Can Darkside Coins be an Investment?

bidask

This is often discussed on the Liteside. I understand coins to be first an foremost a fun hobby. It is so for me. But sometimes this hobby can get expensive. Any upside?

MrEureka

Sure, there's upside. There's also downside.

Aethelred

If a person had spent $10,000 on scarce, high grade British coins 20 years ago, I'd bet he/she would be able to get $40,000 for them today.

CIVITAS

I think you could switch those dollar amounts for German coins.

ajaan

If I bought all the Maundy sets I could at Krause +15% just three years ago, I would be a lot wealthier now.

3Mark

<< <i>I think you could switch those dollar amounts for German coins. >>



Josh:

Did you see the prices in the last Heritage auction? The prices realized were far and above the prices that were paid for the coins just 4 or 5 years ago and of course they had to be slabbed. I personally have not lost anything on German coins3Mark

coinkat

Yes...

Certain Countries have coins that are popular and have done well. I think as time passes, and as world coins gain more attention, we will begin to develop a better understanding what role condition rarity will have in the world market.

wybrit

If a person had spent $10,000 on scarce, high grade British coins 20 years ago, I'd bet he/she would be able to get $40,000 for them today.

No question about that. In fact, even if it had been about 10 years ago that would be true.

However, 1951 pennies (mintage:120,000) are not among those that are good investments. They have scarcely changed in price for years.

Aethelred

<< <i>However, 1951 pennies (mintage:120,000) are not among those that are good investments. They have scarcely changed in price for years. >>



There is a good reason for that!

coinkat

the 1951 1d seems to surface

mirabela

<< <i>If a person had spent $10,000 on scarce, high grade British coins 20 years ago, I'd bet he/she would be able to get $40,000 for them today. >>



Sounds reasonable enough, but bear in mind that this means just 7.2% appreciation, compounding annually -- decent, but hardly spectacular. Probably better, in fact, than many US coins have done over the same time, but not the kind of thing to hop up and down over. What would the same $10,000 in US real estate have done over those years? In 1987, you could buy a brownstone in a shortly-to-be-gentrified neighborhood in Chicago for less than $10,000.

cladking

World coins are dramatically undervalued relative US coins and have far more
structural reason to increase in value. These have never been collected with
the enthusiasm of the numbers pursuing US coins. This is changing. All over the
world people are enjoying greater wealth and leisure time and some of this is
being spent on coins. Usually collectors prefer coins of their own country so this
is creating demand where, in some cases, there had been none.

With all the attention on coins caused by the changes in Europe and other curren-
cies there is escalating demand.

Modern world coins have in many cases borne much of the benefit of this demand
simply because the increases are huge compared to the preexisting demand. This
is likely to continue for years as new collectors expand their collections both verti-
cally and horizontally.

Obviously investing in any collectible is fraught with peril and trying to sink a large
amount of money into fractional Chinese aluminum is simply impossible at current
prices. All the Chinese aluminum in the world is worth only a few thousand dollars
and trying to locate it will cost far more than its current price.

mrearlygold

Absolutely.

rhound1977

No collection has any real value until you sell it, but yes I do look at it as worth while investment, subject to the market.

Mutual Funds can be worth while too, but I have lost and gained a lot of money on paper only.

I don't buy coins in hopes of turning them to make a house or car payment it's still a hobby with what I feel is money
fairly well spent, and where I could at least get my money back in most cases.

secondrepublic

The Polish coins I've bought have turned out to be a great investment, but that doesn't mean prices will continue to increase. There is certainly more risk involved in buying now, since the prices have risen at least 3-fold in the last few years for many nicer pieces.

Stork

<< <i>Can Darkside Coins be an Investment? >>

I hope so...that's what I keep telling my husband .

I'm sure I won't ever 'make' money with the possible exception of the modern gold bullion-esque coins I bought a couple years ago...but at least when I croak my kids are likely to get a little something out of them, as opposed to if I had a shoe collection or a lifetime membership to the Super Secret Nordstroms High Volume Shopping Club.

IstilllikeZARcoins

I think South African coins are increasing in price rapidly especially the rare, high grade coins.

I have a few coins for investment purposes mainly rare SA coins such as the ZAR Proofs and Kaalpennies as well as a few George V 1935 Proof coins.

The way prices have been going these coins should be worth something rather nice in a few years although I must admit that I am only thinking about selling these coins in about 30 years time ( or else I will hand them down to the kids ).

Therefore my interest in coins is part investment but mostly fun.

CIVITAS

<< <i>

<< <i>I think you could switch those dollar amounts for German coins. >>



Josh:

Did you see the prices in the last Heritage auction? The prices realized were far and above the prices that were paid for the coins just 4 or 5 years ago and of course they had to be slabbed. I personally have not lost anything on German coins3Mark >>



Ok, so maybe $40,000 - $20,000. German market is much better than it was 5 years ago, that's for sure. Many of the long time dealers still get a tear in their eye when they talk about the German market in the 1980s. Shipping to Germany for 3 to 4 times catalog value and such. Everything worked. Problems didn't matter. Nothing got rejected. But like any bull market, it eventually went bust. Honestly, I don't know how the current levels relate to the older ones. But I look at my copy of Draskovich and Rubenfeld when buying/pricing many German thalers and usually figure about half of what they list for in the 1982 edition is probably about what they're worth now. Some exceptions (more now than 5 years ago) but generally holds true.

SilverEagles92

<< <i>Can Darkside Coins be an Investment? >>



Just stick with US coins, and make a killing!

koincollect

<< <i>Can Darkside Coins be an Investment? >>



I would like to think so! Only if sold at the right time like other investments. :-) After the commissions and all you can atleast break-even.

laurentyvan

I bought world coins steadily for about three years, 2003 to 2006, very few from the internet, most from a quality local dealer.

Now I've been selling the same coins in about the same proportion that I bought them, about 10-15 per week.

I've enjoyed about a 200% return on average. For every $20 coin that I sell for $15, there's a $20 coin that sells for $30 or $40. Many $30 to $50 coins that sell for 2x, 3x, 4x Krause. About a dozen that cost $30 to $50 that went for upwards of $300 to $500, always following forum advice.

I didn't buy them for investment but dang, it almost seems that way. By the way, these are all raw (with a couple of exceptions).

I've got to feel that I'm not that smart, just lucky that the world coin community is starting to buy back its countries product.