Factors that influence my decision to buy a coin and how much I'm willing to pay

MidLifeCrisis · April 9, 2010 2:14AM

In priority order, more or less...some of these factors run together pretty quickly.

1. It is a coin that I need. (I love all kinds of coins but I have to stay focused as much as possible.)
2. I like the look of the coin compared to other examples. (eye appeal, color, surface quality, prominent or distracting marks, strike, centering, etc.)
3. Dealer recommendation. (I work with a small group of specialist dealers and I trust and value their opinions.)
4. The slab the coin is in. (PCGS or NGC? OGH or Fatty?)
5. Rarity
6. Provenance
7. Story (Some coins have really interesting stories, regardless of whether or not they are rare.)
8. The presence of a CAC sticker or PCGS + designation. (This may influence how much I'm willing to pay.)

Constantine · April 9, 2010 2:18AM

Great points. I would add:

1a. Price relative to the coin's value.

MidLifeCrisis · April 9, 2010 2:31AM

<< Great points. I would add:

1a. Price relative to the coin's value. >>

Well yes, price is in there somewhere...and forms a subset of factors itself:

a. My ability to afford the coin.
b. The option to pay over time if necessary.
c. Price relative to the coin's value. (Often this is, in part, determined by auction records. Sometimes it's an educated guess because I tend to buy coins that are not often accurately reflected in the price guides. Sometimes it depends on just how far I am willing to go to get a specific coin, usually because it's a rare, well-pedigreed, condition census level piece.)

crypto79 · April 9, 2010 2:33AM

What other people have paid in the past and what the dealer feels people will pay are the most important aspects in a coins value.

adamlaneus · April 9, 2010 2:36AM

1) Is it made of gold or not. (this is sort of a binary decision; purchase or no.)
2) How much gold is it made of?
3) How pure is the gold?
multiply...

*bling*

ziggy29 · April 9, 2010 2:37AM

<< Great points. I would add:

1a. Price relative to the coin's value. >>

Agreed, but "value" is already captured in most of the items in the list.

yellowkid · April 9, 2010 3:44AM

All good points. I could put your second as my first, a piece either speaks to me or not .

RYK · April 9, 2010 3:54AM

I would add "relative availability" or some such term. It a coin is readily available, I am far less likely to pay a lot than if it is very common. On the surface, this might seem rather self-evident, but when you go beneath the surface, this also takes into account special features of the coin. For example, I am more likely to pay more for a dirty 1850 $20 than I am for a lightly dipped/cleaned example or even a cleaner (yet originalesque) 1850 $20 in any holder.

Shamika · April 9, 2010 3:55AM

I personally would ignore dealer recommendation, provenance, and story. Otherwise, I'm in agreement.

MidLifeCrisis · April 9, 2010 11:34AM

<< I personally would ignore dealer recommendation, provenance, and story. Otherwise, I'm in agreement. >>

You're not interested in the stories behind your coins? What makes you collect them? Beauty? Investment value? Something else?

To each his own.

yellowkid · April 9, 2010 11:46AM

<< 

<< I personally would ignore dealer recommendation, provenance, and story. Otherwise, I'm in agreement. >>

You're not interested in the stories behind your coins? What makes you collect them? Beauty? Investment value? Something else?

To each his own.

>>

I agree, I'm not going to buy a piece just becuase of the story behind it, but it sure is icing on the cake with a good pickup.

tydye · April 9, 2010 12:03PM

I would add If I like the dealer or not.

SeattleSlammer · April 9, 2010 12:13PM

For me it's:

1-What is the most eye appeal I can afford? (preferably in a PCGS slab, but not required)

That's it.

Factors that influence my decision to buy a coin and how much I'm willing to pay

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