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CBH Investment
JCB1983
Posts: 143
I am new to the world of coins but I have a mind for economics. I would like to know if it would be economically viable to invest in the following: I would like to invest in about 100 Capped Bust Halves. Specifically low grade (raw) problem free and I repeat problem free CBH's. I'm looking for the natural grey look in grades VF20-XF45. I have come here to ask the experts. I know this question is very vague but please share.
TYVM,
~Jason
TYVM,
~Jason
0
Comments
In honor of the memory of Cpl. Michael E. Thompson
Lance.
Stop right there! If you're new, it's not economically viable to invest. Even veteran collectors have trouble investing successfully. Better to start as a hobbyist, have fun and learn the game as best you can. We can talk about investing in 5-10 years.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
variety. I don't think your proposed choice would outperform the coin market overall.
The grade range you cite is typically not considered "investment" material for CBHs, except perhaps in a scarce date or
variety. I don't think your proposed choice would outperform the coin market overall.
IMHO, well-chosen circulated Bust Halves won't be high flying investments, but in the long run they should more than maintain purchasing power.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
If you are new, how will you be able to tell if the coins you are buying are problem free or just okay enough to your untrained eyes? Most of the older coins have been messed with, it is mostly a matter of degree. Those few that are perceived to be pristine with only honest wear, tend to trade for significant premiums over the average examples. A novice has zero chance at accurately making those kind of judgement calls on raw coins, or even certified coins.
As always, there are collectors that do well financially. That group tends to have excellent grading skills, superior market knowledge, and excellent access to coins. Sounds to me like you are batting 0-for-3, on grading, knowledge, and access. People that are below average in all three areas tend to lose money and have little chance of making a profit, no matter what series, or what grade they select.
I would think you should be able to complete this purchase by visiting a half dozen or so decent-size coin shows.
I don't know why you're asking us if such a purchase would be "economically viable" though - you're the only one here who knows how much money you have.
Check out the Southern Gold Society
Check out the Southern Gold Society
Buy an Overton book and learn how to attribute CBH's, anything R4 and up will sell for a rarity premium. If you find an R7, start choosing your new car. Its lots of fun attributing bust halves.
If you can get your CBH's at wholesale through your work, it will be much easier to make a profit. Most gains from CBH's are from long-term collectors or dealers.
merse
<< <i>The grade range you cite is typically not considered "investment" material for CBHs, except perhaps in a scarce date or
variety. I don't think your proposed choice would outperform the coin market overall.
IMHO, well-chosen circulated Bust Halves won't be high flying investments, but in the long run they should more than maintain purchasing power. >>
I dunno, 50 cents is worth less and less every year...
Might be an interesting research project to look at old red books or other price guides and examine what $10k in CBHs (a mid-grade date set?) were worth 10 years ago versus a single $10k coin (and the latter results will depend highly on the coin you select, so do it for a few).
<< <i>Stop right there! If you're new, it's not economically viable to invest. Even veteran collectors have trouble investing successfully. Better to start as a hobbyist, have fun and learn the game as best you can. We can talk about investing in 5-10 years. >>
Exactly
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]