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 Replies: 71 / Views: 5,800 |
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Valued Member
United States
199 Posts |
Poll Question
I love coins and love collecting them. I have made and lost money. IMO coins are not a good investment, ie: 1) they produce no income, b) no tax advantage (maybe if used in an ira), 3) you buy high (if retail) and they must appreciate, say, 20% or much more just to break even, d) when you sell you don't usually get retail, and 5) not secure to own as they may be stolen, lost and/or damaged. The only up side is for lots of appreciation to occur with lots of downsides. There are many ways to diversify that would be better. Too bad I don't follow my own advice. Results
| Yes, they are a good investment |
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67% |
59 Votes |
| No, they are not a good investment |
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33% |
29 Votes |
Poll Status:
Locked
Total Votes: 88 Counted
Last Vote:
10/11/2007 7:22 pm
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Valued Member
Ireland
498 Posts |
It is a good savings dont have to carry loads of circulated coins,they just rest in a jar.
As an investment for me gold and silver if I can afford.
As a hobby just starting worn old circulated coins.
On high grade coins not yet.
On slab expensive coins dont know if I can get there.
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Pillar of the Community
United States
651 Posts |
It depends on what you define as a value investment. Yes there is the financial side but I like to see the investment in preserving and sharing of history, art, political, and cultural impact of coins. (This is the bulk of my collection).
With that said, I did set aside a small portion of my collection as an investment to offset other financial investments during bad times. About five years ago I invested $4,000 in semi-key coins and purchased another $1,000 in gold bullion. Now that I'm typing this I just realized that like diversifying in the stock market I inadvertently diversified my coin investments.
After 5 years my investment is now worth $7,000 a return of about 7% a year whereas my 401k as returned an average 12% a year during that same time.
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Moderator
 United States
23731 Posts |
I think that coin's can be a very good investment, but it all depends on what you collect. That is gold, silver and rare coins will increase in value. Whereas run of the mill issues and none presious metal coins would probably not give a high return on your investment unless they are rare issues. View my collection at: http://www.omnicoin.com/?collection=echizento |
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Pillar of the Community
United States
2269 Posts |
Coins could be a great investment, but you must have knowledge of what you are investing in, before you purchase it. Plus if you are dealing in modern Mint products, timing is everything. You have to purchase and sell at the right time or else you may be stuck with coins worth little over the scrap price.
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Pillar of the Community
United States
1454 Posts |
I just collect for fun and the enjoyment of completing a set.
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Pillar of the Community
United States
2600 Posts |
Echizento hit it right on the head. Key and semi key coins will always appreciate and gold and silver speak for themselves. The reason most people do not earn money while collecting is they buy coins just to be buying and adding to the collection. Fine and enjoyable, but don't ever think that this is investing. Consider it comparable to going to the movies. Fun but strictly entertainment expense. And, as you stated, stop over paying. Yeas, you want the coin, but there are others so wait if it is out of line. I have friends that have lost money investing in the stock market for the very same reason, no discipline.
Jim
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Valued Member
United States
346 Posts |
I believe they are a good investment as long as you're smart and know what you're doing. If you examine the price trends for certain coins, you will hopefully be able to make some money.
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Moderator
Australia
16805 Posts |
Coins, especially older coins with some intrinsic metal value in them, are a good conservative investment - in the sense that a suitcase full of cash hidden under the bed is a conservative investment. Of course, for some people, the difference between a "coin collection" and a "suitcase full of cash" is academic.  Banks can crash, stock markets collapse, wars and invasions happen... the old coins will still be of interest (and value) to somebody once the dust settles. Coins have always held more appeal to people who want to be more than just "pure investors". Coin investors are people who like holding something tangible in their hand. The best that we as collectors can hope for is to help educate them about what they're investing in, so that some of them at least eventually evolve into "real coin collectors". Of course, as a collector, I would very much prefer that all the investors gave up and stopped purchasing coins. That would reduce the price of the coins I want to buy...  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
1327 Posts |
coin are a great investment if you know what to buy. like others have said gold and silver are good as long as you buy at the right time and sell at the right time. I beleave that key and semi key are the best investment out there. if you look at the 1909 s-vdb and the 1916-D Mercury dime. these two have alway gone up every year so if you buy one now you can plan on in a few year when you sell it to make a profit. there are other examples but those are the two that stand out the most and some of the very soat after coins. but yes if you are just buying modern issue stuff then yes more then likely it will be a bad investment. but one upside to buying gold or silver over stocks or Mutaul funds when you sell gold or silver you don't get hit buy the goverment with taxes liek you do with stock and other funds. my coin collection has gone up more invalue the last two year then if I would of just had that money in the saving account. |
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Pillar of the Community
United States
1767 Posts |
I never thought of collecting as an 'investment'.
I'm with Irishraider and collect for fun and the thrill of one day completing a set.
mila_
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Pillar of the Community
United States
1840 Posts |
To treat coins as an investment I think I would have to periodically sell key parts of my collection when a respectable profit was made, then reinvest that money in other coins. Since I collect for fun with no intention of selling my collection, I think that this would ruin the hoby for me.
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Pillar of the Community
United States
1582 Posts |
Count me along with those who collect for the enjoyment of coin collecting.
What little I have for investment is elsewhere, but my coin collection is simply for my own pleasure.
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Pillar of the Community
Australia
655 Posts |
I agree with everything said, especially "coins are a fun investment". On top of that coins are beautiful and have history. How good an investment they are is dependant on the skill of the collector. "1) they produce no income" True, but can be sold at fairly short notice if cash is needed. "b) no tax advantage" Not taxable while in possession of sounds like an advantage to me. No fees no nothing. "3) you buy high (if retail) and they must appreciate, say, 20% or much more just to break even," Who pays retail? Only those with no patience. "d) when you sell you don't usually get retail". Which is why you don't pay retail in the first place. "5) not secure to own as they may be stolen, lost and/or damaged." No different to company stocks and bonds that go bust and you lose the lot. Sure I can collect some coins that I'm pretty sure will devaluate for the foreseeable future ( Perth Mint NCLT hehheh). Not everyone that collects coins are investors. Unless investors know their coins they will also probably not make money. |
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Pillar of the Community
Canada
1106 Posts |
My view is that I am a coin collector. What I spend on coins will follow me to the grave as I will die with what I have. In this case coins are a losing activity monetarily but rewarding mentally.
If you are in it to make money, then you are an investor, more than a collector and your pleasure comes from getting rid of your coins for profit.
If you can manage to achieve a balance between the two then you have won the game.
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Pillar of the Community
Australia
3831 Posts |
I wouldn't agree that coins are not a good investment. It's rather unfair to judge one's pursuing personal coin collection.
Most rare coins around the world have risen in prices for example the Australian holey dump coins, Russian Konstantine Ruble, gold Korean wons minted under the Japanese protectrate era, etc. On the other hand, most modern commemrative coins are almost as good as it's mint issued price if not lower at times. The only exception perhaps is only if people wanted them for a good reason.
What I have found in general is that countries that are developing are buying what they couldn't afford previously even sometimes at outrageous prices. The best example currently are the Polish, Russian and Korean coins, possibly with the inclusion of the Baltic nations. If you noticed what I am collecting, that is the main reason how I noticed the mad prices. In some extreme cases, I have seen at least three fold in just three years. Not too bad if you know what you are looking for.
Perhaps what is coming next is Vietnam, India and China. For example try looking for genuine Chinese and Vietnamese gold coin minted before 1900s. It will be tough.
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Replies: 71 / Views: 5,800 |
Posted 04/14/2007 09:06 am
