Is buying coins called spending or investing?
erwindoc
Posts: 5,287 ✭✭✭✭✭
Investing is the outlay of cash in exchange for a tangible asset (think job training, a primary residence, or shares in a mutual fund). Spending, on the other hand, is the outlay of cash for something that will likely depreciate in value and not provide any long-term benefit (think dinners out or a new summer wardrobe). Source: MSN Money
Based on the above, I may say investing. What do you think?
Based on the above, I may say investing. What do you think?
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Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I give away money. I collect money.
I don’t love money . I do love the Lord God.
all I know is that since I first became a member at this site up until the answer by bidask one thing is clear, the "I word" is to be avoided whenever possible. collectors don't like it at all, even though they relish in telling us how much they made when they sold -xyz- coin.
They don't seem to relish telling about the massive losses along the way.
Personally I consider it investing, but my wife considers it spending.
Of course she's happy when I sell something for a profit LOL.
all I know is that since I first became a member at this site up until the answer by bidask one thing is clear, the "I word" is to be avoided whenever possible. collectors don't like it at all, even though they relish in telling us how much they made when they sold -xyz- coin.
In his experience, it was a great investment. In hers, it meant a new kitchen was in the works.
And I know nothing. It's just a Scientific Wild Ass Guess (swag), at the street level.
``https://ebay.us/m/KxolR5
COINS FOR SALE AT LINK BELOW (READ CAREFULLY)
https://photos.app.goo.gl/oqym2YtcS7ZAZ73D6
The purchaser sees them as investments. The significant other of the purchaser simply sees spending.
I kept track of mine by recoding what I pay for each coin.
With it listed as an asset account, I'm living in a fantasy world.
Father in law asked me two years ago if he should sell a rental house that he depreciated for 15 years (reducing his basis and increasing his potential profit each year). He wanted to give the proceeds (after paying the high capital gains taxes) to his kids, who would have had to also pay income tax on any part of the cash gift that exceeded the current $14K per year limit. I advised him to not sell, just let the kids inherit the property when the time comes. Time came last year. Heirs' new basis on the house was what they basically sold it for. No capital gains, no taxes. This saved them tens of thousands of dollars.
Coin collections should be treated the same way. Just make sure your heirs have a good way to value the collection and to not take the word of a buyer looking for a bargain.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Neither -- it is collecting.
The wives think it is spending--it cannot be spending as you can sell coins and get most of your money back and in some cases you can get more then you paid-- therefore the investing definition make sense. Spending is consuming or using - buying stuff to use (clothes,food,home improvements,etc)or going on vacations, for examples, is spending. Buying things that you can sell later for profit or loss is investing. Bob
Investment offers some sort of return like coins.
Better quality and rarity selection and long term holding increase those returns.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
You buy, you look, you keep or sell.
Coins pay you nothing but pride of ownership which ...can... be an investment beyond price.
If you sell for profit, it is investing. If you take a loss, it was spending. Cheers, RickO
Spendvestment.
"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
Jay Leno's cars, Warren Buffet buying a candy company or Burlington Northern Railroad,
Donald Trump buying the Plaza Hotel, all investments, just like coins.
If there is a good chance the acquisition will have a higher value in the future,
it is an investment.
For sure the Gov views this event as investment.
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
The dollar difference, when I buy the coin, between the final total Retail price I pay, and the Wholesale I could get (fast) in the market, net of expenses, is Spending.
the Wholesale value part of the price that I could get back (fast) from the coin, in the coin market, that amount I consider an Investment.
Liberty: Parent of Science & Industry
Joseph J. Singleton - First Superintendent of the U.S. Branch Mint in Dahlonega Georgia
Findley Ridge Collection
About Findley Ridge
The key is buying quality that keeps you from getting burned.
``https://ebay.us/m/KxolR5
It is spending funds on my enjoyment. So is going to Vegas to play in a poker tournament. Neither, to me, falls under the term "investment" although either activity has the potential to result in an increase to my original outlay.
When you sell, you report any gain/loss on either Schedule C (for business) or Schedule D (Capital Gains/Losses)
The purchaser sees them as investments. The significant other of the purchaser simply sees spending.
My YouTube Channel
I look at coins as an investment. But more important is the fun that goes along with investing in coins! I truly enjoy the search, finding the right coin, researching past sales, researching current sales. Then pulling the trigger on a new purchase, receiving the coin you put so much effort into finding, photoing the coin, sharing the coin with others and receiving feedback on your purchase. Then there is the knowledge you gain along the way! Who new investing could be so much fun!
My YouTube Channel
A dealer doesn't care whether it is spending or investing as long as you're buying.
... or selling
``https://ebay.us/m/KxolR5
Coins are recorded on spreadsheet along w cost, data, and market value then in most instances listed in online store. Some coins sell at retail within a couple of weeks, others may be held much longer.
The PCGS inventory manager is used which simplifies spreadsheet input and updates MV changes. Data periodically downloaded into excel for analysis. I like to get a ratio on each item of rarity vs most common item in inventory.
Expenses of the activity - subscriptions, commissions, fees, supplies, travel, table fees are recorded as expense.
- Jim
If you sell for profit, it is investing. If you take a loss, it was spending. Cheers, RickO
Well said Ricko!
bob