Is coin collecting a good investment?
October 11, 2010 by
Filed under Silver Investment FAQ
If I collect U.S. gold and silver coins would you say that its a good investment or is it too risky and not worth spending so much money on?
October 11, 2010 by
Filed under Silver Investment FAQ
If I collect U.S. gold and silver coins would you say that its a good investment or is it too risky and not worth spending so much money on?
No risk = no reward.
You might back a dollar on a coin that costs a dollar 1 or 2 hundred years later, but thats about it…
No, it is not a good investment.
The appreciation your collection would experience is real over time (assuming you pick issues that would appreciate,) but the amount of appreciation is generally less than even a good saving account or CD would produce.
Coin collecting can be a fun hobby, the meat of which appreciates (or at least doesn’t depreciate) with time. Few hobbies can claim that. But it’s far better to keep it as nothing more than a hobby that you sink your occasional mad money into.
Editing to add in: As you specify “gold and silver” issues… The metal value of the coins for silver is about the same – appreciation happens, but there are many better investment vehicles out there. While it can seem like you could slap yourself for not having gotten into gold in the $500/oz. range, when it’s now trading at $1000. Gold can be volatile, though, generally doesn’t appreciate at a rate constant with inflation (even from the 80s to today, it would be a losing investment compared to the Dow,) AND a recent WSJ editorial (R.O.I., March 5, 2008) asked how long gold can keep inflating – it’s overdue for a correction. Believe it or not, silver is better than gold right now.
Still, you’d be better off with a different investment. Metals should only complement other investments at best, and never be your prime investment vehicle.
But good luck.
Coin collecting is a hobby, not an investment.
I am very concerned that the coins often marketed on cable TV might be a source or the source of your purchase. These coin collections are often times extremely over priced.
I don’t see anything wrong with purchasing a 1 oz. gold American Eagle or similar gold coin. However gold is very high at the moment.
Wrong way to invest. The coins will outlive you before they are really worth anything.
Yes, especially now with the dollar declining. but don’t buy them from TV, they rip you off big time. A coin that should only cost 18 dollars, they charge hundreds of dollars for