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Replies: 9 / Views: 2,718 |
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New Member
United Kingdom
2 Posts |
I'm looking into collecting coins and it seems as if commerative coins may be a good investment, I've just bought a beatrix potter 50p piedofrt coin, it was £100 and I figured it might be worth something in the long run.
Am I wasting my time or should I keep going and if so how do I know what I should invest in
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Pillar of the Community
Canada
1747 Posts |
yusuo, welcome to the forum, I think first and foremost you need to quantify what your idea of a good investment is. Once you have a good idea of that, then you can move forward.
Firstly, your coin is it a precious metal, gold or silver? or is in cupro nickel or some other base metal? if it is precious metal, then you will always have that backing the worth of your coin. if it a base metel (copper, nickel or a mix) then you don't.
secondly do you know the mintage of the coin, if there is a limited mintage this would also help the value (anything more than about 7000 would be high).
Thirdly, do you enjoy the coin, are you a Beatrix potter fan? if so then you will get pleasure in looking at it from time to time.
Lastly, most people would agree that buying modern commemorative coins is not the best idea as an ongoing investment strategy. most coins being produced as NCLT (not circulating legal tender) are available on the secondary market for a discounted price in a few months after the release date.
There are exceptions to that rule, and I don't know the specific coin you are talking about, but I would suggest not purchasing from the mint but waiting and seeing what you can find a few months after the release date.
As for actual investments, you could look at buying strictly PM (precious metals) Canadian silver maples or American silver eagles are easy to get and sell usually over spot price.
Good luck
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New Member
 United Kingdom
2 Posts |
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Pillar of the Community
Canada
5246 Posts |
Nobody can know if this will be a winner or not. Check in a few months/ a year to see what it is being sold for on the secondary market, or go to a dealer and see what you will be offered.
If it is a lot less, then you will have learned a valuable lesson.
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Valued Member
United Kingdom
190 Posts |
yusuo. Dont buy them (uk Royal Mint) stop and wait twelve months you will see them cheaper.....they are marketed and anything made for collectors means in general they are put away and thousands have them. You only have to go on ebay and see items such as year sets sold 30/40 years ago you can know buy for less.
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Pillar of the Community
United States
4212 Posts |
I like the vine & rabbit. 
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Pillar of the Community
United Kingdom
1351 Posts |
Collecting modern coins for investment is a big NO....collect them if you like them....nothing more to add.
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Pillar of the Community
United Kingdom
548 Posts |
You've got to remember that, first and foremost, The Royal Mint operates as a business. As such they employ all the usual sales tricks: 1) They will claim that their coins are scarce limited editions (even the ones with a mintage of 50,000) 2) They will talk about their history to give the impression of authority. 3) They will claim their products are popular with collectors. Very few of their products make good investments. Most of them will lose value the moment you buy them.
Edited by Demarco Bishopp 04/11/2016 2:40 pm
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Pillar of the Community
United States
937 Posts |
Rule #1 of collecting ANYTHING
If the maker says or prints on the package 'Collector's Item" then it is not a collector's Item.
Edited by Tryna 04/11/2016 2:53 pm
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Pillar of the Community
United States
1499 Posts |
As a U.S. collector I can tell you that the modern U.S. commemorative coins have been very poor investments for the most part. Many of them sell for less than the issue price, and for most collectors the attitude is "out of sight, out of mind" for most of them. There have been a few winners, like the Jackie Robinson baseball pieces (silver dollar and $5 gold), but those success stories have been the exception, not the rule. Also have a relatively brief run-up. the prices for those Jackie Robinson pieces have come down and then stagnated.
One of the big problems with the U.S. modern commemoratives is that there are too many varieties , and most collectors can't afford to keep up with them, or lose interest because they don't want all of them. My impression is that the British Mint issues too many commemorative coins also. It also doesn't help when the government refuses to recognize their legal tender status after the coins have issued.
I have made some paper profits on my U.S. gold pieces, but only because of their melt value relative to the price of gold bullion. I bought a number of issues in the secondary market for less than the issue price, and then gold went to over $1,000 an ounce.
That's my view as a foreign collector ... for what it's worth.
Edited by billjones 04/11/2016 2:58 pm
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Replies: 9 / Views: 2,718 |
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