My handy-dandy 5 year chart says the S&P 500 has lost 16% compared to 5 years ago today. Add on lost buying power due to inflation and it *really* gets ugly. Just to add insult to injury - use Retiree's inflation and not the BS CPI.
For those that think collecting coins is a hobby only, and not an investment this is an illusion. Yes there are those that collect coins in the lower price range and spend a few hundred dollars each year, and this is a HOBBY to them. On the other hand buying a couple of shares of this and that company on the NYSE so that you can read and study the annual reports is also a hobby. The fact remains that in the minds of folks buying a majority of the dollar amounts of the coins in the market the investment potential plays an important part in their decision. In the up coming FUN sale the majority of the dollars spent will be on investment grade rare coins. In the minds of the buyers they will buy many of these coins to, hedge against up coming inflation, to diversify their over all investment portfolios, to flip to make profits, or to gamble that other wealthy collectors will pay a higher price later due to shortages. It is also a fact that if you had the advice of a stockbroker advising you on a basket of stocks the last five years, and a professional investment adviser, from say Heritage, advising you on a select basket of coins to buy you would have done much better with the coins.
As far as the disagreements between PCGS and NGC on their grading, this is an absurd discussion that really should end after nearly 2 decades of infighting. Personally it appears to me that NGC has at least held out the olive branch in allowing PCGS coins to be allowed in their Registry. As far as collusion between large dealers and the TPG’s I don’t believe it exists, with the exception that a major dealers in house graders may have an opportunity to discus a grade with the TPG’s that most regular clients do not have. It makes no sense that coins would be constantly over graded to the benefit of large dealers. First most of the coins sold by them at auction are not theirs, and second most major houses have a no questions ask return policy.
There's nothing in the article that is horrible advice when taken in context. If this appeared in a magazine that was intended for the general public I would have more trouble with it, but the author appears to merely be attempting to refute the excellent editorial written by Hoot recently. He may not have succeeded to our satisfaction but he does make some excellent points and from his perspective there is much truth in what he's written.
Coins make a great hobby and a lousy investment but the only reason they make a lousy investment is that they are so extremely unpredictable. Even if the market quadruples there is no gaurantee that your coins will increase much in value. The market has a knack for picking and choosing what series and grades are affected and then most people seem to forget that whole segments of the market were left behind.
Pricing in collectibles is highly predictable; demand will drive the value based on supply. It's possible for experts to get a good handle on supply but it's impossible for anyone to accurately predict demand. The advantage of collectibles as an investment is only that price swings can be much greater than even the hottest stocks. The disadvantages are so numerous that I'd never recommend it for anyone.
Comments
My handy-dandy 5 year chart says the S&P 500 has lost 16% compared to 5 years ago today. Add on lost buying power due to inflation and it *really* gets ugly. Just to add insult to injury - use Retiree's inflation and not the BS CPI.
stated grade meets my own personal standards for the grade.
As it works out, I now purchase only withyin the top third of the grade
classification. This means I have to pay a bit more for the coin as I have
to fight of the crack out artists, but it is worth it .
Strange how these anti PCGS articles seem to pop up from the same
PCGS hostile suspects, right on schedule. After all is said and done, life goes
on, coins continue to be graded and PCGS remaines a premier TPG.
Camelot
It is also a fact that if you had the advice of a stockbroker advising you on a basket of stocks the last five years, and a professional investment adviser, from say Heritage, advising you on a select basket of coins to buy you would have done much better with the coins.
As far as the disagreements between PCGS and NGC on their grading, this is an absurd discussion that really should end after nearly 2 decades of infighting. Personally it appears to me that NGC has at least held out the olive branch in allowing PCGS coins to be allowed in their Registry. As far as collusion between large dealers and the TPG’s I don’t believe it exists, with the exception that a major dealers in house graders may have an opportunity to discus a grade with the TPG’s that most regular clients do not have. It makes no sense that coins would be constantly over graded to the benefit of large dealers. First most of the coins sold by them at auction are not theirs, and second most major houses have a no questions ask return policy.
appeared in a magazine that was intended for the general public I would have more
trouble with it, but the author appears to merely be attempting to refute the excellent
editorial written by Hoot recently. He may not have succeeded to our satisfaction but
he does make some excellent points and from his perspective there is much truth in
what he's written.
Coins make a great hobby and a lousy investment but the only reason they make a lousy
investment is that they are so extremely unpredictable. Even if the market quadruples
there is no gaurantee that your coins will increase much in value. The market has a knack
for picking and choosing what series and grades are affected and then most people seem
to forget that whole segments of the market were left behind.
Pricing in collectibles is highly predictable; demand will drive the value based on supply.
It's possible for experts to get a good handle on supply but it's impossible for anyone to
accurately predict demand. The advantage of collectibles as an investment is only that
price swings can be much greater than even the hottest stocks. The disadvantages are
so numerous that I'd never recommend it for anyone.