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JerrySpringer
Penny Hoarding Member
669 Posts |
 Posted - 07/05/2008 : 11:05:42
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I am currently looking at a 1997 coin price guide. The pricing back then caught my eye quickly for a 1909 S VDB penny. The price for an uncirculated one was $650 in 1997. Perhaps you can find an OK shape one for similar price in 2008. Mint condition ones go for $5000 I have seen on Ebay. Can we expect collectible coins will just rise in price? I was telling my wife that it is all supply and demand based. If everyone wanted to start collecting coins, we would see prices go up and up swiftly on rare coins because there would always be the highest bidder willing to spend the money to own them. Anyway, I am thinking that coins will be a great way to sock away money as a hedge against inflation. Comments?
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knibloe
1000+ Penny Miser Member
USA
1066 Posts |
Posted - 07/05/2008 : 16:02:13
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| If the economy has a downturn, fewer people buy coins and more people want to sell what they have to make ends meet. This really messes with supply and demand. |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 07/06/2008 : 11:14:55
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quote:
If the economy has a downturn, fewer people buy coins and more people want to sell what they have to make ends meet. This really messes with supply and demand.
Interesting. Coin collections are subject to the ebb and flow of the economy. I should start looking at garage sales and estate sales. I have a friend who sold his father's estate collection after a coin appraiser told him the coins were common. My friend had more need for the cash than holding onto the coins and allowing them to maybe appreciate. As a layman myself, I would not be surprised if he was worried that the coins could go down in value. Might as well get the cash when you can.
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Steiner
Penny Collector Member
Canada
278 Posts |
Posted - 07/06/2008 : 12:52:01
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Back in 1980 when the POS went through the roof. Coins, silver tea set, silver medals and the like all went into the melting pot as they were worth more as scrape then collector value. It was a very sad time and may collectables were lost forever.
Soon it will happen again. I ways ask my coin dealer if I can go through his scape pile. Sometime there is really cool stuff.
Steiner |
Steiner |
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kavajava
Penny Collector Member
USA
490 Posts |
Posted - 07/06/2008 : 14:00:07
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The thing about coins with numismatic value is that you can make a lot of money--usually just takes time...but that is in more "normal" economic times...IMHO, if things really get bad, like I think many on this board think they will, then much of your premium will probably dry up for two reasons--1) people are not going to want to pay a premium even if they understand the rarity factor because they can't afford to, and 2) most people will not know or care about the rarity factor--they will only be interested in the metal value.
Of course this is an "in general" statement--there will be exceptions.
So, I guess my answer to your question is that it would depend on how bad you think it might get, and what is your time frame? |
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fb101
Administrator
USA
2856 Posts |
Posted - 07/06/2008 : 14:11:38
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I concur with KavaJava. If you're talking common unc morgans, I'd say forget it, because melt could easily dwarf numismatic value. If you're talking only about key dates in popular sets in high grade, it's a toss up. Depends on what the economy is like in a few years, if there is one.
BTW: Keep in mind you need to go with your own instincts. I could be very wrong as I have personally demonstrated many times in my life. |
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kavajava
Penny Collector Member
USA
490 Posts |
Posted - 07/06/2008 : 14:21:27
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quote:
Originally posted by fb101
BTW: Keep in mind you need to go with your own instincts. I could be very wrong as I have personally demonstrated many times in my life.
 Ha ha--me too! |
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just carl
Penny Hoarding Member
USA
601 Posts |
Posted - 07/07/2008 : 09:00:42
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Remember that coin collecting is a hobby. There have been many hobbies that have existed in the past and some still are around but there interest has drindeled. Coins could do the same pending on the Mints productions, people's interest, the economy, etc. An example of the governments ruination of a hobby, remember the US Postage stamp collecting? At one time that was the thing but then they came out with so much junk stamps with even Movie stars on them that the hobby almost evaporated. Remember Beanie Babies, Hot Wheel Cars, baseball/football cards? If our Mint continues with the massive production of what they are now doing, the market will slowly evaporate as with stamps. If our economy continues to drop, coin collecting will just not be as important as paying the rent and buying food. If a new hobby emerges, coins will also become a thing of the past.
Try to remember that investing in anything that is based on price and demand is very risky. No demand for coins, at least face value. If the coin market falls, there will be less and less places to sell any also.
This is just a hobby and should never be attempted as a future investment. |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 07/07/2008 : 10:54:39
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This is just a hobby and should never be attempted as a future investment.
I was aiming at just setting aside the coins I find in my sorts as the investment. Hence, my principal never gets hit on face value. Inflation may erode the value. I can not see paying more than a dollar or two over face value for a coin right now, and it would have to be a coin I would want because I want to have a collection started for the fun of it. Maybe some day, the coins would end up in a grand child's possession. Who knows? This is fun to search the coins and the acquisition at the bank is a hoot too. The thing that bothers me is that coins get melted down for the metal value if prices get high enough. Once those coins disappear, less chance of finding them. |
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kavajava
Penny Collector Member
USA
490 Posts |
Posted - 07/07/2008 : 14:50:02
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I was aiming at just setting aside the coins I find in my sorts as the investment.
Oh--in that case, by all means, go for it--put aside the better dates, and conditions, etc. Maybe try and put together a set of all dates, and keep upgrading the condition of each coin as you go.
Don't think you can go wrong doing it that way!  |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 07/08/2008 : 02:12:02
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Don't think you can go wrong doing it that way!
This stuff is a lot of fun. Does not cost much money really if you think about it but it does take time. I am not looking for a big payday on all this as much as I am just trying to do something that has some structure and utility/resource to it. Lord knows I spent many years on other hobbies that consumed money and resulted in semi-obsolete paeans. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 07/08/2008 : 02:59:33
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I've read that you can make money investing in coins if you really know what you are doing. I don't know what I'm doing so I'm sticking to coins with metal value. By all means seperate out rare dates, BU coins, and international coins. You might find some with extra value over melt to sell into the collector market.
I think that betting on mass melts of pennies to drive up values for common dates in the future is a pipe dream. Even after the 80's silver melts the value of common silver coins remains at the melt value. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 07/08/2008 : 03:19:02
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| I need to talk to brother some time about coin collecting. He did it for years and had some good times and sour times in his dealings. He will probably scoff at me for taking an interest in it ( older brother treatment) but I think he has seen how markets work for it. I am not really enthused for buying coins outright over face value. My attitude is just to find stuff that circulates and slips through people's hands w/o them recognizing the collectible aspect. |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 07/09/2008 : 08:21:32
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quote:
I've read that you can make money investing in coins if you really know what you are doing. I don't know what I'm doing so I'm sticking to coins with metal value. By all means seperate out rare dates, BU coins, and international coins. You might find some with extra value over melt to sell into the collector market.
I think that betting on mass melts of pennies to drive up values for common dates in the future is a pipe dream. Even after the 80's silver melts the value of common silver coins remains at the melt value.
My approach is the same. I dont actively seek out key dates but do search my buys for them and set them aside. My dilemna now is whether to sell the small handful of key dates I have now and use the money to buy PM's or should I hold onto them in the hopes that the economy will eventually turn around? I am probably 50/50 on it right now. For example, I have a 1894-P Morgan Dollar I picked up for around $13 in a collection I bought on a "per piece" basis. It books for around $1500-$1800 depending on the price guide so my dilemna is whether I should sell it or trade it for an ounce of gold and some silver. |
My hobby: collecting real money 1 copper cent or nickel at a time.
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knibloe
1000+ Penny Miser Member
USA
1066 Posts |
Posted - 07/10/2008 : 16:01:16
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I was aiming at just setting aside the coins I find in my sorts as the investment. Hence, my principal never gets hit on face value. them.
[/quote]
If I find a key date and it is slver I keep it. If It is a clad coin and worth a fair amount over face, I tend to sell it. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 07/20/2008 : 15:12:02
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quote:
Originally posted by CoinHunter53562
quote:
I've read that you can make money investing in coins if you really know what you are doing. I don't know what I'm doing so I'm sticking to coins with metal value. By all means seperate out rare dates, BU coins, and international coins. You might find some with extra value over melt to sell into the collector market.
I think that betting on mass melts of pennies to drive up values for common dates in the future is a pipe dream. Even after the 80's silver melts the value of common silver coins remains at the melt value.
My approach is the same. I dont actively seek out key dates but do search my buys for them and set them aside. My dilemna now is whether to sell the small handful of key dates I have now and use the money to buy PM's or should I hold onto them in the hopes that the economy will eventually turn around? I am probably 50/50 on it right now. For example, I have a 1894-P Morgan Dollar I picked up for around $13 in a collection I bought on a "per piece" basis. It books for around $1500-$1800 depending on the price guide so my dilemna is whether I should sell it or trade it for an ounce of gold and some silver.
Does it provide you $1500 worth of pleasure in your collection? If so, keep it. If not, sell it. Sounds like a good candidate for professonal grading/slabing too. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
Edited by - jadedragon on 07/20/2008 15:13:15 |
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Coin prices a good hedge against inflation?
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