Numismatics Are Worthless, Right?

[Kevin Miller]

I just would like to get some feedback from guys who know about Numismatic coins. They are worthless, right? I mean it would make sense to buy stuff like Krugerrand, right like over at. Apmex:
This is a random link: http://www.apmex.com/product/62/1-oz-gold-south-african-krugerrand-random-year - but someone showed me this strange "bizop" company Preservation Of Wealth and that is obviously some stuff the nobody needs, right. And they are talking about Numismatic coins there, too.

(I did not look into joining that company, nor am I connected to them!)

 

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[DeletedUser2]

look up investment quality coins. there are plenty of coin collectors. but its a niche market. understand the market, you can make money, dont... and you cant. period

Z

 

[Mike Kavanagh]

understand the market, you can make money, dont... and you cant. period

The question in turn would be, who is in this market. What are their wants? What are their needs?

Zen, this post is possibly one of the best posts that's not on the inside due to it's ambiguity to any market.

 

[Paleo]

I wouldn't call them "worthless" exactly:

"There was incredible competition for so-called 'trophy coins' with 11 U.S. coins selling at auctions for more than $1 million each in 2013. One historically significant coin, believed by many to be the first silver dollar struck by the United States Mint in 1794, sold for $10 million. That's the highest confirmed price ever paid for any rare coin," stated Hanlon.
A 12th U.S. coin also crossed the seven-figure mark in a private transaction conducted by a PNG member-dealer.


The most valuable U.S. coins purchased by winning bidders at auctions in 2013 were:


1794 Flowing Hair silver dollar, $10,016,875 (Stack's Bowers Galleries)


1804 Type I silver dollar, $3,877,500 (Heritage Auctions)


1913 Liberty Head nickel, $3,172,500 (Heritage Auctions)


1880 Coiled Hair gold $4 denomination Stella, $2,574,000 (Bonhams)


1796 silver quarter-dollar, $1,527,500 (Heritage Auctions)


1792 silver half disme (early spelling of dime) $1,410,000 (Heritage Auctions)


1796 silver dollar, $1,175,000 (Heritage Auctions)

1783 Nova Constellatio Quint Type II, $1,175,000 (Heritage Auctions)


1852 Augustus Humbert $10 gold coin, $1,057,500 (Heritage Auctions)


1792 half disme, $1,145,625 (Stack's Bowers Galleries)


1879 Coiled Hair gold $4 Stella, $1,041,300 (Bonhams)


The 12th U.S. rare coin that changed hands for more than a million dollars in 2013 was an 1894 San Francisco Mint dime that sold for over $2 million in a private sale conducted by David Lawrence Rare Coins


A year-end survey by PNG of auction houses in the United States indicates they sold an aggregate total of $392.8 million of U.S. rare coins in public auctions in 2013: http://www.pngdealers.org/news-rele...-2013-reports-professional-numismatists-guild

 

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[Kevin Miller]

ok, but thats like finding antiques - rare items - and nothing that can be done in sort of a "test and predict income" strategic moves to implement it as a fast lane business strategy as far as I understand - correct me if I am wrong

 

[DeletedUser394]

I'm confused. What does 'test and predict income mean?'

What is the purpose of the investment?

 

[Kevin Miller]

RichKid, I thought along the lines if you BUY something like gold bars, where you know you can exchange
them later (for profit or loss, who knows, but with precious metals they never should go away to be worthless
like FIAT currency). I just thought that numismatics - as I now see - are more like antiques or "uniques" that
"might" hold a value to collectors but are less like to hold the potential of promised value as the regular bullion
do.

But you are right: what is the purpose of the investment - is gold for example to preserve a set amount of
wealth as a "security backup" rather than making profits out of the increase in expected value?

 

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[Hicks]

just sent you a link to my website. You should get all you need answered there.

 

[DarioMontesdeOca]

Numismatics aren't worthless unless they're forged or fake. The only "problem" with collectible coins is that they're values are sometimes skewed upward when some are sold to newbies buying from untrusted sources and when they try and sell it later they are shocked at how low of an offer they'll receive. I quote the word "problems" because they still hold value and are profitable if you buy low and sell higher.

I've been coin collecting since a kid and have been investing in precious metals for years now, specifically silver, and I keep a balance between the two. When I buy a coin I make sure I know WHY I'm buying; either for investment purposes or for my numismatic enjoyment. When I invest in silver coins I do not buy numismatics at all but closest to or under melt value as I possibly can.

I payed $5 for a Buffalo nickel the other day, there is no silver content in Buffalo nickels and I normally wouldn't pay that price for these coins. But for this particular case I bought it for the year and mint mark the Buffalo coin had on it, which was a 1924-D.

Know why and from where you're buying and don't get suckered into something that looks shiny that may not give you a return on your investment later down the road.