Here's My Law of Collecting - What do you think?

Zoins

When there's something you really want but you think is a bit too expensive and you find yourself talking yourself out of it, that's when you should buy it.

What do you think?

IkesT

Sounds like your law is that I should spend all of my money on coins...

Walkerfan

I've never been afraid to reach, sometimes, to astronomical levels. Only the probability of a financial hardship would keep me from throwing my hat in the ring.

SkyMan

In one sense you are true. OTOH, I've also overreached on pieces in auctions, where I still like the pieces, I just don't like the prices I paid. It's a balancing act.

MrEureka

If you’re considering passing on something you really like because it’s a little too expensive, maybe you’re just collecting the wrong coins.

Zoins

@SkyMan said:
In one sense you are true. OTOH, I've also overreached on pieces in auctions, where I still like the pieces, I just don't like the prices I paid. It's a balancing act.

I've had some where I've paid unreasonable sums. Some I'm okay with, and others I consider to be tuition.

Zoins

@MrEureka said:
If you’re considering passing on something you really like because it’s a little too expensive, maybe you’re just collecting the wrong coins.

The thing is that for this category of items, so far they never end up really being too expensive. If I need to talk myself out of it, it means I can buy it, I'm just debating whether I should. Of course, there are some things I like in the same price range that I don't seriously consider, and others that I have purchased and am happy with.

CoinHoarder

If I don’t think the price is reasonable, I’ll pass. I don’t like to ever feel like I’ve overpaid for anything.

olympicsos

It depends on the series. If it is a series that will always be popular like Saints and HR Saints or proof Morgans or proof Buffalo Nickels, reach for it! But if it is a 2006 Platinum Eagle or the only surviving Edith Roosevelt first spouse gold coin after Silvertowne melted the rest of them (I am being facetious here), definitely not.

ricko

@Zoins.... I agree with your premise.... I have found that to be true on several occasions. Not speaking exclusively of coins either. If one is informed regarding the subject, and really the only negative is that it is "..a bit too expensive.", then, in my experience, it usually is worth the stretch. Factors such as rarity, or hold time, or perceived market rise, all can make it a good investment. I have done this several times... most remarkable was a ten fold profit (these were gold coins) on two purchases. Cheers, RickO

amwldcoin

I've passed on a few coins in the past...1 was around 10 years ago... because of the price. I still kick myself in ass when I think about it. OUCH! ... had to kick myself again because you made me think about it again.

BillJones

"A little too expensive" is one thing. WAY too expensive is another. You run into dealers who routinely ask very high prices, and I routinely avoid them at the shows.

With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive.

bsshog40

If I put myself in a position that I am able to think about it, then the price is not too high. When I know sonething is too high, I'll just pass immediately.

291fifth

Think like a dealer. Buy like a dealer.

amwldcoin

Curious...as maybe this relates a little here. Did you follow the 2 1877 20 centers that just auctioned? If so what was your reaction?

@BillJones said:
"A little too expensive" is one thing. WAY too expensive is another. You run into dealers who routinely ask very high prices, and I routinely avoid them at the shows.

With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive.

No Headlights

In my experience, most coins that I reached for I didi well with later.
For what it's worth.
My rule: If it isn't original forget it.

Catbert

@291fifth said:
Think like a dealer. Buy like a dealer.

No. Not if it’s a certain Texas based dealer who posts here.

bidask

If its a coin that comes to auction infrequently...or rarely ....and its a series I collect I am a strong bidder.

YQQ

should have bought last year............

bidask

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

1Mike1

Sounds like you're having some doubts. Maybe hold out until you wont miss the money and are sure you wont need the money if you spend it on your hobby.

BryceM

I dunno. My law is to sell stuff once in a while. I’ve recently done that, and it’s dampened my enthusiasm a bit. It’s certainly influenced the way I’ll go about buying in the future.

bidask

@BryceM said:
I dunno. My law is to sell stuff once in a while. I’ve recently done that, and it’s dampened my enthusiasm a bit. It’s certainly influenced the way I’ll go about buying in the future.

how come selling dampened your enthusiasm ?

ms70

I just continue talking myself out of it until I get the special offer from the eBay seller. Then I buy it!

ctf_error_coins

I keep refining my laws.

They are extremely specific.

Keeps me on track.

Zoins

@BillJones said:
"A little too expensive" is one thing. WAY too expensive is another. You run into dealers who routinely ask very high prices, and I routinely avoid them at the shows.

I'm still refining my little vs. way too expensive meter. When I've passed, I've made a bit of good judgment as items don't sell at the dealer price. That being said, sometimes I'm lucky and I can pick it up at auction later for cheaper, but then again sometimes I miss it when it goes to auction which is disappointing.

With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive.

That's a good strategy and good to note.

Zoins

@bidask said:

@BryceM said:
I dunno. My law is to sell stuff once in a while. I’ve recently done that, and it’s dampened my enthusiasm a bit. It’s certainly influenced the way I’ll go about buying in the future.

how come selling dampened your enthusiasm ?

I'm curious too.

BillJones

@amwldcoin said:
Curious...as maybe this relates a little here. Did you follow the 2 1877 20 centers that just auctioned? If so what was your reaction?

@BillJones said:
"A little too expensive" is one thing. WAY too expensive is another. You run into dealers who routinely ask very high prices, and I routinely avoid them at the shows.

With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive.

I did not follow those two pieces. I know the prices went crazy several years ago. If those two went for a lot less than they sold for in recent years, then maybe the promotion is over.

I am not very active in U.S. Coins any more. I love what I have, but I have not bought a significant U.S. for past couple of years.

Aotearoa

I find that there is a major flaw in your law: you have left out the spouse factor...

BryceM

@bidask said:

@BryceM said:
I dunno. My law is to sell stuff once in a while. I’ve recently done that, and it’s dampened my enthusiasm a bit. It’s certainly influenced the way I’ll go about buying in the future.

how come selling dampened your enthusiasm ?

Loss of capital. It's a hobby, and I only use "hobby money" to fund it - so no huge deal. I'm OK with not making money or even loosing a little, but this round was a little frustrating. Between re-grades, trips to sticker places, more regrades, sales that went well, sales that didn't happen, auctions that closed a bit weak, commissions, shipping charges, fees, taxes...... well, there isn't as much meat there after everyone takes a bite. It used to be easier. To be very clear, I'm not blaming the auction houses or the dealer who has been helping - they've been great, it just "is what it is."

I got my real start in collecting in a rising market. It was a great time to learn, but I got a little spoiled. It was pretty easy to sell stuff in those days. The BST or eBay worked well and good coins would bring a good price, and usually quickly. This round of selling ended up about where I expected, eventually, but it reminds me to consider opportunity cost and other things I might have done with the money. Mostly, it's a reminder to not overpay, even for good coins.

Zoins

@Aotearoa said:
I find that there is a major flaw in your law: you have left out the spouse factor...

Well, the very first law is:

Happy wife, happy life!

bidask

@BryceM said:

@bidask said:

@BryceM said:
I dunno. My law is to sell stuff once in a while. I’ve recently done that, and it’s dampened my enthusiasm a bit. It’s certainly influenced the way I’ll go about buying in the future.

how come selling dampened your enthusiasm ?

Loss of capital. It's a hobby, and I only use "hobby money" to fund it - so no huge deal. I'm OK with not making money or even loosing a little, but this round was a little frustrating. Between re-grades, trips to sticker places, more regrades, sales that went well, sales that didn't happen, auctions that closed a bit weak, commissions, shipping charges, fees, taxes...... well, there isn't as much meat there after everyone takes a bite. It used to be easier. To be very clear, I'm not blaming the auction houses or the dealer who has been helping - they've been great, it just "is what it is."

I got my real start in collecting in a rising market. It was a great time to learn, but I got a little spoiled. It was pretty easy to sell stuff in those days. The BST or eBay worked well and good coins would bring a good price, and usually quickly. This round of selling ended up about where I expected, eventually, but it reminds me to consider opportunity cost and other things I might have done with the money. Mostly, it's a reminder to not overpay, even for good coins.

Thanks I get it .

It’s a hobby for me too .

Smudge

When collecting hard to find coins, I find that often while I am “thinking about it”, the coin sells.

Zoins

@Smudge said:
When collecting hard to find coins, I find that often while I am “thinking about it”, the coin sells.

That can be both good or bad right?

Smudge

@Zoins said:

@Smudge said:
When collecting hard to find coins, I find that often while I am “thinking about it”, the coin sells.

That can be both good or bad right?

In a word, yes. In hindsight it is a disappointment or a relief.

Catbert

If one doesn’t have the money to pay the higher price, then it’s easy not to pay the stretch price. I know that’s obvious, but the hobby doesn’t have a priority to me compared to other financial obligations. That’s my law.

Zoins

For clarification, this isn't money that I need for anything specific. It's either money that stays in stocks or goes into coins. And its not enough to be life changing yet. I'd like it to always be that way. So the decision for me is more how much I want it vs. stock.

jesbroken

The key word to me is "satisfaction". As long as you are satisfied with your purchase then you have broken no law, regardless of price.
Jim

PerryHall

@Smudge said:
When collecting hard to find coins, I find that often while I am “thinking about it”, the coin sells.

"When you snooze, you lose."

Pedzola

@PerryHall said:
"When you snooze, you lose."

I have missed out on quite a few coins this year - someone else always finds them first, or willing to pay more.

I hate it when
1. I find a coin on a dealer website sold or "on hold" right after it was posted (too late),
2. Get outbid when I thought my bid was way more than anyone else would be dumb enough to pay, or
3. send an offer to a dealer only to have the coin sold before I get a response.

So on one hand I feel like you need a hair trigger and willingness to go far over budget to get nice coins, on the other hand I'm pretty confident I am severely underwater on my entire collection.

Zoins

@Pedzola said:
I'm pretty confident I am severely underwater on my entire collection.

The thing with selling fees is that you need to see significant price appreciation just to break even.

Boosibri

@bidask said:

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

I think when chasing an important coin at auction, when the price eclipses you’re max bid, you have to be able to quickly figure out if you just figured the coin incorrectly and adjust on the fly. The strategy to just leave a bid on the books to ensure restraint, prevents you from overpaying for sure, but it also may prevent you from realizing you mispriced an important piece and adapting accordingly.

Probably less important in US coins as there is so much price transparency.

Zoins

@Boosibri said:

@bidask said:

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

I think when chasing an important coin at auction, when the price eclipses you’re max bid, you have to be able to quickly figure out if you just figured the coin incorrectly and adjust on the fly. The strategy to just leave a bid on the books to ensure restraint, prevents you from overpaying for sure, but it also may prevent you from realizing you mispriced an important piece and adapting accordingly.

Probably less important in US coins as there is so much price transparency.

I bid on rare items, so sometimes I just keep clicking bid. Things are moving fast enough that I just have a general feel if I'm comfortable with the number or not. Here's a thread I this. I have retreated off some items after the exceeded very round numbers that I didn't want to go past, but both were budget numbers, not a value number, since both items were fairly rare.

https://forums.collectors.com/discussion/1040922/zoom-zoom-were-going-to-the-moon

Boosibri

@Zoins said:

@Boosibri said:

@bidask said:

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

I think when chasing an important coin at auction, when the price eclipses you’re max bid, you have to be able to quickly figure out if you just figured the coin incorrectly and adjust on the fly. The strategy to just leave a bid on the books to ensure restraint, prevents you from overpaying for sure, but it also may prevent you from realizing you mispriced an important piece and adapting accordingly.

Probably less important in US coins as there is so much price transparency.

I bid on rare items, so sometimes I just keep clicking bid. Things are moving fast enough that I just have a general feel if I'm comfortable with the number or not. Here's a thread I this. I have retreated off some items after the exceeded very round numbers that I didn't want to go past, but both were budget numbers, not a value number, since both items were fairly rare.

https://forums.collectors.com/discussion/1040922/zoom-zoom-were-going-to-the-moon

Tough to understand the thread without clarity to what the items in question are. Are they truly unique or just one graded?

Zoins

@Boosibri said:

@Zoins said:

@Boosibri said:

@bidask said:

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

I think when chasing an important coin at auction, when the price eclipses you’re max bid, you have to be able to quickly figure out if you just figured the coin incorrectly and adjust on the fly. The strategy to just leave a bid on the books to ensure restraint, prevents you from overpaying for sure, but it also may prevent you from realizing you mispriced an important piece and adapting accordingly.

Probably less important in US coins as there is so much price transparency.

I bid on rare items, so sometimes I just keep clicking bid. Things are moving fast enough that I just have a general feel if I'm comfortable with the number or not. Here's a thread I this. I have retreated off some items after the exceeded very round numbers that I didn't want to go past, but both were budget numbers, not a value number, since both items were fairly rare.

https://forums.collectors.com/discussion/1040922/zoom-zoom-were-going-to-the-moon

Tough to understand the thread without clarity to what the items in question are. Are they truly unique or just one graded?

One is a war medal that's unique in gold. Regular issue is bronze.

The other is 1 of 2. The other is in a museum.

skier07

Two things come to mind which work well for me:

1). Buy coins with discretionary funds. If you’re tapping into credit cards, equity lines, etc. unless you can flip the coin for a quick profit the coin probably isn’t right for you.

2). Before I buy something I have an exit strategy in mind. If my exit strategy after I think about it doesn’t make sense I’ll pass.

BillJones

@Boosibri said:

@bidask said:

@BillJones said:

" With auctions, I will sometimes take a lot one increment above my limit, unless we are taking about $50,000 coins where increments amount to "real money." That's why I frequently put a number "on the book" for an expensive item because getting on the wrong of the bidding back and forth can get expensive. "

If its truly a great coin you have to go beyond this strategy to win the coin as my sense is there are alot of collectors and dealers willing to go one increment above a certain limit.

I think when chasing an important coin at auction, when the price eclipses you’re max bid, you have to be able to quickly figure out if you just figured the coin incorrectly and adjust on the fly. The strategy to just leave a bid on the books to ensure restraint, prevents you from overpaying for sure, but it also may prevent you from realizing you mispriced an important piece and adapting accordingly.

Probably less important in US coins as there is so much price transparency.

I have lost so much “on paper” money on the coins I have purchased in the last nine years that I don’t want to think that way. It’s embarrassing. This market has melted down on a lot of great coins unless the whales view them as “trophy coins.”

Zoins

@IkesT said:
Sounds like your law is that I should spend all of my money on coins...

Ha ha! Love it!

MidLifeCrisis

I think if you like the coin and you're not spending grocery money, depriving your family or shirking any of your other responsibilities, then you should buy it.

Unknown

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cameonut2011

My rule: If I find myself struggling/trying to justify spending a certain amount on a certain coin, I pass.