Thinking of investing in some key date coins- 1909 S-VDB,etc

[Grimster]

So over the past several years I really haven't been doing too much as far as collecting coins is concerned. I'd hang on to any junk silver I'd come across...always check my loose change for key dates and popular error coins...etc.

Lately I've been toying with the idea of grabbing some key date coins as an investment. Not a quick flip scenario (buy it for $900 and sell it for $1000 type thing) but as a buy and hold for several years at least....type thing.

This will probably end up being a small portion of my overall investment portfolio, but a portion of it none-the-less. So Im trying to think of coins which will stand the test of time...and trying to figure out how high of a grade I'd want to grab at this time. So essentially the key factors Im looking at are :

Which coins? (1909 S-VDB cent, 1916-D dime, 1955-DDO cent?...etc)

What grade?

Which grading company?

How long to hold onto the coin? Cash out at time of retirement? Hand down to grandkids? (PS...Im 30 right now)

I figure if I take this angle...it will not only get me excited about coin collecting again, but also allow me to focus on just a few coins as opposed to going overboard and just HOARDING coins like I did several years ago


Anyway, what are your thoughts on doing something like this ?

[barrytrot]

Having key date coins is a lot of fun.

To make it an investment you MUST buy the right coin.

I don't mean 1955 or 1909, I mean the RIGHT COIN in whatever date.

To do that is 4 steps (each is kind of hard):

1. Become a really good grader in the type of coin you want.

2. Buy an under graded coin (perhaps raw that will certify is a great example)

3. Buy a coin with maximum eye appeal.

4. Pay a fair price. NOTE: This doesn't mean "paying Greysheet", heck it could mean paying 5x Greysheet or it could mean paying 0.5x Greysheet. It depends on the TRUE VALUE of the coin. The true value of a dazzling toner is going to be way more than a bland coin and will hold it's value better as well.


If you don't do all 4 of those it's not a great investment, fyi.

The cool thing is that you can get knowledge in all 4 areas just by attending shows and reading and looking at coins and coin sites online.

[johnbrickner]

Collect the coins that really interest you and really like. I mean really enjoy to look at and hold. I prefer completing sets of those I enjoy but, that is just me and I like to get the best grade I can for the money. Barry's words above are wise.

[gubni]

I found a 1972 newspaper article advertising a proof 1800's coin for $5000. I looked up current value on the same coin and it is $65,000.

[barrytrot]

I found a 1972 newspaper article advertising a proof 1800's coin for $5000. I looked up current value on the same coin and it is $65,000.

The value of a coin varies WILDLY based on condition. My guess is the 1972 coin was cleaned (newspapers don't generally source "great coins") and depending on where you looked at the value $65,000 could be low for a NICE proof. Additionally $500 is reasonable for a damaged proof coin of the same year!


That's the problem most people have when buying coins they base their decision on math, i.e. this coin is dated 1888 and is $5,000. They forget SEVERAL other very vital attributes and by "forget" I mean have no idea about

Don't buy any coins above bullion unless you know the coin OR you are doing it SOLELY FOR FUN!

[Grimster]

As far as grading companies....my knee jerk reaction is just to stick with PCGS as they tend to be the "best" as far as being reputable and graded coin value. I'd like to stick with just one grading company for the consistency in not only the grading standard (for the most part) but also in the visual appeal of the cases.

[barrytrot]

As far as grading companies....my knee jerk reaction is just to stick with PCGS as they tend to be the "best" as far as being reputable and graded coin value. I'd like to stick with just one grading company for the consistency in not only the grading standard (for the most part) but also in the visual appeal of the cases.

Yes, PCGS is the best.

But buying a coin in PCGS plastic has no bearing whatsoever on my 4 keys to making this an investment. In fact some dealers make a very comfortable living buying coins NOT in PCGS plastic and "crossing them to PCGS". And there are others that buy coins specifically in PCGS plastic and cross them to NGC and also make a good living.

The point: Learn the 4 keys I listed earlier and buy the best coin for the money regardless of the box it is currently in

NOTE: This is still based on your premise of buying for an investment.

[mflugher]

I recently read an article on coinflation regarding rare coin disinvestment by the baby boomer generation both through death, and through retirement (ie selling some of the collection for extra cash),

It might not be the best time to be buying coins (numi) for investment unless you plan to hold a very long time.

[barrytrot]

I recently read an article on coinflation regarding rare coin disinvestment by the baby boomer generation both through death, and through retirement (ie selling some of the collection for extra cash),

It might not be the best time to be buying coins (numi) for investment unless you plan to hold a very long time.

Or read another way: this is a great time to buy! I have no idea, but buying is always more fun than waiting Life is pretty short!

[mflugher]

Or read another way: this is a great time to buy! I have no idea, but buying is always more fun than waiting Life is pretty short!

Problem is they haven't really started dieing off in any appreciable numbers yet most are just now beginning retirement. Don't get me wrong numi coins are a good idea, for now though I'm out.

[Engineer]

Another aspect to consider on timing is the general state of the economy. Collectibles tend to go up in value during the bad times, and down during the good times.