Question(s) regarding coins with colorful toning

chesterb

I noticed that coins with attractive and colorful toning, whether it be album toning, bag toning, bullseye, rainbow, etc., etc, trade for significant premiums in many instances.

1. Has this always been the case or does it seem to be a "fad" right now?
2. In your opinion, if a collector were to purchase one of these coins now, do you think they will likely lose that premium in the future, i.e. will that fad and toning mark-up disappear so the coin loses its current value?
3. Do you feel some of the prices currently asked by dealers for attractive toning is currently too much?

Just to be clear, I'm talking about classic US coins...not moderns like ASEs.

Thanks for your opinions!!

keets

it is a 20 year fad, the premiums sometimes seem excessive and my thoughts are that depending on the coin/grade the owner may be either buried or in for a windfall.

thefinn

1 - No
2 - Maybe
3 - Yes!

jmlanzaf

Don't EVER buy a coin hoping/expecting it to go up in value. Buy it because you like it at the current price.

Dealers make money. You know how? They buy it below CURRENT price and sell it as quickly as they can.
Collectors don't make money. You know why? They keep the coins they love and even if they sell it for nominally more 20 years later, they have "lost money" due to inflation and opportunity costs.
Speculators buy coins, hold them hoping/praying that they go up and then sell them.

Dealers make a living.
Collectors have fun.
Speculators chew antacids.

jmlanzaf

@chesterb said:
I noticed that coins with attractive and colorful toning, whether it be album toning, bag toning, bullseye, rainbow, etc., etc, trade for significant premiums in many instances.

1. Has this always been the case or does it seem to be a "fad" right now?

Bright white used to be the standard. People HATED toning. @ricko still does.

2. In your opinion, if a collector were to purchase one of these coins now, do you think they will likely lose that premium in the future, i.e. will that fad and toning mark-up disappear so the coin loses its current value?

My crystal ball is broken. But I almost guarantee the value will not keep up with a diversified stock portfolio.

3. Do you feel some of the prices currently asked by dealers for attractive toning is currently too much?

Only if no one is buying it. The market is what the market is. Argue with the market at your own risk.

Thanks for your opinions!!

rmpsrpms

A major problem with the current crop of toned coins is that many of them, even many that are in TPG holders, are artificially toned. The long-term value of these "AT" coins is questionable, at least to the folks who value originality over flash. There is also the question of their long-term stability, and what they will eventually look like after their surfaces stabilize. My advice is to steer clear of anything marketed as toned.

BryceM

The current fascination with overblown gaudy colors might fade eventually but I don't really see us going back to a time when everyone preferred freshly dipped over original patina. Original and un-restored is gaining traction in many areas apart from numismatics. If you stick to toned coins that are technically solid and that have booming underlying luster it will help.

In general, I won't pay multiples of the ordinary asking price. I'll sometimes pay a price that is strong for the grade if I think the coin deserves it. For some things you either pay the price or collect something else. If you collect commems, boring white is dead, dead, and dead. Pretty toners are only "mostly dead."

This thread needs a photo:

BG

I've been told "Do not pay up for color."