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CoinsbyGary

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My response:

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coinsbygary

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Re:Buy coins for love, not as an investment

The following is my line-by-line reply to Augustus, but first I wish to preface my response by saying that I buy coins because of my passion and love for the hobby and I only buy coins that fit into my collecting goals. I also recognize that coins as an investment are highly speculative. However, I am comforted to know that for the most part my collection is not a depreciating asset like my car.

1) Technically speaking coin collecting or for that matter just about anything is only a generation away from extinction. That said I am thankful the US Mint is beginning to understand this. When I was younger, there was little being offered by the mint with the exception of proof and uncirculated sets. As a teenager in 1975, I was thrilled when the bicentennial coins were released, especially the silver clad issues. Then in 1982, the mint started issuing commemoratives again and I bought a couple of 1982 silver George Washington commemoratives. In 1992, I started buying silver proof sets because of silver returning to our circulating coins, albeit as proof only issues. Then the floodgates opened with the 50 state quarter program and the opportunity for collectors of any means to have fun plugging slots with quarters pulled from circulation. I am saying all this to show that the mint is working hard to encourage the next generation of collectors with interesting and educational coins. Additionally, I have read postings in this forum of Collectors Society members sharing their collecting experiences with the next generation. I see at the very least a remnant of enthusiastic youthful collectors preparing to take the mantel of the hobby well into the future.

2) While it is true that paper currency is fading as a medium of trade, I do not make the correlation between that and collecting. For that matter, every year I hear rumors of the demise of the Lincoln Cent, and every year United States produces hundreds of millions of them along with millions of dollars of small paper currency. I simply cannot bring myself around to purchasing a $1.25 cup of coffee at convenience store with a debit card. With $50 and $100 bills that rarely grace my wallet, perhaps Augustus may have a point with the exception that the government is printing money to finance deficit spending.

3) Counterfeiting is a menace and has the potential to undermine our hobby. With that, I am thankful that NGC and PCGS guarantee the authenticity of the coins they grade. With these safeguards in place, I do not lose a single night?s sleep. Protect yourself, buy raw coins from professionals you trust or buy certified.

4) If there are changes in our currency and we go through hyperinflation, I would rather have my silver and gold coins over worthless paper.

5) I love collecting proof coins because of their artistry and beauty. I understand that there are often market adjustments down from the mint issue price. If I wait for the dust to settle, I can sometimes acquire them for less than issue price. In the case of commemoratives, if I were looking for investment opportunities, I would buy the uncirculated versions because of their lower mintages.

6) As for intrinsic value, I am a theme and type collector and I assign my own intrinsic value to my coins understanding that perhaps few others will agree with me in my valuation. From a purely mechanical perspective, a coin?s only true value is what the open market will bear.

Happy Collecting All!

Gary

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