Are coins considered liquid or illiquid.....?

bidask

I was talking to some private equity guys today and they commented that the businesses they invest in are considered illiquid.

That is to say if invested in they are to be considered longer term investments and not something you can readiy cash out.

They also commented that the legal counsel they have spoken with have said that if a person dies owning an illiquid investment, that the value of that illiquid investment is often discounted for valuation purposes of the estate.......unlike stocks or bonds that have a stepped up basis at day of death....

It got me thining about coins....

Are they considered illiquid or liquid?

Any attorneys or bonafide estate coin appraisers want to comment?

I mean I know you can sell coins at some price and get paid at some point........but that doesn't strike me as being a
liquid investment likes stocks and bonds.....

blu62vette

I think of it as liquid for the most part since you could get rid of them quickly, even quicker than settlement on a stock trade. Really bullion is liquid. Numismatic coins are not liquid or at least not liquid at top or close to top dollar. You have to set the terms of liquid. If less than 30 days than sure, you can get them on ebay and paid in that time. If a week is liquid that is trickier on numismatic items.

DaveG

I'm neither an attorney or a coin appraiser, but I do have worked with both "liquid" and "illiquid" investments over the years.

I'd say that bullion would probably be considered "liquid" while "rare" coins would not be.

In general, anything you can get multiple bids on in five minutes (like you can for an exchange traded stock) should be considered liquid, while anything you have to consign to an auction to get the best price or take to several dealers so they can examine the coins in person should be considered illiquid.

In general, if you have to take a significant hit on the price (compared to recent transactions) of an object to move it quickly, then it's most likely illiquid.

Flatwoods

That's casting a broad net. Some coins are more liquid than others.

Sonorandesertrat

<< <i>I'm neither an attorney or a coin appraiser, but I do have worked with both "liquid" and "illiquid" investments over the years.

I'd say that bullion would probably be considered "liquid" while "rare" coins would not be.

In general, anything you can get multiple bids on in five minutes (like you can for an exchange traded stock) should be considered liquid, while anything you have to consign to an auction to get the best price or take to several dealers so they can examine the coins in person should be considered illiquid.

In general, if you have to take a significant hit on the price (compared to recent transactions) of an object to move it quickly, then it's most likely illiquid. >>

MrEureka

Everything can be sold at a price, but liquidity refers to the extent to which a quantity must be discounted to unload a position over a given period of time.

Given that definition, most coins are very liquid in small quantities, some in much larger quantities.

TahoeDale

No doubt many coins( mostly bullion related) are quite liquid, with many market makers.

Then the rarer and more esoteric may be illiquid, at least for a 2 to 6 month wait for the right buyer or auction.

But all coins, IMO, are more liquid that almost any other hard assets.

ModCrewman

I think the market already applies the "liquidity discount" when you take it to your B&M (or multiple dealers) and see what he's willing to offer for the collection. Top dollar FMV is the starting point, but immediate liquidity is the value today. My B&M dealer has indicated in discussions that when he does appraisals it's normally a concurrent an offer to buy at that appraised value, to substantiate the validity of the value assigned.

AMRC

This has been discussed. They are after all money and can be spent without selling them first. Coins are very liquid. It is just a matter of what price you will take.

Coinlearner

Was said already. It depends on the coins. Popular types,in top condition,rare dates/mints,gold and silver,almost sells itself. Common or problem coins are slow movers . Of course,having coins in plastic really gets the attention of a lot of people,for a higher price.

CoinJunkie

Depends on the coin and the size of its collector base. More collectors equals higher liquidity.

lcoopie

everyone knows that coins are solid

Shamika

Kind of depends on what you consider "liquid". Every coin can be sold for a price. But if you're looking for a retail value, some coins are very difficult to move. Others, not so much.

relicsncoins

Heck, with Ebay, everything is pretty liquid. You could probably sell a booger on there.

291fifth

Coins are liquid at a loss.

ColonialCoinUnion

<< <i>Coins are liquid at a loss. >>



Wouldn't that depend on what you paid?

Justacommeman

coins are liquid just not fungible

MJ

291fifth

<< <i>

<< <i>Coins are liquid at a loss. >>



Wouldn't that depend on what you paid? >>



If you paid retail they are liquid at a loss unless you have held them, in most cases, for many years.

astrorat

<< <i>Heck, with Ebay, everything is pretty liquid. You could probably sell a booger on there. >>

That's just wrong ... so very wrong!

bolivarshagnasty

<< <i>Heck, with Ebay, everything is pretty liquid. You could probably sell a booger on there. >>


Only if the booger looked like Mother Theresa.

ricko

Gold and silver are very liquid... most coins are illiquid unless rarities or are currently flipper focused. Cheers, RickO

PerryHall

<< <i>I'd say that bullion would probably be considered "liquid" while "rare" coins would not be. >>

fastfreddie

<< <i>coins are liquid just not fungible MJ >>



Aren't bullion coins like ASE's fungible generally?

TwoSides2aCoin

The silver coins (90% ag 10% cu) in inventory , went from $48 per ounce ( for 100% pure silver ) last year around this time to $28 by the end of summer. That's definitely not liquid. It's an evaporting solid that turns gaseous.

Justacommeman

<< <i>

<< <i>coins are liquid just not fungible MJ >>



Aren't bullion coins like ASE's fungible generally? >>



Yes they are. i was assuming the OP was referring to numismatic coins. and not bullion.

MJ

BillJones

Selling collector grade coins is pretty easy. The important question is how long does it take to get a fair price? That is the rub, if you will excuse the pun.