Poll on how much to spend

XL

How much would you spend for a coin? I have been looking at the American Liberty High Relief Gold Coin priced at $1540 thru the US Mint, with a limit of 50,000. I've stayed under $400 on pretty much all of my purchases, but I am interested in the American Liberty Gold Coin because of the technology in mfg. and being a new release.

AUandAG

Welcome to the boards! Enjoy your stay.

I don't have an answer as I don't pursue these.

bob

JustMe2

I have a very simple rule and that is to assume you will not need that money for at least ten years. In other words the coins value is zero after the purchase.

XL

I am look for how much you would spend on a coin, not so much what you would spend it on.

Christos

<< <i>I am look for how much you would spend on a coin, not so much what you would spend it on. >>



This is a very hard question as it directly relates to the desire for the coin by the purchaser. I would not buy that coin as I have no interest but a toned Morgan in mid to high MS is always a draw for me. If it is a mint offering I would pay what the mint is selling them for or find someone who wants out of the coin and try to find it for less.

joeykoins

Hi and to our forum. also, I always tell newbies, "Welcome to School"because in our forum you'll be taught in the knowledge of coins, as well as , in ethics and etiquette. It's all good. Have fun and I think your choice in the Gold coin is fantastic! You can't go wrong with Gold.-joey

TopographicOceans

Tom.

No one can answer that question for you.
Some people spend $50 on a coin and some spend $50,000. Both can be equally happy with their purchases.

Coin collecting is a hobby and it is supposed to be fun. Everyone has different tastes and different budgets.
I paid $1490 for my High Relief. I guess prices went up due to the increase in gold.

You may also find you could buy them cheaper in the aftermarket next year if gold continues its overall decline – or they may go up in value.
The only advice I can give you is collect what you like and don’t spend more than you can afford otherwise you wind up with a bunch of overpriced coins you've spent too much money on.

And that’s not much fun.


Edit to conform to the English language

Walkerfan

What might be alright for someone else may not be affordable for you or vice-versa.

Just learn to be knowledgeable in your series or what you collect and how to spot a good coin and, if you get it at a good price (you'll know this by studying auction results), then all the better.

ambro51

Prices set by the us mint and based on current gold prices have little connection to prices for coins with numismatic valuations. Apples and oranges. Spend whatever you want....

BillJones

Coins are not an investment but something you do for fun. For my own collection I've spent what to some people would deem to be an outrageous amounts, but in the context of other collectors would be far less so.

As for the new high relief coin, I decided to pass on it. Unlike the 2009 high relief piece, which was patterned on the St. Gaudens $20 gold piece, this coin has no historical basis. To me it's just something the mint made to sell. My opinion is that this piece will eventually be available in the secondary market for less than its issue price IF the price of gold bullion remains at its current levels or goes down. I think that the mintage of 50,000 is quite high for this piece, given what it is.

That's my two cents, and you can take it for what it's worth.

asheland

Cougar1978

Its a personal decision based on income, debt, and career / financial outlook. Your better spending more money on coins than on some travel / entertainment non investment activity which has zero investment recovery. You should be putting away money in a savings / investment account for bad times.

I look at my disposable income after contribution to financial investments and basically allocate between the travel / entertainment and investment in coins. Spend too much money on travel / entertainment related and while you will have some really good memories you may regret it one day when your career burns out and your treading water financially. Coins you can't take with you when you kick and there is really no guarantee on investment return or that you will live to even enjoy the profits of investment. I had a co-worker while well off financially who died in his sleep at 58. He may have been better off spending his investment money on travel / entertainment. One never knows.

I buy and sell numismatic material as an investor. Consequently any new purchase should be something I can sell for a profit now. I am hesitant on USM products as more often than not they have slid in the aftermarket.

As far as the coin your considering I believe its a really nice coin and would desire one myself. However, its a really big ticket purchase and my track record with USM aftermarket leaves me hesitant. I am not a buyer of big ticket numismatic material. I usually keep a limit of $300 on numismatic items (my risk tolerance level for non BV portion) but on a one oz gold coin no problem spending BV + 10-20%. I am not the guy who is going to spend thousands of dollars on a cent or some big ticket numismatic coin. There are many risks associated with numismatic investment.

In summary I would suggest an allocation of disposable income between financial investments, rare coin investment, travel / entertainment / etc (non investment activities) which you are comfortable with and more importantly you will not look back from age 65 and regret you did not invest more or spend more on some activity you consider fun (travel, entertainment, etc.). You never know when your career or earning capacity will end. So shoring up your security in the event of some forced early retiremnt should have priority but what you like to do for fun in living your life should not be neglected either.

TwoSides2aCoin

Depends on one's orbjective. I'm not a doctor and my money matters. I'm not a crack head, my view is different.

LindeDad

Money has many uses just one is collecting things.

silverpop

depends on what I want to buy

bjamin

As little as humanly possible, buy low and sell high. Nothing new.
Welcome aboard.

XL

I know I will learn from all here. Thanks for all of your input.

winky

It's gold, I don't go there.

Welcome aboard.

johnny9434

welcome to the forums.

Tyrock

Some good answers so far. My opinion is that money has to be spent on a budget. There are people making $50,000 per year who don't have any financial problems and there are people making $500,000 per year who are in debt. Depends on how you use your money. I bought the coin in question. I paid $1490.00 for it. It's not the nicest coin in my collection, but it's not the worst. It can sit in my SDB and I'll see what happens. When I sell it the money will help in my retirement or will be a windfall to my kids. And in general I do agree that US Mint products have a bad after market track record.

Bochiman

What's your disposable income "feel ok about losing it" amount?
What's your level of anxiety on losing money?
What's your real goal?

I approach things from the above way. Since this is a hobby, and I am not a dealer, I use disposable income....income that is after I have paid my bills and made sure that my family's needs are met, including retirement money put away in 401k and also some into savings. If I were to spend this money on something else, like smoking/alcohol/movies/going out/etc, then I consider it to be disposable, in one sense or another. That's what I spend on coins/PMs.

If gold dropped HUGELY the day after you bought this, and/or stayed down for a very long time (10-20 years), would you be upset? Lose sleep at night? Be unable to pay bills? Have to sell in order to do something else you need to do? Etc.

Are you after it because it is gold AND the design? You are paying a large sized premium over the PM content. Are you looking to get it graded, or get one already graded? Are you looking/hoping for a 70?
I have seen board members offering these, raw, below issue price. That's how I would approach it UNLESS I needed it graded and cared about that.

JJSingleton

Hi XL and welcome to the forum.

Coin collecting is a personal thing. My direct answer is spend as much as you feel the fun is worth. That's right...collect for fun. If you find yourself spending an amount that takes the fun away, don't buy it. That amount is different for everyone.