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 Replies: 21 / Views: 6,436 |
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Moderator
 United States
189603 Posts |
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You just never know when life will throw you a curveball and may be forced to sell a few coins or a collection. This is why I have a savings account.  It is also why it has taken me so long (23 years and counting) to fill my 7070.  |
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Pillar of the Community
United States
6130 Posts |
I like the shameless plug of "smart collectors go for certified coins, and like to get into bidding wars on MS-70 coins".
When it comes to selling your coins, marketing know-how is critical. For an example, about six months ago I bought a huge number of 1 pound lots of coins that each contained some nice, decently valuable individual coins. I kept the few valuable coins, added some lesser coins that I did not need, sold the lot as one huge 10lb lot, and made a profit while keeping some very nice coins for free.
Limited market is certainly a challenge. A few nights ago I backed out of a bidding war when the coin went over my budget for how much I wanted it. The seller sold a Japanese 1870 5 sen (a $300+ coin according to NGC) for $65. One I won with zero competition was a Japanese 1986 10,000 yen commemorative (.999 silver, catalog $165) for $102 shipped. I bid because that particular coin has a safety net in its face value--currently about $91.
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Pillar of the Community
Canada
5403 Posts |
An excellent article by Mr. Garrett. One thing that is true ...... Many available resources if you use them properly put a savvy collector on an almost equal playing field with a veteran coin dealer.
An accumulator will almost NEVER make money in coins. A numismatist who buys the best he or she can afford and specializes will over time do very well. The old adage of buy the best you can afford has never been more true.
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Bedrock of the Community
United States
20753 Posts |
I've given this some thought over the years. And I realize that in general, I'd never get what I think they are worth. I found this out with old cars. You think they are worth a lot but try to sell one for that. Just doesn't work that way.
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Pillar of the Community
United States
1629 Posts |
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Do you think about future liquidity when you purchase coins for your collection? Not really. I don't intend to sell my collection, and it will most likely go to my son who is a collector too, and has told me he intends to keep it intact. I know we never know what may happen in the future, but to me assembling the collection and enjoying it till my demise is value enough for me. Anything over and above that is just icing on the cake. If my son gets in the position he'd have to sell it, he doesn't have anything invested in it so even if he gets pennies on the dollar for everything he's ahead. |
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Moderator
United States
189603 Posts |
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I know we never know what may happen in the future, but to me assembling the collection and enjoying it till my demise is value enough for me. Well said.  |
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Pillar of the Community
United States
4085 Posts |
Quote:
As a matter of fact, the majority of serious collectors NGC customers probably have never owned a coin album. Collectors NGC customers now demand the security of third-party grading and store their collections in boxes. From NGC's perspective, I get it. But, remember, the "C" in NGC stands for corporation. It is in their interest as a corporation to push collecting in a certain direction. That's good for the corporation. This sounds more like a corporate branding piece than a impartial coin article to me. There IS value provided by these third party grading companies. You know what you are getting. I have a coin sitting in an NGC slab right now - but I think it's probably gonna get cracked and go in my Dansco. Why? Because that's what I like, am not looking to resell it and spend WAY less on coins than I could because I don't ever want to be forced to sell. As jbuck said, that's why you have a good savings cushion before you start buying too many coins. Buy slabs if you like slabs. Buy slabs if that's the best coin you can find for your price. And if you want to buy with the intent to sell someday. slabs probably are the way to go. I just don't think most people collect with the intent to resell. They collect because they like coins. |
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Moderator
United States
189603 Posts |
Well said, KenKat. |
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Valued Member
United States
406 Posts |
I do not plan to ever resell my collection, therefore I don't worry about resale value when purchasing coins. I hope to pass the collection down to the kids/grandkids someday for them to enjoy or sell as they see fit. Similar to what AcesKings said, the kids have $0 invested in my collection so whatever they get is pure profit.
I've got a savings cushion too, and I have other assets that I could and would sell off before my coin collection. But, I do think if I ever had a truly serious financial emergency and I had no other choice, I'd do what was needed to take care of my family. After all, to quote J.R.R. Tolkein, "He who cannot part with a treasure at need is in fetters."
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Pillar of the Community
United States
2850 Posts |
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Do you think about future liquidity when you purchase coins for your collection? Yes. I do this for both coins and paper money. Before I buy, I always make sure I'm getting the best prices and preferably lower than what they are currently selling for. By doing this, I've been able to sell off pieces of my collection to supplement other things. It's sort of like have a savings account, but in tangible form. As for long term, if I have family members who are interested in what I've put together, I will pass it along and keep it in the family. Otherwise, I'll sell it all before I'm too old. Just from reading the posts here over the years (not just this thread ) this contradicts with a lot of the views here on collecting. Perhaps it has something to do with me being a younger generation of collector (in my 20's) that has more access to buying AND selling at my fingertips for most of my lifetime or perhaps I learned this from my grandfather who was also a coin collector who mainly bought coins, but also sold his extras. Who knows. I suppose we all interpret the word collecting in a different way and have our own methods to our madness (or disaese  ) that we all share one way or another. Edited by WheatBack
05/27/2016 10:06 am
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New Member
United States
9 Posts |
Having been awoke from a long sabbatical leave, I read a majority of the commentators' responses here which did not surprised me. In fact, varying perspectives are quite refreshing. For me, I am an avid collector as well as an investor. I tend to purchase to fill in the collection for my children and in-the-future grandchildren (I better add an excerpt in my existing will as to who gets what). On the flip side, my tendency is to purchase silver/gold current (when the market is down) and highly graded old coins via reliable and trustworthy auction sites i.e. Auction Zip.com. I also use ebay because if I time it right (less bidders), I can get a good deal below the market price like I did last night. But doing research is critical such as who the seller (independent, company, or auctioneers) otherwise it is a wasted money if you are going to treat it as hobby/investment. If ever I plan to sell in the future, ebay is not the way. |
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Bedrock of the Community
United States
17884 Posts |
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Do you think about future liquidity when you purchase coins for your collection? Nope, just about current liquidity, do I have the liquidity to be able to buy it. What it will sell for in the future and how easily it can be sold do not enter into the picture. |
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Pillar of the Community
United States
2023 Posts |
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Do you think about future liquidity when you purchase coins for your collection? Absolutely. I'm not going to live forever and have no heirs interested in the hobby, so whoever gets my stuff had better get some value out of my collection (and know what to do with it). I've spent too much for this value to just disappear. I don't expect any of it to make a profit but ease of resale definitely comes into the picture, at least for the higher value items. Since I have limited storage space, I also need to be able to sell pieces that I'm upgrading, so I can get some experience unloading them and explain the process to whoever ends up managing my estate. |
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Moderator
United States
189603 Posts |
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Nope, just about current liquidity, do I have the liquidity to be able to buy it. What it will sell for in the future and how easily it can be sold do not enter into the picture. Same for me. |
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New Member
United States
9 Posts |
I agree with Alpha2814 in seeing how to go about selling a small portion to have better understanding of gaining liquidity value. . I will have a written explanation if my wife or children need to understand how to go about the liquidity aspect.
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Replies: 21 / Views: 6,436 |
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Posted 05/26/2016 10:24 am
