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 Replies: 17 / Views: 2,936 |
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Valued Member
United States
309 Posts |
*** Moved by Staff to a more appropriate forum. ***
Got a small collection of coins from grand dad last november. Been trying to educate myself since then and there are no coin shops for a couple of hours of driving. I would rather spend some money on coins, than the gas to get there (better investment potential :-)
So here is my question for any answers:
Obviously silver has increased so much that it has surpased the collectability of many coins. I would imagine that there is some sort of cusp where some coins have been unaffected in collectability terms but that will increase as well, as silver continues to rise. Any thoughts on this? I don't want to spend hundreds of dollars on coins that will be worth only a few dollars more in a number of years, especially when silver is increasing so fast. I also don't want to pay a premium that comes with silver bullion. So what are the coins to consider that will maintain both collectability but also increase with the silver (rule out junk silver from the 60's, most of that is very unatractive in silver price terms. Let me know if this question doesn't make sense.
Thanks y'all
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Pillar of the Community
United States
1554 Posts |
You have to collect what you like. Prices go up and down all the time. Unless you have a real lot of money, I wouldn't collect coins as an investment. Some silver Dollars were worth more than they are now 30 years ago.
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Valued Member
 United States
309 Posts |
So the difference between investing and collecting is how much money you are spending on them? I guess that makes sense. :-)
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Pillar of the Community
United States
3546 Posts |
Your question actually has several answers depending upon how you approach this endeavor. Since you are apparently just starting out I would treat this hobby as if you were buying a mutual fund that is typically composed of hundreds of individual stocks for each mutual fund. Unlike owning just one single expensive stock this hierarchy of funds structure spreads out your downsize risk when the S & P tanks, for example. Using this similar logic I personally would purchase several lower valued coins such as higher grade large cents that can have appreciably increased values as the grade nears XF to AU etc. Stay away from the very expensive coins ( $ 100 +) since doing so should diminish (not eliminate) the possibility of encountering counterfeits. I would suggest staying in the $ 20 - $ 60 range per coin at first which should hopefully help you to avoid encountering much of the junk copper coins. These type of coins would have much less downside risk if precious metals suddenly dive but would still increase proportionally relative to the prevailing inflation rate. Before you choose the type of coins you wish to concentrate on I suggest going on line or to a library to research the historical trends of coin prices found in the older editions of the Red Book (retail) or better yet the Blue Book (wholesale). For example check out how the coins you have decided to collect performed during inflationary times (record high prime rate year 1980) compared to a low inflation period (1947). The following chart should assist you to better focus on the periods in question: http://www.wsjprimerate.us/wall_str..._history.htmBoth of the reference books I referred to above are written by R.S Yeoman. The following link may shed some light on the Red Book, for example: http://news.coinupdate.com/review-o...-coins-0748/Good luck and welcome to the CC. |
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Rest in Peace
United States
9104 Posts |
The market is constantly changing, and in over 50 years, I still can't tell you which will be the next hot area, and anyone who claims the can is lying or trying to offload inventory.
Buy what you enjoy, trying for attractive pieces whenever possible.
Treat it as a hobby, like going to the movies, with no monetary return. Years from now, if there is a return, it's a bonus.
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Valued Member
United States
309 Posts |
@ mpmedia,
Thanks. That is the kind of advice I'm looking for. Like diversifying a portfolio, within a portfolio.
I really haven't decided which coins I like the most and I'm definitely concerned about getting counterfeits and not knowing it.
thanks again
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Valued Member
United States
362 Posts |
I agree with Biggfred. If you are in thiis for the hobby then buy what you like. You may well spend more now since silver is high on some coins but if you do some research there are coins that will always hold a high nuismatic value regardless of silver prices.
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Pillar of the Community
United States
1547 Posts |
Quote:
I don't want to spend hundreds of dollars on coins that will be worth only a few dollars more in a number of years, especially when silver is increasing so fast. I also don't want to pay a premium that comes with silver bullion. Metals and numismatics are two separate markets, each running independently from one another. Each has a different supply and demand curve. It's the intersection of those curves, in each, that determine the values. When the metals value eclipses the numismatic value, the value of the coin is adjusted, accordingly, to reflect that higher metals value. That's how that works. As I understand your goal, it's an investment goal, you want to invest in coins the numismatic value of which far exceeds the metals value. Do your homework, study-up, find those coins. It's as simple as that. |
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Valued Member
United States
337 Posts |
https://goccf.com/t/85300this is kind of what you are talking about I think It would make sense if you are going to buy silver now to purchase higher grades rather then junk silver, because with the gap being so little right now between junk silver and nicer pieces when silver drops back down you still have a coin that holds more of it's value. ***however if you don't plan on selling your coins it wouldn't matter what you buy another thought is that if you want to just buy "junk silver" wait until the price falls back down, which it will one day...probably.  PS anyone else hate the term "junk silver"? I roll search for the most part and a handful of my coins are probably junk silver to most big collectors but I LOVE my coins. Especially the ones I find. Sorry about the side bar
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Bedrock of the Community
United States
20753 Posts |
If your going to collect coins, the best advise is to do it as a hobby, not an investment. As a hobby you will enjoy it all more, be happier with what you have, not worry about some metal prices, find people with more knowledge about history than stuff in the ground.
Forget about the prices of coins since that would only lead to you getting old before your time.
Hobbies are for fun, relaxation, education, etc. For example people that build and fly model planes and then they crash, usually just go bank and work on them some more. It's fun and although they lost a lot of money on that plane, so what. There are people that spend small fortunes on a car just so they can show it off at car shows. Usually will never ger what they put into it if trying to sell it since that was never the purpose.
And think of this. All those people that are melting down or having melted down what they consider only melt value of some coins are actually increasing the value of what is left. So collect what you want and in the future all those that melt coins will make you rich.
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Pillar of the Community
Canada
3692 Posts |
I collect what I like, but I also collect stuff with instrinsic value. I wouldn't want my descendants to think I was a cheap man! :D The dilemma is 1)sort the coins out so they are easily sold, or 2)don't sort them so that they learn numismatics via a large primary source of coins. In the future we may not even use coins anymore, so I see them as modern relics. Coins are very curious and they can tell stories.
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Moderator
 United States
188213 Posts |
Quote:
If your going to collect coins, the best advise is to do it as a hobby, not an investment. As a hobby you will enjoy it all more, be happier with what you have, not worry about some metal prices, find people with more knowledge about history than stuff in the ground. I could not agree more!  |
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Valued Member
United States
309 Posts |
Yes, I understand collecting because it is fun. But I also think that part of being knowledgeable about the hobby is understanding as many of the factors, that go into making a coin valuable, as is possible. Part of that is what metal values are in a coin. And part of that is, how the PM market affects coin values from the bottom up. So trying to understand how that movement of PM value will ultimately cause coin value to shift isn't about being worried about whether or not I am makeing a good "investment", it is also about understanding what coins are going to be affected by a PM increase. And as far as "forgetting about coin prices because that would make me old before my time", well, might as well be saying go out and spend hundreds of dollars on a coin that I know absolutely nothing about, just 'cause I think its pretty. That's not going to happen. I think this issue,in regards to that of the coins that I like, is which ones should I acquire now; as opposed to other coins that I like but can wait on...because of those coins that are going to be more dramatically affected by both increases in PM and future meltings of silver coins? And for that matter, which coins are going to retain that value once PM prices drop after they reach their peak?
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Moderator
United States
188213 Posts |
Quote:
well, might as well be saying go out and spend hundreds of dollars on a coin that I know absolutely nothing about, just 'cause I think its pretty. I do not think we are saying that at all. At least I am not. I do care about price when buying. I do not obsess about it, but I do my research. However, once I have the coin, then the value becomes less important. I also try to avoid the "If I wait a while longer, the price might be better!" game. That is, if I find the coin I want and the negotiated price is right for me, then I bite! I will have no regrets if I buy some silver coins now at these near record silver values and the price of silver later crashes (bringing the value of these coins down with it). |
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Bedrock of the Community
United States
20753 Posts |
Quote:
And as far as "forgetting about coin prices because that would make me old before my time", well, might as well be saying go out and spend hundreds of dollars on a coin that I know absolutely nothing about, just 'cause I think its pretty. That's not going to happen. Sort of exactly what I was saying. If you did go out and buy a coin you knew nothing about, I'm sure if you were normal, you would start investigating such a coin, find out how many were minted, where it was minted, why it is graded the way it is, how is grading done, why was this coin made the way it was and on and on and on. So as I was saying it's sort of a hobby for for fun and educational purposes. After that purchase, you would be far more smarter than before you purchased it and now you have a coin you like and know all about. AND you can brag about it on this forum. Can't do that if you collect beer cans.  |
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Valued Member
United States
309 Posts |
Ok Jbuck - I don't know how to do the proper quote thing, with it in the box and all, I'm sure I'll figure it out. But in the meantime...
"I will have no regrets if I buy some silver coins now at these near record silver values and the price of silver later crashes (bringing the value of these coins down with it)."
That is the culmination of some good advice!!
Thanks
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Replies: 17 / Views: 2,936 |
Posted 04/06/2011 12:00 am
