The risk of investing in coins. Guide to buyers !!!!!!!

FIrst of all let me start by saying I invest in coins and have for many years, and have developed ways to handle all different kinds of markets to balance my differenct investments. Alot of people dont realize that coins can be invested in many different ways: Short-term, Long-term, Band-Wagon and run(hit them while they are hot, then get out), and rare coins, bulk bullion, ALL kinds.......... But the key is to know your goal for each one and not get greedy. Alot of new collectors that want to think they are investing get wrapped up in this... They don't know alot about coins per say, but they know what is HOT because they read Coin Values this month... Don't worry though, EVERYONE was there at one time, it is part of the learning process.. Where you want to be though is the person that had those coins before they got hot :)
Sorry for rambling.. I am writing this guide to help newer coin guru's think about the investment part of coins before they lose money, and I hope it helps a little!
All investments entail risks. While coin collecting is a rewarding hobby and is sometimes financially profitable, anyone purchasing coins with the expectation that they may be a good investment should understand and be prepared for the risks inherent in such investments.
Counterfeit and altered coins are not ungemon. Various techniques have been used to produce counterfeits. Some are deceptively realistic. gemon coins have been altered to appear to be valuable collector coins, e.g. by adding a mintmark. Coins certified by one of the major grading and authentication services (see Slabs) offer a high degree of certainty for authenticity. In the absence of reliable independent authentication, the purchaser should know the diagnostics of genuine specimens of the coin and counterfeits.
Coin values often vary markedly with grade. The buyer must know if the coin is reasonably graded or has any problems, such as cleaning, to determine if the seller's price is fair. The risk of overgraded and problem coins is reduced with certified coins and bullion coins. However, the grade assigned by the certification service is only an opinion, and it is not ungemon to find certified coins which, in the opinions of other experts, are overgraded.
While markets for all gemodities rise and fall, precious metal and coin prices can be particularly volatile. This volatility creates both opportunities for sizable returns and for dramatic losses. For example, in 1980 the price of gold peaked at more than $800 per ounce and the price of silver at more than $50 per ounce, approximately double and eight times, respectively, what they are today.
Also to be considered are buy/sell spreads and liquidity. Higher value rare coins are often sold at auction. It may take several weeks or months from contacting the auctioneer to receiving payment (less auctioneer's gemission). Coins can be purchased from or sold to a dealer much faster. The difference between dealer buy and sell prices can be substantially higher than the gemissions charged by brokers for other types of investments. Therefore, a larger appreciation often must occur before coins can be sold at a profit.
Yet another risk is the possibility of material loss, such as by theft or fire. Storage in a bank vault or home safe may reduce (but not eliminate) this risk, but the added expense of such storage again increases the appreciation necessary before the coin(s) can be sold at a profit.
Because the risks of investing in coins are higher than for many other types of investments, they are not suitable at all for many investors. Even for those investors willing to accept higher risks in exchange for possibly greater returns, at most only a modest fraction of the portfolio (perhaps 5 to 15%) would be regemended by many investment advisors.
These ar just a few things to think about, and I hope they help in your decision!
TIll Then..............