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Who has some knowledge on investing in coins?


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Got back a statement of some money I'd invested last year, and since then I've lost about 200$

So been thinking that maybe in addition to that account, I would on occasion buy some coins. (silver gold)

 

Anyone have any experience with this where they could give advice?

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I don't collect personally, save by proxy (Dad sends me coins every year for Christmas), but my father is a diehard coin collector. What I've pieced up from him over the years is that if you're going to go with silver coins, Morgan dollars are where it's at. And unless you're "slumming it" in a flea market or pawn shop, only buy coins that are in sealed plastic grading containers with their grades clearly visible.

 

Sorry I couldn't be more help.

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I invest in precious metals bullion and rare US currency. I dabbled in coin investing several years ago but found many dealers to be less then reputable. It is best to find someone that has done it for a while to guide you through it so you don't get ripped off. I did. There is alot of learning to do and many of the coins will require you sit on them a very long time to appreciate to any value.

 

There is one major coin investment company that advertises on radio stations across the country that will screw you blind and do it legally. PM me if you want their name. They sold me a slabbed $20 gold coin for $5k and I later found out it was only worth $3200. Then further investigation revealed it had not appreciated in value for three years. It's spot gold value went up but not it's numismatic (collector) value. Then they would not buy it back from me even though they said it was hot coin that was positioned to explode in value.

 

Bottom line: I did not do my homework and was relying on them to give me good investment advice. After filing a complaint with the BBB they finally bought the coin back at full price.

 

They are not regulated and scrutinized like stock brokers are and I can only imagine how many others have been screwed over by them and other coin dealers.

 

In contrast, precious metals investing is very cut and dried and the prices are bidded up or down on an international market. Right now gold and silver has pulled back from some historic highs and is in a good buying window . Lots of upside potential.

 

Oil hits $112, gold begins a new rally.

 

I will be buying again tomarrow AM.:rolleyes:

Edited by B Finnigan
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I will relay advice I received quite often, investing in collectables is not a good idea, collections are the fruits of passion, collectors can sometimes make money from their transactions because they know their stuff thoroughly, they know all the ins and outs. You don't.

 

And while certain collectables do go up in value most don't. Knowing beforehand the difference between the two is often very difficult or impossible.

 

There are much better ways to invest your money, CDs, stocks, mutual funds just to name a few.

 

The financial world is full of investments oppotunity and all you realy need to do is your homework.

 

But you realy need to do your homework.

 

The fun thing about stocks is you don't need to invest money to get good at it, you can easily practice with a virtual portfolio until you feel confident enough to do it for real, the same is true with many financial products.

 

The other thing to consider is that investements are set to a time frame, if the money you invested is set to a long term plan, ups and downs don't matter as much as long as on a long enough time frame the trend is a positive one.

 

My advice is whatever field you want to put your money in:

 

The Ten Books Rule:

 

Before investing in anything, coins, stocks, stamps, poker, etc. you have to read ten books. Start with a simple one and then go on to one slightly more comlex then one still more complex after the tenth (which should be very very complex, think CFA textbook) you will probably be ready to go practice (low value coins, virtual portfolio, low stakes poker, etc).

 

Being money smart should be something everybody is good at, even if you don't agree with the system, because knowing the system can avoid you worlds of hurt.

 

Hope this doesn't sound too preachy

 

Mike

 

p.s. Don't ever trust a financial advisor who tries to sell you something.

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I wasn't looking into the collective value, I was just looking at buying for the gold value.

Had been looking at some of the gold buffalo and eagle coins. and the smaller denomination, just as a way to collect the gold. Is it better not to buy it in the coin form?

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Then you just want the bullion coins or bars. Gold eagles, Canadian Maple Leafs, South African Krugarans etc. Those are 1 troy oz coins. They have the same bullion value no matter what condition thay are in. You buy them just for the weight and not the artistic or "pretty factor". Same for silver. You can also get both in rectangular bars also from private refiners such as Johnson Mathey and Englehard.

 

Check your PM's for my phone#. Too much info to type out.

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