Collecting For Retirement

1/4 ounce Gold would probly be where I would put the money , that is if I decided not to add it to my investment account.

Rick

First, it should be said that coins are far too risky an investment to be considering as an integral part of a retirement effort. Ask anyone who did their buying in the 80's, planning on retiring in the 90's, what I mean.

Having said that, buy the finest coins you can with your budget. The rarest, the highest-graded, the ones with the most intrinsic value. The 1/4 gold Eagles are a good choice.

A better choice, just like in any avenue of investing, would be to learn the market well. I realize that your question here is a step in that direction, and a good one, but there are other avenues. Register at Heritage Auctions' website, and consult their database of completed auctions. They go back 10 years, with records of almost a million sales of investment-grade coinage. You can check the retail history of many of the coins which will be discussed here.

You might decide that XF-AU Bust and Barber halves are a good vehicle. I think they are, as well as the other Barber issues in that grade range. Large Cents are another possibility - they have a large collector base, meaning demand when you sell, but are a little pricey. This is a different avenue than gold, based more upon the coin's value as a collectible than the intrinsic value of the metal itself, like gold Eagles.

I'll probably get flamed for suggesting this, but nicer MS Morgan dollars are an area in which I feel gains can be made. They, along with the greater rarities, were the engine which drove the huge price bubble in the 1980's I alluded to earlier. Part of their appeal is the fact that they are common enough for the average investor to acquire in quantity, which is half the battle - the average person, wishing to invest, is more likely to buy something readily available yet appearing investment-grade. There is proof in the past that Morgans will bid up to ridiculous prices.

The greater point here is, the coin market is 100% demand-driven, and an investor needs to plan his purchases against future demand to a greater degree than in other areas of investment. This is one of the two pillars of coins as investments.

The other pillar is, always buy the very highest-quality coins you can within your budget.

As an investor and a collector I agree with Metalman and AMAC44 with either the 1/2 or 1/4 oz gold as they are still reasonably affordable for your $200 budget. My investment portfolio also includes gold trades with 401K contributions. Platinum is at a premium right now but, the increase is not as rapid as the other metals markets % wise. Paladium is also good. You can also purchase quite a bit of silver with your budget as well. ASE's would be my choice on a silver investment as they are relatively easy to find.

Learning and buying into our Coin Collecting world is fun, challenging and can be monetarily rewarding in the long run if you're talking long term investing. Sometimes even a coin will increase on the short term depending upon mintage and so forth.

Google will help find sites and Kitco will give you articles and up to the minute metals trading. Our forum members will steer you in the right direction should you find a web site that you are interested in...just let us know. We have many members that have dealt with a variety of sites.

I would suggest finding a local coin dealer and build a good rapport...there can be hidden incentives to stick with one dealer, especially on a weekly basis. Just keep track of the current market and know what you're talking about when working with a dealer.

Most of all....read, learn and ask questions but, have fun!

Seems that crystalk, Bryan and I were responding to you post at the same time...again...all are knowledgeable and good suggestions.

Retiring on the proceeds of the sale of a coin collection with a $200 per coin budget would not be possible for someone my age (first dirt was created, then I was born) but if you are young enough, and can purchase enough good quality coins per year, you might get close.

I agree that coin collecting as a retirement vehicle (or investment vehicle) is not necessarily a good idea. Talk about volatility!!! If you're serious though, save the $200's until you have enough to purchase high grade key date coins. The collection will be pretty small and very expensive, but keys are the ones that seem to increase in value higher and faster than anything else.

I still would advise against it though.

Greeting chuck;
You have received a lot of information and most of it is rather good as it relates to investment toward retirement. Never having been in this situation, I'm afraid I can't help you in that area. I can tell you that it is my opinion that if you are only collecting for retirement, that something before you reach that age, you will have changed your mind several times. So keep that in mind while setting up such a program.

It is also my belief that if you aren't collecting coins just for the thrill and enjoyment of owning special coins, then you are missing out on one of the true pleasures of life. My suggestion if you want one is to collect for the pure pleasure of collection, and IF you have done well at the time you decide to retire, the coin collection MAY be part of that plan.

Have a greet collecting future and let us know how you have decided.

I've resisted responding to this thought-provoking thread until now since I am retired, but gain income from rare coin sales in addition to my meager pensions. As several already stated, major or complete reliance on coin investments for retirement purposes is very risky indeed to the degree it shouldn't be done. As Scout Jim stated, investment diversity in all fields (stocks, bonds, funds, art, antique firearms) in addition to regular retirement pension funds is probably almost the best retirement advice we can give. Certainly, if carefully selected (Dave's advice is very good: buy the rarest and highest graded coins which are in demand which you can afford), coins can be a very good investment. I've been doing well enough for the past four years buying uncommon Morgans, particularly raw Carson City Morgans, getting them graded by a top TPG (PCGS, NGC, or ANACS only), then either hanging onto them for a couple/three or more years before rolling them over or reselling them immediately for a decent gain. I have a separate fund from which I rotate coin investments in and out, building up or drawing from as necessary. The notion is that I could lose everything in this fund in a bad investment and still go on living off my pensions if necessary. When I latch onto a particularly nice Morgan, I prefer to hang onto it as long as possible to let them appreciate until that point I need funds for something critical (e.g., major car repairs) when I sell it. I also just enjoy collecting and appreciating them as pieces of history. As much as possible, I spin off part of the sales proceeds to put into a replacement investment Morgan so that I can repeat the cycle.

By far and away, the best advice I've seen alluded in this discussion is to get yourself well educated in whatever coin field you select. Become an expert in whatever you choose before plunking down your first dollar. This includes knowing a coin's history, mintage, rarity in various conditions and grades, market values and fluctuations (cycles), demand, liquidity, and population available, to mention only a few factors. If you don't know what you're doing, you WILL lose big time.