What would you say is the best coin to collect for investment purposes?

[PirateLou]

I hope I'm not going to cause the forum to implode or run the risk of a few dozen of you calling me an insufficiently_thoughtful_person, but I'm a young collector seeking guidance/direction on what specific coins to purchase in hopes of gaining value over the next 20 - 30 years.

 

I know most of this is speculation, but I'm at your mercy for honest input as I'm planning on starting a collection and eventually leaving it to my kids one day. They are only 2 years and 5 months old and I'm trying to do right by them.

 

Thank you

[e1cnr]

How much do you hope to invest?

 

You could start with birthyear set - if you get everything the mint produced - including gold and platinum, it would probably run $40K

 

Some afterarket holders can add some very attractive color in 10+ years.

 

 

Some will say there are too many moderns and gain in value may be negligible (how long will it take for typical state quarters to be worth much?). If you agree, then stick to the KEYS - which will always have demand.

[Walkerfan]

Morgan dollars are the most popular with collectors. You can't go wrong with semi-key and key date Morgans.

[SkyMan]

PL, with all due respect, get into coin collecting to have fun, not to make a profit. You may make money, you may lose money, with the odds being that you'll lose money.

 

If you want to make money for your kids buy some well known dividend paying stock for them (Coca-Cola, Procter & Gamble, Johnson & Johnson etc.), let the dividends reinvest (most of the large dividend paying companies have dividend reinvestment plans), and give them the stock in 20 - 30 years. The odds are that there'll be far more money in the kitty than if you buy coins. Needless to say, the stocks are also far more liquid and have far less buying and selling commissions (generally there is no buying commission for reinvested dividends).

 

You might think that coins are more "cool" and tangible. If at some point you get a single (1) stock certificate for each of the stocks that you've bought, you'll find that many of them have very cool engraving that harkens back to the original date the company was founded.

 

Most likely your kids will not be significantly interested in coins once they are in their 20's or 30's, and will just want to sell the stuff, potentially to a real shark of a dealer, as quickly as possible.

 

If you want to buy coins, fine and good, just do it for yourself and enjoy the ride.

[RWB]

Invest for your kids' futures in sound, long-term securities that will gain value and have a very liquid market. Tax free municipal bonds are one of several options, growth mutual funds are another.

 

Coins are a hobby and not an investment. Buy what you will enjoy owning and viewing and learning about, but do not expect to make a profit. Even over 20 to 30 years, stocks will out perform coins and metals.

 

Enjoy the hobby and your kids.

 

(PS: Leaving a coin or other specialized collection to your kids is not a good idea. It takes too much specific knowledge for the heirs to get full value from it.)

[PirateLou]

You guys are making great points. Thanks for your advice.

[WoodenJefferson]

Hind sight is always 20-20...in 1970 while I was over seas, I could have bought gold bars @ $35 per oz. but instead I had the money taken out of my military pay to buy $50 Savings Bonds. Sure, the bonds eventually matured but there was a maturity ceiling, not so with the gold.

 

Now I had $600 in bonds, that same $600 had I bought gold at the time, would now be worth $18,000

 

[JIM F.]

Buy something rare and undamaged -- high grade if practical. Something with a low pop. Stay away from esoteric varieties and moderns. Go with quality instead of quality.

 

Some candidates not in any particular order:

1) Coronet 1/2 cent proofs.

2) Mass 1652 coinage.

3) Gobrecht dollars.

4) $4 Stellas

 

 

Good luck.

 

 

 

 

 

 

[KeyMan64]

I would keep it to KEYS and SEMI-KEYS of widely collected coins (not 2 centers, 3 centers etc) in as high of grades that you can afford....in NGC or PCGS Holders ONLY and preferably with CAC stickers. Good luck!

[coinman_23885]

Invest for your kids' futures in sound, long-term securities that will gain value and have a very liquid market. Tax free municipal bonds are one of several options, growth mutual funds are another.

 

Coins are a hobby and not an investment. Buy what you will enjoy owning and viewing and learning about, but do not expect to make a profit. Even over 20 to 30 years, stocks will out perform coins and metals.

 

Enjoy the hobby and your kids.

 

(PS: Leaving a coin or other specialized collection to your kids is not a good idea. It takes too much specific knowledge for the heirs to get full value from it.)

 

Overall I agree, but I would advise against municipal bonds unless you are very cautious. Municipalities have filed Chapter 9 bankruptcies at a disconcerting rate in recent years.

[coinman_23885]

Buy something rare and undamaged -- high grade if practical. Something with a low pop. Stay away from esoteric varieties and moderns. Go with quality instead of quality.

 

Some candidates not in any particular order:

1) Coronet 1/2 cent proofs.

2) Mass 1652 coinage.

3) Gobrecht dollars.

4) $4 Stellas

 

Good luck.

 

All of the coins that you mention are nice, but they are also esoteric. From a pure investment point, I would be concerned about liquidity. I would rather buy/save for a nicer house for my young (not yet existent family) than I would to pay $100,000+ for a really nice stella.

[JIM F.]

Buy something rare and undamaged -- high grade if practical. Something with a low pop. Stay away from esoteric varieties and moderns. Go with quality instead of quality.

 

Some candidates not in any particular order:

1) Coronet 1/2 cent proofs.

2) Mass 1652 coinage.

3) Gobrecht dollars.

4) $4 Stellas

 

Good luck.

 

All of the coins that you mention or nice, but they are also esoteric. From a pure investment point, I would be concerned about liquidity.

 

In my reply I mentioned "esoteric varieties". I don't think the items I identified are on their own esoteric, however they certainly are not mainstream. -- And I guess depending on one's collecting base they could be "esoteric". Nonetheless, that's my suggestion to the question posed. I only own 1 of the ones suggested -- but If I had the resources would like to own the all -- especially a Stella!

[coinman_23885]

Here is my "advice" on the subject matter. "Investing" long term in coins isn't about necessarily picking the right series per se (because you cannot always predict how the market will value something), but about picking quality, eye appealing coins that will hold their value long term and that have the greatest chance of increasing in value. Here are a few useful pointers:

 

1. Avoid modern coins in ultra high grades and the MS/PF70 craze. Even coins from the 1970s, 1980s, 1990s, and 2000s still exist in large quantities in original bank rolls, mint sets, or proof sets, and the value of the coin is highly dependent upon the population in the highest grade. If you have a top pop with a population of 2, and then the population increases to 5, 10, or more samples, the values will plummet quickly. Don't get too caught up in overpaying to add a coin to a registry.

 

2. Avoid esoteric coins or varieties. Investing is all about potential return and liquidity. It doesn't matter whether your coin has doubled in value if you cannot sell it when you need to do so.

 

3. Avoid being caught up in what is "hot" or a fad. Often these have short cycles and the prices will dip. Look at a lot of modern error coins and varieties. The 1995 DDO Lincoln Cent comes to mind as one that spiked in value and then dropped to a much lower price.

 

4. Buy premium quality for the grade, eye appealing coins. These coins are highly sought out by advanced collectors (read as those more willing to expend larger sums on such coins). By the same token, be weary of so called bargains. Price guides are not written in stone, and there is enormous variation in real world value. A mediocre coin may sell for 80% or less of guide, while a truly premium quality coin, particularly one with an exquisite feature such as blazing luster and appeal toning (for example), can be worth multiples of guide in the open market.

 

5. Avoid off name third party grading services. If you do not know what you are doing and are inexperienced, only buy PCGS and NGC certified coins. As you become more knowledgeable, you may start looking at ICG and ANACS coins, but unless you are an expert or advanced collector, avoid most other holders.

 

6. CAC verification helps. This will be controversial with some collectors, but if you are looking for investments for a young family, I would try to have my coins all CAC certified myself. I wouldn't necessarily buy only CAC coins, but doing so is helpful if you do not know as much about coins. CAC is useful for more than screening coins - CAC will lead to greater liquidity because CAC is a strong market maker for CAC verified coins. It places aggressive bids on CAC stickered coins, and in some instances, they have offered me just as much if not more than what I have paid for the coin in the open market. This increased liquidity is priceless to a young collector with a family. Your wife or children may become ill and need surgery; you may lose your job; etc. Things happen and selling coins to CAC is an efficient and painless process. I sold a few coins to CAC, and the check was cut the next business day and mailed out to me. This is one of the greatest strengths of CAC in my opinion.

 

7. Be familiar with differences in TPG grading standards. Both PCGS and NGC are very conservative, and overall, I would rank them to be equal. With this said, there are some series where NGC is tighter and others where PCGS is tighter. Be familiar with the market trends and grading trends. A more expensive coin from a tighter service is not necessarily the best route. Evaluate each coin individually for quality.

 

8. Be careful about buying coins where the value explodes from one point or grading interval to the next. The value of any coin should be proportional to its quality. Also, eye appeal can transcend grade in the market. (See e.g. nice, original AU58 Capped Bust Half Dollars and compare an over dipped MS60-MS62 and you will see my point).

 

9. Research, Research, Research. Always research your coin, its historic pricing, trends in the series, etc. Know how to identify problem and counterfeit coins (although this is less important with certified pieces, problem coins and even more rarely, counterfeit pieces, do slip past the grading services every now and then).

 

10. Do not be afraid to consult with an expert. I have done this in many instances and I have never been sorry. This is especially true when you are unable to buy a coin and see it in hand. Auction screeners can offer enormous value for the small commissions they charge. I can say without a doubt that board member, former NGC grader, and sometimes cameo CAC reviewer Mark Feld has been immensely helpful to me personally. On more than one occasion I have seen coins online that looked okay, only to be told that they were complete dogs in hand. He has stopped me from making mistakes and I am forever grateful to him. Working with a mentor can be helpful.

 

11. Assuming that you purchase coins directly on message boards or through eBay, learn about coin photography. Many eBay sellers will use deceptive photography techniques to make their whizzed, pretty much worthless bullion pieces look at or near gem BU grades.

 

12. Regularly read internet forums or coin periodicals. You are already here, so that is already a step in the right direction. No matter how knowledgeable one is in numismatics, one can always learn something here. Most of the members are very cordial and will go out of their way to help you. It amazes me how many influential numismatists, dealers, and other experts who regularly post to the boards and are happy and eager to share their knowledge. Also, there are many advanced collectors here who are equally willing to share their knowledge. Even when you are competing for an amazing coin at auction , talking to another collector with other interests can be a useful way to exchange information and to get second opinions.

 

13. Never make impulse buys.

 

14. Only invest what you can afford to lose. Although it is unlikely that you would ever lose your entire investment, coin prices do go down just as many go up. Don't spend your last nickel on coins. Also, have an emergency reserve before buying coins. Make sure that you are only spending excess cash that you have been used to purchase other luxury goods.

 

15. Diversify. This can happen within coins and across commodities. Do not put all of your eggs in one basket. As has been stated, other securities have traditionally out performed coins. Include some of those in your investment portfolio. With this said, there is nothing wrong with including some bullion or numismatic pieces in your holdings.

 

16. Liquidity. Investing in coins is about more than a potential return on your investment; it is about liquidity. Please refer to my comments in #6. It doesn't matter if your coin has doubled in value if it is difficult if not impossible to unload it when you need to do so. As a general matter, there are always some series that are more liquid than others. Classic commemoratives are usually more difficult to move unless they have phenomenal toning. Key dates also move along nicely.

 

17. Avoid lower graded pieces whenever possible; buy the best that you can afford. In many instances, I would rather have 1 high grade coin than 10 drastically inferior coins (assuming that we are talking about numismatic value and not bullion value - obviously 10 double eagles in good condition are worth more than single MS piece, but with silver and many base metal pieces, this will not be the case). Also, most collector coins are in the EF-MS grade range. Use caution about purchasing lower graded pieces (less than fine) as these can be harder to place depending on the venue. Nice higher grade coins can sometimes readily be sold to other collectors. Lower grade coins may only be bought by a brick and mortar dealer at a deep discount. As the old saying goes "collectors buy at retail and sell at wholesale." In other words, you can easily lose money.

 

18. Avoid problem coins. A coin with a "light" wipe or "light" cleaning is still a damaged coin. Although there are varying degrees of damage, damage will reduce the value and liquidity of coins. They are difficult to sell.

 

I could go on and on, but I think you get the point.

[Eric Hazen]

Follow what CoinMan posted and you'll do well. I would also say that coin collecting is better suited for the hobby and not investment purposes. Your grandpa's high-end coin collection benefited from lower mintage numbers and a population that was increasing quickly. Today we don't have that kind of environment and you'd be better learning how to properly invest in Exchange Traded Funds.

[michael]

What would you say is the best coin to collect for investment purposes to put away for my kids college fund in 15 years or so?

 

 

1----very choice+ to gem proof, strongly cameoed+ 1880-1907, ten dollar gold, with heavy orange peel and original toned undipped surfaces pcgs/cac only

of course with killer monster eye appeal

i think this will be really, really++ hard to find

 

2---------1652 pine tree shilling small planchet with full weight and perfect centering the ubiquitous noe-29 salmon-11F crosby-14R BUT with full centering both sides a thick, crusty non cleaned, example on a large broad planchet choice xf to au pcgs/cac and of course with killer monster eye appeal

 

 

 

3--- perfectly centered totally original undipped thickly skinned surfaces with that wild "Queller early silver type toning" 1794 halfdime choice vf to gem unc. pcgs/ngc cac only

of course with killer monster eye appeal

 

 

4--- superb gem proof morgan dollars with totally original orignal cased proof set toned surfaces and strongly cameoed+ pcgs/cac only with 100% FULL HAIR OVER THE EAR

of course with killer monster eye appeal

 

 

5----1793 wreath cents r-3 and below choice fine to choice au vine and bars or lettered edge with really good color and surfaces in other words non-recolored, non-oiled non- brushed, non-waxed with all the detrius still in and around the sevices and lettering and no edge bumps pcgs/ngc cac only

of course with killer monster eye appeal

 

 

6----1870-cc seated dollar pcgs/cac only choice vf to choice au with totally original surfaces and great color and no edge bumps never soap and watered or cleaned no hairlines of course with killer monster eye appeal

 

 

7---1876 one dollar gold very choice+ unc. to superb gem unc. pcgs/ngc cac only with DMPL SURFACES AND fully struck with thick deep orangey thick skin

of course with killer monster eye appeal

 

8--------chicken lips no doesnot have to be pcgs/ngc cac but i dont think they exist

 

9-------1878 quarter eagle very choice+ unc. to gem unc with a thick original undipped skin and with killer lustre and semi-prooflike surfaces and a full strike on the eagles claws pcgs/cac only of course with killer monster eye appeal

 

the list goes on and on

 

 

 

 

 

 

[wdrob]

 

I would suggest the Sponge Bob Square Pants limited mintage four piece set.

 

 

Wait till they are back in stock.

 

[PerryHall]

From an investment viewpoint I'd buy silver and gold coins that are priced close to their melt value since the buy-sell spread for these coins are much narrower than for rare coins.

[PirateLou]

Thanks for putting the time and effort into these tips. I've read the entire post (and copied and pasted to a text file for reference). I've even started searching for key dated coins and found this list below. Turns out I can't afford the majority of pieces on it, . I should have been more specific about my price range $100 - $300 per coin a few times a year. I suppose Morgan Dollars would be a good place to start, since I already have a liking towards them.

 

How will I know if I'm paying a fair price for a coin? Should I follow red book pricing?

 

Half Cent 1793, 1796 With Pole, 1796 No Pole, 1797 Gripped Edge, 1802/0 Reverse of 1800, 1805 Small 5 Stems,1808/7, 1811 Close Date

Large Cent 1793 all types, 1794 Starred Reverse, 1795 Jefferson Head Plain Edge, 1796 LIHERTY, 1803 Large Date Small Fraction, 1804, 1807/6 Small 7, 1823,

 

Flying Eagle Cent 1856

 

Indian Head Cent 1877, 1888/7

 

Lincoln Cent 1909-S VDB, 1914-D, 1922-D Missing D Strong Reverse, 1955 Doubled Die Obverse

 

Two-Cent Pieces 1864 Small Motto, 1867 Doubled Die Obverse

 

Three-Cent Silver 1855

 

Three-Cent Copper Nickel 1883, 1884, 1885

 

Half-Dime 1797 13 Stars, 1802, 1803 Small 8, 1805, 1838-O, 1840-O, 1844-O, 1846, 1853-O, 1870-S

 

Shield Nickel 1880, 1883/2

 

Liberty Head Nickel 1885, 1912-S

 

Indian Head (Buffalo) Nickel 1914/3, 1916 Doubled Die Obverse, 1918/7-D, 1926-S, 1935 Doubled Die Reverse, 1937-D 3 Legs

 

Jefferson Nickel 1942-D/Horizontal D

 

Draped Bust Dime 1804 14 Stars Reverse

 

Capped Bust Dime 1822

 

Seated Liberty Dime 1846, 1871-CC, 1872-CC, 1873-CC, 1874-CC

 

Barber Dime 1894-S, 1895-O

 

Winged Liberty (Mercury) Dime 1916-D, 1919-D, 1919-S, 1942/1, 1942/41-D

 

Roosevelt Dime 1968-S No S, 1975-S No S

 

Seated Liberty Twenty Cents 1875-CC, 1876-CC

 

Draped Bust, Small Eagle Quarter Dollar 1796

 

Draped Bust, Heraldic Eagle Quarter Dollar 1804

 

Capped Bust Quarter Dollar 1822 25/50, 1823/2, 1827/3

 

Seated Liberty Quarter Dollar 1840-O Drapery at Elbow Large O, 1842-O Small Date, 1855-O, 1856-S, 1864-S, 1867-S, 1871-CC, 1872-CC, 1873-CC, 1874-CC

 

Barber Quarter Dollar 1896-S, 1901-S1913-S

 

Standing Liberty Quarter Dollar 1916, 1918/7-S, 1927-S

 

Washington Quarter Dollar 1932-D, 1937 Doubled Die Obverse, 1950-D/S

 

Flowing Hair Half Dollar 1794, 1795 Small Head, 1795 Silver Plug

 

Draped Bust, Small Eagle Half Dollar 1796, 1797

 

Draped Bust, Heraldic Eagle Half Dollar 1802, 1806 Knobbed 6 No Stem

 

Capped Bust Half Dollar 1807 Bearded Goddess, 1812/1 Large 8, 1815/2, 1817/4, 1830 Large Letters, 1838-O

 

Seated Liberty Half Dollar 1842-O Small Date, 1847/6, 1871-CC, 1872-CC, 1873 Open 3, 1873-CC, 1874-CC, 1878-S

 

Barber Half Dollar 1892-O Micro O, 1904-S

 

Walking Liberty Half Dollar 1919-D, 1921-D, 1921-S

 

Franklin Half Dollar 1953-S Full Strike

 

Flowing Hair Dollar 1794, 1795 Silver Plug

 

Draped Bust, Small Eagle Dollar 1796, 1797, 1798

 

Draped Bust, Heraldic Eagle Dollar 1798, 1800 AMERICAI, 1801, 1802 Wide Date

 

Seated Liberty Dollar 1850-O, 1851, 1852, 1858, 1859-S, 1870-CC, 1870-S, 1871-CC, 1872-CC, 1873-CC

 

Trade Dollar 1873-CC, 1876-CC Double Die Reverse, 1878-CC, 1884 Proof

 

Morgan Dollar 1879-CC, 1889-CC, 1892-S, 1893-S, 1895 Proof, 1895-O

 

Peace Dollar 1924-S, 1925-S, 1927-S, 1928-S, 1934-S

 

Coronet Gold Dollar 1849-C, 1850-D, 1852-D1854-D

 

Indian Head, Small Head Gold Dollar 1855-C, 1855-D

 

Indian Head, Large Head Gold Dollar 1856-D, 1857-C, 1857-D, 1858-D, 1860-D, 1861-D, 1875

 

Capped Bust Quarter Eagle 1796, 1797, 1798, 1804 13 Stars on Reverse, 1806/5

 

Capped Draped Bust Quarter Eagle 1808

 

Capped Head Quarter Eagle 1826, 1834

 

Classic Head Quarter Eagle 1838-C, 1839-C, 1839-D, 1839-O

 

Coronet Quarter Eagle 1840-D, 1841, 1841-D, 1842-C, 1842-D1843-C Small Date, 1845-O1848 CAL, 1849-C, 1854-D, 1855-C, 1855-D, 1856-D, 1859-D, 1862-S, 1864, 1865, 1875

 

Indian Head Quarter Eagle 1911-D

 

Indian Head Three Dollars Gold 1854-D, 1854-O, 1855-S, 1857-S, 1860-S, 1873, 1875, 1876, 1877

 

Capped Bust to Right, Small Eagle Half Eagle 1797, 1798

 

Capped Bust to Right, Heraldic Eagle Half Eagle 1795, 1797, 1798, 1799

 

Capped Bust to Left Half Eagle 1810 Small Date Small 5, 1810 Large Date Small 5

 

Capped Head Half Eagle 1815, 1819, 1820, 1821, 1824, 1825/4, 1828/7, 1829, 1830, 1831, 1832, 1833, 1834

 

Classic Head Half Eagle 1834 Crosslet 4, 1838-C, 1838-D

 

Coronet Head Half Eagle 1839-D, 1840-C, 1842-C Small Date, 1842-D Large Date Large Letters, 1847-O, 1850-D, 1861-C, 1861-D, 1861-S, 1862-S, 1863-S, 1870-CC, 1871-CC, 1873-CC, 1874-CC, 1875, 1875-CC, 1875-S, 1876-CC, 1877-CC, 1878-CC, 1887 Proof

 

Indian Head Half Eagle 1909-O, 1929

 

Capped Bust to Right, Small Eagle Eagle 1795 9 Leaves

 

Capped Bust to Right, Heraldic Eagle Eagle 1798/7 9x4 Stars, 1798/7 7x6 Stars

 

Coronet Head Eagle 1838, 1839, 1841-O, 1842-O, 1849-O, 1852-O, 1855-O, 1855-S, 1857-O, 1858, 1858-S, 1859-O, 1859-S, 1860-S, 1861-S, 1862-S, 1863, 1863-S, 1864-S, 1865, 1865-S, 1865-S 865/Inverted 186, 1866-S No Motto, 1866, 1866-S Motto, 1867-S, 1869, 1869-S, 1870-CC, 1870-S, 1871-CC, 1871-S, 1872-CC, 1873, 1873-CC, 1874-CC, 1874-S, 1875, 1875-CC, 1876, 1876-CC, 1877-CC, 1878-CC, 1879-CC, 1879-O, 1882-CC, 1883-O

 

Indian Head Eagle 1907 Wire Rim Periods, 1907 Rolled Rim Periods, 1920-S, 1930-S

 

Coronet Head Double Eagle 1850-O, 1851-O, 1852-O, 18853/2, 1853-O, 1854 Large Date, 1854-O, 1855-O, 1856-O, 1857-O, 1858-O, 1859, 1859-O, 1860-O, 1861-O, 1861-S Paquet Reverse, 1666-S, 1866-S, 1870-CC, 1871-CC, 1872-CC, 1873-CC, 1878-CC, 1879-CC,

1879-O, 1881, 1882, 1883 Proof, 1884 Proof, 1885, 1885-CC, 1886, 1887 Proof, 1891, 1891-CC

 

Saint-Gaudens Double Eagle 1907 High Relief Roman Numerals Wire Rim, 1907 High Relief Roman Numerals, Flat Rim, 1920-S, 1921, 1927-D, 1927-S, 1930-S, 1931, 1931-D, 1932

 

Early Commemoratives 1900 Lafayette Dollar, 1904 Lewis & Clark Dollar, 1905 Lewis & Clark Dollar, 1915-S Panama-Pacific Quarter Eagle, 1915-S Panama-Pacific Fifty Dollars Round, 1915-S Panama-Pacific Fifty Dollars Octagonal, 1922 Grant Half Dollar Star, 1928 Hawaii Half Dollar.

[wdrob]

You will want to stay away from the red book for pricing, imo.

 

You will need to focus on the Realized Prices that are being represented at the auction houses.

 

If you go to the Coin Explorer here and go to the bottom of the page you can do quite a bit of research on present and past actual Realized Prices.

 

You can even get deeper into it and incorporate the 'trending' to go along with the realized prices. That will let you see where it has been and if it is showing any gains or just remaining steady. Of-course the worse scenario is a negative trend on a coin that you have bought for big money.

 

btw; sorry for the joking around about the sponge bob thing. I just thought a bit of levity is sometimes a good thing. Sadly people around here seem more serious than a broker at Charles Schwab.

[AnkurJ]

Put the money you want to spend per year in a savings account, and buy one single big coin every few years. A bigger priced coin will have better upside potential than numerous small coins.

 

I would suggest two simple categories. Early Copper, and Early Gold. In the early copper do key dates.

[Dudley the 1st]

There is a ton of excellent suggestions presented to you in these responses. I will add to them one of my own. I would suggest that you join a local coin club and start developing a good working relationship with an experienced dealer in you local community. Focus, focus and focus. These forums are a great resource but there is no substitute for face to face interaction with other more experienced collectors. I wish you the very best in these efforts.

[messydesk]

Come here for collecting advice -- buy quality coins that you like. Go somewhere else for investing advice, like an invesment advisor. Keep them separate or you run the risk of turning a hobby into something that's not enjoyable.

[Catbert]

If buying key dates is now your goal and given your budget and limited knowledge level, I strongly advise that you save your money until you have sufficient dollars to buy a quality key date example. Secondly, you should develop a good relationship with some trusted dealers who can tell you/confirm for you whether the targeted acquisition is of quality relative to its competition.

 

If you buy key dates without experience or advice, you are setting yourself up for some very expensive mistakes.

[grip]

PL, with all due respect, get into coin collecting to have fun, not to make a profit. You may make money, you may lose money, with the odds being that you'll lose money.

 

If you want to make money for your kids buy some well known dividend paying stock for them (Coca-Cola, Procter & Gamble, Johnson & Johnson etc.), let the dividends reinvest (most of the large dividend paying companies have dividend reinvestment plans), and give them the stock in 20 - 30 years. The odds are that there'll be far more money in the kitty than if you buy coins. Needless to say, the stocks are also far more liquid and have far less buying and selling commissions (generally there is no buying commission for reinvested dividends).

 

You might think that coins are more "cool" and tangible. If at some point you get a single (1) stock certificate for each of the stocks that you've bought, you'll find that many of them have very cool engraving that harkens back to the original date the company was founded.

 

Most likely your kids will not be significantly interested in coins once they are in their 20's or 30's, and will just want to sell the stuff, potentially to a real shark of a dealer, as quickly as possible.

 

If you want to buy coins, fine and good, just do it for yourself and enjoy the ride.

 

 

Couldn't have said it better myself. Very good advice

[therealanaconda-migration]

Investing in coins is one thing, making money with them is another.

 

Trying to make money in coins is a great idea. Most successful coin dealers will tell you that they enjoy what they do and can't imagine doing anything else.

 

Most people who only invest in coins, lose money.

 

My advice to you would be to get into coins that are as rare as you can afford and then buy and sell them on the internet. Buying coins is easy; selling them to the public is the challenge and it is where you will learn the most.

 

Right now, buying really nicely toned foreign coins wouldn't be a bad place to go. Early circulated US pieces without problems is another.

 

Create a website with Wordpress and advertise to buy coins in your area; that is how you can buy them cheaply. Needless to say, always use common sense in advertising - security should be your number one priority.

 

Good luck!

 

PS By the way, I know a fellow who started out with less than $5,000 and kept buying, selling and trading until he had over $80,000 worth of coins, and my understanding is that he did this in about two years.

[Conder101]

Hind sight is always 20-20...in 1970 while I was over seas, I could have bought gold bars @ $35 per oz. but instead I had the money taken out of my military pay to buy $50 Savings Bonds. Sure, the bonds eventually matured but there was a maturity ceiling, not so with the gold.

 

Now I had $600 in bonds, that same $600 had I bought gold at the time, would now be worth $18,000

Of course in 1970 you had no idea when or even if Americans would be allowed to own gold again, and if you had come home before 1975 the gold bars would have been confiscated at customs so your investment today would be worth $0 (Not tom mention there might have been fines or jail time too.) And really, who in 1970 with gold havig been $35 an oz for over 30 years would have seen it rising to the levels it has.

 

Michael gave so good coin possibilities, of course if you can afford to sink college education amounts into a coin right now, I can't see you being too concerned about what would be the best coin investment for your kids anyway.

[coinman_23885]

I should have been more specific about my price range $100 - $300 per coin a few times a year.

 

Typically, higher end material (read as more expensive) will appreciate more so than common, lower grade coins which are readily replaceable. As such, more is not better, and you may be better pooling your money together to buy a quality item. At the same time, if you start investing gobs of money, don't put all of your eggs in one basket. There is a trade off.

[cladking]

Normally I'd say that investing in collectibles is impossible because it is mere speculation but today is unlike anytime in the past. Money in the bank is now a certain loss and the only stocks that do well is what wall street and congress wants rather than those best positioned to capitalize on conditions. When everything is a roll of the dice then there's a new perspective.

 

There are still a few good investments but most involve overseas. Find these and invest in them.

 

A good investment has the highest rates of return. A one dollar stock that goes to $100 is twice as good as a $10,000 stock that goes to half a million. This same thing applies to coins except it's different with coins because they are not an investment and never will be. It's more important that you enjoy collecting than that you buy the right coins. If you enjoy the hobby you'll learn good deals from tar pits. You won't end up with a "portfolio" that looks just like everyone else's so has less value than you paid.

 

The best investment advice I can provide you concerning coins is to learn to love moderns. This is where the spectacular gains are occurring and will continue for at least the next two generations. Indeed, if you had been taking the profits and reinvesting them in world moderns in the last few years you could in theory have changed $10 into several million dollars. The most spectacular gainer this year increased some 38,000% . In real life finding these coins so you can "invest" will prove impossible but there are a lot of rare modern US and world coins still available for a song. Those that have increased substantially in the past are still increasing in many cases. Collectors are still fixated on silver, gold, and rare old coins while ignoring the modern rarities that they believe are right under their noses.

[coinman_23885]

The best investment advice I can provide you concerning coins is to learn to love moderns. This is where the spectacular gains are occurring and will continue for at least the next two generations. Indeed, if you had been taking the profits and reinvesting them in world moderns in the last few years you could in theory have changed $10 into several million dollars. The most spectacular gainer this year increased some 38,000% . In real life finding these coins so you can "invest" will prove impossible but there are a lot of rare modern US and world coins still available for a song. Those that have increased substantially in the past are still increasing in many cases. Collectors are still fixated on silver, gold, and rare old coins while ignoring the modern rarities that they believe are right under their noses.

 

Reasonable minds are certainly free to differ, and I am going to have to disagree with you unless your qualify your answers considerably. While there may be exceptions, as a whole, most U.S. modern coins have performed horribly and are far away from their short lived highs. This is especially true for condition rarities. I also have grave concerns about modern foreign coins. To be sure, there are issues that have performed very well, but as I mention above, potential return is only half of the equation. Liquidity is a concern. While the coin market generally is thinly capitalized, the modern coin market, in my opinion, is even more thinly capitalized. Your coin can be the most valuable coin or the one with the highest return, but if you cannot move the piece when you need to sell it, it does you little good. To be fair, however, I also do not recommend classic coins as investments either as they have some of the same pitfalls (but with a bit more demand, in my opinion).

 

Edited to add: With the decreased spot price for gold, I would, however, be willing to look at some of the first spouse and other gold coins with small mintages as a long term investment, provided that the pieces are not priced too much over spot.

[cladking]

Reasonable minds are certainly free to differ, and I am going to have to disagree with you unless your qualify your answers considerably. While there may be exceptions, as a whole, most U.S. modern coins have performed horribly and are far away from their short lived highs. This is especially true for condition rarities. I also have grave concerns about modern foreign coins. To be sure, there are issues that have performed very well, but as I mention above, potential return is only half of the equation. Liquidity is a concern. While the coin market generally is thinly capitalized, the modern coin market, in my opinion, is even more thinly capitalized. Your coin can be the most valuable coin or the one with the highest return, but if you cannot move the piece when you need to sell it, it does you little good. To be fair, however, I also do not recommend classic coins as investments either as they have some of the same pitfalls (but with a bit more demand, in my opinion).

 

 

Most of what you say is true but might be a little misleading if taken too literally. Not many years ago a 1950-E East German 10p was just another little aluminum coin that was percieved as common. Now it's $1300 in pristine condition. Does this mean you can rush out and sell it for this price? Probably not, but the reason is the exact same reason that it increased so substantially; there are almost no buyers and even fewer sellers. In most cases this is the nature of the beast. People ignored moderns when they were first issued so now that a few want them they aren't out there. For the main part most of these coins are either extremely common or almost unavailable. You can't really "invest" in 1962 Indian mint sets if there aren't any available. After the thin demand causes the price to explode you might have better luck finding one (don't count on it).

 

This same thing applies very much to US moderns except no regular issue US modern is scarce or rare except in nice condition. But the reason something like an '82-P nickel that is well made and well preserved has a market value of a few dollars isn't that this coin is easily found. If you look for one you might come to believe it's as hard as the '50-E 10p. You can find plenty of lower grade coins with strike issues and marking but pristine coins are far scarcer than the price guides indicate. Keep in mind where there are many dozens of collectors for foreign moderns there are many hundreds for US moderns. (compared with many thousands for most US classics and tens of thousands for lincolns etc) Modern collectors will buy nice coins even if they are duplicates for trade, sale, or "investment" but finding these is still akin to finding 1962 Indian mint sets. I looked for these since 1975 and never found a single one. There are no huge hoards of moderns hovering over the market just waiting for collectors. What you see is what you get. There are no supplies of Greek cu/ ni from the 1950's. There are no hoards of Finish AL/ Br from the '70's or Fijian cu/ ni from the '80's and '90's. The coins are gone. They were worn down and lost and the few that were left were recalled and melted.

 

Some materials simply don't fare well in circulation and in the rush to use ever cheaper materials many issues aren't available. This is why I suggest a young person might want to appreciate these coins if it's in their nature; collectors can learn to spot the gold amidst the pyrite. It's a shame we get only one chance at life. If I could do it again I'd be much more willing to pay up for the tougher coins and much more willing to pay premiums for choice ones. I'd have the courage of my convictions so would pour over price lists and guides searching for the coins I never saw. But in those days collectors of moderns were almost non-existent and the few that were out there were specialists with whom it was difficult to compete. There will be a handful of collections of things like Portuguese cu/ ni but even the "common dates" will mostly be scarce in Unc.

 

There is still every chance that there will never be much demand for a nice MS-64 '82-P nickel. But this demand has ratcheted up many fold in the last 30 years and still has vast room for growth. If the demand ever materializes it will not find supply because US moderns are like world moderns except there is a small supply rather than almost none.

 

Any market with fewer participants will necessarily have lower liquidity though with the advent of the internet this isn't as pronounced as in times past.