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Coin Investment Fund

I am interested in hearing some stories about coin investment funds and how they worked out. I recently heard a story about a large coin firm that had an investment program . They kept marking up the value of the coins. When the collector went to sell he was offered 25% of the value. They said the coins had just dropped in value.
Currently there are still funds out there. How do they value the assets? Is there an independent appraisal or do they limit the number of investors so they are exempt?

Comments

  • air4mdcair4mdc Posts: 915 ✭✭✭✭✭

    @Coinobsessed said:
    I am interested in hearing some stories about coin investment funds and how they worked out. I recently heard a story about a large coin firm that had an investment program . They kept marking up the value of the coins. When the collector went to sell he was offered 25% of the value. They said the coins had just dropped in value.
    Currently there are still funds out there. How do they value the assets? Is there an independent appraisal or do they limit the number of investors so they are exempt?

    I would steer clear of any type of coin investment fund. I’ve known a lot of wealthy people over the years and coin investment funds weren’t in their portfolio.
    Your post sounds Bernie’s Madoff related.

  • jmlanzafjmlanzaf Posts: 34,562 ✭✭✭✭✭

    These failed miserably around 1990 and would continue to be a bad idea. Among all of the structural problems, liquidity is the biggest one.

  • 291fifth291fifth Posts: 24,370 ✭✭✭✭✭

    Wasn't there also a case, circa 1990, where the coins in the portfolio had been sold off and the money raised siphoned in the personal account of one of the fund officers?

    All glory is fleeting.
  • WalkerfanWalkerfan Posts: 9,354 ✭✭✭✭✭
    edited September 13, 2024 5:02AM

    I’d never sell my coins back to the a firm who promises you that (They want to make a lot of money off of you!!). People have done well, but it is usually done themselves through an independent auction house and offered to the public at large i.e. free market or highest bidder.

    Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍

    My Full Walker Registry Set (1916-1947):

    https://www.ngccoin.com/registry/competitive-sets/16292/

  • PerryHallPerryHall Posts: 46,231 ✭✭✭✭✭

    This reminds me of those gold bullion investment companies that provide you with free storage of your gold bullion. Hell no!!!

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • sellitstoresellitstore Posts: 2,913 ✭✭✭✭✭

    Google "Tom Noe" for one of the more famous coin investment fund scams, or just follow this link.

    Collector and dealer in obsolete currency. Always buying all obsolete bank notes and scrip.
  • JWPJWP Posts: 22,763 ✭✭✭✭✭

    @PerryHall said
    This reminds me of those gold bullion investment companies that provide you with free storage of your gold bullion. Hell no!!!

    I definitely agree with PerryHall. Also I prefer to hold my coins myself. I sometimes don't trust even myself, but prefer my judgement over a coin investment forum.

    USN & USAF retired 1971-1993
    Successful Transactions with more than 100 Members

  • DocBenjaminDocBenjamin Posts: 1,492 ✭✭✭✭✭

    Bricks. You can buy some bricks.

  • olympicsosolympicsos Posts: 786 ✭✭✭✭

    Stocks and property are generally better investments than coins. Coins are a decent store of value, meaning that sometimes they go up and sometimes they go down, but people that enjoy the hobby will be more satisfied with the value of their collection. You are not making money buying coins off HSN or Littleton. Coins are a better investment for young people than video games.

  • ProofCollectionProofCollection Posts: 6,252 ✭✭✭✭✭

    In the future with blockchain and tokenization you might be able to buy a share of a particular coin like an MS65 1893-S Morgan dollar and then one can easily figure and track the value of that share based on an estimate of market value of that particular coin. I expect major art museums to maybe do this to monetize their holdings. But a fund with a diverse range of holdings and hundreds of investors would be too difficult to track and value and further, I'm not sure it's really that great of an investment. You're better off buying coins you can afford that you think are underappreciated by the marketplace.

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