Like most dealers, my friend had little respect for the talents of outside coin speculators. “Very few of them really make worthwhile money,” he confided. “Their timing is nearly always bad; they buy when they should be selling and sell when they should be buying.” “Precisely,” I agreed, “it is the same on Wall Street with stocks and on LaSalle Street in commodities.” It is part of the lore of Wall Street that the really big money is made by those who can recognize the primary trend of a stock and then stay with it as long as that trend continues. I firmly believe this to be true, even though I have at times made my living as a professional trader. In sum, most of the stock market losses are racked up by short—term traders and speculators—and so it is with the coin market. Those who have accumulated and held quality coins for a reasonable time have enjoyed, for that part of their capital, corn-suffers most of the burns) in any auction market. He is the primary cause of the cyclical nature of markets. Obviously the coin market is difficult to characterize as a whole.
To be successful, a coin investor must develop more than a passing interest in numismatics, and numismatics can be much more enjoyable if you know you are acquiring a profitable investment at the same time. But if you are a speculator in coins, you will need a lot of luck—even if you are also a dealer. If gold coins are a hedge against currency devaluation because of their intrinsic value (which they are) and if gold coins have numismatic value that derives from their scarcity, history, and beauty (which they have), then an ideal approach to collecting would be one that combines these values. That is the program of collecting that the author basically recommends. The balance between these two values should be based generally on the amount of money invested.