Wednesday, May 23, 2018

Investments

After having lost so much on coins in my last impulsive investment in several hundred dollars in coins, I have set a bit of guidelines.   These guidelines do not stop me from making investments nor even impulsive investments, but they really limit how I purchase them.    The last hunk of coins I purchased was not a bad investment, but I didn't do it properly and it left me with little wiggle room, which I believe was not a wise decision.  The new guidelines I set help to ensure that I will indeed make profit from what I am purchasing and that the expense to profit margin needs to be much greater.  

This week I have taken to several more investments.  I try to keep an eye out for good deals and will sometimes bid on them on eBay - keeping to the new guidelines.   I usually do not win the auctions, as I am not willing to pay that much anymore.    However I have won some recently.   Most are coins, but not all.    The one lot that I purchased was a lot of Krispy Kreme fundraiser certificates, each for 1 dozen original glazed donuts.   1 dozen Original Glazed donuts at Krispy Kremes costs $7.99.   I purchased the certificates for $2.87 apiece.  I plan to sell them for $4-$5 each (they sell for about that on eBay - though I will also try to sell them on Craigslist and Facebook so I don't have to pay eBay's fees).  

I also invested into bulk quantities of the old, large, Eisenhower (IKE) Silver Dollars (not silver - silver is just a name referencing the size of the coin).   Though they only have a face vale of $1.00, they generally sell between $1.30 and $2.00 each - generally closer to the $1.30 when buying in large quantities and sometimes closer to the $2.00 mark when buying in small quantities.  I was able to purchase a large quantities, some for $1.26 each and others for $1.22 each.   Yes it may appear that this expense to profit margin is small, could be as low as 4-8 cents per coin, and that is true.  However when sold in large quantities, such as what I purchased, it can be easy to make 20, 40, 60 plus dollars profit.   I also saw this as a great buy because I know from experience that I can sell these.  In the past I have sold lots of 100 IKE Dollars for $1.30 per coin on Craigslist, so I have little doubt that I can do that again.    

We shall see about these investments.   One goal I have with them, is as a second or third (if I get a second job) source of income on the side to help fund my car.   

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