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 Replies: 12 / Views: 2,282 |
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Valued Member
Canada
286 Posts |
I would like to hear members opinions on which coins are best for investments. I was considering making a large purchase of RCM proof gold and silver coinage but personally have more interest in rare circulated coins. Which in your opinion is a better investment? Edited by john517
02/12/2013 7:46 pm
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Valued Member
Canada
319 Posts |
The sought after ones, but you need to get them before they sellout. (eg. Ladybug or first Dino, etc...)
There is a lot of coins that usually only break-even or lose value. Silver/Gold is a gamble, maybe more safe than trying to predict which coin will be the next hit.
Even then sometimes you need to sell fast (eg. Two Loons).
Rare circulated coins will cost to acquire and then again may take 10+ years before they turn a profit. It all depends on what sellers are willing to spend in the future.
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Valued Member
Canada
475 Posts |
John........... take this advice for what it is worth. I have been a dealer in rare coins for over 40 years and the best advice I can give you is this . DO NOT buy coins for investment purposes, you will get run over by the proverbial MACK TRUCK. Buy coins because you like them and want to learn about them. Become a NUMISMATIST. The collectors who DO make money on a coin collection (and they are few and far between !) learn more than the dealers they buy from and only buy the very best. Start by buying a good coin book Regards J
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Pillar of the Community
Canada
3733 Posts |
 totally.. buying coins for investment is a roll of the dice. there are never any guarantees. Hindsight is 20/20 and my crystal ball is broken.. |
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Pillar of the Community
Canada
933 Posts |
rare coins will never increase in supply (given unlikely "stashes" being found and sold...however this has happened before). Therefore, they will always remain "rare". The only way they will fluctuate is based on the demand, and the insignificant amount of precious metal in them.
Having said that, unless you think precious metals will sky rocket within the next decade or two, then rare coins are a far better investment in terms of "safety". But who knows? What will collectors focus on? What coins will be considered rare, valuable or scarce in the new coming generation of coin collectors....
I would say that if you are looking at making a SAFE bet, stick with rare coins, and by rare, I mean coins that are hard to obtain in good condition, such as the 1875 5c or 1884 5c, if you have the money a 1921 5c.
If you are looking at making a more risky bet, with a far greater potential for higher gains, then bullion is the way to go. Also keep in mind that bullion is easier to unload when it hits higher prices, as there are hundreds of local dealers always looking to buy. Rare coins on the other hand (and especially the expensive ones) will be much harder to unload for a reasonable profit.
Personally, I make trades vs investments, therefore I would prefer to stack up on bullion when prices are low (such as gold now) and then sell on the spikes. To make decent money, you need to buy a fairly large amount. If your looking for a long term investment, bullion is also not bad, but as with anything, no one knows what will happen tomorrow, in 5 years and especially in 10 or 20 years
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Valued Member
Canada
50 Posts |
I prefer investing in rare, high grade, and key date circulation coinage over bullion for several reasons.
Just like picking stocks; you want to know what you're buying, not have too many eggs in the basket, and have a long term outlook.
1/ Returns on rare and key dates have historically exceeded inflation.
2/ Mintages or surviving examples(supply) is stable or shrinking.
3/ The pride that goes with owning something rare, desirable and historically significant.
4/ If you're patient, high quality attractive coins can be bought at a discount below market value.
Vance
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Valued Member
197 Posts |
As others have stated, collecting coins is a hobby, not an avenue for wise investment..... and I would avoid heavily marked up (to begin with) RCM products like the plague. If you want to acquire coins that have a potential (by that, read possibility) for capital appreciation, then look at higher grade, scarcer Victoria coins. If you start out buying coins as an investment, you are behind the 8-ball already and are marked for nearly certain failure. Buying homes or property or even bonds will appreciate much more than anyone trying to cherrypick coins over the long run. Buy coins because you like to look at them and for no other reason. If you want to go the "bullion" route, the best way is to invest in a gold or precious metals mutual fund, not the bullion itself. The gold (or other metal companies) know precisely what the the break-even is for any mine or property and completely control the supply side of the equation. They also know precisely what the demand (or near future demand) is going to be. Long before the price of gold fluctuates 5-10% over the course of a few weeks, the precious metals companies have gotten in and out already at the peak of the high and the apex of the demand. Buying bullion on the market (regardless where) requires any number of middlemen .. go to the source, rather than someone who has already taken a slice. |
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Moderator
 Canada
10460 Posts |
My interpretation of "going to the source". This is one of my samples, collected by me, from the Hollinger Mine, Timmins, Ontario. I have an even nicer one, from the McIntyre Mine, also in Timmins.  "Discovery follows discovery, each both raising and answering questions, each ending a long search, and each providing the new instruments for a new search." -- J. Robert OppenheimerContent of this post is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License. See: http://creativecommons.org/licenses...0/deed.en_USMy eBay store
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Pillar of the Community
Canada
933 Posts |
wow spp thats so cool ! can you post the other one you have? And I have always wanted to go to timmins and "prospect" how did you do it ?
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Moderator
Canada
10460 Posts |
Quote:
And I have always wanted to go to timmins and "prospect" how did you do it ? Welcome to my real job.... coins are just a hobby for me. I do teach courses on this sort of thing, the next one is coming up at an international mining conference in Toronto in March (PDAC) - but my course is already sold out. http://www.pdac.ca/pdac/conv/2013/p..._exploration"Discovery follows discovery, each both raising and answering questions, each ending a long search, and each providing the new instruments for a new search." -- J. Robert OppenheimerContent of this post is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License. See: http://creativecommons.org/licenses...0/deed.en_USMy eBay store
Edited by SPP-Ottawa
02/13/2013 3:18 pm
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Valued Member
197 Posts |
SPP's a geologist when he's not busy at coin shows or answering numismatic questions or gumming down Tim Horton's tidbits.
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Pillar of the Community
Canada
685 Posts |
1914 $5 gold coin release from Bank of Canada hoard
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Pillar of the Community
Canada
933 Posts |
wow, and all this time I never knew. Roger, you have a fascinating job!
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Replies: 12 / Views: 2,282 |
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Posted 02/12/2013 8:01 pm
