Well-known talk show financial advisor Dave Ramsey has called gold a rock. He doesn’t have a high opinion of it as an investment. Ramsey has admitted his passion is automobiles. Ours is coins. These are our passion, otherwise why are we investing our time, effort and our money in them? Coins are non-income-generating assets, but they have emotional appeal.
This is why I always emphasize that people collect coins for enjoyment first, putting the profit motive second. The person who collects them first tends to have a better understanding of what he is acquiring than does the person motivated primarily by profit.
Many profit-driven coin buyers enter the market because they see the grass being greener on the other side of the proverbial fence.
The current coin market is comprised primarily of collectors. Commodities, be they collectible or consumable, are not currently in vogue among investors.
Most coin prices remain at lower levels than where they stood two or three years ago due to this decrease in demand, accompanied by a lower price for their intrinsic content. This is where collectors have an advantage over the investment buyer. Collectors are still collecting right now, despite the low prices. Once these prices begin to rise the investor will jump back in. Look at who is purchasing at the low end of the market cycle! This is why the collector has a better opportunity to profit in the long run.
This article was originally printed in Numismatic News Express. >> Subscribe today
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