of questions your bringing up. By that I mean if your young enough, taking chances in investing is sort of OK and can be fun. As you get older and closer to retirement age, you'll find that more and more thoughts go into tomorrow.
One rather important item is not just diversity but liquidity too. By that I mean as you get older, more things seam to happen where a decent amount of currency NOW could be critical. Once you retire, your insurances from work normally stop, life insurances from work stop, your health decreases, where you live is getting older and in need of improving.
AND that is when you realize that liquidity of any investments are rather important. Selling coins, stamps, other collectibles when cash is needed now, doesn't work well. This is why there are so many IRA's, Roth IRA's, 401K's, pension plans, etc. People need a place where money is faster and easier to acquire. Selling itmes from a hobby is not practicle for speedy necessities.
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Valued Member
United States
284 Posts |
Carl has it right about liquidity. That's why my coins come after my investments. I do not count coins in as investment at all. I am completely retired and disabled and live off of my retirement from the Army. I am lucky enough to have good insurance from that but living on a fixed income can be hard with a family especially.
Having said that I do invest in bullion, but it is just that, raw bullion coins that I can move fast. I also have other funds, stocks, and cash assets as well. It is never good to keep all your eggs in one basket. After those things are fed for the month, along with the rest of the budget I then have an allowance I use for my play toys. Either guns, ammunition, coins, stocking my bar, or anything else like that comes out of that allowance. If I don't have the cash for it out of that then I save and wait. Coins will always be there, but just one month of irresponsibility can set a household back for months. That is stress I do not like or need.
I read about coins every day, watch coin shows, look at my coins, re-inventory my coins, make wish lists and tracking lists all the time. Probably daily, but I also do this after the time with my family, my kids, my wife. Only thing it takes priority over for me is video games.
Edited by DM1975
03/03/2012 6:18 pm
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Pillar of the Community
Canada
1731 Posts |
A month I usually spend around a $100 or less. My parents actually think I'm addicted in buying coins and silver.  I love getting new coins though what can I do? |
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Pillar of the Community
United States
1374 Posts |
Well, I consider myself a picker. I won't buy a coin unless I get it way under value, like half or more. If I'm not knowledgeable about a coin, then I wont even bother considering a purchase. I don't buy very often, and have left many coin shows without spending a cent. If it isn't a steal, I generally won't buy it. I'm the opposite of a compulsive buyer... typically.
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Pillar of the Community
United Kingdom
2868 Posts |
I spend more than I really should - what with mortgage and afamily and everything. But I do "largely" fund everything from selling "junk" on ebay or other local household auctions - so for this past few years I've managed not to "spend" anything that I haven't "earned" from extra income type activities. The value of the collection isn't important - other than for insurance pouposes. So my spend is what I bring in - if you know what I mean. |
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Replies: 17 / Views: 2,385 |
Posted 03/02/2012 11:21 pm
