| Author |
 Replies: 21 / Views: 4,671 |
|
Valued Member
Canada
220 Posts |
Hello and Happy Holidays,
I have been doing some reading about the current Canadian coin market being depressed. My question to the forum members is:
1. Does the current market situation present a good buying opportunity?
2. What specific coins are currently undervalued and would make good investments?
Thank you for your replies and I look forward to hearing people's thoughts on the current market.
|
|
|
|
Pillar of the Community
 Canada
5589 Posts |
If anyone knew the answer to #2, they wouldn't broadcast it. I don't think that the Canadian coin market is any more depressed than it has been for the last 10 years. It's just that the Canada/US exchange rate greatly gives an advantage to the US buyers ... they can afford to pay 20-30% more for a coin that they would have 3-4 years ago when the dollar was at par. The Canadian economy is based very heavily in natural resorces (gold, silver, oil, amd metallic ores... no more does Caanda enjoy the profits from manufacturing. Unless natural resources pick up, then many things will stay (supposedly) depressed because US collectors have more money to buy nice stuff.
|
|
Pillar of the Community
 Canada
5397 Posts |
A fabulous buying opportunity for our American cousins for sure. That is where most of the better Canadian coins end up anyways. The current market is wonderful if you are a Canadian Coin seller exporting to the US market.
American buyers have always had more disposable income for the most part over Canadians anyways. With the current economic and political climate in Canada that gap is only going to grow much wider. As Okie stated manufacturing in Canada is like yesterday's Turkey dinner , done long ago.
As to your query, NEVER invest in coins. Collect coins for the enjoyment of the hobby and the related historical attributes. Also you can gain many lifelong friendships and camaraderie through numismatics.
|
|
Pillar of the Community
Canada
2495 Posts |
1. Great buying opportunity for the pure collector and good buying opportunity for the long term investor. However, still a poor buying opportunity for the short term investor.
2. I think large gains will happen because of precious metals gains, so therefore anything silver or gold is very attractive. Silver bullion is good too. As for specific dates, I have no idea.
|
|
Pillar of the Community
Canada
5324 Posts |
It's surely a buyers market in all areas but just buy what you like, just as an example a couple of weeks ago a 1921 5 cents ms 66 went for a bargain price a couple years ago such a coin would not be under 100,000
|
|
Pillar of the Community
Canada
1463 Posts |
I've always just bought what I liked. I'm slightly confused by the pacificcoin post that says something to the effect of 'lots of money to be made as a Canadian seller into the U.S. but don't invest in coins'? I don't get it, if the later is true.
Secondly, If one talks about how bad of an investment the hobby is in a public forum forum for long enough, the saying, "be careful what you wish for", comes to mind.
It's a great hobby, it just seems like there's more collectors out there that are considering being sellers rather than buyers, for now. How long it will last, who knows. Precious metals and disposable income had much to do with the last run, I think.
Edited by Alan
12/26/2015 7:50 pm
|
|
Pillar of the Community
Canada
5324 Posts |
As a Canadian buyer you are competing with a US buyer with a 35% dollar advantage, hard to compete with that advantage. He is a shrew Canadian dealer marketing into the US market and an with an additional advantage of no tax too compared to most Canadian buyers. 1000.00 coin is around 650.00 to a US buyer versus 1300.00 to a Canadian
|
|
Pillar of the Community
Canada
2366 Posts |
Quote:
I'm slightly confused by the pacificcoin post that says something to the effect of 'lots of money to be made as a Canadian seller into the U.S. but don't invest in coins'? I don't get it, if the later is true.
@Alan - Just keep in mind that the author is a long time dealer who doesn't collect. Then the somewhat misleading assertions and logical inconsistencies become a bit more understandable.  |
|
Pillar of the Community
Canada
1463 Posts |
Kuh, he's an investor, if what you say is true; in regards to long term. So I'm still confused by the statement made.
To John, I suspect you meant "shrewd".
Listing in U.S. denominated funds is just par for the course, no?
Shrewd in my opinion would be listing in one's currency of origin between 2008-2013, then having the forsight to dump all gold and silver, and buy it back a year later and do it all over again.
I think what you're describing is an opportunist.
Edited by Alan
12/26/2015 8:48 pm
|
|
Pillar of the Community
Canada
5324 Posts |
Take the upcoming Heritage Fun auction and a 20,000.00 Canadian coin, a Canadian bidder at the moment has about 45% disadvantage compared to a US bidder. One other thing when you buy on ebay with a listing in US paypal and your credit card or bank will rob you another 5% or so on currency conversion fees. Edited by john100
12/26/2015 9:02 pm
|
|
Pillar of the Community
Canada
2632 Posts |
 Quote:
As to your query, NEVER invest in coins Dont bet your kids futures on coin prices going up, in a real market crash, coins loose. |
|
Pillar of the Community
Canada
1463 Posts |
I think that in itself is a true statement "never invest in coins".
To get on topic again, my apologies for veering off, to the first question, I think now or in the near future gives a great chance to buy something one likes. Secondly, I don't know what coins are undervalued, if you like the older coinage of the commonwealth, I don't think they will get much cheaper, or gain in value greatly in the near future.
|
|
Pillar of the Community
Canada
2495 Posts |
Alan....I agree with you....I don't get it either.
|
|
Pillar of the Community
Canada
2495 Posts |
To further add why this "US buyer of Canadian coins" is not important. Firstly and most importantly, most Canadian coins we own and are up for sale are graded by ICCS. Almost all Americans who collect Canadian coins don't even want to go near an ICCS coin. They want PCGS or NGC graded Canadian coins. Secondly, in my opinion, there's no where near the volume of US collectors that are buying Canadian coins. Iron clad proof of this is the ever present and ongoing depressed ebay selling prices. |
|
Pillar of the Community
Canada
1463 Posts |
As an inflation adjusted investment vehicle, coins have never compared or done well, except in very few cases.
If history can teach a lesson regarding coins and investment assurance, one should likely invest in time travel.
if one collects what their interests are, they will always enjoy their procurements, in the end, that may be priceless.
|
|
Pillar of the Community
Canada
5324 Posts |
If one get a chance to read the story on Mr. Newman a US collector who basically bought the best grade of most US and foreign coins and recently being auctioned off this past year or so, lots of coins he bought for hundreds and was sold for six figures in 60 or so years, it could be done as a shrewd investment but rarely.
|
| |
Replies: 21 / Views: 4,671 |
Posted 12/26/2015 6:42 pm
