Doug Winters recent remarks on collecting vs investing in coins--a good read
TahoeDale
Posts: 1,785 ✭✭✭
Doug knows coins and the coin market.
Without touting his specialty, he guides us in an area that is commonly misunderstood.
Are collectors or investors the more likely to find, after many years , their coins have increased in value to a substantial degree?
He comes down on the side of collectors. If you know your series, and buy coins that are pretty, rare, and in demand, you will probably realize increased value, over time.
But if you buy common dates, in grades that are readily available, then probably you will have some coins, but no increased values.
He is always right on.
Without touting his specialty, he guides us in an area that is commonly misunderstood.
Are collectors or investors the more likely to find, after many years , their coins have increased in value to a substantial degree?
He comes down on the side of collectors. If you know your series, and buy coins that are pretty, rare, and in demand, you will probably realize increased value, over time.
But if you buy common dates, in grades that are readily available, then probably you will have some coins, but no increased values.
He is always right on.
TahoeDale
0
Comments
When their collections come up for sale it's quite obvious what they did wrong.
The investor-oriented buyer cannot achieve success without a great dealer behind them. The great collector can do it on their own but often fall short because of that very fact - they don't have the top notch sources or access to the very best coins....or they are too
"smart" to pay the high premiums often associated with the best coins. It's not an easy balance to maintain.
roadrunner
Clearly there are really bad deals to be had. But if you buy at book and sell at book nobody I knew ever went broke taking a profit.
I'm not saying I could make a living doing it, but my hearts not in it. I have a collection and I've got to say that right now it's worth more than I paid for it collectively. Of course that could change with a big crash in coin prices.
Clearly the tools exist to help someone not go broke and make money. Unfortunately I believe the big money is made through estate sales. Lifetime collections that get liquidated by a spouse who just doesn't know and care about the collection.
There's an awful lot of people making a living on something that's not an investment.
John
Never view my other linked pages. They aren't coin related.
<< <i>There's an awful lot of people making a living on something that's not an investment. >>
<< <i>Doug knows coins and the coin market. Without touting his specialty, he guides us in an area that is commonly misunderstood. Are collectors or investors the more likely to find, after many years , their coins have increased in value to a substantial degree? He comes down on the side of collectors. If you know your series, and buy coins that are pretty, rare, and in demand, you will probably realize increased value, over time. But if you buy common dates, in grades that are readily available, then probably you will have some coins, but no increased values. He is always right on. >>
Right on for sure. Did he mention the millions defauded from
the unwary on phony coin investment scams. They are still at
it and hundreds are on the internet right now. This is a hobby. http://www.onlygold.com/Articles/ayr_2001/Why_Numismatic_Investments_are_Always_Horrible_Mistakes_Part_2.asp
<< <i>He comes down on the side of collectors. If you know your series, and buy coins that are pretty, rare, and in demand, you will probably realize increased value, over time.
But if you buy common dates, in grades that are readily available, then probably you will have some coins, but no increased values.
He is always right on. >>
I disagree.
First, there are several series, including some gold, where rarer issues don't demand the premium they should, because the series are so sparsely collected.
Second, I have no respect for him because, a number of months ago, he low-balled me on some coins I was looking to sell.
I generally agree with his points and TahoeDale's and roadrunner's additional commentary.
Prospectively, I have had trouble predicting which coins would have significant price appreciation, but when I look back, the coins that I had the most difficulty buying (priced too high, sold quickly with multiple offers, funneled to me by preferred dealers, etc.) were the ones that appreciated. The coins that I found on the bourse, on ebay, just met reserve at Heritage, languished in dealer inventory for some time, etc. were the ones that were losers for me.
The big difference I have experienced is that collectors care about the coins and spend a lot time researching and hunting down the right coin. Investors primarily care about rate of return. Who cares what gold bullion looks like except did I buy at a good point and is the price higher today than yesterday.
If you are an investor it is probably safer to buy common dates and only be concerned about following the overall price of metals.
The rarer dates require more work to be successful.
The bad point about collecting is that it is difficult to part with a coin you like that you have worked to acquire.