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Low grade rarity vs. lower cost better grade coins
chesterb
Posts: 961 ✭✭✭✭✭
In general, would you rather have a nice Good 4 rarity or (for the same money) more common dated coins in better grades?
As an example, an 1815 CBH in Good 4 CAC vs. 5-6 better graded more common coins? Another example would be a 1870-CC Seated Quarter in Good 4 CAC vs. 5-6 other Seated Coins for the same amount of money.
I just used those as examples so please don't concentrate on those particular examples. I want to the discussion to focus on the concept.
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As long as the low grade rarity was not a details or problem coin I would rather have the low grade rarity.
I prefer rarity over grade but to a point. Ultimately I have to love the coin for its aesthetics. I once owned an 1871-S $10 Gold in PCGS VF20 (less than 100 known). Coin was gorgeous, but the lowest - or one of the lowest graded by PCGS. I got rarity with aesthetics and a great price. Had it been a well worn AG3 or G4, its rarity wouldn't have mattered much to me.
I would prefer rarity, even for details coins. I'd much prefer a VF damaged 1876-s DDO than I would an ms63 1877-s.
Minor Variety Trade dollar's with chop marks set:
More Than It's Chopped Up To Be
It depends to a certain extent on the degree of rarity but, in general, I'd go for the rare coin. Details doesn't bother me.
Smitten with DBLCs.
I've always kinda done rarity, but that dang @BryceM and his ....collage... got me to makin one of my own today.
It looks fine to me but, damn, his condition dreck sure looks purdy.
Now I keep thinkin maybe I shudda done the same thing..
Shoot, this hobby is maddening.
I say we hang @BryceM as a witch.
Uh-oh!
Most of the low grade coins in my series look terrible, across the board. So no, I don't buy this type of coin no matter how scarce. It's different than with most US coinage where though the surfaces aren't original, many of the coins look decent or nice. Otherwise, I buy what I can find.
Typically I would go for rarity when known examples are under 100. I also go for high grade "Details" grades of true rarities as long as the issue is minor (light cleaning, rim filing, scratch). Especially if the "Details" grade is highest known.
Rarity, but no detail or problem coins. Straight grades only.
First, we have to know if he weighs the same as a duck.
I agree entirely. To me, there is some limit. An ugly rare coin is still ugly. I want to enjoy looking at my coin no matter what.
Normally, I would go for the rarity.....since the 5-6 coins are likely low grade and unappealing... Cheers, RickO
When I started collecting most of the time I went for quantity not rarity or quality. I suspect most beginners do that. It's fun filling holes in those albums. Now that I'm older and wiser I go for rarity. That's mainly because I obtained the common dates in the beginning.
I'm not saying which way is better, just saying what I did. It has always been a hobby for me. If I end up making money on the way or in the end that's a bonus as far as I'm concerned.
it's crackers to slip a rozzer the dropsy in snide
I used to be a key date only guy, but over the years I have rather owned nice early type in higher grade than lower to middle grade key dates. I think the market in general has migrated this way over the past decade as well. I think the days of lower grade to middle grade set collectors have vanished/passed away. Therefore no need to find that key date coin to finish the set, and in most cases creates an overabundance of many of them now.
When collecting a set, you need both the rarities/keys and common dates to finish the set. It is better to start with the common dates while increasing your knowledge of a series.
If collecting type - go for common dates in high grade and quality.
I would take the rarity all day long. Even if it was details, as long as the “flaw” wasn’t too annoying. I have seen many early coins that have no business being in a straight grade holder.
If you are referring to the most widely collected mostly 20th century US key dates, I agree with you. But then, these coins aren't even scarce, much less rare. The type of set collecting you describe is losing appeal because the coins aren't very marketable and are very easy to complete. I expect the lowest quality coins to perform worst financially, as it isn't competitive versus the alternatives in the internet age.
My answer is the same I’ve given for a number of other questions regarding which coin type, date or grade to pursue...Rather than decide ahead of time and limit your options unnecessarily, let the coin come to you. Wait until you see a coin that calls to you and which you really, really want to own. In some cases, that might mean a lower grade, rarer coin, and in others, a more common, higher grade example.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Since I keep a very small collection of around 16 coins, I tend to buy more eye appealing pretty ones. I sometimes keep them on display so they are more fun for me to look at then lower grade coins. I think some of my coins are rare, but its more so a conditional rarity then a rare variety. For example my avatar is a huge 5 digit coin. The rarity is the fact that its a top pop but I suppose the coin itself isn't super rare.
Jbknifeandcoin.com
IG: jb_rarities
A wise old coin dealer (who used to run his own auctions) once told me: “low grade rarities don’t sell.”
I’ve always taken that to heart, but haven’t always heeded the advise. But I have found it’s true.
I'd take the better graded coin for the same money.
“I may not believe in myself but I believe in what I’m doing” ~Jimmy Page~
My Full Walker Registry Set (1916-1947)
https://www.ngccoin.com/registry/competitive-sets/16292/
Personally, I would start with more common pieces in uncommon condition- i.e. higher grade with strong eye appeal. To me, they make a strong foundation for a solid collection.
Absolute rarity is nice, but takes more knowledge and understanding to appreciate. Often times I'll see a truly rare, but lower grade or problem piece and think that it would be great for an advanced collection (one that already has a great cast to support it) but would struggle on its own.
I think it's a great question and one that most collectors will have to ask themselves.
These guys didn't get the message:
https://www.pcgs.com/auctionprices/details/1799-ms/36140
(45 auction sales of 1799 Large Cents in PO1 or FR2. Details coins of all grades excluded.)
Smitten with DBLCs.
In general, I would prefer a rare G-4 coin over several mid-grade more common examples.
Said a bit differently, I prefer rarity over quantity.
I generally prefer MS64 and higher (within my range of comfort). I have done key coins as low as G04 (for retail) but nothing want bulk up on.
Generally demand (in my experience) goes sideways to material in a different series more affordable in high grade than to lower grade material where affordability (of higher grade) an issue.
I have been picking up slabbed world gold coins from the Nordic Hoard and got some good buys. A guy in coin club collects Mexico 50 Peso Gold Centanaros and Cabillito pesos (slabbed). These coins scarcer than US. Many US coins still seem overpriced vs world issues of same time frame.
With the same cost, I would go with low grade absolute rarity than condition rarity. But if there was a top pop involved on the common coin, I would consider paying even more .
I appreciate everyone's comments and it gave me some other things to think about.
One other point. Going by the TPG population data, it is evident that NCLT is displacing the most widely collected US series to some extent. From this, I concurrently surmise that the collectors who transition from this coinage or add something else as a supplement may not find lower grade coins (common or scarce) very appealing. If this is a correct assumption, this is a negative for the future price prospects, generally.
In making this comment though, I still think that a coin has to have something more than scarcity or rarity to maintain a strong price, whether this rarity is based upon quality or absolute numbers. Most scarce or rare coins (however defined) don't really have much to distinguish it and in many instances, the price is disproportionate to the collectible merits.