Best Coin Investments
LVGT
Posts: 503 ✭
I would be very interested in hearing some opinions on what people think the best coin investments will be over the next 5 - 10 years. I am starting out and don't have thousands to spend on coins (at least this year) and would like to try to find a few coins that are both appealing to me and likely good investments. Right now I find myself attracted to the bust half dollars and barber quarters...but please don't hold back suggestions on other series. A suggestion for each of the following price ranges would be cool:
under $100
Under $300
under $1000
I have been able to find some what I believe to be a couple of pretty cool bust halfs recently that I am excited to receive and will likely continue to seek out cool graded examples under 300 or so, but other opinions would be fun to hear.
under $100
Under $300
under $1000
I have been able to find some what I believe to be a couple of pretty cool bust halfs recently that I am excited to receive and will likely continue to seek out cool graded examples under 300 or so, but other opinions would be fun to hear.
0
Comments
Knowledge, patience and focus.
zap
102 capped bust half dollars - 100 die marriages
BHNC #198
I find myself addicted.
1. Put your investment money in CDs or Mutual Funds. Buy coins only as a hobby and only with fun money that you're comfortable losing.
2. Invest up to $1,000 in reference books and auction catalogs that focus on the types of coins that interest you most. Then READ and LEARN.
This is definately a hobby to me and I understand I will lose on some purchases, but I wouldn't mind aligning some of my hobby purchases with coins that should apprecaite over time or are undervalued in some of the expert opinions here. I don't intend to cash out my IRA and put it all in coins.
2) I have started this...but your comment does reinforce that my efforts should be more focused on this as oppose to jumping right in and making purchases.
Thanks you.
In honor of the memory of Cpl. Michael E. Thompson
How to make a small fortune investing in coins. Start with a large fortune.
Cheers, RickO
What exactly do you mean by "whatever the seller has in stock?" Are you referring to a seller or multiple sellers having a lot of inventory of a certain coin therefore pricing will be soft at that time.
Forgive me if I am off base on this one?
Buy some books, and learn something about rare coins, particularly grading them. Three titles come to my mind:
1. QD Bowers, "The Expert's Guide to Collecting and Investing in Rare Coins" $30
2. SA Travers, "The Coin Collector's Survival Manual, 6th Ed." $23
3. B Deisher, "Making the Grade" $40 [there are other books covering similar material]
Join a coin club, if possible. Subscribe to a hobby magazine like Coin World. The American Numismatic Association
offers shorts courses on a variety of topics, including coin grading. These are worth considering. The key to learning
how to grade what you want to collect is physically handling and studying LOTS of coins---you cannot learn to do
this simply by looking at images in books or on a computer monitor.
Find a mentor---a much more advanced coin collector, or a local dealer. This is very important.
Stay away from raw coins until you know what to look for.
Successful investing in coins requires an exceptional amount of experience and knowledge about the business aspects
of numismatics.
Collectors/investors who make money when they sell their coins are in the distinct minority (ca. 5% or less). The rest
lose money because they are too impulsive, buy 'stuff' rather than sought-after coins that are high-end for their grades, buy with a
bargain-basement mentality (there is no Santa Claus in the coin business), sell during a bear market, etc.
The internet is a wonderful resource--this forum, the one managed by NGC, Coin Link, dealer websites, etc. are all valuable resources.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
Many are one-of-a-kind.
The mint has really cracked down on errors getting out.
The supply is very limited.
If you pick eye appealing major error coins, you will always be able to sell them as there is a great demand for quality material.
Good Luck.
Looking for Top Pop Mercury Dime Varieties & High Grade Mercury Dime Toners.
<< <i>Tom
What exactly do you mean by "whatever the seller has in stock?" Are you referring to a seller or multiple sellers having a lot of inventory of a certain coin therefore pricing will be soft at that time.
Forgive me if I am off base on this one? >>
What I mean is that you are asking for investment advice and it is only natural for folks to advise you to buy coins that they either like or own, which does not really help you on a completely objective basis. Additionally, some sellers might advise you to purchase within a certain niche simply because they have the inventory to make the sale.
In honor of the memory of Cpl. Michael E. Thompson
<< <i>Tom
What exactly do you mean by "whatever the seller has in stock?" Are you referring to a seller or multiple sellers having a lot of inventory of a certain coin therefore pricing will be soft at that time.
Forgive me if I am off base on this one? >>
Many coins are not good investments at this time. Various types (series) of coins, like other collectibles, go through bull and bear markets (i.e., rise and fall in popularity and hence price). Just because a coin looks great and is in a holder that indicates a high grade does not mean that it has good investment potential. Conversely, some well-circulated coins are excellent investments at this time.
Coin dealers are mostly small businessmen who are engaged in marketing discretionary items. Quite a few will 'talk up' everything in their inventories (words like 'premium quality' and 'investment grade' come to mind). Marketing plays a critical role in getting potential buyers to actually make coin purchases. Think very critically BEFORE you make any coin purchase---is the quality all there, is the price reasonable, is the coin such a niche item that I won't be able to sell it later on, is there a return policy, etc. In my experience, I usually refrain from actually making a purchase because something isn't right. Patience is perhaps the most important virtue when becoming a coin collector (or a collector of anything else).
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
<< <i>Does making the grade cover bust half? >>
Yes. There are also some DVDs that cover Capped Bust halves too (go to the Coinvideo.com website).
Note that the actual pricing of coins in this series is highly dependent upon variety. There are specialized
books that give the diagnostics (but not pricing) of different varieties.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
Spanish colonial crowns in au 55-58
I give away money. I collect money.
I don’t love money . I do love the Lord God.
1) a natural eye for grading which they hone with training
2) decent contacts so they have access to good coins at good prices
3) market knowledge so they know what a competitive price is
4) a true love for the hobby
There is a much larger group that does poorly financially. They too tend to share certain traits:
* they tend to buy mostly for investment, often buying what someone else tells them to buy
* they tend not to know much about grading and don't want to learn
* they often buy coins from a single source, sometimes at above market prices
So the answer to try to get in the first group, is to spend more time on learning grading, and developing contacts, and typical wholesale and retail market prices. If a person doesn't have an edge in terms of grading, contacts, or knowledge, they will do well to break even. Those taking advice from strangers will tend to do especially poorly because they won't even get much enjoyment out of the hobby.
Don't worry about paying more for quality. Those will be the most desirable coins when it's time for you to sell.
<< <i> Knowledge, patience and focus. >>
Great advice. Knowledge is the most important, as many new collectors buy without having any knowledge of what they're buying, and eventually get ripped off. Stay away from buying until you know what to look and have done a considerable amount of researching and studying, as others have said.
Pick a series. Learn more about that series, especially grading (view auction lots, go to shows, have dealer and collector resources, etc.), than most others. You have found an investment winner.
K
PS Or you can hire Stewart as a coin advisor!
My 1866 Philly Mint Set
<< <i>Any coin that brings a big smile to my face when I look at it is a good investment to me
I like this answer.
<< <i><<Best Coin Investments>>
Knowledge, patience and focus.
A lot of good information in this thread, however, read coinguy1's post over and over. It explains it all, and very succinctly.
<< <i>Any coin that brings a big smile to my face when I look at it is a good investment to me
Well said!
Investors snap up whatever happens to be available.
Everyone should start slow and this goes double for those who are largely focused
on making a profit. Sell some coins once in a while so you know what they are really
worth.
It's hard to make money collecting unless you have a lot of knowledge and a lot of
luck. It's not very likely as an investor. Even if you knew what would be popular next
year an investor will tend to pay too much for the most common examples and min-
imize his profit.
It's not possible to know what will become popular.
To sample the flavor of the book, you'd do well to try skimming through the now over 7500 post thread started by ericj96, beginning at the beginning, right here in this PCGS US Coin Forum, the thread title starting with the three words Silver, Gold, Platinum.
My two cents: Buy what you love. Think about investment later. If you go forward with your heart, you will always win.
PCGS Registries
Box of 20
SeaEagleCoins: 11/14/54-4/5/12. Miss you Larry!
The price of gold is set by faith, or lack of, in the currency it is priced in.
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
<< <i>I'd agree that key dates are the best investment, if you are patient and can afford them. Coins have actually done much better over the last decade than the average mutual fund, and if you know your market, you can do quite nicely going forward. >>
The recent economic problems make most traditional investments seem like a bad joke.
Still, mutual funds require a lot less work, timing or luck.
And you can sure loose money on key dates if you don't know what you're doing.
By far, the best long-term coin investment is knowledge.
The recent economic problems make most traditional investments seem like a bad joke.
Still, mutual funds require a lot less work, timing or luck.
And you can sure loose money on key dates if you don't know what you're doing.
By far, the best long-term coin investment is knowledge.
Have any true key dates significantly declined in value since the advent of PCGS grading? I'm not being smug, I'm just wondering if there are any examples...
Mutual funds are a great way to invest, but like any other investment (including rare coins), there are many mutual funds that suck, too.
Also, the recent economic problems will get a lot worse before they get better, especially as far as US investments are concerned. There was a great buying opportunity back last spring (2009) but that ship has long since sailed..
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
<< <i>And you can sure loose money on key dates if you don't know what you're doing.
By far, the best long-term coin investment is knowledge.
Have any true key dates significantly declined in value since the advent of PCGS grading? I'm not being smug, I'm just wondering if there are any examples...
Mutual funds are a great way to invest, but like any other investment (including rare coins), there are many mutual funds that suck, too.
Also, the recent economic problems will get a lot worse before they get better, especially as far as US investments are concerned. There was a great buying opportunity back last spring (2009) but that ship has long since sailed.. >>
1. I misspelled lose.
2. I suspect that no key dates have significantly declined in value since the advent of PCGS grading...at least not according to the price guides. But that's not what I'm talking about. If you buy a key date that has been messed with, has negative eye appeal, has hidden or obvious flaws, is not solid for the grade - in other words, if you don't select a key date coin with knowledge of what makes nice coins nice, then you will likely lose money when you sell it, regardless of what the price guides say.
3. I'm amazed that you can predict the future of US investments. I wish I could.
It doesn't take a financial guru to see that the market is in the midst of a long-overdue correction. Now if I could tell when it hits bottom, that would make me a wealthy man, LOL...
Edit:
If you buy a key date that has been messed with, has negative eye appeal, has hidden or obvious flaws, is not solid for the grade - in other words, if you don't select a key date coin with knowledge of what makes nice coins nice, then you will likely lose money when you sell it, regardless of what the price guides say.
Definitely...it takes patience, restraint and knowledge to acquire the right coin for the right price in any case, though the PCGS brand is certainly a great place to start.
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
The greatest "investment" gains are from knowledgable collectors (as opposed to investors) who have bought nice coins for the grade and held them for many years. Value your coins at what you can sell them for. The difference between retail and wholesale can be a real eye opener for a beginner. Ask a dealer what he would give you for one of your $300 coins, don't be surprised if its around $200.
edit - if you are going to continue purchasing bust halves, buy the book Bust Half Fever by Edgar Souders, which explains the many pitfalls and opportunities with bust half dollars.
<< <i>Stick to the "keys" and hot "semi-keys" for just about any series that are in PCGS slabs and are in the primary collector grades....that are graded and struck well. Then buy them at really good prices (this takes patience and opportunity)....if you do these things....over the long term you should do quite well. >>
but also include coins in ANACS and NGC slabs.
That said, yes, patience and knowledge are of course critical to success. How much time and effort are you willing to put forth?
You mentioned you are just starting out....I would venture to say that the majority of the successful collectors/dealers on this forum have been at it for decades, having started when they were young, 'paid their dues' so to speak, and can now reap the rewards of their passion if they so choose to. That's not to say someone starting out later in life can't likewise be successful, I'm just saying that there is not a Cliff's Notes or 'Dummies Guide' that will get you up to speed with the veterans in a couple of days - but I bet you know that.
I've seen multiple recommendations about buying the keys and semikeys - not a bad idea, but I like building sets. If no one was building sets, no one would really need the keys. Also, over the short term, some of the key dates have fallen this past year - they had a tremendous runup and some of them are retrenching a bit. Also, know which key dates are really scarce, and in what grade they are desirable. 16D dimes in Good are plentiful - in VF this is a very scarce coin. 09SVDB cents are plentiful, especially in the higher grades.
Stick with issues of PROVEN scarcity AND collector demand.
I best like the idea where you pick a series that you are interested in, immerse yourself in it, and then you will be able to spot undervalued issues and know a genuinely 'good deal' when you it.
Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin
#1 1951 Bowman Los Angeles Rams Team Set
#2 1980 Topps Los Angeles Rams Team Set
#8 (and climbing) 1972 Topps Los Angeles Rams Team Set
Don't be surprised if it's a lot less than that.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
LVGT....read these forums, lots to learn here.
At some point another winner will come down the pike. Keep your powder dry!
Hi, Nobody provided this perspective, so (this is how I got started):
1. Begin with junk coins, bags of 100 or 1000 or 10,000 mercury dimes or walker halves, for example (focus on a series or two so your education hours are not watered down too much).
2. Now, your ‘investment’ is just the junk silver cost. The downside is limited to a) fluctuation of bullion price. Bullion has been in a 10-year uptrend. This could end at any time, but there is still an intrinsic value nevertheless; and b) the spread, about 3-4%. Hence, your downside risk is limited.
3. Look at EVERY ONE of the 100 or 1000 coins. Figure out which dates are more rare, learn the varieties in each date, understand the minting/coinage/metallurgy issues that influence/create varieties.
4. Now you have begun to learn the art of ‘cherry picking’. Many of these varieties may sell at a premium in higher grades. These, along side the better dates/mintmarks you pulled from the junk lots, provide upside to the investment WITH NO ADDITIONAL RISK, just an input of time (which creates another dividend called ‘education’).
5. When you have competency in one series, then expand your coin universe to other niches.
Most of all, have fun!
Hoard the keys.