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Are coins a good inflation hedge?

EagleEyeEagleEye Posts: 7,677 ✭✭✭✭✭
Every time the dollar sinks against the Euro, gold, oil and food go up. This weak dollar policy is creating (or will create) an inflation that we have not seen the likes of in our generation. Do you think rare coins will rise fast enough to offset this inflation, or do you think the buyers will disappear at the sight of higher rare coin prices?
Rick Snow, Eagle Eye Rare Coins, Inc.Check out my new web site:

Comments

  • Steve27Steve27 Posts: 13,275 ✭✭✭
    Coins, in general, are not and have not been a good inflation hedge; however, key dates have kept up or exceeded the inflation rate.
    "It's far easier to fight for principles, than to live up to them." Adlai Stevenson
  • BearBear Posts: 18,953 ✭✭✭
    The only hedge I have found that works,

    is the one in my back yard and I keep it

    neatly trimmed at all times.
    There once was a place called
    Camelotimage
  • dbcoindbcoin Posts: 2,200 ✭✭
    Depends which coins. Moderns 70's will fall to their intrinsic value. Vintage coins will hold their value. The really high priced stuff over $25k will not be affected. Truly rare vintage or modern will hold their value.

    In the long run, many marginal coins will get melted which could cause rarities in current common stuff. That could mean that current modern 70's will shoot up in value 10 or 20 years from now.
  • gecko109gecko109 Posts: 8,231
    If we enter a bonafide depression accompanied by large scale loss of jobs and homes, rare coins will suffer. Remember that a depression will affect many millionaires in the same way it will affect the "little" guys, so I dont think even great rarities will be immune. Gold and silver bullion coins will outperform all other fields of numismatics, as their intrinsic values will steadily rise as the fiat system looses faith from the masses.
  • Bear, it is my sincere hope you are not hiding behind a Bush. Respectfully, John Curlis
  • notlogicalnotlogical Posts: 2,235
    My dad just got an email from COINage magazine who is going to an article kind of about that same question. they were asking our club if the economy was going to hurt local shows and stuff.
    What Mr. Spock would say about numismatics...
    image... "Fascinating, but not logical"

    "Live long and prosper"

    My "How I Started" columns
  • 291fifth291fifth Posts: 24,709 ✭✭✭✭✭
    A very small percentage of numismatic coins will continue to do well versus inflation.

    Do you own those that will be included in this very small percentage?

    Widget owners beware!
    All glory is fleeting.
  • ttownttown Posts: 4,472 ✭✭✭
    No as liquidly decreases and people start using money to live on collectable always decrease in price. Take a look at the highs of the eighties and see how far they can fall.
  • gecko109gecko109 Posts: 8,231
    On the other hand, my fast growing and quite impressive gold panda collection should do just fine with runaway inflation.image
  • tahoe98tahoe98 Posts: 11,388 ✭✭✭


    << <i>The only hedge I have found that works,

    is the one in my back yard and I keep it

    neatly trimmed at all times. >>






    ...................................image
    "government is not reason, it is not eloquence-it is a force! like fire, it is a dangerous servant and a fearful master; never for a moment should it be left to irresponsible action." George Washington
  • EagleEyeEagleEye Posts: 7,677 ✭✭✭✭✭
    Take a look at the highs of the eighties and see how far they can fall.

    I believe that was not caused by inflation, but rather the Carter/Volker "cure" - high interest and tight credit. I don't think that applies today, and hopefully, not in the future. Also I think the overgrading of coins contributed to the mess of the early 1980's.
    Rick Snow, Eagle Eye Rare Coins, Inc.Check out my new web site:
  • GemineyeGemineye Posts: 5,374
    A hedge against inflation
    This will be good for the evironment and save you money....!!!!
    ......Larry........image
  • ttownttown Posts: 4,472 ✭✭✭


    << <i>Take a look at the highs of the eighties and see how far they can fall.

    I believe that was not caused by inflation, but rather the Carter/Volker "cure" - high interest and tight credit. I don't think that applies today, and hopefully, not in the future. Also I think the overgrading of coins contributed to the mess of the early 1980's. >>



    Boy I don't get that. You don't thin high interest rates and tight credit isn't coming? It's going to be a repeat in my mind and maybe blowing the 80's away by far. Interest rates are near zero and credit is over extended there's not much place else it can go...........
  • PTVETTERPTVETTER Posts: 6,028 ✭✭✭✭✭
    Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job
    Pat Vetter,Mercury Dime registry set,1938 Proof set registry,Pat & BJ Coins:724-325-7211


  • OPAOPA Posts: 17,143 ✭✭✭✭✭


    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>



    image

    And to quote a one time poster who so eloquently stated:

    "IF YOU BUY WHAT YOU LIKE, AT A PRICE YOU CAN AFFORD AT THE TIME, THEN THINGS WILL BE EASIER

    IF YOU BUY WHAT OTHER PEOPLE LIKE, BORROW TO FUND IT AND EXPECT MULTIPLES OF RETURN, THEN YOU ARE LIKELY TO BE UNHAPPY

    BONGO SAY NEARLY EVERYTHING DEPRECIATES OVER TIME.BONGO WOULD NOT PAY $500 FOR A SILVER BELL THIS XMAS AND EXPECT IT TO BE WORTH $550 NEXT YEAR. BUT BONGO KNOW A SILVER BELL IS NOT OLD COIN.

    OR IS IT.

    BONGO MAYBE NOT SURPRISED THAT OLD COIN IS LIKE ANY OTHER LIMITED NON ESSENTIAL COMMODITY AND SUBJECT TO THE WHIMS OF TASTE AND MARKET.

    PUT THE COIN IN BOOK AND ENJOY IT.

    IF IT IS WORTH MORE WHEN YOU COME TO SELL IT, WELL DONE

    IF NOT, THEN YOU HAVE HAD ENJOYMENT OUT OF IT."
    REMEMBER THAT OLD COIN IS ONLY WORTH FEW DOLLARS IN PHYSICAL MATERIAL VALUE - THIS IS WHY VALUE IS AN ESOTERIC CONCEPT IN MANY WAYS AND IT MAY BE VULGAR TO ASSIGN ANY MONETARY VALUE TO OLD COIN

    UNLESS YOU ARE A RUSSIAN OLIGARCH OR CHINESE SHODDY GOODS FACTORY OWNER

    image
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    Coins, in general, are not and have not been a good inflation hedge; however, key dates have kept up or exceeded the inflation rate

    In the past 6 months and going forward, carefully selected "gem" quality classic coins will outperform inflation. We have a stage of inflation to get through over 1-5 years before we have to worry about a deflationary cycle in coins. Imo key dates will get whacked like anything else that was inflated during this up-cycle.

    Great coins have been great inflation hedges long term. Look back to the mid-70's where gem quality coins of sufficient rarity are up 50X. It's when we don't have inflationary pressures over a shorter period (or can export our inflation overseas as we did from 1982-2006) in the economy when they don't do well. But 50X over 35 years seems a pretty good inflation hedge (10% compounded). You didn't get that return by buying QVC/HSN stuff or circ 1958 wheat cents either. 99% of the coins for sale do not qualify as great coins either. The hard part is finding that 1% and sticking with them through thick and thin.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • tradedollarnuttradedollarnut Posts: 20,217 ✭✭✭✭✭


    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>



    The nice thing about coins is you get to have your cake and eat it too - retiring on one's set is a job well done. So there's nothing wrong with using one's collection as a hedge against inflation or even a means to an end.
  • percybpercyb Posts: 3,333 ✭✭✭✭


    << <i>Coins, in general, are not and have not been a good inflation hedge; however, key dates have kept up or exceeded the inflation rate. >>



    I agree. The Key dates are the key to beating inflation!
    "Poets are the unacknowledged legislators of the world." PBShelley
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    OK Roadrunner.....give us the 1% you call great coins.


    Is the the "1804 dollar/1894-s dime" catagory....or does it go down to top pop early lincolns in the five figure range?
  • CladiatorCladiator Posts: 18,256 ✭✭✭✭✭
    Coins are good as a hobby and to have fun with. Keep it at that and you'll enjoy them much more.
  • veryfineveryfine Posts: 1,763 ✭✭✭


    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>


    If a collector buys a $1000 coin for his collection, it should be both fun AND profitable. When using hard earned money to buy coins, every single collector is automatically concerned about making a profit, or at the very least, hoping these purchases hold their value.
    I'll never understand comments that completely dismiss the profit aspect of coin collecting. If you are collecting common Lincoln Memorial cents or State quarters from change, then yes, it is pure enjoyment and nothing else. On the other hand, if my goal is to put together a complete gem set of 1909-1958 Lincolns, I am just as concerned about profit as I am about enjoyment.
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    ....so are muscle cars....but that never stopped a 68 charger from selling for 100K (and the darned thing has been cleaned!)
  • Interestingly enough, coin collecting became very popular during the great depression of the 30's. The average family didn't have the money to go out, so much of the time was spent with hobbies.... board games became wildly popular too.

    Does that mean that if the economy tanks people will behave similarly? Who knows, but I think the internet will be the big diversion.
  • gecko109gecko109 Posts: 8,231


    << <i>

    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>


    If a collector buys a $1000 coin for his collection, it should be both fun AND profitable. When using hard earned money to buy coins, every single collector is automatically concerned about making a profit, or at the very least, hoping these purchases hold their value.
    I'll never understand comments that completely dismiss the profit aspect of coin collecting. If you are collecting common Lincoln Memorial cents or State quarters from change, then yes, it is pure enjoyment and nothing else. On the other hand, if my goal is to put together a complete gem set of 1909-1958 Lincolns, I am just as concerned about profit as I am about enjoyment. >>




    image


    He is 100% correct. If I spent $10-$20 per month on coins, its a hobby. If I spend $2,000 on a single coin, it becomes much more than JUST a hobby.
  • ttownttown Posts: 4,472 ✭✭✭


    << <i>

    << <i>

    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>


    If a collector buys a $1000 coin for his collection, it should be both fun AND profitable. When using hard earned money to buy coins, every single collector is automatically concerned about making a profit, or at the very least, hoping these purchases hold their value.
    I'll never understand comments that completely dismiss the profit aspect of coin collecting. If you are collecting common Lincoln Memorial cents or State quarters from change, then yes, it is pure enjoyment and nothing else. On the other hand, if my goal is to put together a complete gem set of 1909-1958 Lincolns, I am just as concerned about profit as I am about enjoyment. >>




    image


    He is 100% correct. If I spent $10-$20 per month on coins, its a hobby. If I spend $2,000 on a single coin, it becomes much more than JUST a hobby. >>



    I guess that depends on your income bracket. Maybe one should look for an affordable hobby within coins instead of taking a crap shoot that a coin will take them to retirement. Sounds like the "invest in coins" hype to me.
  • gripgrip Posts: 9,962 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>Coin collecting is suppose to be a hobby where people come together and enjoy thier common intrest!!! Coin collecting in IMHO isn't something you do to make money... TOO many collectors,, let me correct myself,, not collectors, have missed the point!! The hobby is for fun first and formost. You want to make some extra money get a part time job >>


    If a collector buys a $1000 coin for his collection, it should be both fun AND profitable. When using hard earned money to buy coins, every single collector is automatically concerned about making a profit, or at the very least, hoping these purchases hold their value.
    I'll never understand comments that completely dismiss the profit aspect of coin collecting. If you are collecting common Lincoln Memorial cents or State quarters from change, then yes, it is pure enjoyment and nothing else. On the other hand, if my goal is to put together a complete gem set of 1909-1958 Lincolns, I am just as concerned about profit as I am about enjoyment. >>




    image


    He is 100% correct. If I spent $10-$20 per month on coins, its a hobby. If I spend $2,000 on a single coin, it becomes much more than JUST a hobby. >>



    image
  • krankykranky Posts: 8,709 ✭✭✭
    I suppose if the dollar continues to drop, and foreigners want to buy US coins, that would keep prices up.

    New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.

  • MrEurekaMrEureka Posts: 24,421 ✭✭✭✭✭
    Logically, rare coins should be about as good an inflation hedge as residential real estate.
    Andy Lustig

    Doggedly collecting coins of the Central American Republic.

    Visit the Society of US Pattern Collectors at USPatterns.com.
  • wondercoinwondercoin Posts: 17,003 ✭✭✭✭✭
    It is certainly possible. For example, I bought / assembled complete sets of gold and platinum eagles waiting for collectors to come by and want to buy them as very neat (low mintage) collections. The collectors really never came by to any great degree (yet) but the gold coins in the sets has risen more than 40% in the past year and the platinum coins have risen nearly 35% so far this year alone. They turned out to be a terrific inflation hedge - outperforming nearly everything out there perhaps with the exception of oil futures. The coins still have a very bright future as numismatic (low mintage) treasures IMHO, but, may not show their "true colors" for quite some time if their metal content keeps outperforming most things.

    Wondercoin
    Please visit my website at www.wondercoins.com and my ebay auctions under my user name www.wondercoin.com.
  • DoubleEagle59DoubleEagle59 Posts: 8,379 ✭✭✭✭✭
    I believe coins are a good inflation hedge.

    But I'm positive that Gold and Silver are an even better inflation hedge.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • CalGoldCalGold Posts: 2,608 ✭✭
    Coins are an inflation hedge for dealers who can purchase them wholesale and resell them at retail mark ups.

    Edited to add: Over the past 30 years gold and silver have been a mediocre infation hedge, including periods in which those metal declined in value while prices generally increased. The only way to stay ahead of inflation is to increase your personal earnings at a rate higher than inflation. If you think that gold and silver will magically protect your net worth in the long term, lots of luck.

    CG
  • gecko109gecko109 Posts: 8,231
    "I guess that depends on your income bracket. Maybe one should look for an affordable hobby within coins instead of taking a crap shoot that a coin will take them to retirement. Sounds like the "invest in coins" hype to me. "

    Not at all. You are missing my point. I NEVER buy a coin for my personal collection and think "this coin will be worth 5 times what I paid someday". But when I do shell out the big bucks for a nice coin, i'd like to think it will remain somewhat near that value for years to come. A coin and a washer look alot alike....but you wont catch me buying a washer for 2k.image
  • tradedollarnuttradedollarnut Posts: 20,217 ✭✭✭✭✭


    << <i>Logically, rare coins should be about as good an inflation hedge as residential real estate. >>



    Can you pick up residential real estate and move it overseas? image
  • DoubleEagle59DoubleEagle59 Posts: 8,379 ✭✭✭✭✭
    Edited to add: Over the past 30 years gold and silver have been a mediocre infation hedge, including periods in which those metal declined in value while prices generally increased. The only way to stay ahead of inflation is to increase your personal earnings at a rate higher than inflation. If you think that gold and silver will magically protect your net worth in the long term, lots of luck.

    When inflation is HIGH (not during the years 1980 to 2000) investing in Gold IS a good inflation hedge.

    Why do all the 'anti-gold' people bring up the last '30 years' argument???

    OF COURSE the years of 1980 to 2000 was absolutely horrible for PM's!!

    But you have to go further back than this.

    The years of 1960 to 1980 was horrible for Stocks. Does anybody remember this?

    You've got to look at the larger trends.

    PM's and the Dow (stocks) are at opposite ends of the balance. When one is up, the other is down.

    Too many people have short memories.

    Most financial advisers who are 40 years and younger agree with 'CalGold's' post. They just don't see the benefits of owning Precious Metals because they can only see as far back to 1980.

    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • pennyanniepennyannie Posts: 3,929 ✭✭✭
    I would not bet my money on them.

    If i was it would be in gold bullion bought at melt. Gold will keep up, rare silver coins will suffer.

    I have rent property and 1/2 are suffering and 1/2 are doing better in this economy do to the local natural gas and a few hail storms.
    Mark
    NGC registry V-Nickel proof #6!!!!
    working on proof shield nickels # 8 with a bullet!!!!

    RIP "BEAR"
  • veryfineveryfine Posts: 1,763 ✭✭✭


    << <i>I guess that depends on your income bracket. Maybe one should look for an affordable hobby within coins instead of taking a crap shoot that a coin will take them to retirement. Sounds like the "invest in coins" hype to me. >>


    Affordable? Like what, a complete date set of circulated Roosevelt Dimes? Do you want me to die of boredom? Maybe I should collect shirt buttons in every color of the rainbow. Red, blue, orange and yes, the elusive eggshell white circa 1951. Come on man, get out of the kiddie pool!
    Coin collecting is a serious hobby that requires serious money. And as in all aspects of collecting, there is hype and there is a financial reality that often results in big profits.
  • CalGoldCalGold Posts: 2,608 ✭✭


    << <i>Most financial advisers who are 40 years and younger agree with 'CalGold's' post. They just don't see the benefits of owning Precious Metals because they can only see as far back to 1980. >>



    Well 28 years is a prettly long time to hold an investment. One can argue that the best hedge against inflation would have been buying Manhattan for $24 and holding it for 380 years. The problem is that at some point in time you mayl need to tap into your investments and if that point in time is when precious metal prices or rare coin prices are down, all of the long term graphs in the world won't do you much good. The gold bugs tend to ride the bull markets in gold to the top, and then right back down to the next trough.

    Coins may go up in value over time not because time adds value, but because economic growth and demographic growth increase the purchasing capacity of people and the number of people who may decide to collect them. But in hard times, when people have lower disposable incomes, there is no reason why coins should rise in value.

    CG
  • roadrunnerroadrunner Posts: 28,313 ✭✭✭✭✭
    OK Roadrunner.....give us the 1% you call great coins.

    Is the the "1804 dollar/1894-s dime" catagory....or does it go down to top pop early lincolns in the five figure range?


    I would probably not pick the 1804 dollar but might pick the 1894-s dime. They have probably met the 50X increase rule since the early 1970's. But getting another 50X increase in 35 years might be a stretch next time around.

    There are 20th century dated coins and even moderns I would put on the list. But being a 19th century type of guy, that's where most of my choices would come from (1792-1916). One would have to gravitate towards sleeper rarities. And this is probably not the time to be getting in. The last time to get in comfortably was from 1993-2003 (1995-1999 was best). One example of a great coin would be a fully original gem 1837 RE half (no rub, full luster). I'd also toss in each major type of half such as 1854-55 arrows, 1873-74 arrows, and 1853 A+R. 60-70% or more of the "gems" in holders are messed with. Those don't have the same potential. An honest gem 1848 seated quarter or 1857-0 half would be other good long term bets. I like orig bust dimes and quarters in gem if all there. Obviously all of these choices are big money. Killer 62's, 63's and 64's might also have good potential but not 50X worth. The key is still buying when the market is down and then holding. Do your own research to find what is generally not available even though the pops or price guides state otherwise. You have to be able to buy those coins when they do pop up.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • RWBRWB Posts: 8,082
    Collector's coins are a hobby and a luxury. There are a minute quantity that appeal to buyers who have resources beyond the normal economy - those are investments or speculative purchases.

    Properly stacked, coins can make a nice shrubbery.
  • cladkingcladking Posts: 28,748 ✭✭✭✭✭


    << <i>Depends which coins. Moderns 70's will fall to their intrinsic value. Vintage coins will hold their value. The really high priced stuff over $25k will not be affected. Truly rare vintage or modern will hold their value.

    In the long run, many marginal coins will get melted which could cause rarities in current common stuff. That could mean that current modern 70's will shoot up in value 10 or 20 years from now. >>




    I've been hearing this a long time but the fact is that moderns just
    keep going up. This especially applies to world moderns since they
    weren't saved either and now there are growing numbers of people
    who want them. The best thing is that moderns are a little overlooked
    everywhere so there is still room for lots of growth.

    Fighting trends and demographics can be a very risky undertaking even
    in the most inflationary enviroment. I'd stick with legitimately rare clas-
    sics, unc moderns (US & world), and bullion as an inflation hedge. As a
    bet on a solid and properous future I'd bet mostly on US moderns and
    silver. This would be especially numismatic silver which can be purchased
    at something less than double melt. This means a lot of old foreign sil-
    ver, unc foreign silver, and nice low grade older and gem newer US sil-
    ver.

    Older US coins are a hoot to collect and most collectors will probably be
    fine in them but generally the long term trend is probably going to work
    against you. There are millions of new collectors but there's some doubt
    that their aggregate demand will be sufficient to absorb all th collections
    of the baby boomers at current prices.

    Of course thee's no way to be certain and there are shorter term trends
    which are much less influenced by the long term ones.
    tempus fugit extra philosophiam.
  • cladkingcladking Posts: 28,748 ✭✭✭✭✭


    << <i>If we enter a bonafide depression accompanied by large scale loss of jobs and homes, rare coins will suffer. Remember that a depression will affect many millionaires in the same way it will affect the "little" guys, so I dont think even great rarities will be immune. Gold and silver bullion coins will outperform all other fields of numismatics, as their intrinsic values will steadily rise as the fiat system looses faith from the masses. >>



    "Modern" coins actually did extremely well in the great depression. It was at this time that
    Coin collecting became a hobby of the masses. Somehow they even managed to set enough
    coins aside that all the coins from 1934 to 1965 are readily available.
    tempus fugit extra philosophiam.
  • cladkingcladking Posts: 28,748 ✭✭✭✭✭


    << <i>

    Boy I don't get that. You don't thin high interest rates and tight credit isn't coming? It's going to be a repeat in my mind and maybe blowing the 80's away by far. Interest rates are near zero and credit is over extended there's not much place else it can go........... >>




    We may well have 20% interest rates but if we do then it's a safe bet inflation will be 40%.
    tempus fugit extra philosophiam.
  • ElcontadorElcontador Posts: 7,694 ✭✭✭✭✭
    Coins are a hobby for collectors, a business for dealers. Anyone who thinks differently is kidding himself.
    "Vou invadir o Nordeste,
    "Seu cabra da peste,
    "Sou Mangueira......."
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    I have turned what was a hobby thirteen years ago into a VERY profitable business.

    I like hobbies. image
  • There are many collectors that use business methods in pursuit of the hobby, to a more efficient level than some dealers.Respectfully, John Curlis
  • BearBear Posts: 18,953 ✭✭✭
    I personally believe, that high quality rare coins

    may well prove to be a good storehouse of value

    during times of economic stress. At least, that is

    where I have placed my money.
    There once was a place called
    Camelotimage
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    amen
  • 19Lyds19Lyds Posts: 26,492 ✭✭✭✭


    << <i>I personally believe, that high quality rare coins

    may well prove to be a good storehouse of value

    during times of economic stress. At least, that is

    where I have placed my money. >>



    So does this mean you will sell them if things get rough or simply use them as collateral?
    I decided to change calling the bathroom the John and renamed it the Jim. I feel so much better saying I went to the Jim this morning.



    The name is LEE!
  • ElcontadorElcontador Posts: 7,694 ✭✭✭✭✭
    Ambro - please define "very profitable." I could probably make a living selling coins, but I wouldn't be doing as well as I am doing in my profession. For every person like you, there are at least ten who get taken to the cleaners dealing with coins.

    John, the main ways you can make big money in numismatics are the "bigger fool theory" with big ticket items -- the guy selling you the item doesn't really know what he has --, or buy big ticket items, hold them for awhile and guess right. If you have enough people and have deep pockets, you can also collude, buy up a particular series / grade of coin, hype it to death and hope you find suckers, excuse me, I mean buyers.
    "Vou invadir o Nordeste,
    "Seu cabra da peste,
    "Sou Mangueira......."
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    Nooooooooooo My business has nothing whatsoever to do with coins.

    Its just a hobby I had, which I developed into a business, and has proven to be a delight in many ways.

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