Have a friend that want's coins as an investment...what will be hot?

ChuckC

I have a friend who wants to buy some coins as an investment, and he wants to meet to discuss this topic. I briefly told him that bullion and key dates are the way to go. What else is out there? How about high grade clad coins for the LONG term? What about modern proof sets/SMS sets? Anything in a PCGS, NGC, ANACS slab?

Russ

Tell your friend to buy an index fund.

Russ, NCNE

goose3

"investment" is a scary word.

I like NO PROBLEM Key date coins, not top pop moderns and stuff where the plastic is worth more than the coin. I also would not recommend high dollar toners.

airplanenut

Moderns are far more likely to go up in pop in the years--BAD investment

kranky

Please urge your friend to look elsewhere for investment. Nobody knows what is going to go up. If you're lucky enough to make a good prediction, that's great. If it doesn't pan out, you'll lose a friend.

Even if we knew what would go up, there's still plenty of things that could go wrong. He could pay too much. He could buy coins that are low end for the grade. He could buy slabs from a company that goes out of business. He could be forced to sell when the market is down. He could be forced to sell before enough time has gone by to make up for the buy-sell spread. He could store them improperly and the coins become damaged. And that's just what could go wrong even if we knew what would go up.

Betta285

PL and DMPL Morgans aver very hott right now, and will only continue to get hotter...but as Russ said.....he's better off buying a couple shares of Fidelity U.S. Bond Index..

jim

fcloud

I would sugest some reading on your part of your freind. Alway do research before investing. The coin market is like any other market, some coins will do better short run and some items will do better in the long run. The market is based on supply and demend. We are in a hot market now, but that will change. The market was in a dry spell about a decade ago, and will go dry at some point. Like any investing, it is picking the point when to get in and when to get out. Do the research and don't jump on a bandwagon (many times when you jump on a bandwagon it is too late.)

Good luck!

100proof1957

10 shares of Harley Davidson
nicest 16d Merc you can afford
99-02 silver proof sets

Thats a start !

mrpaseo

<< <i>Tell your friend to buy an index fund.

Russ, NCNE >>



I was second the motion, and so it was law.

I have a VERY reliable source that has led me in this direction, it has worked out great thus far.

Coins should be a hobby and approached that way. If there is value when you decide to part with it so be it, do it for the love of the hobby not the "Investment"

Now, if your friend is hard headed, of course I would suggest Key date coins. Stay away from the modern clad hype, unless he plans to gamble and turn them around quickly.

Just my uneducated opinion,
Ray

Snoodle

Gold Bullion

as close to spot as you can find

start a regular buying program, an ounce a month for the rest of your life.

This is my prescription for a healthy fiscal future

It is my opinion that our problem with Soc Sec can only be solved by printing more dollars, which will cause the price of Gold in US dollars to increase.

Good Luck!


Oh, and GO BEAVS!!!!!

Baley

When "friends" with no knowledge of coins start asking about investing in them, it must mean a market peak is near.
Maybe I will consider selling some nice coins... the crash IS coming soon, apparently.

roadrunner

The great investment down the road is the one currently not hyped nor well-recognized in the hobby. It could be paper currency (little survives compared to coins), civil war tokens, medals, and other less traveled areas of numismatics. On the coin side possibly BU rolls, or some overlooked errors, scarcer than believed moderns, etc. The only problem is that it's hard to find this stuff in quantity.
Writers like Maurice Rosen often come up with future winners years before they become darlings. I recall Maurice proclaiming Wash Quarters a great buy 4 years ago, esp. the early dates. Someone on the forum is collecting that darling area already, I just don't know who it is

The ones that saw the modern craze coming and Lincoln/Wash/Roosy registries made out like bandits. What's next?
Good question. There isn't much left out there in mainstream coins that hasn't been cycled up that will surely hold up and become more desireable. Heck, even wheat cents have double in price. Then again, maybe BU rolls of steel cents would be a good choice. They aren't making any more BU rolls. I wouldn't even recommend key date coins at this point. They have moved up way too fast. They may hold "value" over the long term, but with inflation eating away all the time, you need to double your money every 10 years just to do ok.

roadrunner

Sphinx357

paper money, if all you coiners came over into the paper side we'd be paying stupid money for common notes

cladking

<< <i>When "friends" with no knowledge of coins start asking about investing in them, it must mean a market peak is near.
Maybe I will consider selling some nice coins... the crash IS coming soon, apparently. >>



With so many recommending moderns maybe it is about time to sell.

There's still a lot of room for growth on many of the moderns but it's pure
speculation whether they'll go up or not. Coins and all collectibles make
lousy investments. Tell him to do himself a favor and buy something with
a wider market and/ or that pays a dividend. There are lots of opportun-
ities out there that require foresight, perseverance, and intelligence to pro-
fit. So why pick something which is largely dependent on luck?

DHeath

Does he want to get ahead of inflation, or just keep up with it? It's coming.

michael

coins are not an investment

if you want to collect coins and study a series you like and look for valu7e and opportunity then you might have fun and also overall when you go to sell after many years you might get your money back maybe? more

but if you are seeking some good value buys in todays market it is hard to say 100%

but for me

neat wildly toned proof 66 brown rb two cent pieces with deep mirrors and pre 1867 coins

neat wildly toned superb gem proof pastel rainbow colored envelope toned three cent pieces


neat wildly toned gem proof with deep mirrors indian cents brown and rb


gem ms nicely toned lusterous fully struck twenty cent pieces

wildly toned gem unc seated quarters cc mintmark

gem proof deep/ultra cameo pre 1915 coins with the right "look" for a deep/ultra cameo proof coin

gem proof classic head half cents brown rb and some cameo contrast well most have some cameo contrast

wildly colored gem ms type 2 three cent silvers trimes fish scales etc.

gem ms brown rb middle date large cents especially 37 38 39

gem ms type three one dollar gold

1909 gem matte proof red lincoln cents

gem ms trades

killer colored gem ms texas commems

colored gem proof lib nicks

michael

ChuckC

wow, quite a response....Based on the responses, I'm convinced that coins do not make a good investment in comparison with securities. My friend was fascinated about my experiences as a collector, and he shot this "coins as an investment for me" idea out of the blue. Thanks for the advice so far

cladking

<< <i>wow, quite a response....Based on the responses, I'm convinced that coins do not make a good investment in comparison with securities. My friend was fascinated about my experiences as a collector, and he shot this "coins as an investment for me" idea out of the blue. Thanks for the advice so far >>



That's no reason not to recruit him as a collector. Give him some old buffalos or
Whitman folders or something. If the bug bites him he'll have years of enjoyment
and collectors often do well financially when they sell.

roadrunner

Michael, the areas you suggest are very difficult for anyone but the most seasoned collector to pick out and buy. I doubt even if you picked a well known dealer, that no more than 20% of them could put you into the right coins with potential. Their job is to sell you coins that maximize their own returns now. I'd love to buy the coins you listed but they are rarely available. Gem MS65 trade dollar to die for? I've been looking for 3 years, and have yet to see that coin. Sold a pair of MS64's that I should have kept that were very nice. Now I can't find a decent MS65 that isn't scuffed up or conserved or mottled to death. Finding coins with potential is very hard unless you have the best pros looking for you, and they charge handsomely for their services.

As far as investment goes. Coins ARE an investment, as much as any other "scam" out there. Stocks, bonds, real estate, collector cars, jewelry, painting, antiques, currency, diamonds, etc. They are all scams to some extent rigged against all but the most knowledgeable and saavy buyers. I laugh my keister off everytime I hear that investments mean "stocks." Ha ha ha ha. While that asset bubble worked fine in the controlled mania of the past 17 years, they are due for a long down cycle. Stocks will become one of the poorest investments of this new millenium. But...they are still an investment just like coins. Watch as gold becomes a recommended holding in many portfolios. It will become a must-have investment darling. And then it will crash, like stocks did in 2000-2001. These are all signs of asset bubble manias promoted by easy credit and Greenspan's printing presses. The lemmings run from one asset bubble to the next. That's the long term effect of fiat money.

NOTHING is an investment. It is speculation just like everything else is in life. You can invest in yourself and your family. That's where sure fire invesments end. Wall street has succeeded beyond their wildest dreams in clothing the emperor for the past 17 years. But those clothes are wearing very thin. Keep believing the hype that paper assets are an investment. Real wealth has always gone back to "things" of real and honest value.

roadrunner

BAJJERFAN

Is he looking at short term or long term? I'm not so sure I would buy into an index fund right now unless I was willing take my profits on small moves.