Coins Vs. Investment

I collect coins as a hobby and an investment. I believe that "investors" should try to think like collectors, and "collectors" should try to think of their coins as investments. To say that coins make for a bad investment is simply not true. I own some coins that have appreciated 100,200,300, even 500% in the last few years! I've maintained for some time now that the coin market is going to get hotter as the Statehood Quarter series nears completion. I don't usually make predictions but I think that there could be a big spike in that series prices in the next three years. There are many pitfalls associated with any investment, I recommend reading as much as possible before you buy. one advantage numismatics has over some investments is the fact that some incredible bargains are out there. I recently purchased a group of buffalos for $175 on ebay that a local dealer offered me $1,000 for. Imagine a yard sale selling Wal-mart stock for $8 a share!

Coins are a blast to collect, and can be a very good (or not so good) investment. I try to do some of both collecting and investing. For collector coins, I buy what I like because I like it. If the prices for that particular type or series take a dip, so be it. That hasn't happened much for me, but it can happen.

For investment coins, RESEARCH is key. While past trends are no assurance of future performance, good research can lead you in the right direction. Diversity is also good. If you have three or four different types of coin investments, good performance of one can offset a loss in another. Personally, I feel that there are still a lot of good deals to be had, and that the coin and precious metals markets in general have a lot of upside potential. ~Jim