HOLY SNOT! $5 Million for a nickel!

[MunkyMan95]

 

Holy Smokes! Click here

 

[Zoins]

I'm waiting to see all 5 in a TPG multi-holder

[MunkyMan95]

Maybe that should be my next goal...

[Zoins]

ATS, Laura has been challenging people to sell their PCGS 70 ultra-moderns raw. She got a counter challenge from someone willing to do that this month if she cracked out the Eliasberg 1913 Liberty nickel and put it up for sale raw. Guess she won't be accepting that challenge

[rrantique]

Wow guess that will make Trade Dollar Nut happy

[MAULEMALL]

Holy Smokes! Click here

 

Congrats to TDNut..An Excellent return

[MunkyMan95]

ATS they figured about a 20% return in 2 years. Not too shabby!

 

Congrats Bruce.

[Zoins]

ATS they figured about a 20% return in 2 years. Not too shabby!

A 9% annualized rate of return is ok but if you're looking for investment returns there are much better places to put your money.

 

Of course, this is about collecting and appreciating coins, not ROI

[jgrinz]

Congrats to Bruce and Laura ...

[MunkyMan95]

ATS they figured about a 20% return in 2 years. Not too shabby!

A 9% annualized rate of return is ok but if you're looking for investment returns there are much better places to put your money.

 

Of course, this is about collecting and appreciating coins, not ROI

 

They made more in 2 years on that coin than a normal American makes in MANY years. And yes, it was about the COIN and not the INVESTMENT

[Zoins]

ATS they figured about a 20% return in 2 years. Not too shabby!

A 9% annualized rate of return is ok but if you're looking for investment returns there are much better places to put your money.

 

Of course, this is about collecting and appreciating coins, not ROI

They made more in 2 years on that coin than a normal American makes in MANY years. And yes, it was about the COIN and not the INVESTMENT

You are looking at it the wrong way Chad. Many people make millions of dollars a year and many people invest millions of dollars. 9% is like what you get in an index fund. It's nothing to write home about from an investment return perspective.

 

This is a great coin and a great sale. Just don't think the rate of return is more impressive than it really is.

[MunkyMan95]

ATS they figured about a 20% return in 2 years. Not too shabby!

A 9% annualized rate of return is ok but if you're looking for investment returns there are much better places to put your money.

 

Of course, this is about collecting and appreciating coins, not ROI

They made more in 2 years on that coin than a normal American makes in MANY years. And yes, it was about the COIN and not the INVESTMENT

You are looking at it the wrong way Chad. Many people make millions of dollars a year and many people invest millions of dollars. 9% is like what you get in an index fund. It's nothing to write home about.

 

This is a great coin and a great sale. Just don't think the rate of return is more impressive than it really is.

 

In retrospect, it's like making $20 off of $100 in 2 years. Not that great. But it's $850,000 in 2 years. And they got to gold that coin for all that time. They owned a piece of history, and made money off of it. That trumps any fund or other investment in my book.

[Zoins]

In retrospect, it's like making $20 off of $100 in 2 years. Not that great. But it's $850,000 in 2 years.

Think bigger. $850,000 in 2 years isn't a big deal at 9%. Warren Buffet has made 24% annually for like 20 years. I know an investment manager that has made 20% annually for 10 years with a multi-million dollar portfolio. If you think there isn't a big difference between 9% and 20%, run some numbers.

And they got to gold that coin for all that time. They owned a piece of history, and made money off of it. That trumps any fund or other investment in my book.

This is where you are getting it right. It's great to be a part of history for such an important coin. The ROI isn't what's important here.

[MunkyMan95]

For the sake of argument, think about what you can buy for $850,000. Around here, a single-family home, maybe 2,000 square feet, is around $150,000. You could buy more than 5 houses. Think of the coins you could buy. An entire ROLL of HR saints. A couple 1792 half dismes. Silver Eagles by the truckload!

 

Sure, it's probably pocket change for these people, but wouldn't you be at least a tiny bit excited to make that much money over that short a time? Without even intending to?

[Zoins]

For the sake of argument, think about what you can buy for $850,000. Around here, a single-family home, maybe 2,000 square feet, is around $150,000. You could buy more than 5 houses.

In Silicon Valley, you can get one starter home for $850,000.

[MunkyMan95]

So, they just got a free house. I can understand if they were furiously trying to diversify their portfolios and invest in the best way possible, that might be not be something to talk about, but they bought a nickel and made out very well.

[gmarguli]

Think bigger. $850,000 in 2 years isn't a big deal at 9%. Warren Buffet has made 24% annually for like 20 years. I know an investment manager that has made 20% annually for 10 years with a multi-million dollar portfolio. If you think there isn't a big difference between 9% and 20%, run some numbers.

 

Also factor in:

 

1) A risk free investment with that money. What could they have made by parking that money in a "risk free" investment like a government bond for 2 years? Was the difference worth the risk.

 

2) Based on comments Bruce has made in the past, I was under the impression that rather than write a check for coins like this, he draws on a line of credit from a bank. The interest on that loan must be factored into the profit.

 

3) Costs associated with the sale. Did it cost them anything to list the coin in the previous auction. Did the buyers agent get a cut of the sale price this time.

 

4) Press that Legend got out of it. Their name was in a lot of papers and on TV news segments. That might be worth a lot to them.

 

Overall, from a pure investment standpoint, probably not a good investment, but not necessarily a bad investment.

[Zoins]

4) Press that Legend got out of it. Their name was in a lot of papers and on TV news segments. That might be worth a lot to them.

I agree, I think it was very successful when viewed as a marketing campaign. The other points on risk-free rate of return and additional costs are very good as well.

 

BTW, kudos to TDN for the sale

[carson city]

Everything in Life is relative---Albert Einstein

[physics-fan3.14]

At this rate, it won't be long before some of these prices overtake the 1933 Saint.

[SkyMan]

Think bigger. $850,000 in 2 years isn't a big deal at 9%. Warren Buffet has made 24% annually for like 20 years. I know an investment manager that has made 20% annually for 10 years with a multi-million dollar portfolio. If you think there isn't a big difference between 9% and 20%, run some numbers.

 

Also factor in:

 

1) A risk free investment with that money. What could they have made by parking that money in a "risk free" investment like a government bond for 2 years? Was the difference worth the risk.

 

2) Based on comments Bruce has made in the past, I was under the impression that rather than write a check for coins like this, he draws on a line of credit from a bank. The interest on that loan must be factored into the profit.

 

3) Costs associated with the sale. Did it cost them anything to list the coin in the previous auction. Did the buyers agent get a cut of the sale price this time.

 

4) Press that Legend got out of it. Their name was in a lot of papers and on TV news segments. That might be worth a lot to them.

 

Overall, from a pure investment standpoint, probably not a good investment, but not necessarily a bad investment.

 

Excellent points Greg! You nailed them on the head. Of course if there was interest on a loan that would be deductible in one format or another at their tax rate, but still.

[bsshog40]

That's alot of money!!!