Take that one step further, Investing entails an intent to sell FOR A PROFIT. No one "invests" with the intent to sell for a loss. Since I don't care if my coins go up or down, and I have no intent to sell, I am obviously NOT investing.
By Andy's statement I would be an investor and collector of books, motorcycles, mopeds, radios, CD players, CD's, DVDs etc.
<< <i>So when I go to a Casino and make a wager at the Craps table am I investing because I have an expectation of profit (even if it is not a reasonable expectation)? >>
Well acording to those people who count the pleasure you enjoy from the thrill of the wager as anas a form of profit then I guess shooting craps, betting on the horses, playing roulette, or the lottery are all investments. And since you get pleasure from the trill of the gambling, I guess they must be considerd to be GOOD investments since they always pay off.
However, most "collectors" have some "investor" in them and most "investors" have some "collector" in them.
Good point...
Anyone who looks at a coin and then questions what they are paying or considering paying for it is one of the above. The degree may vary, thats' all. What one is doing in that case is trying to place a fair (to them) value on the piece in the event they were to sell that coin later on.
Who hasn't wandered a bourse, looked at an auction or examined a catalog (with estimates) and said to themselves "If I pay that price what are my chances of getting out of the coin even or with a profit?" Maybe you don't do it consciously (excluding dealers) but I know I definitely do it a little bit, if not more in some cases.
It's just something that is a personal thing based on many factors- age, financial situation, mindset, etc.
Good thread...
Rufus T. Firefly: How would you like a job in the mint?
Chicolini: Mint? No, no, I no like a mint. Uh - what other flavor you got?
I must say I agree with Andy on this one. When I started many years ago, I found circulated coins and saved them. My cost was face value. I did however have a Red book that I studied for perceived value. Somehow even then I was in a sense investing. it turned out to be a pretty good one. I now buy rare coins at a premium over face value ( what an undersatement). It may or may not be a wise way to spent money. No matter what you say you are, any collection of any size has a value to it. When you sell, the IRS considers it an investment
I consider myself as a collector; yet I am keenly aware that they are an asset.
For those that remain doubters: At what % of net worth does one's collection become an investment?
<< <i>Is it possible to collect coins without being a coin investor? >>
Yes, however the two are not often mutually exclusive. I have one coin that I purchased with investment funds and therefore consider it to be an asset that plan on selling some day hopefully at a profit. However, the remainder of my collection has been purchased with entertainment funds and those purchases have been expensed accordingly. No different than spending money on a vacation or going out to dinner.
I like Sunnywood's approach in another thread. I also consider them to be non-performing assets, marked down 35% from what I paid for them. I do not count on the coins as part of my retirement fund, college savings, etc. In an ideal world, I will never have to monetize the collection, but I also realize that priorities change and "life happens".
Comments
<< <i>you have 2 choices
1) spend amusment money in the hobby and you can reap tons of fun...cost???a steak dinner once a month
2) spend serious money...better think serious..its all relative >>
Seems like as good an answer as any.
CG
<< <i>Investing entails an intent to sell. >>
Take that one step further, Investing entails an intent to sell FOR A PROFIT. No one "invests" with the intent to sell for a loss. Since I don't care if my coins go up or down, and I have no intent to sell, I am obviously NOT investing.
By Andy's statement I would be an investor and collector of books, motorcycles, mopeds, radios, CD players, CD's, DVDs etc.
<< <i>So when I go to a Casino and make a wager at the Craps table am I investing because I have an expectation of profit (even if it is not a reasonable expectation)? >>
Well acording to those people who count the pleasure you enjoy from the thrill of the wager as anas a form of profit then I guess shooting craps, betting on the horses, playing roulette, or the lottery are all investments. And since you get pleasure from the trill of the gambling, I guess they must be considerd to be GOOD investments since they always pay off.
Yes, if you are collecting from pocket change you probably understand that your chances of evaluation are pretty slim!
Good point...
Anyone who looks at a coin and then questions what they are paying or considering paying for it is one of the above. The degree may vary, thats' all. What one is doing in that case is trying to place a fair (to them) value on the piece in the event they were to sell that coin later on.
Who hasn't wandered a bourse, looked at an auction or examined a catalog (with estimates) and said to themselves "If I pay that price what are my chances of getting out of the coin even or with a profit?" Maybe you don't do it consciously (excluding dealers) but I know I definitely do it a little bit, if not more in some cases.
It's just something that is a personal thing based on many factors- age, financial situation, mindset, etc.
Good thread...
Chicolini: Mint? No, no, I no like a mint. Uh - what other flavor you got?
<< <i>The two are not mutually exclusive, and comments that they are unique animals does not have a basis in reality. >>
My icon IS my coin. It is a gem 1949 FBL Franklin.
When I started many years ago, I found circulated coins and saved them. My cost was face value. I did however have a Red book that I studied for perceived value. Somehow even then I was in a sense investing. it turned out to be a pretty good one.
I now buy rare coins at a premium over face value ( what an undersatement). It may or may not be a wise way to spent money.
No matter what you say you are, any collection of any size has a value to it. When you sell, the IRS considers it an investment
I consider myself as a collector; yet I am keenly aware that they are an asset.
For those that remain doubters:
At what % of net worth does one's collection become an investment?
<< <i>Is it possible to collect coins without being a coin investor? >>
Yes, however the two are not often mutually exclusive. I have one coin that I purchased with investment funds and therefore consider it to be an asset that plan on selling some day hopefully at a profit. However, the remainder of my collection has been purchased with entertainment funds and those purchases have been expensed accordingly. No different than spending money on a vacation or going out to dinner.