Heres why coins are not good short term investments

bobbly

When you a buy a stock, you pay a small fee each time you buy and sell the stock, if your using an online broker its generally about $10 to $20 for each trade. Now compare that to buying a coin from an auction house, you have to pay the 15% Buyers fee to buy it and another large fee to sell it. So even if the coin goes up in value you have to get passed all those fees first before you a see any profit.

PerryHall

That's why coins usually have to be held a long time to make a profit.

vplite

Now as a long term investment...

Why...

OPA

<< <i>That's why coins usually have to be held a long time to make a profit. >>



There are exceptions to that rule ... look at the current craze ... 2008-W ASE with rev. of 2007

19Lyds

<< <i>

<< <i>That's why coins usually have to be held a long time to make a profit. >>



There are exceptions to that rule ... look at the current craze ... 2008-W ASE with rev. of 2007 >>



Totally agree!

For the short term, these can make you a ton of money. However buying right now will be a little iffy.

vplite

<< <i>

<< <i>That's why coins usually have to be held a long time to make a profit. >>



There are exceptions to that rule ... look at the current craze ... 2008-W ASE with rev. of 2007 >>



I'm afraid there will be both big winners and losers.

curly

Never put the rent money in coins. All you young brothers need to know that there is an old man inside of you that you need to prepare for. That old man is going to look back at you with admiration or disgust. You get to decide which way he will think of you.

AnkurJ

I do it because I love the coins and the history behind them. For investments I try to focus on gold and art (I have done very well with art)

Ankur

TwoSides2aCoin

Just for the sake of acknowledgement... how many guys purchased the ASE 2008/'07 reverse coins from the mint ??
I would suggest this coin was a great short term investment. Ask any flipper

ambro51

These charts are self explanatory. (period)

BAJJERFAN

<< <i>When you a buy a stock, you pay a small fee each time you buy and sell the stock, if your using an online broker its generally about $10 to $20 for each trade. Now compare that to buying a coin from an auction house, you have to pay the 15% Buyers fee to buy it and another large fee to sell it. So even if the coin goes up in value you have to get passed all those fees first before you a see any profit. >>



Your logic is flawed in several ways in that one doesn't need to buy or sell coins thru any fee dependent venue. I can meet you at my local watering hole and sell you a coin for cash or buy one from you for cash. You can't trade a single share of stock without leaving a trace somewhere. As for companies with DRIP programs unless that has changed you only need to pay a commish on the first share of stock that you buy, otherwise all subsequent purchases can be made directly from the company.

bidask

<< <i>Never put the rent money in coins. All you young brothers need to know that there is an old man inside of you that you need to prepare for. That old man is going to look back at you with admiration or disgust. You get to decide which way he will think of you. >>

ah well said

OneCent

<< <i> These charts are self explanatory. (period)
>>



Does that chart demonstrate what the investment community would call a "parabolic" curve (aka bubble market)?

ChrisRx

Old n' wise Mr. Curly, Show me the way!!!

bobbly

Your logic is flawed in several ways in that one doesn't need to buy or sell coins thru any fee dependent venue. I can meet you at my local watering hole and sell you a coin for cash or buy one from you for cash. You can't trade a single share of stock without leaving a trace somewhere. As for companies with DRIP programs unless that has changed you only need to pay a commish on the first share of stock that you buy, otherwise all subsequent purchases can be made directly from the company. >>



that's true, there are ways of buying coins without paying extra fees, for example buyers dont pay fees on eBay purchases. but i still feel buying coins would be more "investor friendly" if the auction houses didnt charge more than 10% premium.

BAJJERFAN

<< <i>Your logic is flawed in several ways in that one doesn't need to buy or sell coins thru any fee dependent venue. I can meet you at my local watering hole and sell you a coin for cash or buy one from you for cash. You can't trade a single share of stock without leaving a trace somewhere. As for companies with DRIP programs unless that has changed you only need to pay a commish on the first share of stock that you buy, otherwise all subsequent purchases can be made directly from the company. >>



that's true, there are ways of buying coins without paying extra fees, for example buyers dont pay fees on eBay purchases. but i still feel buying coins would be more "investor friendly" if the auction houses didnt charge more than 10% premium. >>



Also every share of Microsoft common stock is exactly equal to every other share of Microsoft common stock, tho of course the price will vary. Not every 1883-CC PCGS ms66 Morgan dollar is equal to all the other 1883-CC Morgan dollars that were graded ms66 by PCGS. Some are PQ and quite desireable while some are PsOS and quite undesireable.

pennyannie

I know of a few that were getting 105 percent of hammer selling thru heritage. If you got the good stuff exceptions can and will be made. It is us commoners that pay the fee both ways. lol

Curly is a wise old man, or just wise, how ever he prefers Some people like being old for the discounts and prefered parking spots

yellowjacket

I am entering retirement and Curly's words were spoken very clearly to me by my dad 35 years ago. So heed the man's words.

I always heard that you needed to hold coins for at least five years to realize any profit. Of course, there's the quick flip for those fortunate and knowledgeable to do so. But generally there is a 20-30% spread between the buy and sell pricing. To make up this difference you need to hold for a period of time.

Garrow

PerryHall

<< <i>

<< <i>That's why coins usually have to be held a long time to make a profit. >>



There are exceptions to that rule ... look at the current craze ... 2008-W ASE with rev. of 2007 >>



Notice that I said "usually". There will occasionally be the opportunity for the rip with a quick flip or a mint issue with the quick sellout.

halfhunter

<< <i> These charts are self explanatory. (period)
>>





If I had a stock that had that kind of 10 year return I would be selling.
With that kind of return on a coin, as a collector, probably not.

I've never had a long term love affair with a stock.

Regards, John

ccmorgan

<< <i>Now as a long term investment...

Why... >>



I wish I didn't read that.

GoldenEyeNumismatics

Or you can buy from a dealer.

ambro51

And that "long term link"



heres what I think of that
http://www.flickr.com/photos/thomashawk/542372225/

smallchange

I don't recall making money on any of my hobbies. That is why it is a hobby and not my full time job. Sure, I would like it to be profitable and I sometimes come out with a profit but that is not my main goal. I do it because I like it and it brings me pleasure. I don't spend a lot of money on cars, sporting events, dining out, etc. so I don't think I am doing to bad with my coins. Granted, the most I ever spent on a coin was 800.00 so we are not talking about a lot of money here and it is not the rent money as I have investment accounts, 401k's, etc. so I will continue to enjoy my hobby for what it is.
That reminds me of a fiend who said "Most of my money I spend on women and beer and the rest I just waste"

smallchange

yellowjacket

In the referenced article, why did they choose 2001 values for comparison? What has happened in the coin market over the past seven years that would make this comparison invalid?

Garrow

ambro51

because the author got rich on beanie babies, bought an island off indonesia and moved in with three sisters

roadrunner

The 15% buyer's fee is paid by the SELLER. Anyone who thinks otherwise doesn't understand the business. Now when it comes time to sell well then, yes. There is a potential commission to sell. Many seasoned buyers pick up some of their best pieces as essentially wholesale levels of 0% (ie you know more than the seller). If you can buy at 0% and sell at 0-5%, then coins have a fairly small load considering that many times you can flip the darn things for 10% as soon as you buy them right. Paying a major retailer's 15-35% mark up is a personal decision....and one that often can take years to make up. I recall buying a pop 1 seated half from one of the top retailers and I paid their full advertised price....then flipped the coin to Heritage for a 20% flip. Had the coin not totally stunk (a MS64+ in a MS65 holder) being covered with dozens of tiny hits and ticks, I would have kept it. In that event it would have been worth 2X what they wanted for it rather than just +20%.

roadrunner

GFourDriver

I think the intangibles have to be addressed as well. For me it is the relationship I have with my son. He is absolutely nuts about coins and is the reason why I got into collecting. We started a 7070 type set a few months ago and I've never seen him so excited about something in his life (wish he showed that amount of interest in school...lol) and it has brought us together as a team.

You can't put a price on something like that.

Bear

Buy the right coins, at the right quality at the right price

and you will do alright, for a hobby you enjoy and the fun

you have. Buying stock has not always proven to be the

road to Bali and riches. Along the way, one must factor in

greed, foolishness and the instinct to gamble on stocks. these

negative factors ,will impact the nice clean 5% a year accretion.

If life were as easy, us working folks, would not have to struggle

as much, just to survive.