Are US Coins a decent investment?

Question

I have a small collection I inherited...nothing special. But I'm interested in dumping all my stocks and investing them in something like US Gold Coins (St. Gaudens...etc).

Answer 1

Unless you wish to take the time to become an expert, making money investing in coins will be a tough business. The coin market fluctuates quite a bit. Sometimes buffalo nickles are hot and sometimes Morgan dollars, etc. One of your responders answered that slabbed coins are the best way to invest. That is probably a very accurate statement. It eliminates, for the most part, buying mis-graded coins and they are much easier to sell, especially if they are rare.

I think that making coins your main source of investment would be a very bad move even if you were an expert in the field. One responder suggested no more than 10% of your portfolio. Very sound advice. If you think that you want to do this, start learning the trade and buying a few coins. Do not buy more than one or two at a time. Check out the offerings on Ebay. Here is a link of current coin values.

There is one thing you need to be aware of about investing in coins. They are prime targets for theft. If you were to keep them in your home and it became knowledge, you may wind up loosing them all or even worse you and your family dead. It happens all of the time.

Answer 2

Yes, but know your grading. A coin's value will be drastically different based on the slightest differences in the grade. Collect coins pre-graded by the top grading services. Also choose how you will collect: Type, silver, gold, Dollars, Halves, Nickels, Cents, sets. I like the St Gaudens Gold $20's. Gorgeous coins and a solid investment. Also Gold $10 Indians. But choose your favorites and go for it. But watch the market first. If you are only a speculator and not a collector, be VERY careful. Coins should be a part of any diversified investment portfolio, but not the entire portfolio itself! Know your stuff!

Answer 3

Any investment that is based upon prevailing market conditions is risky, so I'll just suggest this.

Have your collection appraised to see what it is worth. Hang onto it for six months and have it reappraised. See if it goes up or down and by how much.

Second, if you want to invest in gold or silver, I suggest coins. My husband invests in gold coins and I invest in silver. They are a long term investment, not something you can turn quickly to make a profit.

Third, diversify your investment portfolio. Come cash, some CD's, some stocks, some real estate, some coins is the best way to go.

Watch the markets carefully to see where the CD's markets are, the stock market, precius metals and real estate (on a downturn right now).

Good luck.

Answer 4

Most investment advisers would recommend no more than 10% in gold of any form. Most would say that only a fool would dump all of their traditional investments in something that risky.

"Investing" in collectible coins is a very risky proposition. Most of the coins of any value are already identified and there isn't likely to be any new collectibles any time soon, possibly aside from annual proof sets. Predicting which coin is going to further increase in value (above inflation anyway) is a crap-shot at best.

Collect coins for the love of the hobby if you wish. but don't put your retirement savings in them. Statistically, you'll be eating dog food in your "golden" years.

Answer 5

Selling your stocks would be unwise. Investing in any material, e.g. gold, silver, real estate, etc., carries costs and risks that stocks are not subject to.

The most important investment decision you will make is your asset allocation, that is, the amount you invest in cash (e.g. CDs, money markets), bonds, and stocks. That will account for about 95% of the return that you receive.

Search the Internet for "couch potato investing", "couch potato portfolio", "coffee house investing", and "coffee house portfolio".

These are systems of investing that use index funds to beat the returns of 3/4ths of managed mutual funds.

If you want the characteristics of precious metals investing without having to be concerned about loosing or having your investment stolen, and without the worry of whether you chose the right precious metal, invest in "precious metals index funds". These funds invest in the stocks of companies involved in the precious metals industry. You benefit from diversifying your investment among many precious metals and many companies. In any case, you should only have a small percentage of your investment in the precious metals sector.

I suggest that you read up on investing. If you believe the US economy is going to continue to be similar to what it has been the last 100 years, including the possibility of a major depression, then investing in stocks and bonds is the correct strategy.

The strategy of cashing in your investments and buying all gold or other commodity is the proper strategy for the case where the US government fails, the economic system fails, banks close, and merchants will no longer accept US currency.

Answer 6

Sounds to me like the problem may be in finding a buyer when you want to sell. I don't think I'd invest everything I have in them. The best long term investment I've seen is a Roth IRA. It's accessible when you need it, and the money is after-tax, so the only part you'd have to pay tax on is the interest, if you got into it. I'd sink the major portion of my investment monies into one of those. Then, too, there's jumbo CDs that have pretty decent rates, as well.

Answer 7

YES!!! US Coins are very good to make an investment in. I made over $500.00 in the past week selling some. In made over some $4,000 in the past month! Good Luck!

www.uscoins.org

Answer 8

Gold is pretty high right now. It might not be the right time.

Answer 9

No.