Do you regard collectibles as an "asset class"

logger7

This letter was a recent theme of NGC head Mark Salzberg: https://www.ngccoin.com/news/article/8523/

Smudge

In the odd category of asset, but not investment.

Goldminers

Several of mine are a liability.

Sonorandesertrat

I think many, if not most, collectors do view numismatic collectibles as assets. I am no so sure that serious investors (i.e., having no particular interest in numismatics) view them this way, largely because their marketplace values can be unpredictable, tax issues, liquidity problems, and the loss in value upon purchasing at retail pricing.

ShaunBC5

For most people they are a depreciating asset class, or at best a "store of value." My collection is for my enjoyment and I try to buy right so if the day comes that I have need to sell, there is some value in it. For others, coins/collectibles might represent more than disposable income purchases and be regarded as actual assets in their overall portfolios.
But yes, I do consider collectibles an "asset class" if there's any liquidity to them.

chesterb

Absolutely! Some are more liquid than others but if you have a significant collectible xill croon then it should be tracked and counted as an asset. I label my bullion as more liquid than my regular collection but they both have value.

ricko

I consider my PM stacks assets.... My collection is my hobby. Cheers, RickO

amwldcoin

Of course they are an asset! Those who think they are a liability? I will assume your liability!

TurtleCat

Technically everything you own is an asset. The trick is to be able to liquidate them when needed and hopefully at least recover your initial spend. I don’t factor my collection in when I look at my retirement funds or account balances, but I do factor them in contingency situations like I would my camera equipment and electronics.

Jimnight

I would say yes.

vplite99

since much of what I own is near bullion, as asset for sure.

SkyMan

Yes, although I buy them because I like them, not as an investment. I believe various of my items will produce hefty profits, and the majority of items will produce losses. Not surprisingly it's the rarer items that will produce the profits and the more generic stuff that will produce losses. In any case, I've had a lot of fun collecting them.

earlyAurum

they are certainly used as collateral in financing transactions --> so why not an asset class?

mothra454

If they tax it, it's an axxet!

https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp

bsshog40

I would almost bet that if a person was sued for a large amount of money and the court came after assets, they would come after your hobbies also. So yes, I consider anything that I outright own is an asset, regardless of its value.

matt_dac

Yes - they have value and are relatively liquid, but I collect for fun.

keets

Do you regard collectibles as an "asset class"

I'll leave the definition nuances to someone else, but I just used proceeds from selling some of my collection to off-set the cost of building a 2-car garage. I can't imagine being able to do that if I consider some of the things people collect.

Goldminers

Edited because not enough coins or medals in my original asset post.

BryceM

Of course it's an asset. If you don't think so, consider what happens in a divorce or upon settlement of an estate. For the books, I usually figure about 70% of actual market value to be on the safe side.

derryb

IRS gives collectible assets their own special tax rate.

johnny9434

@Goldminers said:

@mothra454 said:
If they tax it, it's an axxet!

https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp

Apparently our President considers his hair an asset, too, so he deducts $70,000/year business expense cost to keep it looking good...

PS, the cuttings could also be collectable assets and maybe another tax deduction if sold for a loss, depending on the basis. LOL

Clinton got his haircut done at the end of a runway. I still like to collect coin

amwldcoin

Trying to turn it political eh? @HeatherBoyd

@Goldminers said:

@mothra454 said:
If they tax it, it's an axxet!

https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp

Apparently our President considers his hair an asset, too, so he deducts $70,000/year business expense cost to keep it looking good...

PS, the cuttings could also be collectable assets and maybe another tax deduction if sold for a loss, depending on the basis. LOL

Baley

Of course collectibles are an asset class.

Like all kinds of class, levels and Quality vary

Boosibri

Of course collectibles are assets, so is my car and my couch. They are certainly a class of assets in every definition which reshapes the context to be about their status as an investment vehicle. As Mark states, collectibles in a variety of forms exhibit similar characteristics and they are tradeable. Whether they make good investments is a different question.

MrEureka

Yes, of course coins are an asset class, and I've learned many lessons.

vplite99

When a friend got divorced his coin collection was considered a marital asset. The wife's jewelry was personal property, not a marital asset.

Cameonut

I think of my stacks of silver and gold as assets and a hedge to some extent.
I also think of my coins as an asset but I value them at about half of market value.

coinbuf

Coins are an asset, but there is a large difference between asset and investment. I think of any gold or silver stacking and those who only buy for resale value as investors or as investment assets. Collectable coins are usually bought at retail and thus are prone to go down in value making them a poor investment choice most of the time.

keets

When a friend got divorced his coin collection was considered a marital asset. The wife's jewelry was personal property, not a marital asset.

hence, the saying "What's hers is hers and what's mine is hers."

Along

Definitely an asset. Good or bad investment all depends.

Cougar1978

Asset class - Inventory. I regard the numismatics as an inventory class w potential retail 50-100 pct above cost, moved even some for more than that. An investment / your kidding lol - see PCGS 3000.

A mod on coin talk said 95 pct collectors lose money / I would tend to agree. Mainly I would say RCI is all about timing.

logger7

@Cougar1978 said:
Asset class - Inventory. I regard the numismatics as an inventory class w potential retail 50-100 pct above cost, moved even some for more than that. An investment / your kidding lol - see PCGS 3000.

A mod on coin talk said 95 pct collectors lose money / I would tend to agree. Mainly I would say RCI is all about timing.

It's all about timing, if you buy right, especially nice no problem coins and other collectibles, you will do well.

Apparently there are many people buying the hype, I checked with NGC today and was told that they are still opening mail from September 15th, so expect big delays.

fathom

Whether they are liquid is a different question.

ctf_error_coins

@fathom said:
Whether they are liquid is a different question.

Every coin is liquid.

It just depends on what you are willing to take.

Or let the market decide with a 99 cent start auction.

bidask

Perhaps an asset class but I treat as a hobby because I don’t depend on the disposition of my coins to live on .

philographer

My takeaway from the article:

There’s a baseball player I’ve never heard of named “Mike Trout” and someone paid $3.936 MILLION for his baseball card from 2009. 🤦🏼

jrrgd

Ultra rare collectables - 1913 Liberty Nickel. Honus Wagner Tobacco card...there are a few that I would consider true investments.

I see my coins as a cheap hobby. not because I dont spend a lot of money on them...but because they retain their value or slightly increase in value over time

fathom

@ErrorsOnCoins said:

@fathom said:
Whether they are liquid is a different question.

Every coin is liquid.

It just depends on what you are willing to take.

Or let the market decide with a 99 cent start auction.

That is your definition. Taking a significant loss on an asset is not a liquid asset by my definition.

ZoidMeister

@Goldminers said:
Several of mine are a liability.

I lose money on every coin purchase or sale, but make up for it in VOLUME . . . . .

Z

ZoidMeister

But seriously. The outflow is logged as an expense. This expense gains a latent asset, much as a car, firearms, boats, etc.

When you part with the latent asset, you will realize a gain or loss. Latent assets are sometimes called "property" or "chattel."

Terms will be the death of us . . . .

Z