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 Replies: 17 / Views: 3,226 |
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Valued Member
United States
384 Posts |
Hey all, I'm a new collector and I've been reading this site and others a ton. I'm currently on a very limited budget and (also am in school!) And trying to make a collection of coins I like. My question comes to damaged coins - for the rarer US coins, which cost upwards of $2-300, is it worth it to get a damaged certified coin for 80-100? The coins look to be in a nicer grade. For example, it may be a details grade coin for cheap while an AG version runs double at least. My goals aren'tto really invest in the coins but for my enjoyment and looking at the damaged ones is fine to me. But in 30+ years if I try liquidating the coins will I be Jozef or do you think they'll still go up in value some? |
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Moderator
 United States
34427 Posts |
First welcome to CCF. Quote:
will I be Jozef Second, I am unfamiliar with this "problem" (maybe it was autocorrect?). In any case, yes damaged coins are generally harder to sell than problem-free ones. You can balance this with the enjoyment that they will bring you for several decades though. It really depends on your personal preference--if you are cool with a hole or jewelry mount on a nicer coin then go for it. Your eyes are wide open and you know what you are getting into. "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
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Pillar of the Community
Australia
3831 Posts |
It really depends what you are looking at. If some coins are excessively rare in ANY condition, I'm certain damaged examples of such rarity will still be worth a fair bit - of course at a big discount compared to undamaged samples.
It comes down to your gut instinct. There are some poor and heavily damaged examples that I bought a few years ago - only to never see another example the next 5+ years later. Didn't regret buying them even though they were priced silly considering their damage.
My partial coin collection http://www.omnicoin.com/collection/gxseriesMy numismatics articles and collection: http://www.gxseries.com/numis/numis_index.htmRegularly updated at least once a month. |
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Rest in Peace
United States
18456 Posts |
 To CCF , It all depends on the individual . If damaged coins don't bother you then that's fine . I for one will never buy a damaged coin, they just turn me off . As far as will they hold up in value for a rare damaged coin , I guess if it was super rare and in a PCGS or NGC slab it will always have some kind of value .  |
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Valued Member
United States
424 Posts |
to CCF. Worth the investment? They could be for you. $80 to $100 over 30+ years doesn't sound too bad. For me though a damaged coin is a leaverite coin, leave er rite where you found er. |
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Bedrock of the Community
United States
11951 Posts |
That is a hard question, the answer would not be the same for all damaged coins. Getting a damaged 1909 S VDB Lincoln at a rock bottom price, might be a coin that could hold it's value. But a damaged coin in a less popular series might not do as well. Having a lot of damaged or problem coins would not be a collection that had a chance of holding it's value or increasing in value. None of us will be able to project what the hobby of coin collecting will be like 30 years from now. If I was offering advice to a young collector it would be ... focus on coins that have both a collector value and bullion value. For example, Morgan and Peace dollars, Walker and Franklin halves, Washington quarters, Mercury and Roosevelt dimes. Try to purchase these coins as close to silver as possible in the best grades. When I was younger, for many years I would buy silver dimes every week. I ended up with thousands of silver dimes. When silver spiked to higher levels, I sold a lot of the dimes and bought higher priced collector coins. When silver dropped in price, I would start buying silver again. You can figure out ways to purchase higher price problem free coins. You just have to figure out a system that works for you. The number one thing to do, is learn as much as you can about the coins you plan on buying. How to grade them and what the buy and sell for. Many new collectors will over pay for coins. You have to learn, so you don't make to many mistakes when purchasing coins. |
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Valued Member
 United States
384 Posts |
Thanks for your replies! I don't know what Jozef is but my phone seemed to think it was appropriate to add
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Valued Member
United States
280 Posts |
I see a lot of slabbed coins that are considered "cleaned" & show a grade plus details. Sometimes I am not sure the coin has been improperly cleaned, rather,, I wonder if it has been improperly graded by the TPG. |
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Pillar of the Community
United States
513 Posts |
given: one buys a damaged coin today at $100 and the market price for that coin in an undamaged state is $500. Damage discount ratio of $100:$500 or 1/5
query: in 20-30 years will a similar damage discount ratio hold for that damaged coin? Or will the damaged coin still market for $100 when the undamaged coin markets for $1000? Or does that damaged coin then market for $200?
In other words will the "investment" value of the damaged coin change over the years, relative to the price paid today?
If the ratio stays about the same, then the damaged coin would seem to have "investment value."
Edited by Garoyn
08/06/2016 12:56 pm
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Pillar of the Community
Poland
3201 Posts |
Not adding anything to the discussion (as usual), but I'd like to point out that "Jozef" is a name  |
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Pillar of the Community
United States
7375 Posts |
Neither, why buy someone elses problems. Buy the best problem free one you can.
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Bedrock of the Community
United States
20753 Posts |
It really depends on you. There are many, many different types of coin collects. Some collect Proof and/or Uncirc sets. Some collect error coins. Some like only older coins and some like newer ones. There are Commemorative collectors as well as all sorts of collectors. And too, so many people change their minds over every and anything. You too may like damaged coins today and hate them tomorrow. Presently most collectors do not appreciate damaged coins but tomorrow, who knows. My suggestion is do what you like today. You can always change your mind later. |
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Pillar of the Community
United States
968 Posts |
If I was on a limited budget (we all are, but I mean a student budget), I'd do one of two things. Focus on more affordable series. For example, most of the Mercury dime set isn't terribly expensive. For the many common dates of that series you could get 20 or more coins in AU condition for $100. To be fair one of them is hugely expensive but that can wait. Or I would get lower grade problem free coins and then upgrade in the future when you have more money. |
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Pillar of the Community
Canada
2781 Posts |
a coin with a problem will always be a problem coin. avoid.
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Pillar of the Community
Norway
1358 Posts |
It solely depends on you: What you think is a good way to enjoy the hobby. Also, what kind of coins and damage are we talking about? You're stating that you aren't interested in investing in the coins for future profit, but just for personal enjoyment. So then it sounds pretty easy to me: if having a certain coin makes you happy, then go for it. You can try to haggle a bit if a coin is very damaged to get the price down. I personally have a type set which contains a few coins in lower quality (not damaged ones, though). I decided it's nicer to have a completed set than to wait and have an incomplete set of higher quality coins. I'll continue to gradually change some coins for better quality ones. |
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Valued Member
United States
291 Posts |
I would avoid problem coins. My local dealer has his display cases full of problem coins and I for the life of me can't understand his thinking. All I can imagine is he buys collections from widows, then when they come back from the the TPG, collectors buy the non problem coins and he is left with the details graded coins. |
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Replies: 17 / Views: 3,226 |
Posted 08/06/2016 08:41 am
