Old Pueblo Coin – Tucson, AZ

The Coin Geek

When spending is saving and saving is spending

Americans love to spend money. We also love to save money. But these two things, saving and spending, cross paths in a very special way when it comes to coin collecting and tangible assets.

Have you ever had your spouse say to you ”I saved money” as they spent $150 at the department store? This type of saving is really spending. They saved money based on the mystical and mythical “MSRP”. ¬†They spent less money then the original sale price. But they spent money on items that will likely be useless or at best donated to Good Will (which is recommended for old clothes).

Compare that to buying coins, or silver or gold or other commodities. When you do this you spend money, but you are really saving money. In other words you have a store of value for the future. This bit of wisdom came from a customer who was selling coins for a sick friend. The friend had a group of proof sets and mint sets with Silver Eagles…a typical mix of coins we see daily. Ten years ago she was thinking about selling them but she told her friend to save them. Why? Because she was a collector? No, because she knew her friend would simply spend the money and she would not have that money saved up for the future. If she keeps her coins together, then she will have that store of value.

The main point here, really is to save money for a rainy day. The specifics are that if you can put it into a physical asset, it will help you stop yourself from spending the money on other things, which is a huge temptation if you simply have it in a savings account or bank account somewhere.

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