| Author |
 Replies: 21 / Views: 6,414 |
|
Pillar of the Community
United States
3843 Posts |
Buying and Selling Coins - Understanding Market Liquidity https://www.NGCcoin.com/news/article/5317/Thought that this article was interesting. Do you think about future liquidity when you purchase coins for your collection? Personally I try to keep the future resale value of the coin/series in mind when I'm shopping for additions to my collection although it is not the main factor in my purchases. I also try to avoid problem coins and try to purchase coins with better than average eye appeal and originality since I believe that is what future collectors will value. *** Edited by Staff - Link changed to original source. *** |
|
|
|
Moderator
 United States
34397 Posts |
Yes interesting article. When you are in your accumulating stage, it can be hard to think about the liquidation aspect.
"If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
|
|
Pillar of the Community
United States
992 Posts |
Having fewer coins, but better ones, is never a bad idea. Same for any collectible.
|
|
Pillar of the Community
Russian Federation
5172 Posts |
Quote:
Having fewer coins, but better ones, is never a bad idea. Same for any collectible. I understand that, but it's so much easier to buy 100 coins for $1 each than one coin for $50... (It doesn't help that, with the $50 coin, there's a lot more chance that it's fake; the very cheap coins are much less likely to be fake, because beyond a certain point it's just not worth it.) |
|
CCF Advertiser
United States
1533 Posts |
The $500 coin can be sold for $450. The $100 coin for $75. The $1 coin for 10c.
|
|
Moderator
United States
188052 Posts |
Quote:
Do you think about future liquidity when you purchase coins for your collection? No. |
|
Pillar of the Community
United States
2130 Posts |
I rarely ever buy a coin with the intent to flip it and try to make a buck. However, when I am searching and picking just the right coin for my collection I do indeed think about the long term resell value. You just never know when life will throw you a curveball and may be forced to sell a few coins or a collection. The longer I collect the more selective I get. This is a sign of maturity among collectors in my opinion. The Internet has had a huge impact on the coin market. Lots of options for most coins out there. Long term you will have lots of people wanting that good eye appeal problem free coin over a slabbed details coin.
|
|
Moderator
United States
188052 Posts |
Quote:
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.  |
|
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.
|
|
Pillar of the Community
Canada
5394 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.
|
|
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.
|
|
Pillar of the Community
United States
1627 Posts |
Quote:
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. |
|
Moderator
United States
188052 Posts |
Quote:
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.  |
|
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. |
|
Moderator
United States
188052 Posts |
Well said, KenKat. |
|
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."
|
| |
Replies: 21 / Views: 6,414 |
Posted 05/25/2016 11:56 pm
