Hypothetical Investment Question!

I do think I would buy Gold bullion coins, probably Liberty Double Eagles, and gamble that Gold will go up. If it didn't I'd gladly accept the loss. The risk is low, the potential moderate, and in absolutely the worst case scenario, the smartest investment right next to guns and ammo.

Disclaimer: I am coin collector, not a coin investor.

Wheezydog's advice about bullion is probably the best. In my opinion, the modern bullion coins were designed more for investment than numismatics anyway. My investment strategy has always been long term; which I think is the best approach!

I guess I am a pessimist when it comes to the economy. I am still a coin collector, and maybe that's why I collect the ordinary Jefferson for fun avidly, and with excitement.
But to play it safe, coincidentally, I am putting aside a "just in case" portfolio of almost exactly what this topic is about.
I'm in my early 50's. I've seen rough times, I've seen good times, personally, and for most of the people I've been around in my life. I have some doubts that things are really going to be prosperous for the little guy like myself in what time I have left. I hope that my and your kids get to see better days but I think we are in for some rough times. Just my feeling from life experience.

MHO:
Gold: While I mostly agree with Wheezydog that gold will go up in 2009, I disagree that it is low risk. Why? Gold has ended the year higher the last 8 years running, the USD though it has recovered slightly, is very low. Feels like it might be too late to get on the gold band-wagon. I would go with platinum bullion or silver if I was going into metals.Both have corrected more then gold, and industrial demand for platinum is much higher then gold. Worst thing to invest in? Absolutely not, I think any portfolio should have some precious metals as an inflation hedge.

Coins: If I was looking to invest in coins, I would look for the highest grades of key-date coins that I could afford. I would also look for low mintage oddities that seem under-valued. New-issued commeratives are a gamble, but a safe bet that you won't lose much, they just might stay the same though.

Stocks: This depends on your age. I am 28, and I think that the current market is one of the best buying oppertunities since the Great Depression. If you have a couple years, and are patient I think that you could make some good returns. Good, solid, dividend paying stocks have out-performed EVERY other investment vehicle over ANY 20 year period in the last 100 years... Take that for what it is worth, but that is where my $$$ is going. (Well, whatever I don't spend on my collection...)

Key dates. 16-D Merc, 01-S Barber quarter, 16 SLQ etc.

Another vote for key dates. I'd buy top grade examples, just 2-3 of any key date coin.

I'm leaning towards non-key date silver. Silver is low, IMHO, and it has numerous uses, besides barter and coinage, that sustain the market.

Platinum does have some allure for me, but at my level of investment I want something that Billy Bob understands.

As wiser heads than mine have said, "The easiest way to make a small fortune in coins is to start off with a large one.". Investing in coins is generally not as good as some of the investment pundits would have you believe.

And of course, as a collector, I would much prefer that all the investors either went away and invested in something else, or hurried up and evolved into "real" collectors. Prices would then fall, and the coins we collectors would like to buy would become more affordable.

Be that as it may, my main suggestion for numismatic investment areas is: find a bandwagon that's already moving, and jump on it. Trying to get in on the ground floor with a "sleeper" investment, like new releases from the Mint, is really just gambling; there's nothing to stop such sleepers from staying comatose.

- The top-of-the-range key dates and "must haves". Collectors are the main deciders as to what's valuable and what's not, and collectors really want the key dates. I'm not sure what kind of high-grade key dates you can buy for "only" $5000, but buy whatever you can, in as high grade as you can.

- Old banknotes. Last I heard, prices for these were still good and getting better; here in Australia, anyway, quality historic paper currency is still going for crazy money.