Investment type suggestions

dalbert

Hello everyone. I was asked recently about what coins would be investment grade, and I was stumped. I am into coin collecting for the fun of it, and yes, I have found fun in it.

Someone asked me about what kind of coins would be investment quality, and from what I read and off the top of my head, I said gold coins before 1933. Other than that, I couldn't think of anything. Anyone want to add their 2 cents worth?

nwcs

Key dates in higher grades are investment worthy.

roadrunner

Any coins, tokens, medals, etc. that will go up in value can be considered investments. If they go down, they're bad investments.
It's the pickin' that's the secret. Buy what everyone else isn't buying and has untapped potential. So that would obviously no longer include gem lincolns, washingtons, early bust type, Indian cents, buffaloes, pop top moderns, and other similar items. After generic gold type gets beat down to a bloody pulp, that might be a good investment for the short term. How about Civil War tokens or store cards for example. Maybe even full torch Roosies. There appears to be no longer any real definition of "investment grade" across the board. A "nic good" chain cent is investment grade. So is a MS66 no motto seated quarter or a MS 65 Missouri. Which one is an investment today? Who knows.

Now find other areas that have untapped potential based on present rarity and future increasing demand. Tulips anyone?

roadrunner

nwcs

I think all my coins will rise in value. Which is why I think everyone on the board should by the coins I'm selling.

anoldgoat

Dump all VF and up early Lincolns. They're a terrible investment. And IHC's, the futures are looking bad there too.

Ronyahski

I think you answered your own question in your post. An "investment grade" is not the state of a coin, rather it is the state of mind.

Like you, you can buy coins for the fun of it - you are a collector.

Investing entails buying coins, not for the fun of it, but for increase in value, trying to predict a myriad of possible effects on market prices. To me, the investment coin market is intriguing because it is an innefficient (economicallly speaking) and thin market, offering many possibilities for coins to make "investment grade". If I were investing right now, I'd pick Full Torch Roosies and certain top MS type Seated and Bust.

By far the greatest indicator of an "investment grade" coin is being able to sell it when the time is right. If you hesitate selling because you are having fun with the coin, well, that makes you a collector.

michael

for me

coins are NOT an investment

and never will be

sincerely michael

michael

when buying coins know waht you are looking at and deside for yourself

only buy coins for fun as a hobby
only buy with discretionary funds money you can afford to lose

if you cant do all of the above then that is okie just let the buyer beware

oreville

In 1986 I did the following...

I bought 100 shares of Microsoft and also purchased 2 rolls of BU 1983-P quarters.

The 100 shares of Microsoft cost me $2800.00.
The 2 rolls of quarters cost me $28.00.

What are they worth now?

The Microsoft stock is now worth $713,640.
The 2 quarter roll are now worth 1,300.

Hmmmm... I didn't hang onto the Microsoft stock long enough, but I am more than satisfied with the collector rolls of 1983-P quarters. Always looking for more.

MapMaker

THE BIG BOOM IS IN PROGRESS IN STATE QUARTER SPOONS. New York, No.Car., & Kentucky so far have gone up 1000 to 2000 % in a very short time. A $7.95 cost at mint are going from $100 to $200 on Ebay.
Can the Del. Pa. & N.J be far behind? The risk is little @ $7.95 which is what they are still selling for from the U.S.Mint! THE BIG SECRET IS NOT TO HOLD ON AND GET STUCK LATER! TIMING IS EVERYTHING.
Please let me know what you think? EZESTATE
*PS MINT POLICY IS TO ACCEPT RETURNS FOR 30 DAYS FOR "ANY" REASON.

baccaruda

mapmaker -

do you think anybody really wants the spoons or is everybody just trying to make a fast buck off them? if the latter is the case, then who will the eventual "buyer" be if no one's really interested?

dorkkarl

i say: invest in plastic bulion!!!

what's spot on plastic these days?

K S

Draco

I don't view coins as investments. However, I do look at them as a sort of emergency cash source (it's why I prefer slabbed coins). As much as I love my coins, they would have to go if something bad happened in my life.

MAULUMALL

$25.00 Platinum Proofs

BillJones

For years we were subjected to garbage about the bifurcated coin market. On one side we had “investment grade” coins, which usually meant MS or PR-65 or higher. On the other side we had “collector grade” coins, which usually meant MS-64 or lower.

Here’s a concept for SANE people to consider. If the price of a coin has gotten too high for a substantial portion of its collector base to purchase it with come some comfort, it’s no longer an investment; it’s a speculation. Coins that are priced beyond their collector base are destined to fall in value because collector demand sets long term prices. Only “bigger fools” continue to push up the prices for such coins, and when the “bigger fool” merry-go-round stops, the game is over.

The last time the merry-go-round stopped was in the late 1980s when the price of the “old” commemorative half dollars collapsed. If you want to get a laugh, check out the “Investment Section” (pages 287 – 324) of the The Encyclopedia of United States Silver & Gold Commemorative Coins 1892 - 1954 by Breen and Swiatek. The front half of the book is great, but the back half on investment, which was NOT written by the authors, is pure bunk.

Is anyone paying $8,200 for Old Spanish Trail half dollars in MS-65? According this section they would be doing it in 1990! The other price projections were of equal "merrit."

wallstreetman

Platinum coins and Palladium bars!

DeepCoin

I am with Michael. Coins are for collecting. IMHO there are no investment grade coins.

I know I am being picky, but from a portfolio management perspective I would never recommend coins.

However, if you are looking for value for your collecting dollar, then Laura's comments make good sense. I would also agree with high grade keys that will always remain popular and liquid. There is no reason based upon rarity for the price point of a 1909S-VDB in MS65RD except from a supply and demand perspective. The other similar coins, 1907 Saint, 1016-D Merc..etc. would also be part of that sector IMHO.

santelia

The best description of coin value I read was by Eric Li Cheung in one of Scott Traver's books: value = date/mint mark + demand + condition + rarity of the variety. There are many R8 and R9 civil war store cards out there that are reasonably priced because the collector demand is so low. How many collectors are trying to get a full variety set of Oliver Boutwell store cards? You can cherrypick rare Chinese coins all day, but very few collectors want them, and catalogues in English are woefully inadequate.

The best guess is to figure out which coins are currently rare, and may be in more demand in the near future. State quarters will likely be in demand in the future, but none of them are rare. Several of the things that builds demand is publicity through better cataloges, active collector clubs, and affordability. My guesses might be early transportation tokens, late 1800 merchant tokens, early 1900 tokens if anyone ever publishes a comprehensive catalogue. Now that there is a new price guide for CWT's they migh take off. Casino chips look promising, with catalogues being updated regularly.

MrEureka

I also agree that coins are more suited to collectors than investors.

That said, there are plenty of opportunities to intelligently invest in coins and profit. Of course, there are FAR more ways to invest in coins and lose.

One last thing: I've never seen anyone consistently make money investing in coins without also investing a HUGE amount of time and effort. Don't even try unless you're willing to make that effort.