Collector vs. investor?

coinguy1

I'd be interested in hearing from the non-dealers out there - do you consider yourself to be

1) a collector?
2) an investor?
3) a hybrid/combination of the two?

Thanks in advance for your replies.

ARCO

Collector 100%. Part of what makes coin collecting fun is the knowledge that the coins have value to many others and that coins bought right tend to return at least the initial investment amount.

selling coins by family after one's death makes coin collecting for the most part a lousy investment. If the family is naive or ignorant of the collections value, someone else will reap the profits. If the collector is astute, loves the hobby and sells his own coins before his death, then the collection becomes an investment.

Tyler

kieferscoins

I am a collector. The money earned if I ever sold my collection would be wonderful, but that is only an added bonus. Investing is not what I am here for.

Cameron Kiefer

CharlieB

Strictly a collector.
As for investing, do that with the stock market, real estate
or open up a business.

littlewicher

I'm a hybrid.

RLinn

Clearly, I'm a collector and have been for over 45 years. I love the art of coins. Coins are some of the smallest canvases upon which artists have captured and frozen in time a piece of who we are as Americans. Our national hopes and heros are seen on our coinage whether it is the early images of liberty representing our strongest founding principle or the eagle representing the heights to which our dreams can soar. It is difficult to hold a coin that bears the rigors of circulation and not wonder about the folks who have touched it and the transactions that it consumated. White or toned, slabbed or raw, I enjoy every coin I own for its beauty and history. I also collect because the act of collecting, like the coins themself, allow me to interact with many wonderful people that would otherwiise have never crossed my path. Those people and the stories they share are as much a part of the collecting passion as finding the elusive key to a series, sniping a terrific deal, slabbing 1 grade above expectations or getting a great ROI when a coin is sold.

jakemrjr

Collector here

DHeath

Collector. I occasionally sell a few coins to help fund my hobby, but pure collector. Collecting something as liquid as coins has it's advantages, but I never think of my purchases as an investment.

BTW - Mark, when you get a minute, look at this thread and tell me what you think about the coin and grade. My thread.

ldhair

Collector only. Buy nice coins and never look back. Long term the return will be there. The fun along the way will make up for it, if it's not.

CharlieB

RLinn - That was well done.

- Charlie B -

Dog97

I'm a collector but I have some investor type coins in my collection.

66Tbird

Type set collector of the classics.

dakra

Well... I started it all as a long term investment and as a collector and now it is my life!...going through coin rolls.

I purchase a few sets each year, I plan to collect a set and sell other sets to continue the hobby going. I have not sold too much with exception to the State Quarter First Day Coin Covers. That helped to purchase proof sets/silver proof sets and a gold eagle.

-David

jhar

I am a collector. I probably will sell some coins at some point in time. Not so much to make money, but to apply towards an upgrade, or just more coins.

RotatedRainbows

Strictly a collector, I go by the old saying
The Best Investment Is A Nice Collection

Clankeye

It's not just Collector/Investor. Collector/Speculator might be as accurate.
I am a collector, but got pulled into the regrade game in 89-90 after some big, lucky hits upgrading morgan dollars. Made some good dough. But, like any good casino patron can tell you, what luck gives, luck also taketh away. After I bought my clothes back from the local coin dealer, I resolved not to play the game for money. And I have been a happy, humble collector since then.

WWBillman

Collector, bar some catastrophic event my son will own it all some day.

IrishMike

Collector, I don't have the time, knowledge or aptitude to be an investor. I buy what appeals to me and hope some day to give it all away to folk who appreciate coins the same way I do.

Bear

I made so much money on my coin collection, I took all the profits and bought a large mocha latte at Starbucks. Bear

gemseeker

I'm passing my collection to future generations, so I am a collector now and let them be the investor.

coinguy1

Bear - I've been to Starbucks and no one can make THAT much money selling their coins!

To everyone who has responded to my "Collector vs. investor?" question - I very much appreciate your responses.
I have my own two cents worth (or worthless) on the subject but want to give people plenty of time to respond before I comment.

FlyTooHigh

Primarily a collector of US Half Dollars. Now starting an early half commerative set.

Nic

Combination. K

dpoole

Amen, Rlinn! Nicely put!

cacheman

Two hats: Collector for me, but turn investor just long enough before I bite the dust since no one in the family has any interest, and; investor for a Trust (although I am just pondering what to invest in, Key dates, Proofs, Colonials?)

jom

Strictly a collector. Why? Because I think rare coins are a terrible investment.

1) Transaction costs are far too high. Look at Real Estate for example. Agents get 6% (in CA) to sell a house. Heritage gets 15% to sell a coin. And don't forget the grading fees.

2) Coins don't pay dividends they only have the "potential" to appreciate (capital appreciation). Sure, coins go up in value but most of the time that has to do with re-grading more than it does anything else.

Yep. Collector all the way. And damn proud of it!

jom

goyankeez

In a word: Collector.

Although I want my collection to steadily grow in value over time, or at least hold its value. I don't want to buy a coin for $200 today and five years later find the same coin for $50. It may be tough to invest in coins and earn the 5-10% a year that one can find on other investments.

1jester

I echo what many have already stated: I am a collector first and foremost. However, I want my coins to have some value if I ever have to sell them, otherwise I'd find some other hobby like going to bars, or gambling, or otherwise simply spending money frivolously.

Coins have lots of investment benefits, even if they don't offer dividends as we think of them. For example, there's the privacy issue; you don't have that with real estate or stocks. And what about portability? How can you pick up your house and carry it across a border without anyone noticing? Or at all? Coins are also small, so they can be physically transported and hidden, and they can pack a huge amount of wealth in an extremely small package. Coins, too, are a way to preserve wealth over the long term. Are these not investment characteristics?

Happy collecting!

Cam40

That has happened a few times in the past ,buyers of todays `modern rareity`or what have you,for alot of money,only to find years later,your stuff has plummeted in value.
I laugh about the Krugeran my Dad bought for my Mom back in the early 80s.Its now worth $300 - $400
less than he paid for it back then.Also about that piece.My Mom,bless her heart,had it mounted in a necklace.
Last time I saw it it had lost a hellavalot of detail.It might grade a VG08 I,m thinking,Oh well...I didnt know back then to tell her not to have it mounted for jewelry.

cladking

Today's modern rarity was face value yesterday. Of course, past performance may not be
indicative of future results, and coins are not the best investment vehicle.

tradedollarnut

Hey - Braddick will pay a pretty premium for that VG08!

1956Quarter

I'm a Hybrid because today you have to be. Anyone who blindly buys coins just for the enjoyment of it alone without considering even a little if the coin will at least hold its current value is taking a big risk. I like to collect mainly, but each time I select a coin I'm not only looking for grade, rarity, and fair price, but I am also considering that based on those factors is this coin liable to at least hold its current value. Otherwise I may as well go buy a car where I know the value will fall guaranteed.

DoubleDime

Collector all the way !!!

UncleJoe

I am a collector first and foremost.

That does not mean that I don't shop price. I shop price to get good value for my money not because of some future hope of making money.

If I upgrade certain coins, I sell off my duplicates and I am not that concerned if I turn a profit . I buy well enough to usually get about what I paid for most of my duplicates.

By the way, it is hard for me to get really hurt because I only purchase circulated coins. I am confident in my ability to accurately grade circulated coins.

I cannot always tell the difference between MS62,63,64,65,66 so I don't bother with them.

The way I collect is very enjoyable to me. I don't worry about getting "taken" because I don't get involved where I don't feel qualified.
Joe.

newbiecollector

Fairly new to collecting and 100% a Collector.
But I consider it an investment that I hope my children will appreciate. Not the value of my collection, the memories it may bring to them about me and my love of collecting.

I know that is a selfish attitude, but it is true of my feelings.

Veep

A couple of months ago, I'd have said 50/50. Now, after recently having made a handsome profit on an "investment" that I held for less than three years, I'd have to say 90% collector.

All the while that I thought I had spotted a group that was undervalued and HAD to rise, what was really happening was that the activities of a couple of large promoters was driving the prices up. I only learned of this when I decided to liquidate. What an ego deflation that was! I still think that my coins would have risen due to market factors. But, not nearly as high nor as fast.

So, I'm considering my remaining holdings and future purchases as a "collection." Its a good thing that not only was I buying coins that I felt had appreciation potential, but coins that I liked as well.

Veep

abmluce

Hi, i am 100% a collector. But when i do sell my coins i do like to make a little money on them

steventheyn

I'm a collector but if my coins ever rose in value dramatically I would sell them to buy more coins. I don't think anyone can be a "100% collector" we all have a little investor in all of us. By definition a collector could buy a coin today for $200 and not mind if it was really worth $5.

coinguy1

This is my reply to my own question:

I believe that virtually everyone falls into the hybrid/combination category, though in varying degrees.

Many years ago, someone much smarter than me explained it to me (mostly) as follows:


Some buyers start out as investors and some start out as collectors. Over time, most of those investors begin to form some appreciation for the widgets they have been buying, for a number of reasons. Perhaps childhood memories are rekindled; maybe some of those (hopefully) round things look pretty or lead to or awaken an appreciation of history or art; maybe those investors come into contact with other investors or collectors and form friendships; maybe they start reading about what they have been buying and start forming preferences about what they spend their funds on, etc. At some point, I would bet most (though certainly not all) of these investors inevitably form some attachment to and appreciation for coins and, if they aren't careful, turn into collectors.

On the other hand, for those who start out as collectors - Once someone is spending a certain amount of money or a certain percentage of their (hopefully) discretionary income on coins, they must consider the financial consequences, whether they choose to label themeselves investors(hybrid or otherwise) or not. The vast majority of coin buyers are not in a position where they can buy without limits - at some point it might come down to a choice between a coin or a vacation or a coin or something nice for the wife (or husband, for all of you female coin collectors out there!). Many "collectors" do need to consider the tax and eventual estate consequences of their rare coin holdings, as well. And, lets' face it, most collectors want to know what their coins are worth and how they have performed, price-wise, even if that is not THE most important consideration in their collecting.

That said, I still believe all of you who label yourselves collectors - I am a collector myself, so I have a pretty good idea as to how you feel. But, I think almost all of us are at least a little bit collector and a little bit investor, some of us 90%/10% and others 10%/90% (with the vast majority of us falling somewhere in between).

Thanks again for all of your rsponses.

Bear

I believe most of us are collectors first , last and always. However, when your collection gets up to the thousands of dollars and above, then a prudent person must give thought to value and investment. If you purchase coins that take your breath away today, those coins should have the same impact on the next buyer when its time to sell.
Like all items of value, one must usually hold coins thru several cycles to maximize gain. The really big money has always been made on quality coins held for the long haul. A good test of value is to always sell a few items every year. This helps you to gauge the market, test your eye for selecting quality coins, and generally test the integrety of the person or persons you buy your coins from.
I did not start collecting to make money, but after 20 years, I sure expect to make some money in my old age on my old coins. Bear

goyankeez

After reading all of these replies, I'm not sure what to call myself. Probably hybrid will be a better category than just a collector. If someone gave me a good "tip" on coins that would rise in value, and there was evidence to back it up, I would not invest in it. I look for coins which I like first, not ones that have the best chance of rising in value. So, maybe I'm a hybrid, but definitely not an investor.