Anyone want to share ROI over the long term?

keoj

I've been collecting about 15 years. As with us all, I've continued to upgrade coins along the way for various reasons; 1) General upgrade of grade, 2) extending varieties in the series that I collect, 3) removing poor or "mistake" coins from the early years of collecting (yes, I still make mistakes, just fewer of them), etc.

I've kept very good records over the period and reviewed them the other day. It turns out that I've now sold high 5 figures worth of coins over this period. My net gain/loss (selling price - acquisition cost) is $-250 over the same period. Adjusting for inflation and lost opportunity (stock market over the same period), I could have made more money elsewhere BUT that is not whats collecting about for me (Its a hobby!!!!). I also take some comfort that many of my best purchases are still in my collection and haven't realized a gain (or hopefully not a loss) yet.

Any other collectors (like me) care to share? Any dealers want to share?

keoj

shirohniichan

I'm afraid to take stock of my coin purchases, but I figure they can't have been as bad as my 401K over the past 18 months!

nwcs

Well, when I'm in the mood to splurge some money I go to Best Buy. Then I look at the big TVs and things and cool gadget and go buy a coin. Why? Cause at least the coin won't lose much money!

UncleJoe

I started collecting in the 1960's and then sold off most of the silver in the 1970's (for tuition).

I only became an active collector again this year and I am enjoying every minute of it.

I still had mostly Indian and Lincoln cents and V and Buffalo nickels. I kept records of my costs and all of my remaining coins will sell for multiples of what I purchased them for.

ROI however, that is quite a different story. Even at multiples we're talking thirty years. Compounded, ROI would be quite small.

Joe.

RLinn

Been collecting for over 45 years.

Annualized Financial ROI = %

Annualized Enjoyment ROI = Priceless

gemseeker

Very low ROI on your collection. This is not an easy hobby to make a living on. I haven't priced my collection since I got most of the pieces recently. But I ain't going to splurge a large amount of my investible capital on collectibles unless I am reasonably sure that it is a sure thing. I'll keep mine in low yielding investments.

DesertLizard

keoj,
Thanks for sharing! Far too many claim wild profits on their buying and selling leading the naive to believe they can do as well.

I have said for years coins and collectibles are not investments but hobbies......and for some, a business!

Higashiyama

I value everything at cost less depreciation and assume there is a "hidden gain"

stujoe

I buy what I like and try to buy nice looking coins even when they are junk coins.

After I buy a coin, I don't even keep track of how it has 'performed' so I really couldn't even make a guess as to my gains or losses.

I am sure that my coin hobby 'investment' has done better than my dart hobby 'investment', my fishing hobby 'investment', and my beer and pizza hobby 'investments' combined.

Nic

I took an interest in coins when I was 13yo. I moved "on my own" at 14yo. Coins supported me, and payed for my school/entertainment for the next 16yrs. They continue to be a part of my life as a collector/investor. Rate of return cannot be calculated. K

wingedliberty

20+ years of collecting, some coins have appreciated and others have not, but the net benefit is that
its the greatest hobby on earth and my passion in life. That speaks for itself.


Brian.

Elcontador

As one who started collecting in the 1960s, my ROI re what I've sold can be summed up as S.O.L. Actually, I've probably broken even on what I've sold, but that's nothing to brag about.

My worst investment was a 1931 D BU FB Dime with booming luster. Paid $75 for it. Thirty years later, I sold it for $50 because it wouldn't grade higher than a 3 or 4 with a grade limiting scratch across Miss Liberty's jaw.

My best investment was a 1936 S BU Walker that I paid $105 for (including grading fees) that's in the $950- $1,100 range right now.

ldhair

If I were to sell, mine would be more than many would believe. The key word is long term. 30 to 40 years ago I took David Bowers advise and bought only rare really nice coins for my collection. Common will always be common. Rare will only go up in price. It's not near as much fun, but save up for the best rare coin you can buy and the return will be there. There is always a strong market for a really nice coin.

supercoin

Coins are a great hobby and can be far less expensive than other hobbies because you get some money back, unlike golf, for example.

However (and no disrespect intended towards Larry's impressive collection) I think they perform very poorly as a long-term investment -- in fact, especially as a long-term investment. This is contrary to conventional wisdom often given by "investment quality" coin dealers.

Almost anything looks like a great investment after 40 years simply due to inflation. But if you put it in a spreadsheet and see what your actual annualized return is... it doesn't look so good any more.

In a recent debate on the registry forum, some examples of coins that performed very well were still soundly trounced by the general stock market over the long-term. And that was before subtracting the substantial incidental costs of storage and insurance over the years, and significantly higher buy/sell transaction costs.

Collectors can and do make money in coins, but in shorter time frames, and particularly by doing things like cherry-picking. But not, from what I can tell, by buying coins at fair market value and holding for 40 years.

But, as always, coins are prettier than tradtional investments.

09sVDB

I have been a collector for about 35 years. To be honest I don't collect for ROI, I collect as a hobby. I recent have been trying to aquire top quality pieces as my buget allows with the hopes to assemble quality sets. If in the long term I make money fine , but for the present its just a hobby, not an investment.

ldhair

Your right Supercoin.
A little quick math tells me I didn't do as well as I thought.
Thanks.
Edited to say-I think.

grip

Mine seem to be hidden pain ,no gain but pure enjoyment?.I don't realy care as long as im having fun.And of course pay the bills and eat.Al