So buying coins as investment is a waste?

I've seen it said around here that investment in coins is a bad idea. What if the coins you buy are scarce/rare and they are high grade? I only see the value going up since they will always be rare

 

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Anyone can make good money in buying and selling the right coins. The only problem is that most folks either do not identify the right coins or do not identify the proper time to buy or sell. The advice of not investing in coins is generally aimed at those who are not well versed in the hobby-industry and who might not have a good feel for how difficult it can be to move particular pieces or to even break even.

I have done very well in buying and selling coins over the years, but I also do this full-time and for a living. Additionally, I have taken losses on many coins that collectors or casual investors would not accept and I invest significant sums of money to oftentimes make what appears to be a small profit.

 

Absolutely NOT! It is not a waste if you look at it long term, and buy selectively. If you are looking to make quick money, there are far better ways to do it. If one commits to hold a collection at least 10 years, you WILL make money, unless you've drastically overpaid for the coins you bought. If you want to do a "quick flip," that is a totally different story--it can be extremely speculative.

 

I have to disagree with the part in bold because there is no law that states that every ten year window will produce higher coin prices.

 

Like anything else, you gotta know what to collect if your intent is to make money. It's as simple as that.

 

+1!!!

 

that my friend is a risky bet

 

flipping seems to be the less risky approach. Look for the "sure thing" being sold by the mint, buy a bunch and sell them on ebay. very low risk high profit. Older coins are high risk- that "lightly cleaned" thing can kill you. http://www.cointalk.com/t201685/

 

I am defining things like the 2011 Silver Eagle set and the 2011 Army half as "sure things". In other words once I saw how low the mintage on the unc Army half was I had literally no hesitation, none at all. OTOH the 2012 silver eagle set was not a sure thing at all (but it was still a nice product)

 

Exactly!

Collectibles pricing is based primarily on demand and predicting future demand is usually about as accurate as predicting a game of dice. Collectors can learn value and know quality so can get ahead of the game but investors almost invariably end up with coins that are widely available and in the midst of being promoted. Collectors tend to sell when something is overpriced and investors use the same opportunity to buy.

 

Based on my personal experiences, this has always been the case. Can't speak for anyone but myself. I make purchases that will appreciate, and tend to be very selective in what I buy. Have done it 5 times, and have done it with other kinds of investments. No reason to lose money in buying coins, unless one is indiscriminate in terms of purchases, or lacks patience to hold on to items.

 

I don't recall anyone on CT saying it's a waste, but there are some members, myself included, who are of the opinion it's not the best way to invest your money if you're looking for large returns.

You may invest at one price today, but tomorrow the value may decrease and you'll struggle to make your initial investment back.

The coin market, though not traded daily like stocks and bonds, still has it's ups and downs, no different than any collectible market.

 

Buying coins as a investment is a fine idea if, and I say this again, IF YOU KNOW WHAT YOU ARE DOING. I have been investing and collecting rare coins for over 40 years. I have made some great profits and made some bonehead moves also. But show me anyone who buys stocks or bonds who has not done the same thing. When buying coins as a investment knowledge is power. Know what are the key dates, what is original and what has been cleaned and which grading company coins will bring you more profit. Coins right now in PCGS holders will bring more money than the other grading service. As a rule right now this is true overall. You will also need to go to as many coin shows and auctions that you can just to see what is selling and what is not. I go to as many shows as I can and just listen to the major dealers talking about which coins are common and which coins are hard to find. And if you know any coin club around go to their meeting and listen. After a while you will be able to tell who knows coins and who is full of hot air. I have found that the person who speaks the most and thinks he knows everything is the one to stay away from. I had a GREAT teacher in a dealer friend of mine, ( Joe Kaminski ) who told me buy coins that are so outstanding or rare that even in a poor coin market everyone will want to buy them from you. Dealers like Joe are hard to find. Jim

 

If you're not a professional numismatist, collect coins...invest in stocks (imo).

 

Assuming gold never falls back to $800/oz, never mind $300.

I'd think the FS coins are particularly bad investments if the economic climate allows for a falling spot gold price.

 

interesting question- if gold plummets will low mintage spouse coins hold a significant premium. I'd say that eventually they would.

 

I've assumed that numismatic gold would hold its value better than bullion in a falling gold market, but it's still likely to fall. And it seems like demand for the FS coins, despite their incredibly low mintages, just isn't materializing. Guess I need to be patient for a few more decades.

 

I THINK THE CAT IS OUT OF THE BAG.
There are only a hand picked few on here that are smart enough to invest in coins.
I really dont need to tell you what you can do with that opinion.