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Is your coin collection an asset or a sunk cost?

When determining your net worth, do you consider your coin collection an asset or a sunk cost? As a reminder, a sunk cost is an expense which will never be recovered. It falls into the same category as the money you paid for lunch or a pair of work boots bought three years ago and worn every day since. To consider your coin collection a sunk cost is to assume that every dollar spent on coins is a dollar deducted from your overall net worth. A coin collection may be considered a sunk cost if you take the collection to your grave or if you have determined it not to have any resale value should you decide to liquidate.
An asset can be relied on as a financial tool without incurring a loss.
An asset can be relied on as a financial tool without incurring a loss.
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Yes that is scary
Joseph J. Singleton - First Superintendent of the U.S. Branch Mint in Dahlonega Georgia
Findley Ridge Collection
About Findley Ridge
cost is generally considered money spent that cannot be recovered. The only way that applies to a coin
is if the price paid was so outrageous that no set of market conditions could conceivably allow one to break even.
<< <i>Coin collections are assets. Accurately assigning a value to coin collections is another thing entirely. I suspect many/most collectors are optimistic regarding the amount they would realize if the collection were to be sold. >>
Asset.
I include the collection in my net worth calculation and conservatively value it at 2/3 PCGS price guide. While it might sound aggressive to some, this includes many OGHs, gold stickers, and coins in which 2/3 is below melt value.
safe deposit box fees, etc.
That notwithstanding, the collection itself is an asset.
<< <i>if they have a market value, they are assets. >>
agreed
coins for sale at link below
https://photos.app.goo.gl/3QuUzMTeSMsQXrpg8
When it comes to assigning value, it helps to remember that the only meaningful numbers are the ones obtained on the day of purchase and on the day of sale. Everything else is just an estimate.
I think I have a pretty realistic sense of how I'd have to price most of the things in my collection for various degrees of liquidity -- do I need to sell it this year, this month, this week, or right now. When I assign a value to it, I use the "this week" numbers and calculate 85% of that, to account for various forms of friction and the places where I may have overestimated.
Definitely not a sunk cost. I've gone to the collection a number of times over the past decade when I needed to squeeze some extra money from "somewhere" without destabilizing more important positions, and it hasn't failed me yet.
the time spent on them is a sunk cost.
Liberty: Parent of Science & Industry
For example, if you plan to keep a coin until the day you die, you should not count that asset as part of your retirement funds. Which is why I will never be able to retire. Not that I'd want to anyway.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
To answer the question,my coin collection is an asset.I never buy a coin that I don't think would be desired enough by another to one day, at the least,recover the money spent.I never buy a coin with the idea that I will have it in my collection until the day I die,either.
Whoever is careless with the truth in small matters cannot be trusted with important matters.
"If I say something in the woods and my wife isn't there to hear it.....am I still wrong?"
My Washington Quarter Registry set...in progress
<< <i>A sunk cost would be spending $20,000 on a 1937 Nickel.We're talking four legs on the Buffalo,pardner.Never mind profit,how can such an amount ever be recovered on such a coin? If anyone has the answer to this question please share what you know. >>
...... you just need to locate the greater fool.
They are assets if the have monetary value.
They have an ROI (return on investment) if they are worth more than you paid for them.
My coins are assets and overall they have a decent ROI
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
No, as part of net worth on a financial statement, the same as my Western art and bronze collection.
http://www.shieldnickels.net
Tyler
``https://ebay.us/m/KxolR5
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"