My #1
Worst Coin Investment - TV Shopping Show Dealers and "Mints"
Number One on my list is the TV shopping show dealers and
premium "Mints" out there that sell nice looking commemorative coins
for premium prices, but that have no value beyond their bullion (if they have
any) when you must eventually sell them. Some of these "Mints" sell
on the TV and cable-based shopping channels, and the prices they charge when
they do sell genuine U.S. Mint coins are nearly always several times higher
than the price the coins would cost from a normal coin dealer!
These shows rarely sell anything that can't be acquired
elsewhere more cheaply, so don't impulse buy from these shows! Do a little
research and you'll see the same Silver Eagles at $2 to $4 over spot price from
major traditional coin dealers.
Most of the Uncirculated Morgan Dollars I've seen TV
shopping show dealers sell for $300 each can be purchased from a normal coin
dealer for $40. Never buy coins from TV shopping shows!
Tip: Don't miss my special warning about Obama coins!
My #2
Worst Coin Investment - National Collector's Mint
Number Two on my personal "do not buy" list are coins
issued by the National Collector's Mint. The U.S. Mint has issued warnings
about this company's misleading advertisements in the past, particularly
its "Freedom Tower" coins. National Collector's Mint ads imply
that Freedom Tower and other coins have meaningful amounts of precious metal in
them when they do not. In addition, despite the perception they often give to the
contrary, nothing this "mint" makes has any association whatsoever
with the genuine U.S. Mint, and it is my opinion that the coins they sell are,
and will remain, virtually worthless as an investment collectible.
My #3
Worst Coin Investment - Franklin Mint & Kin
Number Three on my list of "do not buy" coins is those
from the Franklin Mint and other premium collectibles mints (such as the
Bradford Exchange, etc.) They are aggressive marketers who do sell genuine
bullion coins (sometimes) but their coins usually do not have any after-market
value among coin collectors and investors.
You'll typically pay $45 plus for a one ounce silver coin that
is only worth the value of its silver bullion when you go to sell it. (Silver
bullion is at about $11 an ounce as I write this.) Beware of crap like the
Franklin Mint's colorized Obama coins!
My #4
Worst Coin Investment - Spurious Sets
Another bad investment type are "spurious set" coins.
This is another popular TV shopping show product, plus they're found in
magazines and swap meets quite often. "Spurious sets," by my
definition, are sets that are put together out of lower grade and/or common
coins according to some kind of theme.
The coins are usually placed in fancy plastic holders, with nice
quality packaging, and then you pay $38.99 for a set of five coins that are
worth $2.99 just because they were all minted during World War II, or the
Vietnam War, or because they're from around the world and commemorate Marilyn
Monroe or some sort of cartoon character.
Such coins are usually genuine, and will probably appreciate in
value, but they probably won't be worth what you paid for them anytime during
the next five generations! These are a favorite of dealers like Littleton.
My #5
Worst Coin Investment - Coins With Crap on Them
The final type of coin
among my top five worst coin investments are modified coins, such as genuine
U.S. Mint products that have been altered by adding holographic stickers or
coloring. These coins are generally considered "damaged" by serious
coin collectors, and you will only get the bullion value when you go to sell
them, if that. I have heard of dealers discounting them because of the added
impurities that the paint and other crap applied to the coins adds to the
metal.
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