CBH Investment

JCB1983

I am new to the world of coins but I have a mind for economics. I would like to know if it would be economically viable to invest in the following: I would like to invest in about 100 Capped Bust Halves. Specifically low grade (raw) problem free and I repeat problem free CBH's. I'm looking for the natural grey look in grades VF20-XF45. I have come here to ask the experts. I know this question is very vague but please share.

TYVM,
~Jason

TomB

You have written the "I" word, you will now be pilloried.

Tallpaul000

Raybo

I'd buy stocks or annuities for an investment, I purchase coins because I really like the hobby.

Tallpaul000

just buy an 1807 bearded goddess and be done with it!!!

lkeigwin

Your mind for economics should take you elsewhere. Collect coins for many reasons but not as an investment. You are just as likely to lose money as you are to gain. Those who do best are the ones with years of knowledge and experience. A newbie is likely to lose a lot. FWIW.
Lance.

MrEureka

I am new to the world of coins but I have a mind for economics. I would like to know if it would be economically viable to invest...

Stop right there! If you're new, it's not economically viable to invest. Even veteran collectors have trouble investing successfully. Better to start as a hobbyist, have fun and learn the game as best you can. We can talk about investing in 5-10 years.

CoinJunkie

The grade range you cite is typically not considered "investment" material for CBHs, except perhaps in a scarce date or
variety. I don't think your proposed choice would outperform the coin market overall.

habaraca

turn your PM function on....

MrEureka

The grade range you cite is typically not considered "investment" material for CBHs, except perhaps in a scarce date or
variety. I don't think your proposed choice would outperform the coin market overall.


IMHO, well-chosen circulated Bust Halves won't be high flying investments, but in the long run they should more than maintain purchasing power.

RedTiger

If you are new to coins, how do you know about terms such as problem free, and natural grey?

If you are new, how will you be able to tell if the coins you are buying are problem free or just okay enough to your untrained eyes? Most of the older coins have been messed with, it is mostly a matter of degree. Those few that are perceived to be pristine with only honest wear, tend to trade for significant premiums over the average examples. A novice has zero chance at accurately making those kind of judgement calls on raw coins, or even certified coins.

As always, there are collectors that do well financially. That group tends to have excellent grading skills, superior market knowledge, and excellent access to coins. Sounds to me like you are batting 0-for-3, on grading, knowledge, and access. People that are below average in all three areas tend to lose money and have little chance of making a profit, no matter what series, or what grade they select.

DaveG

I would think it would be a lot of fun to acquire 100 nice raw CBHs in VF to XF - assuming you know what a "nice" problem-free VF to XF Bust Half looks like, of course.

I would think you should be able to complete this purchase by visiting a half dozen or so decent-size coin shows.

I don't know why you're asking us if such a purchase would be "economically viable" though - you're the only one here who knows how much money you have.

JCB1983

Well I said "new." I guess I was refering to new in comparison to you guys. I've been collecting for two years and run the ebay department for a busy pawnshop. I've read Walter Breen's Complete Encyclopedia of U.S. and Colonial Coin and a number of other books. In my mind I just look at a coin and it is problem free or not, I don't understand why it is so hard to tell the difference? Thank You BTW.

DaveG

Well, what "problems" are you looking for when you're looking for a "problem free" CBH?

JCB1983

Cleaning, AT, Rim Dings.

mozin

I wonder if the thread starter is pulling our legs. If not, I recommend his going back to square one on coin collecting.

Nysoto

I collected about 110 CBH's VF-AU over a period of about 8 years, starting in 1995, with only a die variety collecting objective and no investment goals. Have sold about half, made a profit on most, some 2-3x or more with rarity cherrypicks. I was lucky to buy into a strong, rising market. If the market had been flat, I would have lost 30% or so because the bid/ask margin is higher on low priced coins. There is no way to predict prices on CBH's.

Buy an Overton book and learn how to attribute CBH's, anything R4 and up will sell for a rarity premium. If you find an R7, start choosing your new car. Its lots of fun attributing bust halves.

If you can get your CBH's at wholesale through your work, it will be much easier to make a profit. Most gains from CBH's are from long-term collectors or dealers.

abitofthisabitofthat

I am not sure about the investment part, but I do have 100 or so nice problem-free mid grade circulated Caped Bust Halves for sale. Sounds like a fun project. I love those coins and pick them up wherever and whenever I can. They are the most popular series with the collectors I work with at my local shows. They are always in demand, as are problem-free early large cents. These are areas of collecting that have been popular for a very long time, and I believe will continue to be popular, so they would probably hold their value well. However, determining if a coin is truly problem free is not as easy as some might think, and many novice/intermediate collectors can miss problems.

CoinJunkie

<< <i>The grade range you cite is typically not considered "investment" material for CBHs, except perhaps in a scarce date or
variety. I don't think your proposed choice would outperform the coin market overall.


IMHO, well-chosen circulated Bust Halves won't be high flying investments, but in the long run they should more than maintain purchasing power. >>


I dunno, 50 cents is worth less and less every year...

donthehill

I will echo some of the sentiments in this thread, and many more sentiments I've read from other threads that have borne mostly true in my collecting - if you're in it as an investment, buy the topmost, best quality, etc. coin you can afford. For the most part, when I buy coins in this grade range (absent rarities, but even for these sometimes), they'll mostly keep their value, but the coins where I've sucked it up and spent some extra cash (relative to my budget) have done much better in terms of price increases.

Might be an interesting research project to look at old red books or other price guides and examine what $10k in CBHs (a mid-grade date set?) were worth 10 years ago versus a single $10k coin (and the latter results will depend highly on the coin you select, so do it for a few).

Sonorandesertrat

<< <i>Stop right there! If you're new, it's not economically viable to invest. Even veteran collectors have trouble investing successfully. Better to start as a hobbyist, have fun and learn the game as best you can. We can talk about investing in 5-10 years. >>



Exactly