Pros and cons of bullion coin collecting...
LincolnCentMan
Posts: 5,347 ✭✭✭✭
Pro:
Tied to the metal market.
Con:
Tied to the metal market.
Pro:
All of them are going to look nice.
Con:
All of them are going to look the same.
Pro:
Every once in a while, a low mintage coin will hit pay dirt.
Con:
The rest of the time, it's buying metal at a premium.
Others?
-David
Tied to the metal market.
Con:
Tied to the metal market.
Pro:
All of them are going to look nice.
Con:
All of them are going to look the same.
Pro:
Every once in a while, a low mintage coin will hit pay dirt.
Con:
The rest of the time, it's buying metal at a premium.
Others?
-David
0
Comments
Con - If civilization falls they will still be worth something and someone will try to kill you for them
Grading is, and always will be subjective. Coins are not fungible. Two coins with the same date and grade are not worth the same amount of money, but to distinguish you have to have seen a lot of coins. My dealer and I spyed a very nice coin in a recent auction. It was a $2,000 coin and we didn't think it would upgrade and even if it did it was not a huge increment. We bid $4,000 and still were outbid.
Most people who buy bullion have different motivations than people who collect numismatic coins although many do both for different reasons.
The rest of the time, it's buying metal at a premium.
//////////////////////////////////////////////
That is pretty true.
But, many ordinary folks who want to enter the physical metal
market are likely to start with those coins. That means there
are lots of buyers, and the premium usually sticks on (retail)
resale.
storm
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>Pro - If civilization falls they will still be worth something
Con - If civilization falls they will still be worth something and someone will try to kill you for them >>
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
con - bullion prices go down
slickpick you got it right!
I don't want to spend my money on coins doctored up by shady collectors/scammers either. Sadly this hobby is a dangerous game for a fool and his money.
I just want to buy the coin I like and know I got screwed for the same price as the rest for the same slim shot at a perfect coin. Strictly mint purchases for me and my bullion choices.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Idiotic modern/bullion bashers
Pro:
Laughing at idiotic modern/bullion bashers as you flip a new issue for 2x-40x cost immediately and can buy more of other coins you want....and watch as they whine again.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
a) best value for coin collections because of the intrinsic metal value.
b) besides satisfying your collection thirst, it acts as a hedge.
Con:
None, for me.
<< <i>Pro - If civilization falls they will still be worth something
Con - If civilization falls they will still be worth something and someone will try to kill you for them >>
Let them try.
Box of 20
<< <i>Con:
Idiotic modern/bullion bashers
Pro:
Laughing at idiotic modern/bullion bashers as you flip a new issue for 2x-40x cost immediately and can buy more of other coins you want....and watch as they whine again. >>
My icon IS my coin. It is a gem 1949 FBL Franklin.
<< <i>Bullion has a very tight buy - sell spread while most collector coins do not. >>
This is the biggest reason to buy bullion coins, the narrower spread vs. collector coins.
Another good reason is that grading is not that important, and a person can buy without having to learn how to grade. Try that with classic collector coins, even certified ones, and a person is going to get hurt in the long run. Ending up with overgraded raw coins, or low end certified dogs.
<< <i>In the long run, many bullion coins will be melted. Therefore, wisely selected "bullion coins" have the potential to become truly desirable rarities. >>
Isn't unc. w-mint platinum in this catagory?
Isn't unc. w-mint platinum in this catagory?
No. They are unlikely to ever be melted. For a better example, consider the US Mint Gold Medallions. These may one day prove quite scarce and worth big premiums.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>If civilization falls you think the bullion will be worth anything? Its a rare metal granted, but it just a metal. I think when civilization falls so does commerce and our system of doing transactions and it may be more of a bartering system. Food, fuel, services, the essentials for survival. Now if civiliztion should rise again then it would be worth something......depends what your defintiion of a failing civilization is? Just a thought. >>
Think back to when the Soviet Union failed.
<< <i>Pro - If civilization falls they will still be worth something
Con - If civilization falls they will still be worth something and someone will try to kill you for them >>
Silver, Gold, and Platinum aren't going to grow food for you, or cook food for you, or act as shelter. If it gets to the point where "civilization falls", precious metals will become absolutely useless. I won't kill you for your silver or gold. I'll kill you for your iron, your steel, your concrete, your fertilizers, your plant seeds, etc. I'd laugh in the face of anyone who tried to give me useless metals such as gold and silver. (And in day to day survival living, they are completely useless).
This is why I always get a kick out of people who say "hoard gold and silver and platinum in case a worldwide catastrophe hits". As long as they are doing that, I know that the actual things you need to stay alive won't be hoarded and I'll have plenty of access to them.
<< <i>Pro - If civilization falls they will still be worth something
Con - If civilization falls they will still be worth something and someone will try to kill you for them >>
If civilization really did fall, I don't think people are going to kill over some piece of metal. Maybe for a loaf of bread, a pound of meat, a gallon of clean water, but not for bullion.
<< <i>Pro - If civilization falls they will still be worth something >>
Only if farmers want them.
Ed. S.
(EJS)