In my opinion, collectible coins and bullion coins (Silver and Gold) can have a place in your retirement strategy, if you want physical wealth that has to be managed. The collectible value is frequently much more than just collecting bullion (bulk precious metal).
For example, I like US Morgan Dollars, each one is one ounce of silver, which is US Currency and (at a minimum) worth the value of the base metal, silver. If you have highly graded coins, they will be worth much more then the value of the the silver. and It can be fun collecting an entire set (years and mintages) of Morgans, or just a few for your modest collection.
Higher grades command higher values. Morgan Dollar (1878-1921) Value – PCGS Price Guide , Comprehensive Grading Guide for U.S. Coins (from Amazon)
Another personal favorite of mine to collect are Silver Strike casino coins, which are a $10 casino chips with a silver center (about .6 ounce of silver). Collecting casino memorabilia is fun to me, since I have been to many of the casinos and enjoy displaying the strikes I have won/collected.
Most casinos are not using Silver Strike slot machines, as they are mechanical machines, making them harder to find. I frequently buy them on ebay and Amazon. You can also visit the Silver Strikers Club, which has the latest news on Silver Strikes.
Some coins have no silver or gold (or any precious metal) in them; They may only have collectible value. Some may have no value at all, making them good for jewelry or as a memento of your visit to a foreign country. If you have some bona fide collectibles, WONDERFUL! If not, well, hold on to them if you enjoy owning them. Your kids may find pleasure in owning Great grandad’s coins from his trip to Havana.
Another favorite of mine is the Silver Eagle (and Gold Eagle) US Coins. Each are 1 ounce of the base metal and are beautifully minted coins! Here again, I frequently buy them on ebay and Amazon. You may also find them at swap meets, flea markets, and yard sales. Coin dealers usually have many in stock, although they buy at wholesale and sell to you at retail. Learn values and grades, and soon you will become a shrewd buyer!
2016 silver and Gold Eagle coins, are available online from eBay and Amazon.
If you enjoy collecting coins, You will need a safe place to keep them. Some people keep them in a safe deposit box at their bank, others in a gun safe, if they have one. Thieves don’t like to run around with hundreds of pounds of metal coins – unless you have rare or extremely valuable coins, crooks may pass them by (or just take the shiny ones).
As a hedge on retirement, coins can be readily converted into cash. You can easily sell most coins to a dealer or on Ebay. Pawn shops will give you a better value on gold coins (usually smelt or base metal value) than on most jewelry. This means you can use your coins like a retirement plan, cashing them out over your anticipated retirement, or saving them as a reserve fund for unexpected bills.
You can give your coins to your heirs while you are still alive, sharing in your enjoyment and teaching the next generation about coin collecting. Why wait until the end? You can even get your children (and Grandchildren) coin collecting sets, and get them in the habit of looking at their pocket change, and putting old and potentially valuable coins in “flips”. I bought my grandson this collecting set on Amazon.
To recap:
- Coins can be part of your retirement strategy. (if you don’t like coins, consider a collectible that you will like).
- Consider the value of the coin, Base metal and collectible value.
- You will need to track your purchases and store your coins securely. Anticipate taxes.
- Coins can be readily exchanged for cash from multiple sources.
- You can pass them to your heirs without being deceased (or paying taxes, up to $14,000 in the US). (talk to your accountant).
- Most important – you can enjoy them while you are alive!
I can’t tell you what to do, but I can tell you what I do – a small portion of my retirement is in coins that I enjoy. some are listed above (Morgans, strikes, Silver Eagles, etc.) and some are pocket change and circulated coins that have a value – above face value – with the possibility of appreciation over time. I have a modest budget for my eclectic coin collection.
If you are seriously thinking about coin collecting as a retirement option, Talk to your financial advisor, attorney, and accountant – and guys like me – to determine if adding coins to your personal financial assets makes sense. Or you can just start collecting pocket change and the occasional coins you like. That is an easy way to start.
Consider all your options, and enjoy your retirement!
Niue coins also available on eBay – note the Star Wars coins! (link opens in new window)
