Just Obtained- 1928 P MS-63 Peace Dollar

Fredd,

Thanks! I am not overly-concerned, as I feel a good gut feeling with this one. I paid just over 1000. So maybe I did pay a slight premium, but then again maybe this coin will be passed down to my daughter one day, therefor the value to me, remains high.

I think there is simply a buyers premium on EVERYTHING sold from the site I bought that coin from.

Thanks Fredd

Yes, Fredd, there's a buyer vig on Heritage transactions - ~15% I think - and I accept that total as "retail price" in consideration of the fact that a dealer needs to make a buck, too. So the "more discerning buyer" aspect of Heritage tends to wash with the "more common availability" factor of your average B&M dealer. The price of a given coin has to be considered in the bigger picture of how the seller makes his profit, and I believe a seller has an inherent right to make a profit.

A coin is worth what you're willing to pay for it.

I will bid above "value" for certain 1921 Morgans. Likewise Brown Gem Lincolns, and most assuredly Gem 19th Century European copper. They're worth it to me. And maybe the act of me being willing to pay will help raise the price going forward, thereby ensuring that it's easier for me to flip at a profit.

Um, win-win.

Edit: "Slightly over $1k?" You're only one grade short of value. Heck, you had me worried.

That's up to you. Define your collection as you wish. The "stopper" to completing your Peace collection in Mint State is not the 1921 (it'll be cheaper in MS63 than your 1928-P), but the 1934-S. They circulated heavily, and are pricey indeed in Mint State. $1000 will buy you an AU58 1934-S. MS63 is a $3000 proposition.

The rest shouldn't be too awfully hard. You can afford to look for upscale examples of the type, with better strikes and luster.

If you haven't yet, register at Heritage Auctions (ha.com). Membership is free, and gives you access to their huge database of past auction results (currently 1.3 million coins). All of the recent - last 3-4 years - results are imaged in stupid quality, allowing you to learn what given grades look like in nice photographs. All in all, Heritage is (in my opinion) the single most valuable resource on the Internet for a numismatist. However, they're valuable because they sell this stuff, and I can make no guarantees about the safety of your wallet once you see what they're offering....

Remember to buy the coin,not the plastic. There are bargains in pariah holders, and dogs in the big three.

You fell off the horse. Nothing's broken, get back on it and ride.

While I question the wisdom of spending $1000 on your first coin (the same as a new driver getting a Ferrari--there are too many possible things to go wrong), I wouldn't even call what you did to be a Clewless Gnubee™ mistake. You didn't buy a fake, nor a grossly overgraded coin from some pariah TPG service.

You paid a premium price for a premium coin given the thumbs up by two top-notch services. Premium coins can sell for 5-10 times "book" value, it happens all the time. Since premium coins are always in demand, paying "too much" for a nice coin is never as bad as getting a "bargain" on an overgraded one.

For example, $1000 for a $900 coin that doubles in ten years still allows 80% return. Paying $700 for a $900 coin that is really only worth $600 because it's a grade lower than advertised, gives you a $1200 coin for a 71% return. Either way was $100 "too much", but the better coin still won out.

More importantly, the trend has been for the nicer material to rise by a higher %, so while the $900 coin doubled to $1800 (80%), the $600 one might only increase to $1000 (43%).

I don't have a horse in this race, but you don't strike me as someone who is buying a $1000 coin with the rent money. Don't dump it, for an almost guaranteed loss. Put it back for at least a year. Keep studying and thinking how/if you want to continue collecting. Find items on ebay and "paper trade", asking about them as you go.

I realize to each their own here, but I do want to run something through the people reading.

Instead of obtaining a set of Peace dollars, since it is value I am after over a period of time, maybe I should focus on obtaining more higher-graded, nicer quality coins.

I appreciate your feedback superdave, though I am in this for the big "I" word. I am eager to learn and catch on quickly, and I feel there is something I can do today, which will help me in the future.

What do ya think guys?

How do you define your hearts desires? What drives you to certain types of collecting?

Happy weekend!

-D

The trick to investing is to outguess the pubic (contrarian theory is nothing more than buy when everyone is selling low, and sell when they are buying high).

If the population is growing, it's a given that land/housing will increase in price, since there's no way to make more of it. You'll make money over time no matter where you buy the land, and any investor can see this. A smart investor sees beyond the obvious, and realizes that people prefer to live (and shop) on the north end of town. He'll make money on the general (population) and specific (location) increases in value.

You can study markets (housing, pm, coin, commodity) to gain the insight into where to invest best. The best way to do this in the coin market is as a collector. Let's look at some changes in the coin markets (location, as opposed to population):

Coins used to be collected in three grades, proof, new, and used. Those who made it a point to save the "nice used" ones came out ahead.

Coins used to be collected by what we call "type". Any Half Cent will do. Those who saved dates that didn't appear as often came out ahead.

Coins became collected by date, but not mint. 89cc dollar, 89o, no one cared. Those who realized some mints were harder to find than others stocked up, to be rewarded later.

I forget the gent's name, but about 40 years ago, a collector of very modest means put together a collection that sold for a tremendous amount of money. While others were putting together sets by date and mint, with some attention to condition, he would collect the absolute nicest specimens he could find, which might cost the same, or maybe 10% more. Today, that tiny bit better coin might bring 10,000% more.

In the mid-70s, blast white silver was the norm. Toned coins were dipped to look new, or in the case of gsa dollars, sold as rejects. Those who reasoned that you can no more undip a coin than unfry an egg kept the toned coins for collectors who pay premium prices today.

Note that in each case, the big money was made by those who thought ahead of the crowd. It might take them 20-30 years to be vindicated, but they more than made up for it. As a collector and "student", you can find these long-term trends.

One obvious one (which I'm sure I'll get disagreement with) is that ms70, first strike, and similar stuff is a fad. It may always carry a premium, but not huge multiples over other coins that are for all intents and purposes identical.

The trick is to think things through and stick to your convictions.

ASE are out, dunno about proof.

keep in mind that what I suggest often means being the oddball. if you do what everyone is doing, you'll get typical results.