I got a letter and a brochure from Donald Doyle CEO of Blanchard.

bidask

In the brochure they recommend putting 15- 20% of your
financial assets in bullion, ms gold, and numismatic rarities.

What do you think of this investment advice?

steelielee

Many financial planners&analysts say to never put more than 5% in any one asset. Don't know that I agree with that 100%, but 15-20% in a very high risk assest seems risky.

RYK

<< <i>Many financial planners&analysts say to never put more than 5% in any one asset. Don't know that I agree with that 100%, but 15-20% in a very high risk assest seems risky. >>


I would not interpret a mix of bullion, MS gold, and numismatic material to be "one asset", and I have seen peer reviewed literature in the financial sciences that suggest that rare coins have similar performance characteristics as equities with very little correlation, which make them a good diversification asset class.

I personally do not invest in coins (or advocate in doing so), but certainly many folks who have done so have done well and at least as many have done poorly.

astrorat

<< <i>In the brochure they recommend putting 15- 20% of your
financial assets in bullion, ms gold, and numismatic rarities.

What do you think of this investment advice? >>

Sounds like Mr. Doyle's company has some bullion, MS gold, and numismatic rarities they would like to sell you.

Sonorandesertrat

<< <i>

<< <i>In the brochure they recommend putting 15- 20% of your
financial assets in bullion, ms gold, and numismatic rarities.

What do you think of this investment advice? >>

Sounds like Mr. Doyle's company has some bullion, MS gold, and numismatic rarities they would like to sell you. >>



Yep, and if you would like to put more than 20% of your assets into these items, they would be more than happy to oblige.

TwoSides2aCoin

I think divesting into different asset classes makes more cents sometimes. Long term hold is a must if one has delayed one's entry, particularly with bullion, as it were. An as the market has been , it might be a "fun" hobby to endeavor into with some of the profits taken off the table (Coin will be fun). Bullion is another story. (It may not be fun) But coins are collectible all the time. Not as an investment per se. As a game we play.

DaveG

I have seen peer reviewed literature in the financial sciences that suggest that rare coins have similar performance characteristics as equities with very little correlation, which make them a good diversification asset class.


RYK,

I'd be interested in reading any articles you happen to come across.

You may recall, several years ago, we had among us on this board (briefly) one of the "coins are a good asset class and I can prove it" guys.

The only problem with his analysis is that he used Red Book prices for both his buying and selling prices (essentially, he was projecting buying and selling at retail).

I think anyone who has ever sold coins would say that you can't buy and sell at retail prices (and even if you use auction records you have to add in buyer's and seller's fees).

You also have to be very careful about what specific coins you track for your article - The price performance of the 1913 Liberty nickels may make for a great chart, but how many of us buy coins like that?

Unknown

This content has been removed.

MacCrimmon

<< <i>I have seen peer reviewed literature in the financial sciences that suggest that rare coins have similar performance characteristics as equities with very little correlation, which make them a good diversification asset class.


RYK,

I'd be interested in reading any articles you happen to come across.

You may recall, several years ago, we had among us on this board (briefly) one of the "coins are a good asset class and I can prove it" guys.

The only problem with his analysis is that he used Red Book prices for both his buying and selling prices (essentially, he was projecting buying and selling at retail).

I think anyone who has ever sold coins would say that you can't buy and sell at retail prices (and even if you use auction records you have to add in buyer's and seller's fees).

You also have to be very careful about what specific coins you track for your article - The price performance of the 1913 Liberty nickels may make for a great chart, but how many of us buy coins like that? >>




Other than the "outliers" in EPN's numismatic landscape, most of Mr. Newman's Platinum Night coins had returns in the 10% plus per annum range. Of course, he bought these coins akin to straw hats in January.

magikbilly

Whose interests come first?

Eric

Cougar1978

I like his advice a lot. But one needs to be diversified in their numismatic and bullion holdings and not concentrate their buying on any one source.

bidask

Actually the standard reasons Blanchards letter I think is baloney. ( IE the stock market dangerous and a roller coaster ride, inflation will eat up your pending power so you need gold, etc)

But ironically I actually have a very similar allocation to numismatic coins, bullion and ms gold. Altogether15-20% my net assets.

However I attribute that to the considerable length of time I have been collecting and the attitude that I never feel forced to cash in any of it to support myself and family.

291fifth

If it so great why are they trying to sell it to you?

johnny9434

talk to your planner and not what some broucher says. jmo

bidask

<< <i>If it so great why are they trying to sell it to you? >>

i can understand them wanting to sell the concept.

But why do you think it is so great?

291fifth

<< <i>

<< <i>If it so great why are they trying to sell it to you? >>

i can understand them wanting to sell the concept.

But why do you think it is so great? >>



I don't. As an example, silver has dropped to about $20 from a high of close to $50 in recent months. Great investment!

The previous time silver was run up to $50 was January, 1980. It took over 30 years for that number to be approached again and, again, silver couldn't hold at that level.

DaveG

And, of course, there's a huge difference between $50 in 1980 and $50 in 2012!

Adjusting prices appreciation for inflation is a real kill-joy, most of the time!

AMRC

That is ridiculous. 5% maybe 10%, but never take advice from a person who sells bullion about how much to buy.

MsMorrisine

Uh oh

More piling in


When the cab drivers are investing in coins, sell!

MrEureka

I think that investment allocation advice needs to be individually tailored to the investor's unique circumstances to have any merit at all.