NEW MONEY

NEW MONEY

Posted by RareBird on Dec 17th 2017

Why coins? If you've been bitten by the coin/precious metals collecting bug then its easy, coins are a passion. They are a source of relaxation and stress relief. They are a way of exploring the history of the country from which they originated. The next two benefits are unintended consequences. Collecting is a painless means of saving and wealth preservation. 

How long will the hobby last?  Some are worried about the survival of the hobby.  I think you will find that the hobby is solid and will avoid the pitfalls that have befallen the hobby of stamp collecting, baseball cards and comic books.  Gold, silver platinum, palladium and rhodium are the touch stones of the hobby.  They bring people to the hobby that might otherwise never give the hobby a first look.  The precious metals may not stir the passion for history in everyone but a significant number will be hooked.  They may gravitate toward the old, the new or both.  There are many entrepreneurs, this includes foreign minting facilities and individuals, that are developing new products for you the new generation that will discover coins.


I will go a little off topic.  If you are a stock junkie I think this blends nicely with coins.  If you are not a "junkie" but would like to end your working career with more than you started with then coins will offer you diversification and help moderate portfolio volatility.  If you are young volatility is a good thing.  If you are older then less volatility is better.  If you don't know why you should like volatility then I would like to refer you to "The Only Investment Guide You Will Ever Need" by Andrew Tobias.  https://www.amazon.com/Only-Investment-Guide-Youll...

Precious metals should be part of any investment portfolio.  No I'm not an investment advisor or councilor.  The book that I referred to (above) I bought and read when I was a teenager (many times, over and over again).  I'm in my sixties now and have made enough mistakes to know how to proceed.  The talk I'm giving you is the same one I would have given myself (my sixteen year old self).  

Coins (and maybe crypto-currencies) serve as asset diversification options. Both may allow a stock portfolio to be immune from the bad behavior of economies and economic cycles. Economic cycles are accepted as necessary.  This is acceptable intellectually in academia and among the young who have time to recover from an economic down turn.  As our work lives wind down the economic cycle swings are intolerable for those without the resource of time.  So I can rationalize the purchase of precious metals, rare coins and crypto-currencies for the preservation of wealth. 

NONE of these monetary vehicles are for wealth creation.  MAKE YOUR MONEY DOING SOMETHING ELSE.  PRESERVE AND HOPEFULLY GAIN SOME CAPITAL APPRECIATION WITH THE VEHICLES DISCUSSED ABOVE.   Some may say "but I'm a stock broker" .  NO YOU ARE A SALESMAN OR WOMAN.  "But I trade for a major wall street firm or hedge fund".  NO YOU ARE EMPLOYED TO MANAGE A FIRMS CAPITOL.  "But I run money or I run my own money".  IF YOU ARE SUCCESSFUL AND THAT IS ALL THAT YOU DO TO EARN YOUR KEEP THEN MAYBE YOU CAN AND DO USE THE VEHICLES FOR WEALTH CREATION.  You would be the exception to the rule. 


Back to the topic of coins. New product? New coins minted by sovereign mints of Australia, Austria, China, Canada, South Africa... the list goes on and on.  Private individual are minting fantasy coins and pouring silver bars.  All can be collected and used to build a "stash" that has value.  Whats it going to cost you?  That will depend on how you want to approach it.  Coin roll hunting, metal detecting, garage sales, flea markets all offer a means of collecting on the cheap. It will all require work.  What else do you have to do between now and the time that they lower you into a hole in the ground.  Work.  Make it fun. The more you enjoy what you do the less "WORK" you will find yourself doing.  Let the game begin.    https://flipboard.com/@k1cook3/numismatic_me-kpm8... .