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 Replies: 21 / Views: 5,278 |
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Pillar of the Community
United States
1767 Posts |
Hi,
I received newsletter from Susan Headley and this was the main topic, which I found to be interesting and thought I'd share.
From Susan Headley
Top 5 worst coin investments
My #1 Worst Coin Investment - National Collector's Mint
Number One on my personal "do not buy" list are coins issued by the National Collector's Mint. The U.S. Mint has issued warnings about this company's misleading advertisements in the past, particularly its "Freedom Tower" coins . National Collector's Mint ads imply that Freedom Tower coins have meaningful amounts of precious metal in them when they do not. In addition, despite the perception they often give to the contrary, nothing this "Mint" makes has any association whatsoever with the genuine U.S. Mint, and it is my opinion that the coins they sell are, and will remain, virtually worthless as an investment collectible.
My #2 Worst Coin Investment - Franklin Mint & Kin
Number Two on my list of "do not buy" coins is those from the Franklin Mint and other premium collectibles mints (such as the Bradford Exchange, etc.) They are aggressive marketers who do sell genuine bullion coins (sometimes) but their coins do not have any after-market value among coin collectors and investors. You'll typically pay $45 plus for a one ounce silver coin that is only worth the value of its silver bullion when you go to sell it. (Silver bullion is at about $13 an ounce as I write this.)
My #3 Worst Coin Investment - TV Shopping "Mints"
Number Three on my list constitutes a tie among the other premium "Mints" out there that sell nice looking commemorative coins for premium prices, but that have no value beyond their bullion (if they have any) when you must eventually sell them. Some of these "Mints" sell on the TV and cable-based shopping channels, and the prices they charge when they do sell genuine U.S. Mint coins are nearly always at least double the price the coins would cost from a normal coin dealer! These shows rarely sell anything that can't be acquired elsewhere more cheaply, so don't impulse buy from these shows! Do a little research and you'll see the same Silver Eagles at $2 over spot price from major traditional coin dealers.
My #4 Worst Coin Investment - Spurious Sets
Another bad investment type are "spurious set" coins. This is another popular TV shopping show product, plus they're found in magazines and swap meets quite often. "Spurious sets," by my definition, are sets that are put together out of lower grade and/or common coins according to some kind of theme. The coins are usually placed in fancy plastic holders, with nice quality packaging, and then you pay $38.99 for a set of five coins that are worth $2.99 just because they were all minted during World War II, or the Vietnam War, or because they're from around the world and commemorate Marilyn Monroe or some sort of cartoon characters. Such coins are usually genuine, and will probably appreciate in value, but they probably won't be worth what you paid for them anytime during the next five generations!
My #5 Worst Coin Investment - Coins With stuff on Them
The final type of coin among my top five worst coin investments are modified coins, such as genuine U.S. Mint products that have been altered by adding holographics or coloring. These coins are generally considered "damaged" by serious coin collectors, and you will only get the bullion value when you go to sell them, if that. I have heard of dealers discounting them because of the added impurities that the paint and other stuff applied to the coins adds to the metal.
The Best Types of Investment Coins
According to many experts, the best type of investment coins are rarer, key date coins issued by the United States, in the best grade you can afford to buy them in. If you can't afford to shell out $2,000 a coin to buy key dates in high grades, then buy common coins in the finest grades you can. Lower grade, common coins have historically not appreciated as much in value as key date coins do, so they are probably not a good investment choice (although they're great for filling up the holes in albums, especially with kids helping out!)
mila_
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Pillar of the Community
United States
1203 Posts |
Sounds about right as far as I know. Maybe you could reverse the first three and still be correct, but at least these three would have to be the top listings. IMO
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Valued Member
United States
228 Posts |
Thank you for the helpful information Mila Cent!!  Fishnwidow |
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Pillar of the Community
Australia
655 Posts |
Australia has an equivalent to #2 with Perth Mint NCLT. Overpriced and de-values faster than stale bread. A pity really since some of the coins are really nice. |
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Pillar of the Community
United States
1173 Posts |
It's too bad that these sorts of places exist, but I guess that is a price of a free society. Taking advantage of the gullible is reprehensible, of course, but the buyers should carry some of the burden of responsibility. They should really learn about what they are buying to see if it is a good deal or not.
Too much to ask for, however...and unfair to expect many folks to dig deeply enough to understand the combination of availability, grade, general eye appeal, demand, and original condition that collectively determine a coin's value.
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Bedrock of the Community
United States
20753 Posts |
I'd like to add the Bicentennial Quarters and Halves. I had hundreds of dollars worth and they ended up in the bank for face value after 30 years of hoarding.
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Valued Member
United States
112 Posts |
I have seen many of the crazy looking hologram/colored coins on TV and on ebay. Do you know how that is done? Is it a difficult process? |
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Pillar Of The Community
3147 Posts |
Great list but I would add one other small item! Buy the coin, not the package! Avoid the hype and the slab unless, of course, you are talking key dates or harder to find coins that are heavily counterfeited. Many modern coins, especially bullion and proofs, are made to very strict and HIGH GRADE standards so paying $100 for a $30 coin just because a third party graded it for you? Well I just don't understand the logic nor the investment!
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Rest in Peace
United States
2884 Posts |
Interesting list to say he least! I have never really purchased coins as an investment per say. The biggest disappointment for me was most likely the tiny increase in value that many mint/proof sets have realized over the years. Many are commonly sold for less than their original sale price. There are most certainly exceptions to this in the series but from about 1957 and later this has been the case. Mike  |
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Valued Member
United States
194 Posts |
Thanks for the info. Can be really helpful for those that are beginners or don't know where to buy from so they don't get jipped. A good reason to learn about a coin before you buy it. Thanks for the info.  Phoenix  |
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Pillar of the Community
United States
717 Posts |
According to my local coin dealer, it's a bad investment to buy "lots," hoping to get missing pieces for your collection. Most of the time, you end up with a bunch of duplicates, when the spent money could have actually purchased what you needed in the first place.
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Pillar of the Community
United States
2269 Posts |
I couldn't agree more with the article. Thanks for posting it mila.
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Pillar of the Community
United States
2177 Posts |
Thanks for the heads up Mila.
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Pillar of the Community
United States
1247 Posts |
Most investors, including coin investors choose the easiest road and go merrily walking along the bottom of the food chain. There's a rather long list of losses for coin collectors from the past: Proof and roll sets from the 60's. Hoarding rolls in the mid 60's was so popular there's even stories of attics with sway back floors from all the weight. There's the 1950D nickels, 1960D small cents, Franklin Mint Medals, Art Bars, World Proof Sets from make believe countries... And the funniest part in all this is: If it's so "rare" why does every dealer in the country have a pile of it for sale? If your going to invest in anything why not view it for what it really is--warfare. No you don't actually die if you lose, unless you do a swan-dive off the 75th floor, but aren't the principles the same? If the original Vietnam war was being waged today do you think your chances of survival would be better as a rifleman or a Ranger? Mind you I'm not asking what you think would be easier, but what increases your chances of survival. If you chose Ranger, why did you choose it? Because they have harder training, more specialized training, more discipline, more freedom of movement, more independent and critical thinking? From what I've learned about Rangers in Vietnam they did pretty well for themselves. A team even ambushed a Viet Cong training camp once while a lecture was being giving about, guess what? Heeehhehehe,those "Green Face Devils"  "Do not trust that the enemy is not coming. Trust that you ready to meet him." Sun Tzu-The Art of War Edited by longnine009
04/13/2007 10:00 am
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Pillar of the Community
United States
1173 Posts |
I'm not completely sure of your analogy, Longnine, but won't dispute it. I think I agree with your basic tenet. Investing in anything from stocks to coins to land to bullion is nothing more than a wager on current versus future supply and demand. If the demand goes up while supply remains constant or falls, then the investment pays off. In modern coinage (from WWII onward), I see little opportunity for significant financial gain in the short term, or even in the long term. One would be better off putting the money into a well run mutual fund and waiting 20 years. Error coins may offer some opportunity, but I am skeptical of the depth of the market into the future. In 18th, 19th and early 20th century US coinage there are greater opportunities, but only if the counterfeiters can be held at bay. I "accumulate" more than collect coins...getting things that I find interesting and of value to me. Maybe someday they will be valuable and interesting to others, as well. |
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Valued Member
United States
487 Posts |
I always laugh at the unsearched lots of say Morgan dollars. The guy selling them may not have searched them but the guy he bought them off of did. |
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Replies: 21 / Views: 5,278 |
Posted 04/11/2007 09:09 am
