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 Replies: 11 / Views: 2,646 |
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Pillar of the Community
United States
2207 Posts |
Every now and then I see about a coin that was won at auction for hundreds of thousands of dollars, or even millions.
I think, who are these people who have that kind of money to spend on coins?
Indeed, who are they? Why do they buy these coins? Why or how did they decide to make these purchases? Are they doing it as an investment or for the fun of owning an ultra-rare coin? And how did they acquire the means to buy these coins?
The most I've ever even considering spending on a coin was about $200.
Anyone have insights out there? Thanks. Edited by jpsned
09/06/2015 09:15 am
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Pillar of the Community
 United States
5828 Posts |
Let's re-phrase that:
Lets say a legit ultra rare 1804 dollar in a legit pcgs slab (say, MS-62). The guy offers you $200. You'd obviously accept the offer, but why? So you could quickly flip it for MUCH more than it's worth, or so you could own a priceless example of a legendary coin? I think most people would chose the latter.
Edited by ChildOfTheWheat
09/06/2015 09:31 am
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Pillar of the Community
Canada
1118 Posts |
King Farouk had an amazing coin collection. His government was awful corrupt and he was quite the hedonist. I think he did it not for the enjoyment or the investment but rather as a "look what I have!" mentality.
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Pillar of the Community
United States
7390 Posts |
Bob Simpson is my hero. He's a Texas oil guy and Co owner of the Texas Rangers. Here is a story with why he bought a million dollar 43 copper cent  What you have to understand is people with billions of dollars at their disposal spending a million on a coin is like buying a pack of gum from a vending machine http://www.coinweek.com/people-in-t...-collection/ |
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Bedrock of the Community
United States
17884 Posts |
There are a fair number of people that have annual incomes in the 8 or 9 figures. If they happen to be a collector, buying a 6 or 7 figure coin isn't much of a stretch. My highest purchase was 10% of my annual income, so I could easily see someone with a $10M annual income buying a $1M coin.
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Pillar of the Community
United States
757 Posts |
Another thing to consider is with the crazy tax laws out there, sometimes you have to spend money even if it seems crazy to other people. With a good accountant and team of lawyers million dollar purchases become tax right offs. When you see people spend 50-100+ million on a painting, they hang it in their lobby to get a good tax break and still have the money. Just in a different non taxable form. If you really want your mind blown talk to an account and ask them what can be written off. Just for a small example my car payment all the gas, tolls, insurance, and miles I put on the vehicle get written of at the end of the year. While it's not a million plus dollars it adds up. I've even been able to write off a shotgun and pistol on my taxes because they are for security.
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Bedrock of the Community
United States
20753 Posts |
I wouldn't bother with such large valued coins even if I had millions of dollars to spend. I just like to complete Albums. Regardless of what coins are needed, just want a complete set. If I had an Album that needed a rare coin, I might consider one but almost none of my Albums have a space for such coins. And too I'm more of a simple, full set of one type rather than having something that needs a body guard just to show. I really just can't see having such expensive items. For example I do have lots of oil paintings on all the walls in my house. I highly doubt that all of them together are worth what some have invested in just one. With coins I'd just rather have something like my all FSB Mercury dime Album. Same with something like an all Red Indian Head cent Album. Maybe I'd be different if I did have millions of dollars but I doubt it. |
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Pillar of the Community
United States
1132 Posts |
With the proper funds I would like to build a walk in bank-style vault so that my coins could be displayed in the open (framed on walls, in glass cases w/o locks etc). A nice relaxing (safe) environment to gawk & display to my hearts content. I have a principle that once your coins exceed the cost of the safe....It's time to get a new safe. That being said, If I were a billionaire I would build a Vault complex that would make the ANA money-museum look "cute". |
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Pillar of the Community
United States
7390 Posts |
I can see it now CopperCastle  |
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Pillar of the Community
United Kingdom
2624 Posts |
I have had dealings with the top 1% of the top 1% (in a professional capacity) and they are a different breed. Many of these people have done everything, seen everything and most are quite pathetic in a number of ways. Always having everything they want with no need to work for it and not having any focus or anything to work towards could be a curse as well as a blessing. There is a kind of boredom to many of them, nothing has much meaning or significance in their life, they are just looking to fill their time with mindless pursuits like going from casino to casino throwing money around.
It's different with a self made millionaire/business tycoon but for instance the Arabs born with an oil well in the family can know no value to money. They have the mindset that they are entitled to the best and as such want what others cannot have.
If I had millions my collection wouldn't change too much, I would get a few rare and high end gaps filled but I think I would probably switch my attention to collecting cars and watches - things that I couldn't afford to collect at the moment but am interested in.
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New Member
Indonesia
8 Posts |
I think its one of investment method, like a domain name or stamps
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Valued Member
United States
336 Posts |
@ Conder101
I could see myself spending 10% of my income on a single coin as well. Came pretty close to that about three years ago. If I hadn't made a cash deal with the dealer, it probably would have been 10%
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Replies: 11 / Views: 2,646 |
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Posted 09/06/2015 09:14 am
