Is the reverse different?
Gazes
Posts: 2,315 ✭✭✭✭✭
A frequent question posed on the forum is if you have X amount of dollars would you buy multiple coins or one coin. For instance, you were given $100,000 with the condition it had to be used to purchase coins (what a nice problem to have)---would you buy 10 coins for $10,000 or 1 coin for $100,000. As a generalization I think the most common answer is 10 coins for 10k each.
However, I began thinking if the reverse is true. You have to sell either 10 coins for ten thousand each or one coin for $100,000---what do you do (for the sake of the question obviously we assume the values are correct, the grading is correct, etc).
I think in reverse the answer may be different for many and they keep the $100,000 coin. Why would it be different? I think if you buy coins some people have more fun buying more and check more boxes off buying more. However, if I'm selling I'm likely to think I will sell the coins that I am more likely to be able to buy back if I want. Just a thought.
Comments
I would buy 2 or 3 nice coins. If somehow I had 100K of disposable income.
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It all depends upon the coin and where it fits in your collection. Since I have mostly left the U.S. market, coming home with multiple ancient Roman coins or British pieces is fun compared to being able to only afford one or two U.S. pieces at a show or auction. On the other hand, the day I finished my half cent to dollar type set with a 1796 half dollar (5 figure coin) and my gold type set with a 1796 Quarter Eagle (6 figure coin) were truly great memories. For me finishing the coin set, studying it in detail, exhibiting it and looking it over now and then is FAR better than "the churn" where you are constantly buying and selling. I know that I am in the minority from what I read here.
Selling is another matter. It's a lot easier and less stressful to sell 50, $2,000 coins than it is one $100,000 coin,. There are more buyers for the cheaper pieces simply because they can afford it. Second, you don't have to worry about bounced checks and similar hassles. When I was dealer, you learned that there were some guys who had the cash to write a $100,000 check, and some guys who were a bit dicey. When it comes time to sell, auction consignments will probably be my best option.
Looking at it from a business perspective I’d rather have a portfolio of ten 10k coins than one 100k coin. More diversification and if your one coin portfolio takes a big hit you’re especially screwed. Think Fairmont, hoards especially from Europe, shipwreck coins, etc.