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 Replies: 26 / Views: 3,537 |
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Pillar of the Community
United States
819 Posts |
Seems a lot of people are concerned with the economy and trying to hedge against the future. One means of doing this is with Gold and Silver bullion or Gold and Silver coins. Which to choose? Bullion saving (hoarding) is dependent on the intrinsic value of the metal involved whereas coins are dependent on both the intrinsic value of the metal and the "collectible-rarity-desirability" factors associated with the coin. I think in the future the only coins that will increase in value substantially will be those "collectible-rarity-desirability" factor in the very highest grade obtainible. I think ungraded,circulated coins will move more toward the intrinsic value of the metal and loose some of the "collectible-rarity-desirability" factor for those coins in abundant supply or moderately rare. My reasoning is that the "middle-class" of America is going to shrink away leaving basically two classes, the rich and the poor. The rich will only buy those coins that are of the highest grade/rarity etc, while the shrinking middle class will sacrifice their other holdings at at discount driving the price down to be more in line with the metal of the coin. As a result, I think collecting at the present time would be of more benefit if it is reserved to coins & bullion closest to the "spot" price and buying only the highest grade, rarest you can afford coins for future increase. any comments? Am I too pessimistic?  |
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Pillar of the Community
United States
2120 Posts |
I'm inclined to agree with you. Common coins stay common.
The only way I could see "junk silver" becoming worth more than spot is if somehow we were able to put a number to melted peices. I'm sure it's somewhere around 60-70% melted, but untill it can be proved no one will believe it.
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Pillar of the Community
United States
5823 Posts |
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Pillar of the Community
United States
2120 Posts |
Quote:
Social-Communism? lolwut? |
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Pillar of the Community
 United States
819 Posts |
I don't know if I would call it "Social-Communism", though we are already on the road to Socialism. I think that there may be a 6 month window (or less) to see which way things are going to go, but all in all, I still think that if things get really bad the people trying to sell the more common coins are going to compete with others doing the same, driving the price down. Those who can afford to acquire coins are going to go after the very best available. E.G., let's suppose you want a 1700's to 1810ish Chippendale china cabinet and money is no object: would you chose from a) one that has been refinished, b) one that is in original condition but lots of "dings" or c) a pristine original. C would be the one you chose, while many other people (the shrinking middle class) are also trying to unload their less than pristine Chippindales for what they can get. Too few dollars chasing too many pieces makes the pristine more valuable.
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Pillar of the Community
United States
2797 Posts |
To fully enjoy the hobby, I've disassociated my collecting endeavors from my retirement plans.  p.s. - the real bargain right now is real estate.  |
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Moderator
 United States
187862 Posts |
 with SeatedNut. My coin collecting has never been, nor will ever be, an investment vehicle. That's just how I roll.  |
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Valued Member
United States
397 Posts |
I'm with you guys. Collecting is a hobby. My bullion...now that is for retirement.
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Valued Member
United States
70 Posts |
I collect as a hobby. If in the future if I make a little money off my hobby...That's a plus.
Just my thoughts
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Pillar of the Community
United States
819 Posts |
I realize that many, many collect as a hobby; but what I am specifing is a hedge for the future; leaving out the pure collector; those seeking a hedge buy cons for that purpose (some buy for both). Looking at it from the angle of a hedge against the future only, not from the sheer pleasure of collecgting and admiring the collection. Although there may come a time when even the pure collector must liquidate what he has. If you collect as a hobby only, the point I am seeking above is inconsequential. During the Depression era many people sold of many prized possessions, not that they no longer wanted them, but they wanted to eat and feed their family more.
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Pillar of the Community
United States
4846 Posts |
i sometimes buy junk silver and invest off of that to buy MORE coins
Edited by Adam_E
08/10/2010 12:44 pm
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Valued Member
United States
320 Posts |
you have to remember that the rarer and more expensive the item is, the lower the possible pool of buyers-- esp when the economy is bad. If things take off and we again have a robust economy, I expect the rarer numismatic grade items to take off and exceed the gains on "normal" coins. If not, I think they will tend to move together.
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Pillar of the Community
United States
3294 Posts |
The flaw in the analysis is that there are many people who are not rich who collect coins. Therefore, for those who can not afford to get that 1904-S barber half in MS-65 (costs $30k+), they can get a F-VF example for about $500. Now $500 is by no means cheap, but can be done on a reasonable collecting budget.
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Valued Member
Canada
307 Posts |
I also agree with you ....I actually dumped a few of my gold coins to purcahse a 1948 silver dollar CDN in AU...IMO a worthwile trade
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Bedrock of the Community
United States
20753 Posts |
My opiniong is coin collecting will fade away as well as hoading of Silver, Copper, Gold, etc. The falue of all coins will drop due to excessive lack of interest. Therefore I suggest, in your better interest, to pack up all your coins now and send to me. I'll do the worrying for you. I'll take the fall of the monitary system and just for you.  One small detail. You have to pay the postage. |
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Valued Member
United States
60 Posts |
Investing in PM's is a wise decision IMO. I have mostly silver bullion because gold is just outta my reach right now, but I feel that silver may be undervalued right now (considering the shorts and just based on fundamentals). Silver is the poor man's gold and is easily obtained by the average working person. So stack up!  Hell, the value may go down to 4 bux again, and that would be great! I'd just stack more!  But yes, hedge against inflation & store of wealth, hopefully profit down the road, all good reasons to keep silver & gold. Oh and junk silver is good too. I think you should have a mix of bars, rounds & junk. Some people think that if TSHTF and we need to barter for food & supplies, junk silver would be better to have because its more recognizable to the average person. Edited by stacksilver79
08/11/2010 01:01 am
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Replies: 26 / Views: 3,537 |
Posted 08/10/2010 10:33 am
