A Collector's Dilemma

I try to collect from Circulation as far as my foreign coins go. I do travel extensively so its not hard for me to find local coins from different countries. I would not however be inclined to pay the premiums for Vatican or other sets unless I saw a profit potential later on down the road. then they would not be for my collect but rather a means to add funding for my collecting habit.

I mainly collect bullion coins which tend to be issued by large mints in a handful of countries.

I keep loose change from the foreign countries I visit but I don't really collect circulation coins with the exception pf pre-decimal British coins. There's something special to me about having currency from the Victorian age. It was a very different time.

I just don't know if the coin market works like that. People collect as much for sentiment and liking the coins as because those coins are from the country they were born in. Otherwise nobody would collect ancient coins any more, would they?

And the value of a coin is often not at all related to how rare it is, but the number of people who want one.

nalaberong mentions mintages of 18,780, or 500,000. But I have coins of which under 10 examples are know to now exist. Yes. Less than 10.

And if you could find an example to buy? It might well cost you less than the $1000 also mentioned. Why? Because there are fewer collectors for those sorts of coins and most who want one have one.

Other coins that are common enough they you can pretty much always find a few for sale somewhere, but which were produced at a time of political turmoil ... you'd find it hard to get one for under $1000 and probably need double or triple that.

And yet these coins could probably be considered cheap by US standards. Certainly for the American equivalent and assuming you could find a US coin that was 360 years old in the first place!

As BamaBlue says, depends whether you're collecting or investing. And if collecting, why? Is it the history? The art and design of the coins? What they mean to you?

For me, modern coins hold little interest. If I pick them up when travelling and they are attractive, I'll keep them. But the coins I collect I don't collect for their scarcity/mintage/exclusivity, value or the metal they are made from. I collect because I like them and they are from an interesting period in history and because 300 years later I used to spend similar coins (at least in terms of the face value!) myself. I like that feeling of ... connection to the people who once handled the coins I now look after.

I agree with Tom. It's all about demand. In the world of Roman Provincials I have many coins that are unique - yes really, only one known, but the value is not that high - because the demand just isn't there.

I go along with the idea of Bama and what most of you mention on 'buying what you love'. However, it may be good to think of some resale strategy as well. Otherwise you may end up with cardboard boxes full of ciruclation coins by the time you retire... and being offered only a scrap metal price when you'll need to sell.
As for me, my expensive fancy for 18th century coins of the Austrian Netherlands (& Austrian empire) will make this cardboard box scenario rather unlikey.

I collect ALL coins that were intended to be circulated, ancient to modern, up to about 1950, all cultures. Have done so for about 30 years.

Three points:
Coins of small nations e.g Vatican, although can be circulated are usually made for collectors. Consequently, the most common grade they are found in is uncirculated.

Coins of nations with a large collector base, and have issued lots of coins for circulation e.g. the U.S. or G.B., have coins that are more valued in high condition, relative to low grade coins, than happens with coins of the Vatican.

Coins of small nations e.g. Pacific Island countries, only need to issue a small number of coins for their needs. Although some of these coins attract the interest of a few collectors, the size of the collector base for these is relatively tiny, and so the price of these coins in the collector market is low, despite the relatively tiny mintages.

An over arching approach to this situation is to just appreciate the forces and pricing that rule in the numismatic market place. If you are thinking of buying or selling a particular coin, consider where it sits in the numismatic market first.

I was thinking about how to answer this when I took another look at
Gwyde's topic description: "A collector's dilemma."

Ideally, a collector would only collect what he or she likes. But inside each one of us,
[be HONEST!] lies the heart of a business person: sell for a profit.

For myself, after many years of collecting, I have reached the decision
to buy coins which grab my eye and have the best potential to HOLD their value over the years.

A coin that I bought in December of 2012 is wanted by a dealer for his own collection and, if I wanted/needed to sell
I would recoup my original purchase price. That is what I mean by holding value. And in the meantime
I have the pleasure of guarding a US Dollar that is 214 years old.

I have two, 100 Lira coins from 1962 Vatican City - The Second Vatican Council. Both were brought home to the States
by family. I doubt that they were bought. Mintage was 1,566,000. A lot?
Well, this was a very newsworthy event which I remember. The world was glued to the media
for news. From the Council came many revolutionary changes in the Roman Catholic Church.
The coins means something to me.

Now, would I buy the same coin today? No.
Would I sell/trade the extra? Yes, and NOT for $14 USD which is the going price on ebay.
I'd do it for less. Just to make a collector happy.

And after all, if coins do not make you happy it is time to find another hobby.