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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?


6 Responses to “Is coin collecting a good investment?”
  1. dangoinvestor says:

    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…

  2. Darren E says:

    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.

  3. Joseph F says:

    Coin collecting is a hobby, not an investment.

  4. BigOrlandoNerd says:

    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.

  5. Gary says:

    Wrong way to invest. The coins will outlive you before they are really worth anything.

  6. Steve says:

    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

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