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 Replies: 38 / Views: 4,718 |
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Pillar of the Community
United States
3156 Posts |
I find it interesting the excitement one can get in the beginning when starting a collection. When I first started I was working and had a decent income which allowed me to buy some key date coins. Bought a 1893S Morgan in vf 25,1909SVDB in VF-30, 1877 Indian in G-4, 3 legger Buffalo in xf-45. Kept these coins for about 8 or 9 years and was disappointed that they all went down in value over that time period. Being a rookie when I started I looked at price guides that showed past price appreciation for the past 50 years or so and thought this might be a decent plan. Gave up on the idea that somehow these coins would go up in value recently. Sold all of them for less than what I paid. On the flip side I have bought and sold hundreds of large cents in that time and more than made up for the loss on the slabbed key date coins. Made decent money on buying silver and gold at lower prices also. I guess the lesson I have learned is you only know what coins are really worth when you sell them. I also feel that a lot of younger people out there collect nothing and wonder what kind of future there is for any kind of collections. Just my 2 cents. Edited by jerryc39
09/07/2020 8:05 pm
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Bedrock of the Community
 United States
12477 Posts |
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you only know what coins are really worth when you sell them. That's the truth. I have learned that over the short time I've been in the hobby. The only coins I've sold for more than I paid were cherrypicks. Unfortunately, I seem to like random things that have no chance of appreciation.  In Memory of Crazyb0 12-26-1951 to 7-27-2020
In Memory of Tootallious 3-31-1964 to 4-15-2020
In Memory of T-BOP 10-12-1949 to 1-19-2024
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Pillar of the Community
United States
570 Posts |
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Being a rookie when I started I looked at price guides that showed past price appreciation for the past 50 years or so and thought this might be a decent plan. If I may be blunt, that's where you made your error. You essentially bought at the top, you bought coins that had already exploded in value. Instead, you should have looked for coins that, for one reason or another, were overlooked, and thus, undervalued. Quote:
I also feel that a lot of younger people out there collect nothing and wonder what kind of future there is for any kind of collections. This sentiment is common among a lot of older coin collectors/investors, and it's simply wrong. There are younger people out there putting quite a bit of money into coins, but the vast majority of them are avoiding US coins, for the same reason I described above, US coins compared to foreign coins are overvalued. There was (and still is to some degree) so much money pouring into US coins it's spilling into areas where it shouldn't. There are MS70 Silver Eagles that fetch thousands of dollars, when the same coin at MS69 sells for 40 bucks. You mentioned the 1893-S Morgan, which is considered "very rare" by US coin collectors, but there are plenty of other old foreign dollar-sized silver coins that have strong eye-appeal and are collectible that are far more rare. There's a huge change coming and I strongly believe those who have not diversified their coin investments with foreign coins are going to lose out, and in a very big way. That said, the best advice I've ever heard when it comes to investing is to stick with what you like, what you enjoy, and what you enjoy learning about. Do that and you'll likely make money. Invest in things you don't like, don't like learning about, and you'll likely lose money. Congrats on the coins you've purchased that have made you some money, though, it's always nice to take some profits on solid past purchases. |
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Bedrock of the Community
United States
20753 Posts |
I've never sold a coin so I really have no feelings about such things as a loss. So many coins I purchased a long time ago have sky rocketed to many times what I paid for them. However, as long as I never sell a coin and probably never will, value makes little difference.
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Pillar of the Community
United States
570 Posts |
Absolutely, there's a huge difference between collecting and investing. Better know which one you're doing.
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CCF Master Historian of USA Commemoratives
 United States
12258 Posts |
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If I may be blunt, that's where you made your error. You essentially bought at the top, you bought coins that had already exploded in value. Instead, you should have looked for coins that, for one reason or another, were overlooked, and thus, undervalued. IMO, a very tall order for someone new to the hobby! Not impossible, of course, but not a typical scenario for someone with little experience in the hobby. Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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Pillar of the Community
United States
570 Posts |
commems, Agreed. At least today there are a lot more tools available compared to 20+ years ago when there was no ebay or even no internet for that matter. I am still new, I began buying silver ~10 years ago and the first coin I noticed which had all the criteria was the 1972 Ethiopia 5 dollar silver coin. At the time, when I could find it, sold for a small premium over its silver value. So I bought them for their silver content, and that coin increased in value significantly. That's when I knew there had to be others, more overlooked and undervalued coins, and I was right. So began my venture into numismatic coins. |
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Pillar of the Community
 United States
3156 Posts |
so when I bought these key date coins I did look at past sales on e-bay and Heritage to get an idea of selling prices. I think prices for these coins were higher then they are now. Hard to predict the future.
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Moderator
United States
187862 Posts |
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I have learned is you only know what coins are really worth when you sell them. I guess I will never know what my coins are worth then.  |
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Pillar of the Community
United States
3156 Posts |
whoever you leave them to will I guess.
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Moderator
United States
187862 Posts |
Maybe. But I plan on leaving them to someone who is as sentimental as myself. I doubt they would sell, but if they did, that is their problem I suppose.  For what it is worth, I have CCF's address on little slips of paper all throughout my collection. Worst case they come here to let you know I kicked it.  |
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Pillar of the Community
United States
1143 Posts |
Jbuck let me give you my address then as I'm as sentimental as tey get about the history we hold.  In reality it's the experience and enjoyment of the hobby. If you only look at it as an investment then the joy is lost. |
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Moderator
United States
187862 Posts |
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Jbuck let me give you my address then as I'm as sentimental as tey get about the history we hold.  Quote:
In reality it's the experience and enjoyment of the hobby. If you only look at it as an investment then the joy is lost.  |
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Pillar of the Community
Canada
5239 Posts |
One of the "problems" of coin "investing" is that the typical collector can only buy retail (often plus sales tax) and sell wholesale. That puts the collector at an immediate disadvantage if the "spread" between wholesale and retail is large. The retail price may double but you still may only break even.
The "spread" for pure bullion is quite a bit less.
So if your are contemplating "investing", consider what the item you purchased today will sell for today. if it is 1/2 of the purchase price or worse, that nobody even wants it, forget about it as an investment.
Just to make it clear, I don't buy for "investment".
Edited by oriole
09/10/2020 2:27 pm
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Moderator
United States
187862 Posts |
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One of the "problems" of coin "investing" is that the typical collector can only buy retail (often plus sales tax) and sell wholesale. Good point.  Venues like ebay can close the gap, but it still requires effort upfront to be successful. |
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Pillar of the Community
United States
570 Posts |
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In reality it's the experience and enjoyment of the hobby. If you only look at it as an investment then the joy is lost. Not necessarily. For me, it's an investment, but I thoroughly enjoy the hunt. Doubly so when the profit is realized. |
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Replies: 38 / Views: 4,718 |
Posted 09/08/2020 09:25 am
