Need help spending some money....

craig63

If you had $10,000-15,000 to spend (already been to Vegas so that's out)and wanted to invest in coins for long term price appreciation, what would you buy? After years away from the hobby, I have decided to spend some $ on either coins or buillon as an investment. I have myself covered with stocks, real estate, etc, but not much in coins/gold/silver. Someone was in my store today and just started talking about the Gold buffalo coins, but after reading threads here, I am not going that way. Is it better to buy straight gold buillon or coins? I just read that rare key date coins are a good way to go( quality rather than quantity). I do like gold, so I am heading that direction. Is there a particular set that I should look at? One last thing....My history is that of a risk taker and have been known to "put all my eggs in 1 basket"...I know,...not good.

Any help ( specific dates/etc) would be appreciated.

Craig

Leiana

Coins are not an investment.

Bullion, however, can be.

-Amanda

Bochiman

Key dates in grades right before a big price jump to the next level.
Slabbed by PCGS or NGC for best liquidity (but, making sure the coin is graded correctly or even "undergraded" )

lkenefic

Even if you purchase key dates at just below the next big price jump, you're betting on the market to rise accordingly. Coins, like any market, rise and fall. Also, your investment might not be as "liquid" as you might think. Certainly you'll be able to sell a key date in a popular series quickly, but if you're selling it to a dealer you probably won't get anywhere near ask and depending upon the market for the particular keydate, you might do 10% or more behind bid. Bullion is more attractive, but again, we're in a pretty volitile market at the moment. If you decide to invest in gold, or silver [palladium might be better], you'd also better take some stock out in Rolaids as well

Leo

dlimb2

You want to jump in today...go to the mint site and buy the 3 piece Anniversary Silver American Eagle sets...you are allowed 10. In one years time you will be happy with it...

robertpr

Coin prices have started falling on average, and the market has just turned. Sorry to be the bearer of bad news.

If you want to invest, I recommend TD Ameritrade.

MikeInFL

<< <i>If you had $10,000-15,000 to spend (already been to Vegas so that's out)and wanted to invest in coins for long term price appreciation, what would you buy? >>



Stick with bullion, coins are not an investment, particularly for someone relatively inexperienced...Mike

Whizzard

<< <i>You want to jump in today...go to the mint site and buy the 3 piece Anniversary Silver American Eagle sets...you are allowed 10. In one years time you will be happy with it... >>



Good advice. Total investment: ~$1K, potential 50% price appreciation or more within one year, and a long term hold isn't a bad idea either. But you don't want to linger they may be sold out very soon.

Too bad you missed the GAE Ann. Set feeding frenzy, you could have taken care of that $15K in one fell swoop.

Bochiman

<< <i>Even if you purchase key dates at just below the next big price jump, you're betting on the market to rise accordingly. Coins, like any market, rise and fall. Also, your investment might not be as "liquid" as you might think. Certainly you'll be able to sell a key date in a popular series quickly, but if you're selling it to a dealer you probably won't get anywhere near ask and depending upon the market for the particular keydate, you might do 10% or more behind bid. Bullion is more attractive, but again, we're in a pretty volitile market at the moment. If you decide to invest in gold, or silver [palladium might be better], you'd also better take some stock out in Rolaids as well

Leo >>



Yep, you are right. But if someone isn't going to collect but just sink money into coins, then I still think that is the way to go. Not saying it is the best way to go with that kind of money, but if you gotta get coins, then it is (imho).

For me....I "invested" in some of the GAE and SAE 20th Ann Sets

goose3

<< <i>Need help spending some money.... >>




I'm assuming you don't have a wife.

Get one.

Problem cured.

lkenefic

<< <i>

<< <i>Even if you purchase key dates at just below the next big price jump, you're betting on the market to rise accordingly. Coins, like any market, rise and fall. Also, your investment might not be as "liquid" as you might think. Certainly you'll be able to sell a key date in a popular series quickly, but if you're selling it to a dealer you probably won't get anywhere near ask and depending upon the market for the particular keydate, you might do 10% or more behind bid. Bullion is more attractive, but again, we're in a pretty volitile market at the moment. If you decide to invest in gold, or silver [palladium might be better], you'd also better take some stock out in Rolaids as well

Leo >>



Yep, you are right. But if someone isn't going to collect but just sink money into coins, then I still think that is the way to go. Not saying it is the best way to go with that kind of money, but if you gotta get coins, then it is (imho).

For me....I "invested" in some of the GAE and SAE 20th Ann Sets >>



...well that IS true. If he feels he just HAS to throw 15K at coins, then purchasing key dates will be much more liquid than common date MS Morgans...L

coinguy1

Place your $ in a money market fund or certificate of deposit and earn some interest while you do some reading, observing and studying. Take your time and come up with a game plan/strategy. That said, don't simply listen to advice from people here, myself included.

<<....My history is that of a risk taker and have been known to "put all my eggs in 1 basket...>>

You sound like a gambler, not an investor.

96eagle

Pick up some fine/very fine 1893 S Morgan dollars, they will only go up, with only 100,000 minted, it's a no brainer

96eagle

96eagle

Coins are an investment. Example, 3 years ago I bought several 96 eagles graded by NGC AS 69's, for $30 each. Last week I sold a few for $130 each. 4 times my initial investment, not bad.

96eagle

mrearlygold

Rare coins can be a terrific investment in more ways than simply financial. Go and "invest" in a couple of coin books and flip thru them. You don't read? Fine, put the books in the bathroom and you'll be sure to at least flip thru them from time to time. In those books you'll see many designs of coins, some of which you will like and others you won't. After considering the ones you like and reading a little about them, try going to a coin show and look at those coins in person. Or do some searching on the net for coin information. Type that specific coin into google ( etc ) and see what you get.

Go to the Heritage archives and see what those coins have sold for in recent years and start to get a handle on value. You can also check out the various auction prices realized guidebooks. There's a wealth of information available to you.

You may find that this can be somewhat overwhelming and that this is not for you and not to be a part of your investment considerations. On the other hand you may find this has the potential of becoming a great adventure in life, filled with comraderie, learning, the hunt and pursuit of something that few others can own, and yes even a financial profit. A lot of it is up to you. Most of it in fact.

If you get beyond that and are still eager to make the "investment" then interview a couple of dealers, and choose one or two who seem to know what they are talking about, are honest, have a track record and buy a few coins.

Happy Collecting

GoldenEyeNumismatics

PCGS MS63 double eagles. They are not going to stop soon.

coinguy1

<< <i>Coins are an investment. Example, 3 years ago I bought several 96 eagles graded by NGC AS 69's, for $30 each. Last week I sold a few for $130 each. 4 times my initial investment, not bad.

96eagle >>

And for every story about an "investor" making money on coins there is one (or more) about an "investor" losing money on coins.

<<Pick up some fine/very fine 1893 S Morgan dollars, they will only go up, with only 100,000 minted, it's a no brainer>>

Nothing I know of "will only go up". If only it were so predictable and easy.

<<PCGS MS63 double eagles. They are not going to stop soon.>>

That depends, in large part, upon what gold does.

dlimb2

I bought a roll of 1996 Silver Eagles back a few years ago at $15 per coin($300 for the roll)....a roll will now cost you over $1000.00. These Silver Eagles are either 68 or 69's and I have no intent of getting rid of them in the near future...they are keepers.

Also bought a roll of 99/2000...split the roll in half...didn't know which one would be the one...well it looks to be the 99 so I have a half roll of them....

Then on August 30, 2006 I bought 10 Sets of the Anniversay Silver American Eagles...this will make anyone smile.

Also bought one of the 3 piece Anniversary American Gold Eagle sets...and this will make you smile instantly!

Jcarney

<< <i>Bullion, however, can be. >>



Investment, no. Bullion returns no income. I'd say it is more accurate to call it a speculation.

Jcarney

<< <i>You want to jump in today...go to the mint site and buy the 3 piece Anniversary Silver American Eagle sets...you are allowed 10. In one years time you will be happy with it... >>

dlimb2

There is Bullion and then there is Bullion...you have to be selective in this game or all you will have is bullion value...you need to keep up with the mintage of all bullion which is widely collected...you figure out the ones to buy and let the rest ride...

Russ

<< <i><< Bullion, however, can be. >>

Investment, no. Bullion returns no income. I'd say it is more accurate to call it a speculation. >>



Stocks and bonds are essentially speculation. As is real estate. Bullion can be a speculation, but it's really more like a hedge. As a hedge it, and coins for that matter, should only be a small percentage of an investment portfolio.

Russ, NCNE

RichieURich

<< <i>

<< <i>Need help spending some money.... >>




I'm assuming you don't have a wife.

Get one.

Problem cured. >>



What goose3 said.

Leiana

<< <i>

<< <i><< Bullion, however, can be. >>

Investment, no. Bullion returns no income. I'd say it is more accurate to call it a speculation. >>



Stocks and bonds are essentially speculation. As is real estate. Bullion can be a speculation, but it's really more like a hedge. As a hedge it, and coins for that matter, should only be a small percentage of an investment portfolio.

Russ, NCNE >>



Okay, Russ, what's a hedge with relation to a portfolio?

Please keep in mind my comprehension of economics is rudimentary at best.

Thanks!

-Amanda

Russ

<< <i>Okay, Russ, what's a hedge with relation to a portfolio? >>



An asset class that is held in order to offset potential losses in other asset classes. In the case of bullion, it's most frequently used as a hedge against the world going to hell in a handbasket.

Russ, NCNE

Leiana

<< <i>

<< <i>Okay, Russ, what's a hedge with relation to a portfolio? >>



An asset class that is held in order to offset potential losses in other asset classes. In the case of bullion, it's most frequently used as a hedge against the world going to hell in a handbasket.

Russ, NCNE >>



Oh, so like if the SM crashed because one country nuked another country, then gold would still have a value as specie. I get it.

Thanks, Russ.

-Amanda

MikeInFL

<< <i>

<< <i>

<< <i>Okay, Russ, what's a hedge with relation to a portfolio? >>



An asset class that is held in order to offset potential losses in other asset classes. In the case of bullion, it's most frequently used as a hedge against the world going to hell in a handbasket.

Russ, NCNE >>



Oh, so like if the SM crashed because one country nuked another country, then gold would still have a value as specie. I get it.

Thanks, Russ.

-Amanda >>



Even better, gold would likely go up, way up, in each of these cases...Mike

Russ

Here's another example of hedging. Let's say you own a stock that you purchased at $10 a share, and it has run all the way to $100. You're worried that it may start dropping, but you don't want to sell it yet - perhaps for tax reasons. Instead, you short an equal number of shares so that if the stock does drop, you make money on the short side while losing money on the long side and vice-versa. This is a classic hedge known as selling short against the box.

Russ, NCNE

09sVDB

If it were me, and I had that type of $$ to spent(which I don't) I would problably spread it out and buy 10-15 certified coins in the best grade possible.

dlimb2

If the United States Mint needs to buy Gold from the open market...do you think they are going to buy it high!!! Fat chance...so who do you think is manipulating the market...a lot of gold coins coming up next year?


12.5 tons on Proof Buffalo's alone!

Leiana

<< <i>Here's another example of hedging. Let's say you own a stock that you purchased at $10 a share, and it has run all the way to $100. You're worried that it may start dropping, but you don't want to sell it yet - perhaps for tax reasons. Instead, you short an equal number of shares so that if the stock does drop, you make money on the short side while losing money on the long side and vice-versa. This is a classic hedge known as selling short against the box.

Russ, NCNE >>



Okay, so selling short in this situation would allow the share holder to get some money out of the stock before it drops yet still retain all the shares he originally had?

That makes a great deal of business sense, although I can see how it would be risky.

-Amanda

hootchiegirl

buy groceries and staple item this market has turned and bullion has turned also stay away from commodities before an election cycle. with inflation hard things you use everyday will save you money

Russ

<< <i>Okay, so selling short in this situation would allow the share holder to get some money out of the stock before it drops yet still retain all the shares he originally had?

That makes a great deal of business sense, although I can see how it would be risky. >>



In this case there is no risk since you own both sides of the equation. If the stock drops you make money on the short side and lose money on the long side in equal amounts, and the same in reverse. Thus, you've protected your $90 capital gain.

In a straight short with no offseting long side, yes there is risk - tremendous risk.

Russ, NCNE

Leiana

<< <i>In this case there is no risk since you own both sides of the equation. If the stock drops you make money on the short side and lose money on the long side in equal amounts, and the same in reverse. Thus, you've protected your $90 capital gain.

In a straight short with no offseting long side, yes there is risk - tremendous risk.

Russ, NCNE >>



Gotcha, thanks for taking the time to explain this to me!

-Amanda

coinguy1

<< <i>

<< <i>Here's another example of hedging. Let's say you own a stock that you purchased at $10 a share, and it has run all the way to $100. You're worried that it may start dropping, but you don't want to sell it yet - perhaps for tax reasons. Instead, you short an equal number of shares so that if the stock does drop, you make money on the short side while losing money on the long side and vice-versa. This is a classic hedge known as selling short against the box.

Russ, NCNE >>



Okay, so selling short in this situation would allow the share holder to get some money out of the stock before it drops yet still retain all the shares he originally had?

That makes a great deal of business sense, although I can see how it would be risky.

-Amanda >>

Actually, it would be a way of ensuring that you break even on the stock, from that point on, while you continue to hold it, until you close out one or both positions.

cladking

You might try speculating in becoming a collector. Investors tend to do poorly
in coins because they end up with what's available instead of what's rare. Col-
lectors tend to do much better.

Many collectors start out as investors though so maybe you can kill a flock with
one stone. Try collecting gold coins at near melt value. You can get very rare
world gold at close to spot in unc and proof and us can get some scarcer US gold
at close to spot in low grade. So long as you don't pay large premiums then you
can consider it an "investment" in metal, and when you gain some confidence you
can pay larger premiums for tougher coins.

At some point you'll probably have gained so much confidence that you're more a
collector than an investor.

Leiana

<< <i>Actually, it would be a way of ensuring that you break even on the stock, from that point on, while you continue to hold it, until you close out one or both positions. >>



That makes sense.

Thanks, Mark!

-Amanda