Coin Market Fundamentals: Do Your Homework

PCGS - Regardless of how often you advise research and patience when buying rare coins, we're all human and prone to bouts of instant gratification.

"Wow, that's cool. I've got to have one!" Just swipe your card.

We're experiencing a market maturation currently after strong demand, nearly across the board, for all numismatically related U.S. coins since COVID swept through the United States in 2020. When updating pricing in some series, for the first time in a couple of years, my minuses are exceeding my plusses. Do these minuses indicate softness in the value of a particular coin? Maybe, but the softness I see is more in demand. Folks are still buying coins, but they're buying fewer coins.


Morgan dollars aren't immune to the mercurial mood of the coin marketplace, which can be all green upward arrows one day and downcast red arrows the next. Even still, they remain steadfast as a perennial collector favorite and are often at the top of many numismatic want lists.

I've always got at least several coins or other collectibles that interest me. Some of these "wants" are realistic and some, big sigh, will never be. I think like a collector, too. There are always several coins I desire that I have yet to find for my set(s). There are also coins on that want list that I will never be able to afford.

Interestingly, what I've found over the decades is that keeping my options open has afforded me the opportunity to both learn about and take advantage of different coins and collectibles. Conversely, I have also observed that for those who have no interest in numismatics, the only point of interest is value. They're interested in only what they can get for their coins.

Some of those who get excited about coins soon lose interest. Somebody may have told them they could make money. Buying something when everybody wants one and then selling it when people have lost interest? Hmm. Does that work?

Sometimes the best option is to put your best coins in the freezer for a period of time. They're not going anywhere, and you are not doing yourself any favors churning away at an already desirable set. Sometimes tinkering around with the nuts and bolts of your collection might be a mistake.

What can you do that is constructive? Do your homework!

Try something new. Focus on upgrading or liquidating unwanted parts of your collection. And invest some hours in your own personal numismatic education. Expand your library, attend a seminar, write an article on your pursuits, join a coin club, go to show(s) and meet other collectors and dealers, and read your reference material - not just the pricing sections.

It's no fun liquidating coins. Generally, when we have coins to sell, there's a reason. Maybe you really liked a coin when you bought it, but either your tastes have become more discerning or you bought a coin with an issue, maybe having done so because it was offered at a more affordable price. Don't take that notion personally - we've all bought coins we later regretted purchasing.

Be logical and brutally honest when liquidating your extras or mistakes. The first mistake most people make is overvaluing their merchandise. Frankly, it is worth what it is worth!

Spend some time finding sales information on similar items. Do your homework!

Price. Once you determine what other similar items sell for, you have a starting point. You won't get that retail figure - nobody is going to pay you the same amount for your item as what they want for theirs.

And there's the matter of grade. First, and this is advice I've had to heed personally, if it is ungraded and has value, you will benefit by having the coin graded by PCGS. You might not get the grade you expected, but a PCGS-graded coin will almost immediately give you the information to determine a realistic price range for your item. And a PCGS-graded coin is easy to value!

While there are dozens of ways to sell your coins, your due diligence, prior to sale, will almost always pay dividends. Conversely, you will not be successful liquidating coins hoping for inflated and unrealistic prices. You are wasting both your time and that of the prospective buyer. So, again, do your homework.

Just a personal note: While I've had to make the decision to sell many times, I've curiously regretted selling very few coins over the decades. The only common regret in my career when selling coins has always been a lack of due diligence. I didn't "do my homework" on the coin and its value, and I ended up getting less than what my coin was worth. The bottom line? Don't be lazy when preparing to sell your coins!

Remember, too, that you might need the assets to buy desirable coins you want when they become available. You might very well find something nicer later.

OK, let's get back to the research. After all, when talking about numismatics, research and investigation of your items is your homework. Hundreds of times in my career, mundane numismatic reading and research has paid me thousands in profits. Find and read whatever you can relevant to your pursuits. Even better? Acquire copies for your personal library - every book, pamphlet, or article you can find on what you like.

Especially today, online resources are nearly endless on so many subjects - including numismatics. I'm curious and strive to remain so. What I've found is when I research a topic I am often exposed to another subject that proves to be an unexpected boon. So many numismatic subjects have plots and subplots. These side trips, and yes, sometimes they're rabbit holes, have built so much of my numismatic knowledge, and I enjoyed every minute of it!

These suggestions, which I utilize myself, are also pertinent if you are liquidating a collection or group of coins. Ultimately, while we can do little to change markets, we can position ourselves and our collections to better take advantage of those markets when they change.

Do your homework. There will be a test!