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To Buy Or To Wait And Buy Better Qualitty

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trespasser's Avatar
United States
31 Posts
 Posted 08/03/2011  10:22 am Show Profile   Bookmark this topic Add trespasser to your friends list Get a Link to this Message Number of Subscribers
so I have been buying low graded gold TPG coins. the question at hand is, should I save up and buy higher graded coins. or keep buying now and trade in later.
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southsav's Avatar
2224 Posts
 Posted 08/03/2011  5:32 pm  Show Profile   Bookmark this reply Add southsav to your friends list Get a Link to this Reply


Answer is, Depends on what you want and why are you buying. I've always been told, and tell others who ask, buy the best you can afford, buy it because you like it, because it appeals to you.

If you are buying just to build a gold type set and condition does not matter, then continue what you're doing.
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Bryan1315's Avatar
United States
14454 Posts
 Posted 08/03/2011  7:51 pm  Show Profile   Bookmark this reply Add Bryan1315 to your friends list Get a Link to this Reply
I agree, if you are buying just for bullion (which I don't know why it would need to be graded unless just for authentication purposes) it doesn't really matter the condition but if you are buying for a collection then I also always tell everyone to buy the best they can afford instead of just accumulating coins that will always just be worth bullion value and that's it. With higher graded coins you start adding collector value to the bullion price, but with lower grade coins this is not the c ASE
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yankee1227's Avatar
United States
1151 Posts
 Posted 08/07/2011  5:11 pm  Show Profile   Bookmark this reply Add yankee1227 to your friends list Get a Link to this Reply
Buy the coin, not the holder is a saying that I always use.
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aladinslamp's Avatar
United States
3076 Posts
 Posted 08/14/2011  12:08 am  Show Profile   Bookmark this reply Add aladinslamp to your friends list Get a Link to this Reply
I would agree with ALL of the above, but there are times like these when the bullion price OR FEAR of the economy drives up the prices MUCH QUICKER than the coin value markets can correct themselves to, and with good reason...They need to keep a reasonable level balance to speculation and the average collector who are never in the market for a quick gain but as they for the long haul as over time the bullion markets rise and fall due to over speculation and those who drive the markets up, eventually ballooning and then the big drop of bullion and this is considered a stablization of the markets just like stocks go though...yet the collector who holds for the long term does see's his investments over years do rise, I mean years...but hey this is a hobby or we all would be into stocks...loosing our ARSE....
I've collected since the early 60's not with big money but have seen as many here over time those $3 Morgans are now at (MS63/64) 60/90 bucks and even when I bought ASE eagles at 10 bucks in late 90's and mid 2000's they are now close to 50$ The main effects are in the lower grade coins..AU and below except key dates....so if your into lower grades the markets will have an effect on your coins meaning the bullion prices will out weigh the coins values for a time and then when they re-adjust they drop,,MS coins especially MS65 hold as the best investments over all as there are not as many of them and over time as there are more collectors there are less of them to go around hence they become more valuable one consideration as lower grades will fluctate your 1899-0 VG Morgan will sell at say 35 bucks now,, the grade values isn't worth 35$ the silver is, so if silver goes back to say 25$ you just lost 10 bucks as the grade did not change ...ONE MUST REMEMBER,, this is a hobby that can be market driven to an extent and many here are wearing both shoes of investment and the hobby shoes....like TV one pays to have the enjoyment...yet with coins over time the prices to rise and TV leaves only the memories of a movie you once saw....You must first decide if its an investment...As my friend Terry say's
1)BUY THE BEST you can afford.....
2)LEARN TO GRADE or loose your ARSE from jerk grading
companies who always over grade, one point grade difference can mean hundreds of dollars
3)Buy the COIN NOT THE SLAB...meaning you need to know the above, as grading standards have changed and know what a reputable grading company(which ones there are)know what your buying not the grade number on the plastic holder...
4) the above advice is often given in many posts...its not a rocket science, but it will take leaning on your part to minimize the money you spend for your pleasure or investment
There is all kinds of help here to keep you on the proper path, it just takes your time...
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BuffalosRock's Avatar
United States
500 Posts
 Posted 08/31/2011  12:39 pm  Show Profile   Bookmark this reply Add BuffalosRock to your friends list Get a Link to this Reply
I've wrestled with this same question, and there are a few other threads on it too.

Some advocated buying lower grades because you can pick up more coins for the same total cost and because there is typically a narrower range on them and thus turnover later is probably quicker and more stable ( IOW when you do decide to sell them there will be more buyers and a more stable sell price on them in all likelihood ). Higher end coins may take a much longer time to sell at a good pricepoint because fewer can afford them and collect them.

Some dealers say to buy only MS63 or above as that is where the appreciation is much greater over time though - at the choice BU level or above.

I've kind-of done 1/2 of each with my budget. Hedging a bit I guess.

If I could not afford a 63 in the type I wanted at preseent, but could afford several AU50's for example. Then I think it'd come down to what I thought gold would be doing between now and when I think I'd have saved enough to want to "trade up". If I thought it'd keep rising, I'd buy the lower grade coins now as they'd be worth more when I would have enough to then trade-up using them down-the-road. With interest rates so low it'd seem better to invest in the gold than leave the $ in savings, for example.

As a collector/investor those two aspects have to be balanced, bullion value vs numismatic value. The lower grade gold is much more influenced by melt value and bullion price. But historically the higher grade coins have tended to appreciate more %-wise. So it is a balancing act, IMO. I do like the idea of more quantity, but understand that investment quality has dominated in the past. Right now the melt price is more dominant, it seems to me. Expected hold period and when you might be looking to sell them is a bog factor IMO. I'm buying for longer term, so I should probably be leaning more toward the hi quality end.

GL2U
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Conder101's Avatar
United States
17884 Posts
 Posted 08/31/2011  2:42 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply
It depends. How likely are you to encounter a better piece? How likely is it you will be able to afford that better piece when it does come around? Most coins are not rare. More examples are likely to be encountered and unless you are dealing with the top end of the grading scale already chances are fairly good that a better piece will come along. BUT, sometimes those "better" coins come with a MUCH higher price tag. Higher than your wallet can stand. Then you have to decide do I just forget about it, or be satisfied with the lower piece. Some people refuse to have a less than "socially acceptable" piece in their collection. Others like myself would rather have that less than desirable coin rahter than a hole that can never ever be filled.
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BuffalosRock's Avatar
United States
500 Posts
 Posted 08/31/2011  6:44 pm  Show Profile   Bookmark this reply Add BuffalosRock to your friends list Get a Link to this Reply
Condor101, mostly agree with your post. I doubt this is a question borne from "filling holes" in a gold album though. I think filling out albums is a completely different mindset and subject than buying gold coins at varying grades by budget is.

There is always that balance of "waiting" for a better grade and thus "missing" a good buy as a result.

I was lamenting dramatic instances of that with my mom recently. I had collected as a kid and was drawn to some gold types and almost bought a 3-legger once and tried to buy several key dates. But my father was ultra worried I'd get ripped off and would kill any attempt I made to buy an expensive coin - relatively that is. I was given a couple of small$ gold coins as gifts(that are not worth that much now even) but never did get the ones I really wanted and almost bought - I had a decent sized bank account as a kid too actually.

Then coin collecting fell completely off my radar for like 35 years. I now look at what those coins would have cost then vs. now - found my old price guide with a few notes on what I almost bought. OMFG! I am buying some of them now tho anyway. ;)
Edited by BuffalosRock
08/31/2011 6:49 pm
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Conder101's Avatar
United States
17884 Posts
 Posted 09/01/2011  5:12 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply
Well dealing with gold is kind of a special case since once again most gold is common and even some of the scarcer pieces do not have that much of a premium over the bullion value. Also usually the price does not increase greatly as you go up the grading scale. In a case like that you may want to hold out for the better coin because it isn't going to cost you that much more, or you stick with the lower grade because there isn't much chance of great appreciation either other than from bullion. Personally in that case I would go for the better grade for the mor eye appealing collection.
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