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 Replies: 40 / Views: 7,397 |
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Bedrock of the Community
United States
11951 Posts |
I have been reading some threads on here as to weather certain
coins would be a good investment. Then reading a lot of replies
saying how it is just a hobby and not as much a investment.
I have not wanted to hijack any ones post, so was hoping to give
my outlook on this hobby.
I do agree that it is a bad idea to think you can jump into this hobby and make a quick buck.
It takes years to learn how to buy and sell coins. I know .. some never sell their coins and say it does not matter. But I believe
everyone should learn how to sell coins .. just in case they have to at some point. A good way to get coins you want, at a good price is to buy whole collections and sell the coins you don't want.
The biggest point I would like to make is. Most all hobbies have some costs involved. Weather it is golfing, boating, fishing etc.
If you are spending your hobby dollars on coins, I think you are making a very good investment. If you are going to coin shops, coin clubs or coin show every week and spending $50 (example) a week instead of spending $50 a week at the golf course, which do you think is the better investment.
I know I am not a expert on any area of specific coins, but I do buy and sell a lot of coins. The money I make from selling coins goes back into my collection. I think I have become very good at the buying and selling.
I do ask a lot of questions on specific coins on here and have learn a lot. All the information I get here helps me make better coin transactions.
Coin collecting is a very good investment if your are in for the long term and you are buying coins at the right price, using hobby dollars.
Now if you are buying gold and silver coins just as bullion then I think that is a different area than coin collecting and is more in the area of investing.
I would go as far to say that buying hi-grade/high dollar slabbed coins could be more investing than collecting depending on the situation.
Just my thoughts ..
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Pillar of the Community
United Kingdom
2838 Posts |
I think you hit the nail on the head with this: Quote:
Most hobbies have some costs involved Collecting coins like collecting antiques or classic cars etc makes good financial sense. Not because these items are going to shoot up in value but because they have fairly stable prices. You might get spikes in metal values as we have now and 'fashion' fluctuations but over time these tend to iron themselves out. You might enjoy your coins for 25 years but then decide you want to try something else - you simply sell them for roughly what you paid for them. A little more if your lucky or bought well. Dont get confused with investing - if you want to make money there are much better and easier ways of doing it long term than in coins. I like the fact that I can spend £50 on coins and enjoy them yet still have the £50! It sure beats spending the cash on a service based hobby and never seeing it again. |
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Pillar of the Community
United Kingdom
2838 Posts |
I also agree with your bullion and slabbed coin statements - though I would prob lean towards safeguarding wealth rather than investing and looking for more.
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Pillar of the Community
Australia
1040 Posts |
I really try to keep out of these 'coins as investment' discussions. Simply because I believe coins are NOT an investment. An investment is something that provides you with an AFTER tax income worthy of the time, effort, expenses and original expenditure you have fronted for the asset. At least in my opinion.
To me, coins are speculative, you may make money, you may not. Admittedly, you can reduce the risk of NOT making money by buying key dates in good grades that are in demand. Even perhaps semi-keys, but I wouldn't bet MY money on it. You are essentially at the mercy of a market you cannot possibly hope to control.
Yes, you can make money buying and selling coins, coin dealers do it all the time. Would you consider this to be investing? Does a local shop keeper buy a carton of milk hoping it will rise in value? No, he/she buys at wholesale and sells at retail. I put it out there that if you are making money on coins in a buy and sell scenario, you are buying at wholesale. That may have to do with you having the skills necessary to recognise an undervalued coin, or perhaps you have the negotiating skills to buy a coin at a reduced rate that you know you can sell at a higher rate later on. If you are buying coins, holding them for a few years and then selling them for a higher amount, there is no skill, no investment savvy, going on here. You are simply experiencing the results of inflation and a market driven by forces you have no control over. You are not investing.
If you truly want to buy coins that you think are going to appreciate in value, find an area you can TRULY invest in that will give you a steady income OUTSIDE of your regular work income. Then you can buy coins that may speculatively appreciate significantly in value.
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Bedrock of the Community
 United States
11951 Posts |
I know I am not that good at explaining what I mean ..
I was not meaning to say there is anything wrong with buying bullion or high end slabbed coins.
Or nothing wrong with golfing or boating ..
I am thinking if you are going to spend "hobby money" money that you would spend .. I think they call it expendable money .. or something like that.
That using that money to buy coins, that you will enjoy. Can be a very good investment.
For example I have a brother that will go out and spend over a $1000 for a new hunting rifle, with out thinking anything about it. Even though he has enough guns to do what ever he wants.
Using that $1000 to buy .. say a 1909 S vdb might be a better investment.
I am just talking money you would spend on a hobby ...
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Pillar of the Community
3660 Posts |
I know of a guy who collects cat whiskers.. That is a collector.. How many folks would still be 'collectors' if there were absolutely no value associated with coins? (I think a lot of people are only kidding themselves).
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Rest in Peace
United States
4849 Posts |
Quote:
I am thinking if you are going to spend "hobby money" money that you would spend .. I think they call it expendable money .. or something like that.
That using that money to buy coins, that you will enjoy. Can be a very good investment.  |
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Pillar of the Community
United States
1304 Posts |
I play golf and collect coins. The money I spend playing golf, around $600.00 a year, is money that I spend on something that I really don't get anything in return. Don't get me wrong, I love the game and the time spent with friends but after 4 hours of swinging a club all I have to show for it is a scorecard with alot of numbers on it. At least with coin collecting, even if I lost 10% on everything I bought I would still be 90% ahead of nothing. There are alot of things that I do that cost money and I end up with nothing to show for it but coin collecting isn't one of them.  |
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Pillar of the Community
United States
2605 Posts |
I don't usually participate in these discussions either, I never consider my collection an investment, but there are some statements here with which I disagree.
We all spend money on food. What do we "have to show for it" in a couple of days? Does it mean we wasted that money? The money one spends on golf, or any other active hobby, keeps you healthy, physically and emotionally.
Of course there's no physical health benefits (statistically significant) from coin collecting, but I definitely enjoy it and it improves my quality of life. And maybe I enjoy it more because I don't worry whether the precious metal market crashes next week and I'm gonna "loose" all my money.
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Pillar of the Community
United States
4989 Posts |
I'm not sure I would call Golf, as the game is played today, an active hobby. Folks drive to the course, rent an electric cart, and then drive up to each tee or their ball. There is some minimal walking involved to get from the cart to where you strike the ball but I would think just a short brisk walk each day would be superior.
So collect coins and also get out and walk 2 miles a day. Problem solved!
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Bedrock of the Community
United States
20753 Posts |
Some hobbies do pay off monitarily though. Coins might, could, or just wouldn't. Really depends on tomorrow. Coins may soon end up like many other hobbies like sports cards, How Wheel Cars, USPostge stamps or Beanie Babies. Many, many people invested in those for an investment and should really have thought of it as a hobby so when it crashed, who cares.
A friend of mine has always been a real nut about fly fishing. He used to make his own lures and buy as many as possible. He went to a sporting show and saw many of his lures that he bought for pennies for selling for many dollars so he became a sporting show dealer and makes a lot of money on his old ones and ones he still makes himself.
A hobby turning out to be an investment.
Narturally for every person like him, there is thousands that invested in Beanie Babies. One lady I know showed me an entire wall in her house full of those Beanie Babies and she told me some day she will sell them all and make a fortune. YEAH, right. To late.
I still say for an investment go for Buggy Whips. Have you seen the price of gasoline for your cars?
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Rest in Peace
United States
4849 Posts |
Quote:
We all spend money on food. What do we "have to show for it" in a couple of days? Does it mean we wasted that money? The money one spends on golf, or any other active hobby, keeps you healthy, physically and emotionally. True, though I think of food personally as a necessity, not as a hobby(though others may see it differently). To put coin collecting on more of an equal comparison level with physical hobbies, I think there are benefits outside of the value of the collection and enjoyment of the hobby. Depending on the collecting goal, it can be educational(history and geography) as well as understanding better the manufacturing process etc.. |
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Valued Member
United States
171 Posts |
Quote:
So collect coins and also get out and walk 2 miles a day. Problem solved!
Or you can collect coins and metal detect also. Now there is a way to feed your addiction and get some excercise  I am with Gold Rush.....I would rather have something tangible from my hobby...such as coins...rather than to golf...but to each his own. As far as fishing goes, I enjoy it because of the thrill of the catch and the hushpuppies and fries that I eat with what I catch  However, many guys I know just trophy fish and throw everything back  As far as spending $1000 on a new gun, I would try to find the rifle in good used shape where it would hold its value. Guns are not necessarily a good investment but they have been holding their value extremely well when you can get them at a good price. I suppose guns are like coins in that you can get them at a good price when somebody is needing to liquidate quickly. |
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Bedrock of the Community
United States
11951 Posts |
I think a couple of the members responses are really close to what I have been thinking.
I do like the metal detecting reference for the exercise benefits. I think I will start walking the
two miles a day .. so I can be in better shape for metal detecting when the gulf water warms up.
I have been thinking .. if I can find more gold rings this year .. be a nice to be able to sell
the gold rings, and get working on my 7070 gold coin page.
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Valued Member
United States
171 Posts |
I have been watching the MD forum and researching since I joined this forum. I am really considering it. The thing is that my vocaion (agri.) really goes into full force when the weather turns and I don't know if I will have time to "swing".
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New Member
United States
24 Posts |
Here are my Two Cents on this: 1. You buy, ie, at the dealer, and pay retail.... 2. To sell, you go to the dealer... and get stuck when they offer you wholesale. My 9 year old loves coins, and I freely buy him coins rather than useless toys (which he has plenty of, too). But the issue remains, if ever he wants to sell, where do you sell without getting ripped? Coins are a commodity and of course appreciate. But how do you realize the appreciation? Stocks, you hit "sell". Coins....? Without getting ripped? |
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Replies: 40 / Views: 7,397 |
Posted 01/14/2011 02:03 am
