Are Coins A Good Investment?

IMO, the standard issue: "Collector/Investor" is possible but with a lot of difficulty. There is a Catch-22 with this--If collectors "invest" in what they really like they become attached those coins and may have trouble selling them.

You can solve that problem by calling it what it rally is--speculating, and by keeping your speculating separate from coin collecting. And most important of all, by speculating in coins that you are neutral about or better yet coins that you don't really care for at all but believe will go up in value. Then you won't have trouble selling them when the time comes.

But that takes you to Catch-22b. If you assume the viewpoint of the speculator you risk losing the view point of the collector who is the end-game in all this. Collectors are the final buyers and you must know what it is they will want in the future before you speculate. Which means you have to have a collectors mind-set. So it all get pretty Smigel like. You escape from the Catch-22a by going to Catch-22b and you escape from Catch-22b by going to Catch-22a.
"We's coin collector today, no we're not, we's coin speculator today."
http://www.filmsnobs.com/www/pics3/returnking3.jpg

Why not just collect what you like only because you like it and coin collecting? If you make money fine. If not you still found happiness along the way as a collector. Isn't happiness the real object of this making money rat-race planet? We want to be rich because we *think* it will make us happy?

Generally Yes! But only as 'long term' investments.

The bottom line is that while I don't buy coins for the value appreciation, knowing that a well-selected collection of quality coins is likely to hold its value and then some makes it a lot easier to throw money at a hobby.

longnine009, I consider myself a "collector/investor" but I totally agree with what you're saying. I get total enjoyment out of my coins, but when I see one rising in value my mind goes "yipee!". When I first got serious about collecting I was into the older, high grade common dates. That way I have a very nice/attractive example of a piece of history that is affordable. Now I'm more and more wanting start looking at lower grade keys or semi-keys. I like them because they're almost famous in a way. You will always hear discussions about 16-D Mercs, 09-S VDBs, etc. But I ALSO like them for their upward potential.

Condor: From what I recall I don't remember them being that kind of a mix.

quote: Does anyone remember which firm this was?


Soloman(sp) Brothers

Yes, it was Salomon Brothers. As I remember it, someone wrote them a letter asking what comprised the index and someone not knowing it was confidential gave it to them. After that they did away with it because they worried that dealers would try to manipulate prices in the index. I believe they also showed other things such as vintage wine, art, real estate and maybe even The Who's magic bus.

I think both can be accomplished at once. For instance, buying a few rolls of new Washington or Adams dollar pieces (or any coin denomination). From those you can a)fill books for your personal collection, or b)hope for an error, at which point you must decide to keep it, or sell it. And at the end of the day, 3)you can spend it like regular cash and astonish people with your knowledge of money.

condor101 I don't understand your tax concerns unless you are buying into, what I would call, high priced investment coins? For the most part, what the average collector buys and sells, is unreportable until it exceeds a minimum as stated by law. As long as you don't exceed that minimum, which changed with the advent of terrorism laws a few years back, the dealer does not report the transaction. If you are into exceptionally high priced pieces which I would refer to as investment pieces then it is apparent you should be able to handle the tax problem with lawyers and accountants? The average collector needs not worry about either. I am not trying to be rude in any way but would try to put the tax problem to rest until you reach a level of buying and selling where it would be a problem. There is probably more unreported tax money involved in most weekend flea markets than we, as average collectrs, could ever accumulate in quite a few years.