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Hickory
Posts: 92
If you had $1000 and wanted to buy a quality coin to hold onto for 5 years for investment purposes, what would you buy and where would you go to buy that coin!
“Twenty years from now you’ll regret more the things you didn’t do than those you did.” Mark Twain
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jose
That said, probably look for a U. S. mint product that there is some buzz on. A person might have to wait a year or three for a decent offering. Failing that, look for one of these three: gold coins at the lowest premium over spot, silver coins same deal, or common nickel rolls from the bank at face value if a person has storage space.
Why do I suggest bullion or nickel? Because a person asking this kind of question probably can't grade very well if at all, and probably doesn't have any dealer contacts. Dealers make most of the money in this hobby, always remember that. The bullion coins can often be bought at a very modest premium, while most numismatic coins trade at 10% to 50% spreads to retail customers.
<< <i>For $1000, it doesn't make much difference any way. If a person hits it out of the park and it doubles a person has $2000. That amount isn't going to make much difference in any American's life.
That said, probably look for a U. S. mint product that there is some buzz on. A person might have to wait a year or three for a decent offering. Failing that, look for one of these three: gold coins at the lowest premium over spot, silver coins same deal, or common nickel rolls from the bank at face value if a person has storage space.
Why do I suggest bullion or nickel? Because a person asking this kind of question probably can't grade very well if at all, and probably doesn't have any dealer contacts. Dealers make most of the money in this hobby, always remember that. The bullion coins can often be bought at a very modest premium, while most numismatic coins trade at 10% to 50% spreads to retail customers. >>
Moderns are not a good 5 year investment--they're too volatile.
Go for the classics--Seated coinage has been doing well lately. So has bust
That $1000 would probably go much further in another fringe area of numismatics such as tokens, medals, etc.
roadrunner
Chris
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
<< <i>I'd either buy it myself or get it from one of the dozen or so wholesalers I usually deal with. I doubt it would be anything but a choice MS64 to MS65 Saint. I just don't see anything in the $1000 range being a bargain out there....other than circ better date seated and Barbers.
That $1000 would probably go much further in another fringe area of numismatics such as tokens, medals, etc.
roadrunner >>
For a one thousand dollar investment, I agree with the suggestion to go for a high grade Saint. These seem to be timeless, classic beauties that hold their value and their popularity well. There are other good suggestions already mentioned in this thread, such as seated or bust coinage...but they are aimed more towards a very specialized market.
As for where to go to buy the coin...with a little research you can easily identify the more nationally known, reputable dealers. If possible, find one in your area and let them help you choose.
<< <i>talk to jon rosenthal at rare coins of new hampshire, he has a great eye for original coins and is a pleasure to deal with.
jose >>
Total agreement with Jon and Warren.
Practice makes perfect & nobody is perfect. So, practice being nobody.
<< <i>
<< <i>For $1000, it doesn't make much difference any way. If a person hits it out of the park and it doubles a person has $2000. That amount isn't going to make much difference in any American's life.
That said, probably look for a U. S. mint product that there is some buzz on. A person might have to wait a year or three for a decent offering. Failing that, look for one of these three: gold coins at the lowest premium over spot, silver coins same deal, or common nickel rolls from the bank at face value if a person has storage space.
Why do I suggest bullion or nickel? Because a person asking this kind of question probably can't grade very well if at all, and probably doesn't have any dealer contacts. Dealers make most of the money in this hobby, always remember that. The bullion coins can often be bought at a very modest premium, while most numismatic coins trade at 10% to 50% spreads to retail customers. >>
Moderns are not a good 5 year investment--they're too volatile.
Go for the classics--Seated coinage has been doing well lately. So has bust >>
Seated or Bust coins at retail are going to be at 10% markup or more. Probably 25% or so markup at a premium dealer to a retail buyer. That buyer only has $800 "working" for him/her to start--they'll be doing well to break even when it comes time to sell in five years. Compare that with buying direct from the mint where everyone starts even. Even if a dog is picked, odds are that the buyer will have more than $800 at the end of five years. If a dog classic is picked because that person can't grade, they'll be lucky to have a $600 wholesale value coin at that time. The person is asking about investment, not about hobby coins.
The idea about a Saint from a wholesaler is a much better idea, however, I doubt the poster has that kind of connection. Most folks that ask this kind of generic question are going to pay retail prices and that means a signficant hit, when talking in terms of investment returns on numismatic coins. That's why I suggested bullion or coins from the bank.
/edit math error
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
Spend your bucks on some metal detectors and put the whole family to work.
http://www.onlygold.com/Articles/ayr_2001/Why_Numismatic_Investments_are_Always_Horrible_Mistakes_Part_2.asp