Vintage gold coins as short term profit?

Horrible idea.

I just wrote about a 1948 silver 5 pesos I got.

2006 it was worth $12.00

2011 it was worth $42.00

2012 it is worth $26.00

As a long term investment I did good but trying to buy and sell it every few months would be a waste of time and possible loss.

These are a horrible short-term investment choice.

First, there is a spread between buy and sell prices. That puts you down about 8% right there. Next, the premium over the spot gold price goes up and down. So gold can go up and the value of classic gold coins can go down at the same time.

If you are considering these because you think the price of gold will go up, just buy one ounce American Gold Eagle coins instead. They have the smallest buy-sell spread and they will move exactly with the price of gold.

As a long-term investment, it might make sense to watch for times when the premium over gold content is low, then hold until that premium goes up and the price of gold goes up. That way you might make a bigger profit than you would have by investing in gold directly.

It's only a good short term investment if you can get it at a discount price. Between collectors who know what it is actually worth and people with too much money and nowhere to put it that overpay for "investments" that isn't very likely.

They are only going to be worth more than gold value if the mintage quantities are comparatively low. Otherwise they are just worth the gold value and 50 years isn't very long in the life of a gold coin.

short term is too unpredictable. If you bought looking to make a short term profit and the market went against you, then now you have to own those coins for a long time to wait for them to come back up in price or you have to sell them at a loss if you need the money. I would only do it long term.

That would only work

1. If gold & coins keeps appreciating

2. If you don't overpay (novice collectors frequently overpay)

3. If you can find a buyer

You can make a small fortune or you can lose a small fortune.

There is still a lot of potential for gold to go up as long as Obama keeps spending trillions of dollars we don't have. It makes precious metals ever more desirable. The Primary value is in the metal itself though.

No you have to hold them and then you should see groth but not short term