Monday, September 23, 2013

Buying with the Right Mindset...Then You Wont Get Burnt!

Recently I came across few newbies in Numis family. Apparently they have been into this hobby just for a short while, say about 1 year ++.

However, most of these newbies, in my 2 cents worth opinion, were not really genuine collectors. In fact most of them were purely seasonal collectors, some were purely opportunists hoping to make fast cash.

Myself being a collector 1st, investor last, wish to pose these questions to those newbies.

Question 1:
What is the real intention of buying a particular numist item- For personal collection? For investment? For business purposes?

Question 2:
If you are buying for personal collection, how long are you willing to keep it in your collection? 20 years? 30 years?

Question 3:
If you are buying for investment purpose, have you considered the time frame required as well as the factors that will determine the rate of appreciation of the item?

Question 3
If you are buying for business purposes, are you able to resell easily or will it get your cash flow stuck?

One should be well aware that the route one has chosen will determine the strategies needed to acquire the item. It will also affect one's ability to collect in terms of knowledge and technique required prior to purchasing.

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