Holding on to Bullion...

joeykoins

I got this idea from Topstuf's thread. Isn't it far more interesting holding on to Bullion and waiting for the climb in price rather than just purchasing a coin or two? Sure, buying that certain coin/s is what this Hobby is all about but most likely, the coin you purchase will just sit at that frozen price. ( That's if you're anticipating to sell) Holding on to the Bullion (Silver or Gold) is more exciting everyday taking a glance at the Silver/Gold boards. This way, you hold the exchange in your hands. Probably a quicker action taken than that coin/s moving prices. I can't imagine someone holding on to their Bullion until the prices "Skyrocketed"! Silver: When it hit the $50 and the Gold: When it hit the $1700. The best I did was when I dumped most of my Silver when Silver hit the $23 mark when most of my Silver purchases were in the early '90's when Silver was at only $4-$6. I think I rather wait on Sil./Gold prices to jump than to sit and sit and sit on a coin/s. Just my opinion.-joey

ctf_error_coins

Bullion only goes up???

joeykoins

@ErrorsOnCoins said:
Bullion only goes up???

Oh! You're right. Forgot to mention. Sure it can go even lower but history shows, that both Sil. and Gold, prices tend to climb right back up. Patience, is the word. The Bullion price will more likely move than the prices of the coin/s.

ctf_error_coins

" The Bullion price will more likely move than the prices of the coin/s."

Not if you buy coins right.

BryceM

I'd guess that for most of the past 200 years, classic US coins in better grades have outperformed bullion. YMMV.

topstuf

Darn you guys!

My reason for posting that was that I was sorta arguing with myself.
I'm still on the fence, but my age tends to tip me to the bullion side.

The reason being my lack of confidence in the coin market from rather disinterested millennials and younger people.
AND.... the lack of income for "average Joes"
Other than the few MAJOR "cointenders" for "BIGGEST COLLECTION" I'm not "feeling" a positive vibe from those who most likely would provide the backstop for any future "bigger" coins.
Those coins which aren't HUGELY influenced by registries and are not "condition census."

I owned a "big ten" some years back and swapped it for silver at 7.

The weird part is that it turned out to be just about an even steven swap at today's prices for both.

AND...... IF... I ever "needed" to liquidate, my options are far more flexible with something I can call for a REAL buy price on a daily basis.

Still don't know. I still get fuzzies with coins.

And then I think of what my "fuzzies" did with my expectation of a reasonable INCOME from ....bonds.

1630Boston

Fuzzies are not good, rid yourself of them as soon as is practicably possible.

epcjimi1

@BryceM said:
I'd guess that for most of the past 200 years, classic US coins in better grades have outperformed bullion. YMMV.

"You have got to be yanking my lariat." Really? Who knew?

Pat Travers, lariat quote, sometime in the 90's.

joeykoins

@BryceM said:
I'd guess that for most of the past 200 years, classic US coins in better grades have outperformed bullion. YMMV.

200 years? Yes, I suppose your right, but in 200 years?

BryceM

I ain't sayin' it's going to continue like that, and I ain't saying that it was always good or predictable over those same 200 years.......

The market for Classic US coins is a pretty mature one and there might be more downside than upside potential going forward. You never know though. Funny things come in and out of vogue over the years. It would only take a little attention from the outside world for the collector market to explode again. It's pretty hard to recognize buying opportunities when you're in the middle of them.

Bullion is a store of value and does well just to keep pace with inflation over time. Making a profit playing the undulations of the market is nothing but speculation, and most people will lose as often as win in the long run.

TommyType

Personally, I think bullion "collecting", and coin collecting are completely different endeavors, that just happen to share some rather insignificant similarities. (Metals, and shapes).

It doesn't mean you can't be BOTH. But trying to compare the two as "one or the other" is kind of silly....unless you want to compare the thrill of having a big checking account balance vs. having a Bust Dollar? Same comparison as "bullion vs. Bust Dollar" in my book.

As for the thrill of price watching....I get my fix looking at my 401(k).

joeykoins

@BryceM said:

Making a profit playing the undulations of the market is nothing but speculation, and most people will lose as often as win in the long run.

Sure it's speculation. So is buying a coin/s hoping to profit later in price change. In the S. and G. Market, making a profit should be easier. " Buy low, sell High" Ex; Buy Silver at $15 sell at $16 or higher. Resulting in PROFIT! $

ctf_error_coins

Buying a coin at wholesale or below wholesale is not speculation as there should already be profit in it.

Buying bullion is speculation.

joeykoins

@TommyType said:
Personally, I think bullion "collecting", and coin collecting are completely different endeavors, that just happen to share some rather insignificant similarities. (Metals, and shapes).

It doesn't mean you can't be BOTH. But trying to compare the two as "one or the other" is kind of silly....unless you want to compare the thrill of having a big checking account balance vs. having a Bust Dollar? Same comparison as "bullion vs. Bust Dollar" in my book.

As for the thrill of price watching....I get my fix looking at my 401(k).

I realize it's like comparing "Apples to Oranges". I too** love **the Hobby in coin collecting. I love coins! All I'm saying is to make a quicker profit in it would be to focus more on the Bullion aspect of the Hobby. When I first decided to be a collector (early '90's) making any profit from coins were the furthest from my mind. I loved the look and History of coins in America. but now, as time went by, I thought of making some money in this Hobby. Bullion would be the best and quickest way to achieve that goal, I think anyway?

joeykoins

@ErrorsOnCoins said:
Buying a coin at wholesale or below wholesale is not speculation as there should already be profit in it.

Buying bullion is speculation.

When you put it that way, yes, you are correct!

joeykoins

Just to put it out there. The 30 Minutes that we were discussing this topic, Silver jumped .30 Cents up! LOL

ctf_error_coins

@joeykoins said:
Just to put it out there. The 30 Minutes that we were discussing this topic, Silver jumped .30 Cents up! LOL

You wanna go there........ two weeks ago I bought a coin for 65 dollars, and got 5 dollar in ebucks making it 60 dollars.

One week later I sold the same coin for over 130 dollars.

pmac

Stocks v. bonds or stock and bonds?

topstuf

@ErrorsOnCoins said:
Buying a coin at wholesale or below wholesale is not speculation as there should already be profit in it.

Buying bullion is speculation.

In the quantities I have, it IS spec.
However, so have been a lot of my stock purchases pre 2008.

The coins I ...have....got... are more what ...I.... (and that's speculation too) are what ...I... consider "essentials."
Chain cent
SOME early gold
SOME condition rarities (scarcities..
And some that I just bought because.

Like the Muera Huerta peso and a toned Mex Ferrocarril. An error IHC and some just plain "modestly" priced "purdies.

Who knows? I sure don't but on "bigger" stuff....at this time.... I am tending to caution.

So that means I'm all wet.

Walkerfan

A noted investment expert has mentioned the 3 pronged (33% each) approach:

1. Quality rare coins in better grade.
2. Bullion.
3. Generic Gold & silver coins.

This seems feasible to me.....

TwoSides2aCoin

Buy a museum quality album and fill it with the best silver coins. In time , some may tone beautifully and many of us will show our appreciation by paying higher prices for those toned ones .
If they sit in tubes they typically will stay like RickO likes 'em.
Either way, we are still spending money on money.

hchcoin

Great topic. I kind of feel the same way about precious metals but that doesn't prevent me from buying nice coins as well. I don't think the two are mutually exclusive.

ricko

Coins are my hobby, PM's are an investment.... some coins are both.... Cheers, RickO

joeykoins

@ricko said:
Coins are my hobby, PM's are an investment.... some coins are both.... Cheers, RickO

Good way to put it, Ricko!

asheland

I like both.

mkman123

I look at bullion as my savings account.........can sell it anytime I need for some quick cash. My mentality for numismatic coins are different compared to bullion, I'm less likely to sell them.

joeykoins

@mkman123 said:
I look at bullion as my savings account.........can sell it anytime I need for some quick cash. My mentality for numismatic coins are different compared to bullion, I'm less likely to sell them.

You said the two magic words! "Quick Cash$"

Yorkshireman

So, if you divided your bullion into 20 piles and did this trade, you would still have 19 of them and a really cool old rare gold coin to enjoy.
I hope I don't sound harsh, but just do it. You are on this Earth for a short time. Enjoy life!!