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 Replies: 7 / Views: 1,816 |
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Valued Member
United States
112 Posts |
I have a complicated question for experienced collectors. Lets say you have a 5 to 8 year window for a coin collection that has the best chance to increase in value; 50%/100% or more, in that time period and will be used for retirement income. You have $20,000 (example). What coin(s) would you invest in?
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Moderator
 United States
23522 Posts |
I've moved this to the Main Coin Forum for relevance. As for me, I'll treat this thread as a  moment. There are a large variety of very good answers for your question, all of them speculative.  That's not to ridicule this thread; it's a subject we should rightly discuss with great regularity. |
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Pillar of the Community
United States
2335 Posts |
Investing in coins and/or bullion comes with a set of drawbacks that most people don't take into account. I'll let people with more coin experience give you examples of specific coins to invest in, just keep in mind the following.
Any gains can be taxed at the collectible rate(28%?), which is a higher rate than the current capital gains rate. Your profit has to be higher than other investments to overcome the tax disadvantage.
In general, when you buy coins you pay close to retail & when you sell you get wholesale. Bullion purchases are at spot or slightly above, sales are below spot. That can mean you need a 10% increase in price just to break even.
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Pillar of the Community
United States
5826 Posts |
I'd say the two financial consultants I spoke with only recommend 5-15% of your total assets be consolidate in rare coins and or bullion as an investment.
And at the time 5 years ago, these consultants are more aware of bullion cause is easier to liquidate. Now there's IRA that invest in precious metal, but I prefer not to go that route.
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Valued Member
United States
470 Posts |
First - Coin collecting is a hobby NOT a vehicle for investment.
Second - Never ask for financial advice in a public forum. These people don't know the answer and you will get 100 different answers on what is the "best thing" for you to do.
Third - if it was THAT easy to take $20,000 and make a 50% or 100% profit in 5-8 years: everyone would be doing it and why would anyone share that information for free on the Internet.
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Valued Member
United States
436 Posts |
In lieu of coinage as an investment, if you want to go it alone then your best bet (still has risk) look for companies that have been very big in the past that are now struggling.. a few years back K-mart stock was around $3.00 per share and now it is owned by sears, everyone that bought when it bottomed out got a nice return. Sirius Sat Radio dropped to $0.06 per share almost exactly a year ago and now it is at $0.86 and if you had invested your $20,000 then ... you would have almost $300,000 now... It all has to do with your research, your risk tolerance, and how hard you are willing to work. If you think "I'll just toss my money in the market and it will magically double" You will probably lose it all. If you treat your research as a second job and invest only when you see a good opportunity then you should be fine. Lastly DIVERSIFY! Please remember that putting all of your eggs in one basket is a bad idea... If the handle comes off then all of your eggs will break. |
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Bedrock of the Community
United States
20753 Posts |
Quote:
First - Coin collecting is a hobby NOT a vehicle for investment.
Second - Never ask for financial advice in a public forum. These people don't know the answer and you will get 100 different answers on what is the "best thing" for you to do.
Third - if it was THAT easy to take $20,000 and make a 50% or 100% profit in 5-8 years: everyone would be doing it and why would anyone share that information for free on the Internet.
I'm in shock. This sounds like me writing this and I don't think I did. Exactly what I was going to say. OR, my suggestion is to invest in Buggy Whips. With the prices of gasoline for my car, I can see the return of the Horse And Buggy real soon.  OR, send me that money and no more problems with what to do with it.  As to investing in a hobby item, imagine how much you would have made if you invested in Beanie Babies a few years ago.  Anyone know if those Beanie Babie losses are tax deductable? |
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Valued Member
United States
258 Posts |
Since you said coins $20,000 in pennies from every bank in the area. Search for the next 8 years taking out all copper pennies. That is a safe bet but it will take you the 8 years just in roll searching and one heck of a large storage area. Make money on the wheats, bu's and errors you find and the copper pennies that are worth double your money already! Sincerely, John Leckrone
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Replies: 7 / Views: 1,816 |
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Posted 02/07/2010 11:10 am
