Quote:
Originally Posted by Bill8
I don't know that it should be called a scam. But, true, if you are buying collectable coins as metal you're an idiot.
The idea behind collectables is that if the economy DOESN'T crash, their value increases at a rate that historically has been far higher then the increase in metal values.
I have a nice stash of low to middle grade collectable coins I bought years ago - I figure if the economy doesn;t crash, I'll sell them at a quite nice increase when I am an old fuck, but if the economy does crash, I have the metal.
I have stacks of BU silver dollars - the metal value now is over 4 times what I paid for them - and the collectable premium has also risen - so it's a win both ways.
It's still not an unreasonable strategy, provided you pick the right grade to buy, and buy from the right sources.
Anyway, the picture is more complicated than you paint it to be.
There is a solution tho - just buy circulateds at that days coin silver prices, and leave the uncirculateds to people that have studied.
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You are correct! Numismatics is a very complicated hobby, and is probably not for the average joe ...
I tried to correct myself .... the scam is not in the coins themselves .... I have a nice little collection of MS70 Morgans and Eagles ...
The scam is in the great number of numismatic coin dealers that are using the current silver bull market to prey on new investors who have no clue on what they are doing!
Imagine their surprise when the economy finally does go tits up ... when they can only get $50 for the coin they paid HUNDREDS of dollars for?!?
Coin collecting ... like stamps, or many other collectables, requires the investor to put a great deal of time into learning and understanding the market for collectable coins.
A rare stamp is only a small piece of paper to a non-collector ...