Poll: Do you buy rare US coins, at least in part, as a hedge against inflation?

ANACONDA · January 15, 2011 10:53PM

Justacommeman · January 15, 2011 10:59PM

I mainly buy them as a hedge to pi$$ off my heirs and it's likely to work. MJ

MadMonk · January 15, 2011 11:04PM

If you mean ruly rare coins, then no. I can't afford them.

Most coins are not "rare".

I buy bullion as a hedge against inflation.

I buy some coins to balance the bullion.

None of them will make me rich, but they may feed me and pay the mortgage for a year or two.

GritsMan · January 15, 2011 11:32PM

I answered yes, but my definition of rare coins is probably a lot different than yours. I buy Modern rare issues, preferably directly from the Mint, but sometimes in the secondary market. I consider this a much safer strategy than buying so-called Classics because of my limited knowledge and my feeling that the collector base is shrinking.

BillJones · January 15, 2011 11:33PM

U.S. collector coins could be a hedge against inflation, but I won't bank on it. The trouble is they are luxury goods and if the U.S. economy really goes down the tubes along with inflation, the price of collector coins probably won’t keep up with the downward spiral.

I try to tell myself that my collection holds some positive financial aspects for me, but that might be more of a rationalization than a point in fact.

questor54 · January 15, 2011 11:42PM

<< <i>Poll: Do you buy rare US coins, at least in part, as a hedge against inflation? >>

I answered 'yes', but would also have that depend on the definition of rare. If the USA is headed toward the type of hyperinflation which usually goes with the collapse of a fiat currency - it will be good to have some tangible store of value, because ANYTHING denominated in the currency will be worthless (including bank deposits, cash, insurance policies, bonds, T-bills, etc. etc.). From a practical point of view, a bag of 90% would be useful for day-to-day transactions as well.

DAM · January 16, 2011 12:02AM

When I purchase coins it has nothing to do with current economic conditions, except for my own.

Collecting coins is a hobby to me. Nothing more, nothing less. I don't make a living from them. They aren't part of my retirement.

That's not to say if and when I decide to sell a coin I don't want to sell for more than I paid. In my case, a lot of the nicer coins I own were purchased in 90's and very early 2000's. If there is a hedge, that's mine.

MrEureka · January 16, 2011 12:17AM

Do you buy rare US coins, at least in part, as a hedge against inflation?

Not really. Hedging against inflation implies that one has exposure to currency depreciation, and that's never been the case for me. And until I'm much older and much grayer, that's the way it's going to stay.

OPA · January 16, 2011 1:03AM

No. I purchase gold or silver bullion to hedge against inflation, it's less expensive than tying up your $ in a "rare" coin.

dbcoin · January 16, 2011 1:27AM

how many times are you going to ask the same feeakin question?

Justacommeman · January 16, 2011 1:30AM

I have three words for you db...................anger management!

MJ

Bear · January 16, 2011 6:59AM

Well you lose 20% on purchase value and after holding them a few years you lose 20% on sale.

However, If you buy the correct quality coins, hold them for 10 - 20 years buy right and sell right,

they could very well prove one of the good hedges against inflation. But remember, coins, like stocks,

can go thru long cycles of downward or side movement measured in decades. Some of the most spectacular

collections were held 50 years and even purchased at what today may be considered modest prices, by working

people, with an astute eye and a first rate mind, later sold for astonishing prices.

tcmitssr · January 16, 2011 7:12AM

Rare coins are a lousy inflation hedge unless your talking million dollar coins. Even sharp and high grade 1909 S VDBs etc. are a terrible inflation hedge.

CoinJunkie · January 16, 2011 7:14AM

<< <i>Rare coins are a lousy inflation hedge unless your talking million dollar coins. Even sharp and high grade 1909 S VDBs etc. are a terrible inflation hedge. >>

Rare coins may or may not be a terrible inflation hedge, but there are much better ones.

IMO.

Poll: Do you buy rare US coins, at least in part, as a hedge against inflation?

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