Questions About Buying And Reselling Graded Coins

Generally most modern rarities have lost value in recent years. For example, I sold my NGC MS 69 PL 2009 Double Eagle coins for a bit more than $3000 a piece within a year of them being issued. The greysheet price as of today (i literally received the greysheet quoting it today lol) has now fallen to $2250. Any rare modern coin issued last year is likely to see a drop in price within the next year or two.

A more stable market that generally follows inflation are classic key coins in high grades, like the 1909S VDB, and rare classic morgans in high grades. But even then prices can fall dramatically. After the 2008 recession, prices fell on most coins simply because demand fell as people had less money to spend on the hobby.

Great to hear for you NathanASE. I have read your opinions on this topic and I agree about nothing is perfect. The thing I am considering is that the difference in resale is in the label. A grade 70 will always sell for more than a 69. I don't dispute the over-grading for a profit in todays market. This is why I also asked if one would rather just buy multiples of a mint collectible. I have noticed that the first or last of it's kind or the lowest minted varieties. will sell for a premium in the future.

XavierOfGreen I have been looking up the PCGS page that shows the price changes in coin values over the last week to 5 years. I am aware that I shouldn't expect to get rich from coins. I am wondering if in the future will the example of the 2013 enhanced and reverse mint set w/box and CoA increase in value at the same pace as just an enhanced proof grade 70. Another example I have been thinking about is how you can buy mint issue ASE proofs ($53 for this years) to invest in an IRA. I could also buy a grade 70 Proof 2014 ASE for $90 and keep in a safe at home. Which one will have a greater return on investment? I know there is no way to know for sure but these are the kind of things that I think about and knew I could ask this community and get a lot of opinions on the topic.

And you still want to invest in novelty bullion?

If any of us actually knew the answer to questions like that we would all be rich. We aren't. And if you do get a lot of answers they will be running off in all different directions and you still won't know which one is the "right" answer until years from now when you can look back and say "I should have taken HIS answer!"

The problem is it is always a question of timing. Buy at the right time AND sell at the right time you do well. Buy OR sell at the wrong time and you don't do as well or you lose your shirt.

Take the 1999 silver proof set, first year of the State Quarters. From the Mint they were $32. Today they are a little over $100. Doesn't sound bad and it isn't. That's a 9% per year return on investment with inflation running at 3%. But here is where timing comes in. If you had sold them in 2005 you would have gotten $300, an over 27% per annum ROI. And what about the people who saw that 27% return and BOUGHT those sets in 2005? They've seen a -12% ROI on top of the 3% inflation or a -15% per annum ROI over the past 6 years. When it comes to moderns their history has pretty much been bad for investors (People who buy and hold for a long time) and very good for speculators (People who buy a bunch and flip them right away as prices go crazy) but once the flipping bubble ends most moderns either stay stagnant or start dropping, neither of which is good for the investor. (It's OK for the flipper who's still holding, as long as he gets out of the item before time value of money starts eating away at his return.)

Well that's MY opinion for what it is worth.

Conder101 Thanks for the insight. I see that buying and holding for the long term could be less profitable than flipping. I am guessing this is what some dealers try to do. Flipping has to work on the new comers to the hobby like me who realize they were late to the party and try to make for it. I think I was lucky enough to know about the HOF coins and bought multiple coins. I was struck buy the design and I thought I could hedge my purchase buy getting 1 to keep and 2 to sell in the future. Time will tell if I at least break even. I wouldn't sell them now, they are to cool. The only thing they are missing is a Yankees logo.

I am also curious if the seller of these high priced graded ASE coins are actually selling any.

I am still scattered as to what coins I will decide to collect. I CRH all US coins and looking at US mint silver sets. I really like the silver proof state and ATB Quarters.

Thanks for the input everyone.

NathanASE - mirrors my opinion as well. An investment coin (if there is truly one) should be a single coin with a very high collector interest rate, a very low population, in the highest grade you can afford, held for a minimum of 10-20 years.