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 Replies: 15 / Views: 1,932 |
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Moderator
 United States
15395 Posts |
I would appreciate the opinions of this great forum on this topic ....... how do you approach paying more than a coin is 'worth' if it meets your collecting goals?
Assume that you have a working knowledge of the coin/series, grading, strike quality, eye appeal and 'book value' .... and you have as well a definite collecting goal for all the above.
How do you decide if it is 'worth it' to overpay for any coin to meet your goals?
My specific example of worry .....
I am now faced with an 'over-pay' dilemma .... a wonderful PCGS MS64 Lafayette Dollar that blows away my ideas of what this coin could be.
This is a lovely, blast-white, no-toned example of this coin ..... exactly what I have been looking for.
I've been back and forth with the dealer ...... and he is stuck at $3200 ..... by any 'book value' I know he is way high ..... current CND is 2750/2950.
I'm leaning towards paying his premium to meet my goals .... this is a lifetime coin ..... but overpriced IMHO.
Tell me .... how do you approach this situation?
All input is welcome.
David
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Pillar of the Community
United States
1418 Posts |
For me, overpaying is fine if you like the eye appeal or something is special about it. Now if at some point you are going to sell it, it's a bad idea.
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Pillar of the Community
United States
1534 Posts |
Premium coins will always command strong money.
So I say go for it. The commemorative in question is always in demand and should be relatively easy to liquidate. Nice coins don't always go for "book value" or Greysheet money. There are some coins where pricing guides have absolutely no effect, namely in monster toners and coins that appeal to a wide range of buyers yet is very difficult to find.
Edited by wheatguy
06/21/2010 10:00 pm
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Pillar of the Community
 United States
1551 Posts |
Well MS-64 and MS-65 are too different Grades If the coin looks more like a 65 then a 64 I pay the premium without thinking. PCGS is known to under grade from time to time, even more so on high end coins (there guarantee)
If it looks like a weak 64 I pass. I just trade a guy for a true Morgan mint error coin it had been graded by NGC as a MS-62. I covered 10 MS-64's labels from NGC plus this coin and showed them too 5 different dealers. I asked them to pull the (2) That may be under-graded all 5 pulled out the same (2) A 1899 O and the 1881 S Par collar graded at a 62.
They all make error's if it could now grade at a (New MS-64+ grade) buy it!
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Valued Member
United States
118 Posts |
Coin is worth the amount of money which buyer is willing to pay. So if you know that coin is worth $2950 but you're willing to pay $3200 because you really like that coin, it's not overpaying. On the other hand, if coin is worth $100 and you pay for it $200 because you have no idea how much it's worth, it's overpaying. ... Just my 2c
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Valued Member
United States
211 Posts |
For me, part of the sport is the deal. If I don't think I can turn around and get my money out of it I wait until the next opportunity. The trick is not letting your emotions get the best of you.
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Pillar of the Community
Philippines
1156 Posts |
Hi David If one's been back and forth with any dealer, and it's a professional dealer, chances are he thinks he's got that one hooked and will dig in with his price. His price is exactly 10% over CND, so he knows he's got one solid customer on the hook, also knows the real price and placed a premium. best, give him a take it or leave it price at 10% below CND, cash on hand, for whatever reasons... so maybe he'll meet you halfway  basic question is, can you sleep well if you lose it, if not, then might as well go for it. I've paid 30% over what Krause lists, hurts at the time of purchase, but completely evaporates with the coin in hand. cheers!  |
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Pillar of the Community
United States
4000 Posts |
I don't have a problem overpaying for a coin that I really want, especially at only 10%. If it were a $3000 coin and he wanted $4000, that would be a different story.
Maybe you could offer something up as trade toward some of the additional premium.
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Valued Member
Israel
423 Posts |
I learned many years ago not to want something too much. iT ALWAYS COSTS MORE. However it is a matter of personal choice.
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Pillar of the Community
United States
1388 Posts |
the way I see it is that it's only 10%... And if its really a coin I love and will enjoy I would pay it in a heartbeat...  |
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Pillar of the Community
United States
581 Posts |
I try to follow there is always another one somewhere.
Overpaying by a silly amount just to complete the set is not something I would do.
maybe full reasonable fair asking price.
Yet again, I have been known to buy complete collectionns and tables full just for one piece that I wanted.
...I should really start selling some of that stuff off soon :-)
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Moderator
United States
23522 Posts |
A couple thoughts:
1) They're pretty tough to find untoned. Hard enough to make me wonder if the example you discuss has been dipped, regardless of the slab. Not impossible, but very difficult.
2) This price is close to a thousand dollars more than the going rate for an MS64 Lafayette at Heritage. Is the lack of toning worth that much?
I realize that asking dealer prices are more in line with the number you quoted. Are they actually being sold at that price?
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Pillar of the Community
555 Posts |
Go in with $2800 in hundreds, plunk it on the counter, and say NO receipt is needed. The coin is yours.
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Pillar of the Community
Luxembourg
588 Posts |
I don't know much about the availability of those US coins nor how desperately you have been seeking for such a coin nor how much 3K USD are to you. So I would just suggest a couple of questions you could ask yourself: - will this (extra) money spent hurt you in any way? - in one years time, will you still be happy to own this coin, resp. regret that you do not? - is it likely the dealer will get rid of this coin for that price to someone else? - do you intend to sell your collection in a few years time? |
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Moderator
 United States
15395 Posts |
Wow ..... great replies from all .... Many Thanks! Your feedback is exactly what I was looking for .... the unvarnished truth ..... and as such you have given me both encouragement and pause for thought. Sooooo .... I'll give it some more thought.  Work is in the way of seeing this coin again before the weekend ..... and it's not going anywhere at this price (I hope). I'll let you know how it works out. Thanks again to all for the honest discussion. David Take a look at my other hobby ... http://www.jk-dk.art |
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Bedrock of the Community
United States
20753 Posts |
I think I'm on the other side of this situation. I've basically a cheap person and really, really don't like paying even what something should be, let alone more than it should be. I'm the type of person that frequents flea markets, garage/yard/estate sales, coin shows looking for the cheapest price on any coin. For me I'd rather not have a coin than to over pay. That would make the entire purchase something that would bother me for a long, long time.
As an example at a recent coin show a dealer I know well wanted to sell me a 1909S VDB graded by a TPGS as MS64/65. His price to me was $3,200. I thought it was way overpriced and although I'd like to have that one, I just told him to forget it. To me it was overpriced and that is all there is to that one.
I've been coin collecting for well over 60 years now so I'm well aware that if I don't get a coin I need, want or like now, there may not be a next time. But it's already in my blood to be cheap.
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Replies: 15 / Views: 1,932 |
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Posted 06/21/2010 9:57 pm
