If a friend of yours wanted you to buy some rare coins for him because he thought he could make some

ANACONDA

If a friend of yours wanted you to buy some rare coins for him because he thought he could make some money at it, and that was the only reason he wanted you to buy him some coins, would you "help him out" by taking his money and buying some coins for him? He is going to rely on your experience in the coin realm.

You're not going to get paid for your help.

Would you do it?

Bruceswar

Depends on how he wants to make the money... Legit yes.. Crook no..

ANACONDA

Legit yes, crook no.

ILikeMercs

no, because IF he doesn't, he may not be your friend anymore.

crito

Only if I were a CFP (certified finacial planner) or had you promis to represent me for free if he lost money and I got sued.

IGWT

-- "If a friend of yours wanted you to buy some rare coins for him because he thought he could make some money at it . . . ." --

If he truly thought that he could make money at it, he'd do it himself. He obviously feels that I can make money at it. I can't; so, no thanks.

DHeath

You're not going to get paid for your help.

Then no, I'll use the finite number of sure kills I find to "make money" for my hobby fund.

fivecents

<< <i>If a friend of yours wanted you to buy some rare coins for him because he thought he could make some money at it... >>

No way. That would end a friendship quicker than borrowing or lending money to a friend.

ER

<< <i>

<< <i>If a friend of yours wanted you to buy some rare coins for him because he thought he could make some money at it... >>

No way. That would end a friendship quicker than borrowing or lending money to a friend. >>



Yep.

291fifth

I'd advise him that coins are for collecting, not investing, and decline.

joecheck

The key word is "friend"!

sweetwilliet

No, I wouldn't do it. But, if he just wanted to collect, I might buy a bunch of pl/dmpl morgans for his "investment" and hold them in a safe place, like my registry set.

jdimmick

I have actually had this happen both earlier in this bull market, and recently.

The first was a freind who knew that the coin market was starting to heat up and asked me if there was anything that would be worth buying for investment purposes. First of all, I gave him a quick course in how the buy /sell spreads work, grading, type of coins, liqudidty, etc. I gave him some choices at the time in which I saw the best potential. Well he decided not to purchase, and would have done very well!!

Recently, Becuase of market conditions, I am a little more conservative in how I respond to these questions, and basically state that they should really only buy if they like owning a specific piece. I do offer some areas that I think have some continued potential growth, but to proceed with caution!!

jim

itsnotjustme

No (with exceptions). Generally, if I see a coin I think money can be made on, I will buy it for myself.

The exception is stuff like the mint $1 Buffalo, etc. I told people those were sure kills and I was right. I made my money and if anything the extra buyers on the Buffalos increased my profit.

Boom

No and No because somehow, someway if he loses it's going to fall back on you and you'll be out the money and the friend. Business and friendships seldom work out. (JMHO)

kranky

I would tell him that I don't know how to make money with coins, so he would need to find someone else to help him.

roadrunner

Had this happen to my closest friend in 1988. He had been a collector as a kid as well...but hadn't done much since. The coins I got him into (at no markup and at wholesale levels and very choice for the grade) did ok and appreciated about 25% or so within 12 months. We discussed liquidating at a profit but the gut feel was that this market could go further. He decided to keep them longer. The market moved up for a time but then the roof caved in.

Since then, my ex-friend hasn't responded to any communications of mine. It's been 17 years since we talked last. And prior to that we kept in touch at least once or twice per year. I used to stay at his place in Southern, CA for some of the Long Beach shows back then.

Keep friends/relatives and coins separate.

roadrunner

TorinoCobra71

<< <i>If a friend of yours wanted you to buy some rare coins for him because he thought he could make some money at it, and that was the only reason he wanted you to buy him some coins, would you "help him out" by taking his money and buying some coins for him? He is going to rely on your experience in the coin realm.

You're not going to get paid for your help.

Would you do it? >>




Is ANACONDA/COINGUY1 the same person?!?!?!?!? ;0

TorinoCobra71

PS I would offer "my friend" sagely advice, never let a buddy throw their money away.......

thezookrew

I would tell this friend that just like the stock market, there are other factors involved with whether a coin or series of coins will make money as an investment. Conditions beyond ones control, including collectors taste, speculation, and the world economy all take a part in dictating whether coins are under or over valued (just like stocks, real estate, and commodities). Unknowns such as terrorist attacks, unforseen conflicts, softening/strengthening demand all combine to put various pressures on the market. I may know trends, but I can't forsee the future. Get into coins if it is something that interests you OUTSIDE the monetary value (above face) of the coins. If not, look at other investments.

Cameonut

No way.
I do all the work for no compensation? I call that being taken advantage of - my "friends" don't do that.

On the other hand, if he chooses the coins he wants and needs help procuring them, I would help him locate and purchase them. He would do most of the work. I would also give him a few pointers on how to avoid the scammers we have in the hobby. But the decisions on what to buy are solely his.

I would never want to get into a position where coins could cause a friendship to be broken.

shirohniichan

<< <i>I'd advise him that coins are for collecting, not investing, and decline. >>



Yea, verily.

If he points out that I made money on the ones I bought for my collection, I'd tell him he needs a time machine to go back to 1998 when I started building the set.

PerryHall

<< <i>The key word is "friend"! >>



I wouldn't do it especially for a friend. There is no guarantee that you will make money on any coin purchase,

mgoodm3

no freakin way. if he loses money, he blames you.

topstuf

Oh .... SURE !!!

That sounds fun. I can remember back in ...bottle collecting .... days when the wife and I would make trips into the boonies and find old bottles.

My...COUSIN... saw some and wanted to get some. Not for an investment. Just for FUN!! ...yeah, fun.

Took em out twice an they got hooked and started going every day. Got real SECRETIVE.... See one of their bottles and ask where they found it.

HA!.....No way, Senor!!!!

And now I'm gonna ...INVEST... for a "friend?"

DeusExMachina

I would do it if my friend were a high net worth individual (say worth 100MM) and he/she wanted to put 1-2% of his/her assets in coins. I would explain the risks and my strategy and then execute. Also, individuals that "need" this type of diversification tend to be more sophisticated and understand the general risks when investing in any asset class. That said, I am not a coin expert but if I were, I would go ahead with this plan.

If it was one of my buddies (who was worth say 10k) who wanted to start waving in coins b/c he thought they were "cheap", I'd tell him NFW.



I might add all this coin investment talk seems to indicate a peak. Reminds me a lot of the housing market in southern CA, which is starting to look weaker already.

Myqqy

I'd advise him that coins are for collecting, not investing, and decline.

Exactly. I would try to explain the hobby to my friend, and show them various items from my collection- perhaps I could encourage them to take up the hobby for its own merits...

LanLord

Not for a friend that I wanted to keep.

mirabela

About the most I would do is refer my friend to some good books, this forum, and a couple of reasonably trustworthy dealers.

Tarmac

In short, no.

Look at the people who come here asking for advice. They already have an agenda and if you don't confirm their wacky thinking then they dislike you for it.

Who needs the headache? Now I have educated many friends and saved them from making bad purchases.

People and money are strange at times. They expect you to make them money without making an effort. The least they should do is educate themselves.

Elcontador

I would tell him that if he wanted to be almost sure to lose money in the short run, one of the best ways I could think of is to "invest in" rare coins. If he really wanted to lose money, I'd suggest playing Keno or buying lottery tickets.

I'd tell this to anyone, friend or total stranger, if asked. There isn't another legal investment out there that I know of where dealer (seller) to collector (buyer) spreads range from 10% to "how much can I get from this guy." After two to three years, I can now sell most of the 19th Century type for what I paid for it, maybe a little more. A few coins, like my Small Eagle Capped Bust Quarter, have gone up more than that.

cladking

I'd give him detailed instuctions for how to do it and then advise him not to.

roadrunner

For a friend who wanted to make money in coins in the short term,
I'd steer him to MS64-66 common Saints, but with someone else. About as sure as anything else in the commodity world these days. But there are always some risks. Buy low (like now) and hang on until the next move up. Then bail. Take a 20-40% profit for your efforts. Buy back on the next crash down. Repeat for the next 3-5 years.

roadrunner

Stuart

Adrian: My answer to your question is simply, No. I speak from personal experience where a friend of mine asked if we could both split the purchase price of some coins, and eventually sell them for profit. I refused because I am a coin collector, and do not purchase coins primarily for an investment -- although I am price conscious about what I do purchase.

However, if a friend asked me to help teach him or her about coins, by accompanying them to coin shows and coin shops, I would be delighted to do so. In this case I would also be pleased to provide my guidance, if they requested it, on coins that they select based upon their personal collecting preference.

I am always pleased to help other people learn about new hobbies and activities in which they are interested, but prefer not to get in the middle of other people's investments and investment decisions.

greghansen

He's have to be a pretty darn good friend. I've bought stuff as a favor for a few people over the years (nothing on the scale your talking about) when they've asked me to buy them something that might appreciate. Usually, I've just got them a circulated key date coin that is going to hold its value more easily. I'd be REAL UNCOMFORTABLE doin it on a larger scale. You'd have all the downside (its your fault, you picked a bad coin, etc.) and none of the upside.

majorbigtime

I saw this situation in 1965, when the investor loaded up on unc rolls of 1955 D quarters--a big ouch and stinko investment.

09sVDB

Depending on how good of a "friend " they were and only after explaining how they could loose money too.

MrEureka

It the friend is smart enough to understand the risks and that I have limited control over his success, I'd help. (This rules out most friends.) However, I would insist on getting paid for my efforts, or at least participating in his profits. If he won't agree to that, he's not thinking like a businessman, which means he won't think like a businessman later when and if he loses money on his investment.

RedTiger

No way, no how. Too many pitfalls. Most people change when there is large amount of money involved. To do it for free is complete idiocy considering the time involved, the complexity of the hobby, and the possible downside. I might suggest some websites or books so the friend can learn how to fish instead of handing them fish every day. However, overall, I would discourage the friend from attempting it with horror stories like the Ohio coin fund and stories about folks that got hooked by telemarketers that are lucky to get 20 cents on the dollar.

My opinion:
Investment coins + beginners = disaster waiting to happen

When beginners show up here with the investment notion, I also try to discourage them. There are too many shady characters hiding under the "investment" word, selling coins.

Again, those successful, tend to have a talent for grading, a true love of the hobby, and are willing to spend countless hours learning about coins and developing the contacts needed to buy and sell with minimal costs. There may be a tiny percentage that succeed through pure dumb luck, but those people are exceptional. As a rule, it is those that invest the time, and have the talent, that succeed. Those that don't put in the time to learn, or lack the "eye" for grading, and don't care about the hobby usually lose.

michael

no

PerryHall

<< <i>He's have to be a pretty darn good friend. I've bought stuff as a favor for a few people over the years >>



Are they still your friends?