Investment?

pupskweek

I keep reading here that nobody agrees with buying old gold coins for an investment. Please tell me why. Thank you--Pups

100proof1957

Better date Saints should be fine.

Dont buy common crap for an investment !

Long term,buy Harley Davidson stock !

DRUNNER

Pups:

Many here tend to frown upon the investment aspect as a primary reason to 'collect' . . . but any old gold could be at least a good repository of value. The proper older gold could be a wise investment . . . but so could many other rare or high condition coins. Always keep the ultimate rule of supply and demand in mind when you buy . . . .

DRUNNER

MrEureka

There's nothing wrong with investing in coins. It's just that collectors have a completely different mindset about what they are doing and prefer not to muddy the waters with talk of investment. Also, most collectors know that most coin investors don't do their homework and, as a result, typically lose money. Better to just discourage the investors.

mrearlygold

Depends on how you define investment.


Some people pitch leased BMW's as an "investment".


Tom

morgannut2

Coins are not an investment, they are PART of a thoughtfull investment STRATEGY. Many many wise money managers hedge part of their portfolios in bullion as a balance against a weak dollar and inflation. Many of the smarter ones seek top stock brokers and read the Valueline Stock Investment Letter, along with their own research. Many of the smartest of them also seek a top numismatic adviser (as TDN/others have done) or dealer to buy rare coins in lieu of bullion, and may read the Rosen Numismatic Advisor Letter, along with doing their own research. The problem occurs when anyone mistakenly thinks they can just walk into any old coinshop for advice, or just any old stockbroker for advice. You will get clobbered in either case unless you get very lucky! There even are programs to buy coins if you don't want to study that are analogous to a mutual stock fund. They are available at ANR with Q. David Bowers (president), Legend Coin, with Laura Sperber, and any number of reputable Forum members who post here and give good advice. Best idea--start slow and read up on the coins you like before spending big money.

roadrunner

There are no real true investments, coins included. But one can spend their money on anything they choose. Over the past 30 years, american "investment" dollars have chased after one bubble asset after another. It's hard to fathom the concept of "investement" anymore. It would be wiser to call it hedging, speculation, chance, etc. This is what you get with a constant inflationary spiral where currency is linked to nothing tangible.

But yes, coins can fit into the above equation as well as any other bubbled asset recommended by the mainstream talking heads.

roadrunner

morgannut2

Very sound point Roadrunner. Strickly speaking I view coins/bullion as an investment hedge. In other words an insurance policy against inflationary currencies. True investments are rare these days, ie. asset allocations where the return in today's dollars is reasonably expected to grow in excess of inflation.

Deadhorse

Truth be known, I've got antiques that have appreciated in value far better than bullion or high end coins over the last few years.

Did I do my homework there? Nope, not a bit. Just listened to a former GF who did know quality and a couple of her friends. In fact, I happened to like what I bought and that was the main reason over any advice. Call it lucky with a little bit of guidance. Who knew that buying a Shelby Cobra in 1969 for 20K would bring close to a half mil today if kept stored properly?

It's just that some things such as precious metals, jewels, rare coins have a track record of being a pretty good hedge.

JrGMan2004

<< <i>Who knew that buying a Shelby Cobra in 1969 for 20K would bring close to a half mil today if kept stored properly? >>

Mmmmm..... Shelby Cobra.........

Oh! Sorry about that! What were we talking about?

pupskweek

Thanks to all for the input. I do appreciate this forum. Happy holidays to all! --Pups