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 Replies: 67 / Views: 7,899 |
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Pillar of the Community
United States
533 Posts |
So I am working on my buying strategy for the next few years. Not that I won't also buy something that strikes my fancy but I decided since I really like Morgan's I would focus on collecting them. My coin buying budget isn't huge so I figure this will take me about $125,000 spread over the next five to seven years to mostly complete. So my question is that for me $125,000 is a large chunk of change to tie up in any one investment and do you think, over time, these collections will hold their value? I am not looking to make money on the deal just not incur any substantial losses. Collection One: Basically any PCGS certified MS-64 Morgan under $100. Here I plan to selectively pick for the best strike and luster and least amount of bag marks in the grade I can but am not being selective as to mint mark or date except I tend to avoid 1921 Collection Two: PCGS Morgan dollars with Major Varieties, Circulation Strikes (1878-1921) (117 coins) under $500. This is from the PCGS set using the highest grade of each in PCGS certified for under $500 per coin (minor exceptions where a particular coin isn't available in any grade under $500) selectively picked for the best strike and luster and least amount of bag marks in the grade. Collection Three: PCGS Morgan dollars Prooflike Basic Set, Circulation Strikes (1878-1921) (100 coins) under $1,000. This is from the PCGS set using the highest grade of each in PCGS certified for under $1,000 per coin (minor exceptions where a particular coin isn't available in any grade under $1,000) selectively picked for the best strike and luster and least amount of bag marks in the grade. I want to focus on DMPL not PL where I can. I think these three collections will hold their value over time and by sticking to PCGS certified coins from reputable sellers I can avoid the counterfeits and other issues that are increasingly popping up. Plus I'm not too far into buying yet that I can't easily sell what doesn't fit. Thoughts? |
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Pillar of the Community
United States
7390 Posts |
Buy the best you can. Whether you do a standard set, a pl set of which some dates are down right impossible, or VAMs or Dmpls or Whichever route you choose just buy the cream of the crop within your budget (which ain't chump change) and the values should hold or grow.
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Pillar of the Community
United States
5825 Posts |
A general rule-of-thumb is to start with the keys/semi-keys.
Those are the ones that will rise in price most quickly.
And unless you are very good at detecting fakes and altered coins get the keys/semi-keys slabbed (PCGS or NGC).
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CCF Advertiser
United States
1533 Posts |
I applaud your planning your collection, but I think your idea suffers from a lack of diversification. Three different types of Morgan dollar collections is a lot of Morgan dollars. |
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Pillar of the Community
 United States
533 Posts |
Only going with PCGS slabs (nothing against NGC just want to be consistent)
I like the idea of getting key dates first hadn't thought of that. Makes sense the key dates would climb faster than the more common ones.
Will work on the hardest and then fill in the easiest unless something good pops up along the way
No it isn't chump change. Even if it takes me ten years that's still $1,000 per month on coins so my question as to it holding it's value.
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Pillar of the Community
United States
533 Posts |
Quote:
but I think your idea suffers from a lack of diversification That was part of my concern. Was I exposing myself to a general devaluation of Morgan's and would such a thing ever happen? |
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Pillar of the Community
United States
1275 Posts |
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Pillar of the Community
United States
533 Posts |
I don't like gold Indians think they are ugly
Considered gold half eagles (liberties)
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Pillar of the Community
United States
1512 Posts |
how about a high grade type set!
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Pillar of the Community
United States
4468 Posts |
No one really knows if the Morgan or coins in general will go up or down in the future. Your investment in a Morgan set or coins should not be more than 10% of your net worth. Target coins like you would any other investments that have the most potential to increase in value base upon rairety, quality and demand, but collect coins as a hobby and not part of your investment portfolio.
I like #3 the best because of the beauty and rarity of the PL and DMPL. Throw in a couple common date rainbows as some spice for your collection.
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Pillar of the Community
United States
1450 Posts |
Buying the Key dates for Morgans in anything approaching MS is going to cost you a fortune. 1889CC in AU will cost you $7000. 1893-S will cost you $20,000. I think that your budget of $125,000 is not enough for three sets of Morgan in the condition you describe. You can get at least 30-40 common Morgans in MS65 for around $100each. After you buy those coins the remaining Morgans start to get much more expensive. I just recently bought a 1886-O in AU53 and I paid $110. If you buy one in MS60 the same coins costs almost $1000. In MS64 it costs about $11,000. I have about 75 Morgans. All the rest of them even in AU condition are going to cost me over $100 and many over $1000. If you could just buy a set of Morgans in the best condition you could afford I think it is a pretty good investment if that makes up a small portion of your entire investment portfolio. I have no idea what a DMPL full set of Morgans would cost but if I threw in my house, car and IRA it might get close. How long do you intend to keep your Morgans and how many years do you have before you to wait before you ever considered selling them? Coins are a long term investment for most of us. Even the rare coins take a few years to appreciate and there is the chance the could go down in value. I admire your planning. Most of the posters here who have been collecting for many years have made good profits on coins they bought 40-50 years ago.
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Pillar of the Community
United States
1450 Posts |
I made a mistake when I said you could buy 30-40 Morgans in MS65 for $100. I meant MS64 common morgans. I know I will be jumped on if I don't jump on myself first. MS65 Morgans are expensive in almost all examples. I agree with Slider that your investment in Morgans or any coins should not be more that 10% of your net worth or even just your investment portfolio. It is just too risky to put so many eggs in one basket. About three years ago I bought about 6 oil stocks because they had great dividends and seemed stable. Within 6 months the oils started to fall and they have been falling ever since. Plus, many oil companies have cut their dividends. Fortunately the oils made up a small part of my overall portfolio. Trees do not grow to the sky, and no investment is fool proof or without some kind of risk.
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CCF Advertiser
United States
1533 Posts |
Quote:
Was I exposing myself to a general devaluation of Morgan's and would such a thing ever happen? Who knows? I can only suggest what I'd do, but I obviously like different things as I don't particularly like Morgans myself. There are a number of series you can buy with the budget that you have in some sort of reasonable collector grade, including: Walkers in AU/BU- $50K (half of which will be coins dated 1921) Walker short set (1941-1947) in MS-65 $3,000 Standing Lib quarters AU-55 - MS-60+ $25K half of which will be a coin dated 1916 Mercury dimes MS-64 - MS-65 (no FB nonsense) $35-$50K $2.5 Indians in AU-55-58 $12K, half of which is a coin dated 1911D Liberty nickels in MS-65 (excluding 1913) $32K |
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Pillar of the Community
United States
1450 Posts |
Andrew99 All of those are great sets. I think the Walkers (1921), SLQ's and the Mercury dimes have the nostalgia thing going for them as well. Nobody is alive who remembers seeing Liberty nickels or 2.5 Indians in circulation (?), but all of us Baby Boomers remember the other coins and some of us have money with nothing else to spend it on. People love Morgans because they are big, Silver and have so many varieties and mint/dates. The Peace dollars gets much less love just like Franklins get little love even though they are 90% silver. |
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Valued Member
United States
280 Posts |
I like collection #3 with the DMPL's. I would do that one first.
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Pillar of the Community
United States
1187 Posts |
Just curious Andrew, why do you consider FB nonsense? If I'm collecting I'd want the best example possible which means a fully struck coin.
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Replies: 67 / Views: 7,899 |
Posted 07/29/2016 08:29 am
