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Ganz- Rare Coin Investing.... a good read?
taxbuster1040
Posts: 354 ✭✭✭
I have been a collector for at least 10 years now. I had read some books on coin investing some time ago. I think my objection to them was that it was hard to find those rarities. In the past 10 years I have purchased a few rare coins, mostly at Heritage. I have tried to keep my collection to "low Pop" coins. Some of them have done well in the past 10 years... many have not. Clearly great investment performance is not just a function of low population. I'd like your thoughts on this. I understand of course, that coin collecting is not a science, or really an investment either. At the same time I was wondering if any of you had read any of those earlier books on coin investing, followed the advice, and how it turned out for you. At the same time, have any of you read Ganz's new book and is it worth the money?
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As I always write when the investment word is mentioned, some collectors do well financially. They tend to have certain traits: an excellent eye for grading, good dealer contacts, market knowledge, and a true love of the hobby. So if a person can grade well, has connections, and some market knowledge they will tend to do well. Be average in all three, and a person will tend to do average vs. the entire collector base. Be below average in all three, and that collector will tend to do poorly, no matter how many books they read.
The book mentioned will likely only to help with market knowledge. Unfortunately, with many investment books, the information is often stale by the time the public is reading them, so even that much is questionable.
The following is from the Amazon.com listing:
<< <i>Editorial Reviews
Product Description: This book is for the coin collector who wants to purchase coins as an investment. Author David L. Ganz shows how to take $10,000 and buy 100 coins, none costing more than $100, to create a retirement portfolio certain to gain in value. >>
Huge red flags go up for me such as the phrase "certain to gain in value"--no one knows the future, no matter how many coins or books they have sold. Other investment books that use similar phrases, making similar promises tend to present an unrealistic picture and tend to be of limited value.
The pink elephant is spreads and costs. Forumites that have followed some of the recent threads about cash dealer offers might finally understand that the spread between low wholesale price and full retail price in numismatics is often 100%. Meaning a collector coin that retails for $100, may often trade for $50 or less at some point in the food chain. For the person high up in the food chain with excellent access, selling near retail, buying near wholesale, that price differential will make more of a difference, than selecting which series, or which specific coin to buy. For the average collector, often way down in the food chain, with limited access, there is usually a stiff headwind to overcome if investment is the goal.
Again, I haven't read the book, but I would suggest that a person can likely make better use of their limited time, energy and money, working on improving their grading, their contacts, and their market knowledge. For grading and contacts especially, dedicated effort can make a huge difference.
Lastly, why would anyone trust an investment book written by a lawyer?