Are Coins a Good Investment?
This is a question I have been asked a lot over the years. With the advertising that is seen in almost every medium, you would think the answer would be a resounding, Yes!
My answer is a qualified, maybe!
Under the right circumstances and with the satisfactory background and information, they can be. I have made several over the years and quite honestly by accident in many cases.
There are several points I can make for both sides of the issues. In this article, I will talk about the Don’ts, next time, the Do’s.
- Don’t buy anything on any advertised recommendation! The people making these claims have an inventory to sell and that is the whole story. Think about it. If the material they are hawking was so good, why wouldn’t they keep it for themselves and sell it later? Most of the major ads you see are boiler room operations that sell over-graded over-priced garbage that usually isn’t worth anything to begin with, and sometimes with big well known names attached. Sorry to mince words.
- Don’t buy basis Uncle Charlie’s ideas, unless he is an expert in his field. People like to be helpful and with only a little knowledge can be deadly.
- Don’t buy anything that is Hot! If everyone wants it that badly, it is at its current peak and totally over priced. This is true in the stock market also. Sure, there may be a little more room before the price drops, but who cares. If you really want it, wait for that drop. Remember just as with everything else in life, stocks, bonds, houses, everything, prices go up and prices go down. You can be at any point on that movement. In very few cases will the price always climb, and I guarantee you it won’t be what you buy.
- Don’t buy something you know nothing about! Believe me I know about this one. Buy a lottery ticket instead.
- Don’t buy anything with a guaranteed financial return on investment! When you return the seller will not be there, guaranteed.
Enough for now. If I haven’t scared you away (which is not a bad thing, money is hard to come by in most cases, and there is always someone trying to part you from it), I will do some Do’s next time.
Yours in numismatics,