COINS AND INVESTMENT - STATISTICS

petitioncrown

Mark Twain once referred to "Lies, damned lies, and statistics." And we are sure some will question my analysis of rare coin price performance. British coins can be compared on a broad spectrum of Kings/Queens, denominations, weights and grading. UK grading is done by experienced dealers and in general is not about coins encapsulated in plastic. With hindsight, you can always question the grade of a coin. The question today is whether the British market has enough coins to create an alternative investment market? As collectors we enjoy our hobby. Our intent is not to knock coin collecting – we indulge in it ourselves and enjoy it. As a collector we are not on the investment treadmill.

What do I consider British Coins can yield as an investment? Firstly they are easily saleable and they are portable, but not in the same way as stock market or bonds. So we now turn to compound interest. Coin collecting, like many enjoyable pastimes in life, is actually going to cost you money. So why do people think that buying rare coins is a form of investing?

As a collector we do not cost each and every coin in the collection, some rise, some do not. We look at a collection of pleasure and this way we can be pleasantly surprised if over a 20 year period we actually benefit from 10-12% compound appreciation. Yes, some coins we will lose money on, others stay stagnant and others rise to seemingly amazing prices. We should take into account, fashion, eye appeal, quality and rarity.

pruebas

I look at coin collecting as a hobby where I can at least get most of my money back, unlike say golf or skydiving. If I profit, great, but if not, I've had my fun (the ultimate cost of which is the loss I incur upon selling).

MrEureka

I don't look at my coin collection as an investment. I look at it as as a superb long term store of value. By comparison, I consider money to be an awful long term store of value, for obvious reasons.

petitioncrown

@MrEureka said:
I don't look at my coin collection as an investment. I look at it as as a superb long term store of value. By comparison, I consider money to be an awful long term store of value, for obvious reasons.

great

Nap

Given the wide price swings I see on hammered British coins (my field of interest), as well as significant grading differences amongst "experienced" dealers (I've seen a number of coins bounce between descriptions of "VF" to "gEF"), it seems the market is still not fully mature. This creates opportunity for making as well as losing money.

I will say that quality Anglo-Saxon and Norman material has performed fairly well over the past 15-20 years (Look at Larry Stack vs Andrew Wayne).

SYRACUSIAN

Since the topic was originally discussed with English coins in mind, I'd say that 19th and early 20th century gem mint state or proof (cameo) British gold has actually multiplied in value in a very short amount of time. From this perspective, the purchase of a top or near top grade 1911 gold proof set, as well as any of the few exceptional Victorian gem sovereigns or proof sets has turned out to be one of the highest performing assets of the past 5-7 years, and I wish I had followed the advise of older members who had predicted the extreme rise of prices of these gold mint state or proof cameo gems.

pruebas

As with any investment, there is no gain until there is a sale. Mark to market doesn't equate to a gain.

If you sell your prized coins, you're not really a collector, are you?