Baldwins new list

[jaggy 528]

3 hours ago, Rob said:

Frankly, that's just a bad case of 'An idiot and their money are soon parted'. An annual return of 16% means a coin would have to appreciate by at least 40% on typical hammer prices in the first year just to cover costs. 20% commission to buy at auction, the investment company's annual charge - say 4%, plus the 16% promised return. They might have assumed that they would purchase privately at typical hammer prices, but the material simply isn't available to buy. A fundamental part of investments is liquidity, which has never been a feature of coins. When something can be off the market for a hundred years, who is going to invest in it? When a coin changes hands too frequently it usually raises the question as to what is wrong with it.

Although coins are clearly an asset, liquidity issues mean they can only ever be peripheral investments.

In September the BBC is going to have 'investment coins' as the target for one of its 'Rip-off Britain' programmes. GeoffT is on it giving a collector's viewpoint. I was asked to give a dealer's view, but declined on the grounds that the programme title did not offer the possibility of a balanced argument. Whilst I felt that there were undoubtedly companies pushing material of questionable investment quality, the most important issue was that of caveat emptor, which in today's nanny state mentality is increasingly legislated to irrelevance. It never ceases to amaze me that people will spend thousands on something they know nothing about, yet would insist on taking a potential new car for a drive, or would ensure that the new carpet or curtains matched the existing decor.

People need to be held more accountable for their own actions rather than going down the no-win, no-fee route, which absolves the consumer of any responsibility.

Just a comment on your excellent post .........

Any investment company that offers a "promised return" is lying through their teeth. It simply isn't possible unless they are illegally manipulating the market or involved in a Madoff type scheme. The best they can do is to demonstrate a range of possible returns based on previous performance but with the caveat that this is not an indicator of future returns. 

As we used to say .... if it sounds too good to be true then it probably is.

[azda 979]

I remember reading about another "investment" coin company in Australia from last year' coin news, someone was suing them because they have paid out quite an amount for a coin and was told it would increase in value of a period of time. It seems when this person came to collect the value had decreased by a considerable amount, so they started a legal process to recoup........

It seems investment companies aren't so wise after all when it comes to coins........I wonder if Baldwins are taking note of this, London coins does something similar?

[Leo 91]

Quote

I wonder if Baldwins are taking note of this, London coins does something similar?

Probably not the same though

http://www.londoncoins.co.uk/?page=InvestSafeHavenFive

[azda 979]

Not sure if this is going to be visible as it's a pdf but it was the list of investment coins that Stanley Gibbons produced

Stanley Gibbons EnglishCoin200 Index DEC2014.pdf

[Leo 91]

Like you said, not for the fainthearted 

[copper123 1,504]

Personally I would value that 1844 farthing at around £700 you would struggle to get £500 off a dealer though

[alfnail 849]

Thanks for your views on my farthing. I think I may be sorely tempted to part with it for that price as I only really collect Victorian pennies. I just keep one high grade piece for all other denominations and monarchs from George III to Elizabeth II, but guess I could find another high grade more common Victorian farthing to fit the bill. Hhmmm

[copper123 1,504]

If you want to sell quickly CCC are your best bet .

They would probably give you a free 1853 WWR copper farthing in similar grade  for the chance to buy your farthing