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Collecting vs Investing

Started by Lastufka Collection,

23 posts in this topic

Lastufka Collection

Lastufka Collection

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[this is a journal I wrote here, but they never seem to post to the forum, even when you tell them too. sigh. so here is a repost for discussion.]

 

In high school I "collected" CDs and vinyl*. In college I "collected" DVDs*. Then a few years ago my interest in coin collecting was reignited. I had a very small collection as a kid, mostly stuff pulled out of circulation and a couple of proof sets and commems my dad ordered for me from the Mint.

 

Like everyone else here I admit to a slight case of obsessive-compulsive disorder when it comes to collecting and hunting down various coins to fill slots or holes. It's a fascinating hobby with a rich history that I could talk about for hours (just ask my sometimes annoyed girlfriend).

 

But it's also an investment. No other (legal) hobby would cost me $20,000 a year. And I need to be very conscious of that when deciding what to collect. Something I'm still learning and reminding myself of every day.

 

So it worries me when I see things like the 2012 silver eagle label mania from the TPGs and coin retailers. For example, ModernCoinMart is currently selling 18 different 2012 ASEs. EIGHTEEN! That's insanity. And can only serve to hurt the hobby, the market, and the collectors.

 

I couldn't even start to think about collecting the series when I see that every year I'm going to be on the hook for about half a dozen core issues to keep current, with the option of 18 different labels (listed as follows):

 

2012 Silver Eagle - NGC MS70 First Releases

2012 Silver Eagle - NGC MS70 Early Releases

2012 Silver Eagle - NGC MS70 Regular Brown Label

2012 Silver Eagle - NGC MS70 American Liberty Series First Releases

2012 Silver Eagle - NGC MS70 American Liberty Series Early Releases

2012(S) Silver Eagle - NGC MS70 First Releases

2012(S) Silver Eagle - NGC MS70 Early Releases

2012(S) Silver Eagle - NGC MS70 Regular Brown Label

2012(S) Silver Eagle - NGC MS70 American Liberty Series First Releases

2012(S) Silver Eagle - NGC MS70 American Liberty Series Early Releases

2012(S) Silver Eagle - NGC MS70 Early Releases Golden Gate Label

2012(W) Silver Eagle - NGC MS70 First Releases

2012(W) Silver Eagle - NGC MS70 Early Releases Star Label

2012(W) Silver Eagle - NGC MS70 American Liberty Series First Releases

2012 Silver Eagle - PCGS MS70 First Strike

2012(S) Silver Eagle - PCGS MS70 First Strike

2012(S) Silver Eagle - PCGS MS70 First Strike Mercanti Signed Bridge Label

2012(W) Silver Eagle - PCGS MS70 First Strike

 

Over the last few months I've shifted some of my focus from modern coins to "classic" coins. And that should stabilize my collection as past market data is available going back many, many years. But nothing's guaranteed, of course.

 

With the survey recently issued by the Mint about the possible 2012 ASE collector's set, with more reverse proofs, possible ultra high relief, etc issues... my head hurts just thinking about it. The anniversary sets would be great every five years. But if reverse proofs become annual issues, with UHRs thrown in the mix too? The ASE series will go the way of baseball cards. And as both a collector and an investor, that's a scary thought.

 

* Apart from a few rare releases, of course, most of my music and movie collection could be bought/sold now for pennies on the dollar. But I'm fine with that, both collections still bring me incredible amounts of joy, and the initial cost was low to begin with.

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BillJones

BillJones

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If I were to collect ASE's, I would rather collect them in the original mint package.

 

That is only way I collect modern coins. I don't even have a slabbed commemorative or a silver eagle for the registry sets. To me these coins in slabs lose all of their character and are bland and boring.

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James_OldeTowne

James_OldeTowne

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If I were to collect ASE's, I would rather collect them in the original mint package.

 

That is only way I collect modern coins. I don't even have a slabbed commemorative or a silver eagle for the registry sets. To me these coins in slabs lose all of their character and are bland and boring.

I agree in every possible respect. Few things put me to sleep faster than a pile of slabbed modern commems.

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Dcoin

Dcoin

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Sounds to me like you are collecting the plastic. There are only 2 kinds of ASE- not 18. I don't mean that to be derogatory but the OP is all about the holder.

 

Regarding the title question, coin collecting is both.

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cpm9ball

cpm9ball

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When I collected the Proof SAE's, I left them in the OGP, but I gave up and sold them all in 2008 because all of the "anniversary" issues and whatnot was becoming ridiculous.

 

By the way, I'm with DCoin. There are only two kinds of SAE's - Proof and Uncirculated. All of those labels are just hype by the sellers to squeeze more money out of uninformed collectors. Money that they will never get back.

 

Chris

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ultra-crepidarian

ultra-crepidarian

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Three kinds, bullion. Unc with mintmark, and proof.

 

No other (legal) hobby would cost me $20,000 a year.

Drag racing?

 

You can say that again. What I pay for my hair, makeup and clothing is just ridiculous and running in my heels simply destroys them. ;)

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jom

jom

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Few things put me to sleep faster than a pile of slabbed modern commems.

 

That's simply not true. Just the other day I.....was....thinking........about........moderns..... zzz

 

jom

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KeeNoooo

KeeNoooo

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I only have a few modern coins. The 2009 eagle bullion, 2009 Lincoln silver dollar proof 70 and MS70 and the 2011 silver eagle 25th anniversary set. 2009 coins are birth year coins for my son and 2011 silver eagles are birthyear coins for my daughter. They are not for me, they are meant to be part of a few special collections I will leave to my kids. That is as far as my modern collection goes. I choose to collect classic coins for their history and beauty. To each his/her own.

nick

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rons

rons

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Three kinds, bullion. Unc with mintmark, and proof.

 

No other (legal) hobby would cost me $20,000 a year.

Drag racing?

 

You can say that again. What I pay for my hair, makeup and clothing is just ridiculous and running in my heels simply destroys them. ;)

 

:signfunny:

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BillJones

BillJones

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Collecting vs. investings ???

 

Heritage called me yesterday and said they had a client who wanted to buy a coin I bought in one of their auctions last year. The guy offered me a nice profit. I didn't take it. If I had, I would have sold a coin that would be virtually impossible to replace in the same condition.

 

If he had offered me a "crazy" profit, I probably would have taken it, but percentage (Return on investment) wise his offer was not crazy.

 

I suppose not taking that deal was acting like a collector, but I guess my willingness to take a "crazy profit" disqualifies me as a "pure collector."

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BillJones

BillJones

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I have quite a few moderns....all I have to do is live long enough and they will be classics.....

 

Sorry, but some this stuff (That's the nice term. A more accurate term would be "collectors' trash.") the mint is issuing now won't be a "classic" in your great grandchild's lifetime. There is too much of it, and the designs are ugly. At the top (or bottom) of the list are many of the presidential dollars. Most of them are so bad, I barely want to look at them. The Abraham Lincoln piece looked like something out of a horror film.

 

Some might argue that these modern coins are like Condor Tokens that were eventually find a market, 200+ years later. But I'm not so sure about that.

 

Yes, there are some very nice modern coins that are fun to own, but I can't say that about all of them.

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Arizonadesertrat

Arizonadesertrat

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I have quite a few moderns....all I have to do is live long enough and they will be classics.....

 

Sorry, but some this stuff (That's the nice term. A more accurate term would be "collectors' trash.") the mint is issuing now won't be a "classic" in your great grandchild's lifetime. There is too much of it, and the designs are ugly. At the top (or bottom) of the list are many of the presidential dollars. Most of them are so bad, I barely want to look at them. The Abraham Lincoln piece looked like something out of a horror film.

 

Some might argue that these modern coins are like Condor Tokens that were eventually find a market, 200+ years later. But I'm not so sure about that.

 

Yes, there are some very nice modern coins that are fun to own, but I can't say that about all of them.

 

Amen, and pass the ammunition.

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Crohnos01

Crohnos01

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Well, I have admit you have a point about the Pres dollars.....for the most part, they are pretty hideous......

 

But hey, with the state of the economy, and the price if gold, even though there are a ton of them out there, I can just wait until gold exceeds their face value and if the "one man think tank" on one of the other threads has his way, the gov will melt them all down like they did the Morgans and suddenly the few ones I have will become rare! Should work..... :roflmao:

 

In reality, I only have modern proof sets, and silver eagles....the eagles are raw, unc, and will stay that way until I cash them out for their silver. The Pres dollars get spent pretty fast when I get them.

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