Buy the Best You Can Afford

JW77

That's awesome, looks like a PF67, pop 1 of 1

savitale

I see no incompatibility between "Buy the best you can afford" and "Buy before the spread", assuming they are both applied with some common sense and not in a strictly black-and-white way.

Buying the best you can afford on average gives you better chance at price appreciation, since higher end coins tend to appreciate more than lower end. But more importantly it helps avoid future disappointment: over time many collectors drift toward higher end coins and most likely that lower grade bargain is either going to stick out as a poor example in your collection or you'll end up upgrading it which will cost you more.

In many cases just before the spread is the best the collector can afford. But if you can easily afford the coin after the spread, then see above.

Unknown

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DisneyFan

@savitale said:

Buying the best you can afford on average gives you better chance at price appreciation, since higher end coins tend to appreciate more than lower end. But more importantly it helps avoid future disappointment: over time many collectors drift toward higher end coins and most likely that lower grade bargain is either going to stick out as a poor example in your collection or you'll end up upgrading it which will cost you more.

Very well said. However, Jeff Garrett's point was

"...history has shown that over time, the highest-quality coins have performed best in terms of price appreciation. "

vulcanize

@DisneyFan said:

@savitale said:

Buying the best you can afford on average gives you better chance at price appreciation, since higher end coins tend to appreciate more than lower end. But more importantly it helps avoid future disappointment: over time many collectors drift toward higher end coins and most likely that lower grade bargain is either going to stick out as a poor example in your collection or you'll end up upgrading it which will cost you more.

Very well said. However, Jeff Garrett's point was

"...history has shown that over time, the highest-quality coins have performed best in terms of price appreciation. "

True if looking at the hobby merely from financial standpoint.
if I bought a F coin for a dollar in 1984, it would be worth 3$ today adjusted for inflation and could be probably sold for 10$ or more on eBay (we won't get into the fees and taxes etc. for now)
But look at the following scenario:
Considering that it took 36 years for the 1884 Trade dollar in the below link story to become ten times the price from 1984, factoring in the inflation (purchase price of 125,000$ equivalent in 2020), investing it else where and other aspects like market returns from other similar market investments, would essentially make this merely a break even proposition or perhaps may be a loss also.

https://www.barrons.com/articles/a-rare-1884-trade-dollar-could-sell-for-2-million-01580413647

And do remember it is the case scenario for a very rare specimen. Chump change for the affluent but that sandbox is not for many to play in.
Just saying.

DisneyFan

@vulcanize said:

@DisneyFan said:

@savitale said:

Buying the best you can afford on average gives you better chance at price appreciation, since higher end coins tend to appreciate more than lower end. But more importantly it helps avoid future disappointment: over time many collectors drift toward higher end coins and most likely that lower grade bargain is either going to stick out as a poor example in your collection or you'll end up upgrading it which will cost you more.

Very well said. However, Jeff Garrett's point was

"...history has shown that over time, the highest-quality coins have performed best in terms of price appreciation. "

Considering that it took 36 years for the 1884 Trade dollar in the below link story to become ten times the price from 1984, factoring in the inflation (purchase price of 125,000$ equivalent in 2020), investing it else where and other aspects like market returns from other similar market investments, would essentially make this merely a break even proposition or perhaps may be a loss also.

https://www.barrons.com/articles/a-rare-1884-trade-dollar-could-sell-for-2-million-01580413647

And do remember it is the case scenario for a very rare specimen. Chump change for the affluent but that sandbox is not for many to play in.

Good point.

It was an diversification of one's assets and at the very least, one had the joy and pride of ownership. At the end, one didn't look so foolish among non-collector family and friends wasting money on old coins all those years.

DisneyFan

We've talked about great rarities and the money it takes to get them. What about making the case for coins that have a big price jump in MS67 as opposed to MS66 or MS65?

skier07

@vulcanize said:

@DisneyFan said:

@savitale said:

Buying the best you can afford on average gives you better chance at price appreciation, since higher end coins tend to appreciate more than lower end. But more importantly it helps avoid future disappointment: over time many collectors drift toward higher end coins and most likely that lower grade bargain is either going to stick out as a poor example in your collection or you'll end up upgrading it which will cost you more.

Very well said. However, Jeff Garrett's point was

"...history has shown that over time, the highest-quality coins have performed best in terms of price appreciation. "

True if looking at the hobby merely from financial standpoint.
if I bought a F coin for a dollar in 1984, it would be worth 3$ today adjusted for inflation and could be probably sold for 10$ or more on eBay (we won't get into the fees and taxes etc. for now)
But look at the following scenario:
Considering that it took 36 years for the 1884 Trade dollar in the below link story to become ten times the price from 1984, factoring in the inflation (purchase price of 125,000$ equivalent in 2020), investing it else where and other aspects like market returns from other similar market investments, would essentially make this merely a break even proposition or perhaps may be a loss also.

https://www.barrons.com/articles/a-rare-1884-trade-dollar-could-sell-for-2-million-01580413647

And do remember it is the case scenario for a very rare specimen. Chump change for the affluent but that sandbox is not for many to play in.
Just saying.

Nobody for the most part buys coins to beat the S&P. Collectors buy coins because they enjoy the hobby and derive pleasure from ownership. A lot of collectors also buy coins with the expectation that upon sale of their collection they might even make a few dollars.

vulcanize

@skier07 said:
Nobody for the most part buys coins to beat the S&P. Collectors buy coins because they enjoy the hobby and derive pleasure from ownership. A lot of collectors also buy coins with the expectation that upon sale of their collection they might even make a few dollars.

What you said is the "given" which would go against the grain and essentially end any arguments against the very first post in this thread.
That was not the point

jmlanzaf

@vulcanize said:

@skier07 said:
Nobody for the most part buys coins to beat the S&P. Collectors buy coins because they enjoy the hobby and derive pleasure from ownership. A lot of collectors also buy coins with the expectation that upon sale of their collection they might even make a few dollars.

What you said is the "given" which would go against the grain and essentially end any arguments against the very first post in this thread.
That was not the point

And how many threads have e had about "investment" in coins? I agree they should not be looked at that way. However, people keep trying to make the case.

vulcanize

@jmlanzaf said:
And how many threads have e had about "investment" in coins? I agree they should not be looked at that way. However, people keep trying to make the case.

That is precisely why I threw in the 1$ coin purchase in 1984 comparison perspective into it because the percentage of return would have been much more (supposing it was sold on eBay for 10$ today or in 2020 when the 1884 trade dollar came up for auction).
Most are always looking at bigger ticket items just like those who buy the lotto wishing they would win it. It is human nature and the vicious cycle would continue no matter how blue in the face you and I get arguing about it.

jmlanzaf

@vulcanize said:

@jmlanzaf said:
And how many threads have e had about "investment" in coins? I agree they should not be looked at that way. However, people keep trying to make the case.

That is precisely why I threw in the 1$ coin purchase in 1984 comparison perspective into it because the percentage of return would have been much more (supposing it was sold on eBay for 10$ today or in 2020 when the 1884 trade dollar came up for auction).
Most are always looking at bigger ticket items just like those who buy the lotto wishing they would win it. It is human nature and the vicious cycle would continue no matter how blue in the face you and I get arguing about it.

I'm not disagreeing with you. But people do try to justify the investment value of coins.

vulcanize

@jmlanzaf said:

@vulcanize said:

@jmlanzaf said:
And how many threads have e had about "investment" in coins? I agree they should not be looked at that way. However, people keep trying to make the case.

That is precisely why I threw in the 1$ coin purchase in 1984 comparison perspective into it because the percentage of return would have been much more (supposing it was sold on eBay for 10$ today or in 2020 when the 1884 trade dollar came up for auction).
Most are always looking at bigger ticket items just like those who buy the lotto wishing they would win it. It is human nature and the vicious cycle would continue no matter how blue in the face you and I get arguing about it.

I'm not disagreeing with you. But people do try to justify the investment value of coins.

I feel for such folks but avoid expending energy because Common sense is not so common after all
A golden rule that I live by (was told to me by my aunt when I was younger) is - Do not regret anything you did and do not do anything you would regret .
Holds good in all aspects of life