Is your coin collection an asset or a sunk cost?

stevepk

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.

relicsncoins

It can change based on the situation. Right now, I have no plans on selling my collection. If I ever really needed the money, that could change.

TopographicOceans

Quicken tells me my Coin Collection is under Property & Debt but I only track what I spent for my coins - not what I could sell them for like any Investment account.

Yes that is scary

JJSingleton

I buy coins with fun money so I do not consider my collection as an asset when considering my net worth. I in no way consider my coins as an investment. However since I buy many 5 figure coins I am not blind to the fact that the collection holds a substantial value. So I suppose I could see my collection as potential found money if all things were to go south.

CoinJunkie

Unless the coin collection is literally buried with you, it is an asset with value (to someone). Sunk
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.

steveben

if they have a market value, they are assets.

291fifth

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.

RYK

<< <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.

CoinJunkie

To slightly amend my previous post: Associated sunk costs might include insurance, acquisition costs (i.e., travel to shows),
safe deposit box fees, etc.

That notwithstanding, the collection itself is an asset.

DennisH

An asset that is fully paid for. Its market value and liquidity rises and falls, but there's always a value.

johnny9434

<< <i>if they have a market value, they are assets. >>

agreed

silverpop

Asset

BryceM

Overall it's an asset, but one that can't be precisely defined or immediately liquidated.

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.

okiedude

Asset. Just may be an asset that is worth less than cost?

lasvegasteddy

will always be an asset as i enjoy their beauty regardless of the $$$ aspect

LindeDad

Ask a divorce lawyer and a accountant.

mirabela

Asset.

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.

Baley

The coins are an asset; they may be "worth" more or less than prices paid (like any asset)

the time spent on them is a sunk cost.

BillJones

My collection is an asset for sure. How much money I might make or lose is another story.

MrEureka

All coins are assets, whatever you plan to do with them. The utility of those assets is another matter.

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.

mr1931S

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.

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.

sparky64

I consider my collection a mental health asset.

BryceM

<< <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.

winky

Probably both but who cares if you are a collector.

Walkerfan

Speaking strictly from an accounting point of view-

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

TahoeDale

Yes, an asset.

No, as part of net worth on a financial statement, the same as my Western art and bronze collection.

howards

They are an asset that I choose not to include in my net worth report.

Justlooking

Even if you lose money when you sell, it's still an asset. If you never plan to sell, it's still an asset ... maybe somebody you'll HAVE to sell.

sonoranmonsoon

I consider my collection as sunk during my lifetime. My kids might consider it a sunken treasure after I am gone.

ARCO

An asset. My first go around I spent 12K building a Barber half set. Sold it for 30K. This go around I am a bit under, but I still consider coins an asset.

Tyler

TwoSides2aCoin

Strictly business. A liability.

golden

An asset.

pennyannie

I look at mine as a asset, 2/3rds of mine is bullion at the moment so it is not hard to figure the current value at any time. I value the non bullion at 50 cents on the dollar