Been a coin collector since childhood (long time ago ;-))... Coins are for fun, enjoyment, history, challenge - but really not investment. The coin market seems to go thru periods of investment hype, and I've certainly made a few bucks here and there - but all in all, if you enjoy the hobby, it's a neat way to put away some "hard assets" and not lose too much in the process.
That said, it's interesting to watch the pickup in interest as the market takes a nose dive - could it be people looking for any safe haven they can find? Gold is cheap today compared to the past few years, and gold coins certainly follow the price of gold - but in only certain instances.
For the most part gold coins carry a value far beyond their gold content. The value is based on the rarity of the coin and the condition (wear) of the coin. Very common dates in circulated condition (worn) will sometimes track the gold spot price, but others carry their own price. BEWARE of scams, cons, conunterfeits, cheats, etc - the industry is riddled with them (there is no SEC equivelent).
Coins are "traded" openly and have usually have a bid/ask price. Unlike stocks, they are more than a piece of paper and their worth is determined by the grade (how worn they are) and rarity. Only an expert can really make that judgement - thus independant coin grading services (PCGS etc). They grade a coin, encapsulate it so that it may be traded with the buyer confidnet of the grading.
I do not invest in coins. I buy them to enjoy and perhaps pass some history on to my heirs someday (that most likely will have some value). If you wanted to play around, visit your local coin shop and cultivate some friendships with those you think you can trust. Take a look at the St Gaudens $20 gold pieces. Many are avialable almost at prices of bullion coins (those coins minted strictly as 1 oz. gold pieces for trading gold) but St Gaudens pieces carry numismatic value/interest. I am presently trying to put together a "year set" of these coins for the fun (and gold has been cheap enough to allow me to do it without feeling bad about not putting the money in the market. And when I'm done, I'll have 50+ ounces of gold in an album that gets locked in a safe somewhere :-( (at least my gold is not crashing today)
Good luck.... |
