Why do people collect coins for retirement? Is this worth doing? I don't understand how this helps with retirement.
2007-11-20 04:13:25 · 4 answers · asked by chuck j 2 in Business & Finance ➔ Personal Finance
way to risky for my blood == i do not want to invest in anything that i can not turn over for at least what i have in it at a moments notice!!!! after all we are dealing with retirement funds and have no way to replace the funds!!!!
2007-11-23 23:20:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is a very speculative venture. There are some coins out there worth a fortune. If you had picked those coins up when before they became expensive then you could sell them for a nice tidy little profit. You could also win the lottery too. It is impossible to predict which coins will be worth what in the future. Heck, it is even possible that people will not be interested in collecting coins 20 years from now. Back in the 50's and 60's it was a pretty popular hobby with kids. Today, not many kids are that concerned with collecting coins. Therefore, it is possible that coin collecting will decrease in the future and the value of the coins will decrease as well. It is simple economics of supply and demand.
There are lots of companies out there that make a fortune selling coins to people. They make promises and get busted all the time. I went to the FTC website and did a search for "coin" and found 542 results. It looks like most, if not all, of the results are articles about coin dealers getting busted for scamming their customers.
It is too hard to figure out if you are getting scammed or not. Some warning signs are over aggressive salesmen, salesmen continually contacting you to purchase more coins, company promising the coins will raise in value (or even implying that the coins will raise in value). I would not put my retirement future into collecting coins. It is begging to lose money which is kind of ironic if you think about it.
2007-11-20 04:29:57 · answer #2 · answered by A.Mercer 7 · 1⤊ 0⤋
Some people have variety of things they feel help diversfy their portfolio in this case some people have chosen coins, but just like stock coins values can go up and down. You also have to spend money to make money. Some coins are expensive to purchase, unless you want to buy a lease expensive and wait years for value to appreciate for example I have a coin 1922 silver dollar and its only worth $225 but then you have to find out if it is a D or S symbol somewhere in that case it can either lower or rise the value. There's also comic books, sports cards, antiques, etc....personally I would not bet my whole retirement on collectibles but it is good to have to diversfy your portfolio
2007-11-20 04:31:31 · answer #3 · answered by prodigychild_21 4 · 0⤊ 0⤋
Collectibles have a potential for high returns, but the risk that you'll lose money is just as high.
Ask anyone that paid $200 for a Beanie Baby a few years back and can now get the same items at a yard sale for a couple bucks.
2007-11-20 11:19:26 · answer #4 · answered by winters in buffalo 3 · 0⤊ 0⤋