Sunday Morning Reflection - Is There a Limiting Principle for Your Collection?
Catbert
Posts: 7,313 ✭✭✭✭✭
As my collection surpassed a big value threshold last year, I've been thinking about the idea of when is "enough is enough." I collect what catches my eye but also acquire for a particular series that I am collecting. Sometimes I'll acquire a few of a certain type and then I begin thinking well, maybe I should collect more of them or build a set. I have have sold coins from my collection many times, but I like what I own and don't want to thin the herd.
Do you have a limiting principle for your collection? Age, Death? Completion of a series or two? Completion of a 7070? How do you answer "when is enough, enough"?
Seated Half Society member #38
"Got a flaming heart, can't get my fill"
"Got a flaming heart, can't get my fill"
4
Comments
My limiting principles, plural.
Disclaimer: I'm not a dealer, trader, grader, investor or professional numismatist. I'm just a hobbyist. (To protect me but mostly you! 🤣 )
I have a maximum value target for my collection.
*This forces me to fit my interests within it
*There is an opportunity cost to every coin
*I set budgets within that for sets, etc.
For example, if I’m at my value target and add a $3k coin, I have to sell something else to fund it.
Of course, sometimes I just raise the debt ceiling
Nothing is as expensive as free money.
Since around 2005, I've built two collections and sold them. I'm working on my third collection now. The main focus of the first collection was colonial era coins that had a traceable provenance. The main focus of the second collection was world coins that circulated in early America. The main focus of the collection I'm building now is nostalgia - coins I wanted when I was a kid, or coins that have specific memories tied to them. I put a lot of money (for me) into each collection.
Each time I sold a collection was because other things took priority in my life, or I became more interested in other hobbies, or a combination of the two. Perhaps I also lost interest in the focus of the collection, or I thought that I had satisfied that urge, scratched that itch, etc.
The point I'm trying to make is that I don't have a defined limiting principle, but each time I sold I knew it was the right decision. If you lose interest, if other things come up in your life that are more important, if you decide you'd rather spend your money on something else, go for it. Keep your collection but put buying on hold, or sell your collection and move on, take a break from the hobby and come back later with a fresh perspective. Any of these choices are good reasons to limit your collecting. It's only a hobby. It's not our life.
In general I think it depends on the amount of disposable income, whether your retirement plan is well funded, and the amount of outstanding debt (including mortgage)/what rate that debt accrues interest. Opportunity cost should be considered as well. As the old adage goes, “invest “ only what you can afford to lose.
There is an overall value and a percentage of net worth is what seems to tamper the input the most, but much like @P0CKETCHANGE I have been known to raise the "debt ceiling"
So, mostly I think the limiting principle is disposable income and cashflow, but I also don't need multiples, nor would I just collect to amass, so to speak. There are coins and currency series I really like, and others that don't really trigger me that much.
Maybe similar to someone who came into great wealth after having been someone who had to learn how to budget and save their whole life, I don't think I could chase everything anyway ... it just isn't my style. I do know with greater funds though, my collecting focus would have a few less limitations.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
I have limiting principles, but somehow I keep rationalizing going beyond them.
Mr_Spud
My collection was about 100 certified coins for $xxxxx
Its now 40 coins for the same amount
No
Why limit yourself?
No not here so much
(I hope they got coins 🪙 on the other side)
Only buy coins you can pay cash for. No debt.
To me, enough is when it's hard to enjoy what I have. Once it's not enjoyable, it's less interesting.
For some, it may be to stop additions. My approach is to sell so I can enjoy more acquisitions.
There are just a few very expensive type coins I need for my collection. I don't know if I will ever find them. Am getting rid of things I acquired over the years that are growing moss on their north sides. Have 21 of the 33 Liberty Nickels minted in MS 66. Am not buying more of them, but not selling, either.
No duplicates for my Type Set, only upgrades.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
I’m limiting myself to type purchases to end my collecting career, selling off the extras in each series over the next few years.
Budget / Plan Inventory Amount
Stay within budget at all times and buy no more than 3-4 coins per year that truly make me happy and I know I will never sell. Never buy coins outside of my main collecting series. Stay focused.
They will be sold when I die.
NFL: Buffalo Bills & Green Bay Packers
My rule is I need to fully fund all of my tax advantaged retirement accounts before I buy new coins. I don't have a max value for the entire collection tho - I've never sold anything. Still have all the extra wheaties and silver dimes I pulled from circulation as a kid even.
I suspect I'll stop collecting when I retire.
I'm down to 4 of the more expensive types (non-gold). I just have a problem pulling the trigger on a mid-five figure or six figure coin. What I've done instead is to broaden my collection into different areas of interest. Over time I've probably spent as much doing this as I might have spent completing my type set. My rationale is that I learn more and get to buy a lot more coins. I'm pretty sure that psychologists have a term for this. My family and friends just think I'm nuts. No argument.
I have built some sets only to fulfill the PCGS requirement for the awards program. I have completed that task, (I am the 46th number 1) since we all have the same amount of points. and the most points you can get.
My Indian cent sets, Dansco 7070 Set, and 24 other sets are all complete save for some future updates that might come along.
I am in the process of selling off coins in 7 of those sets to help fund my other sets, mostly Lincolns, type sets, and Everyman Sets.
I've been retired for over 12 years now, on a fixed budget, and I still manage to chase my passion.
One needs to be able to budget themselves. Someone said, "never have debt" that is so not true! You just have to manage your debt! Do I really care if when I leave here, I have no debt? My debt will be paid off and then some when they sell off all my assets.
Just my two cents
Mike
My Indians
Danco Set
Wouldn't you buy more if they got cheap enough?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
For some coins that attract me, certainly cost is a limitation. That really is the only limitation. Cheers, RickO
My answer is like the Supreme Court definition of pornography---I know when I see it. Every now and then I get a feeling that it is time to sell some coins---its just a feeling.
Let me ask the warden if there are any limits to my collection.
I have my (collection) inventory just about where I want it and 800 certified error coins worth about 600K (retail).
We struck a deal on our first home purchase last week and have to come up with a truck load of cash in the next few weeks so Im looking to hold or sell coins and not buy at the present time.
Since completing my Walker set; I’ve slowed way down. It was a lifelong ambition. I feel pretty satisfied that I have accomplished it. They say that after you buy something that the novelty will quickly wear off and you’ll have to buy something, again, to satisfy your urge. This is not really the case with me. I get a lot of satisfaction from the pride of ownership. Sure, I buy once in a while but I am Just very slowly working on a couple of different ‘one per date’ sets, now, and my Box of 20. Very relaxed and casual pace with no sense of urgency. I feel very satisfied, at this point…No urge to upgrade, either. With completely unbridled inflation and economic uncertainty, my coin ‘investment’ isn’t looking so bad, anymore.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
Congrats on your new house
Have you thought about putting some coins up on the BST?
Good luck
Mike
My Indians
Danco Set
Bet you won’t.
I went full on "after" I retired!
Mike
My Indians
Danco Set
For me it's improving my Franklin Half Set and adding all the mint marks for my 1900 set. On a serious note I'm trying not to added to the burden my family will have to deal with when the inevitable happens and all the stuff I've accumulated has to find a new home (coins, guns, motorcycles, drones, knives). These passions haven't drifted down the family tree from me. Actually I don't know where any of them came from because none of my parents, aunts, uncles, cousins shared any of these or any of my other passions (flying airplanes, martial arts, etc.).
Not really, mostly just desire. But I think it's natural to hit goals and reassess.
Only buy coins you can pay cash for. No debt.
Well, I clearly violated that statement last Fall. Last September, I was contacted by one of the higher-ups at Stacks - they had finally convinced a family to part with a very rare National Bank Note after he assured them it would go to the good home of a hard-core collector. The price was strong, but not ridiculous, and it was an immediate pass or play or it goes back in the family's SDB where it had been for 100 years. (No, the family did not need the money). So, after clearing it with my wife, I wrote a HELOC check. That balance is now about half paid off and should be gone by the end of the year. Every time I look at the note, I don't regret the decision in the slightest.
Member ANA, SPMC, SCNA, FUN, CONECA
"Benjamin" ($$) rules all; such is the nature of the game.
I make up various rules to keep the $$ under control.
For a long time the rule was to never spend more than one Benjamin ($100) on a coin.
I allowed exceptions for my type set.
Lately I've been granting exceptions for "cool varieties" (mostly half dimes with dramatic die cracks).
In my opinion, extenuating circumstances permit such a decision, as long as you know what you were doing. It sounds like you did 😅
Founder- Peak Rarities
Website
Instagram
Facebook
Great post!!!
How many people let coins go because they "don't want debt"
Debt can be paid down and there are ways so you don't incur any charges, paypal for instance with the 6 month no interest plan
That coin or note may never come around again, grab it when it's available
Mike
My Indians
Danco Set
IMO, as a retail collector, no more than10% of Net Worth should be in numismatic coins. Numismatics should be considered more hobby than investment; thus the majority of NW should be invested in Real Estate, Stocks, maybe a small % in bullion, and other misc. investment opportunities. With that being said, many coins do appreciate in the long run and can provide a return. This 10% limitation does not apply to numismatic dealers, where coins are inventory for resale and not purchased for enjoyment.
It's not quite the same in terms of time frame but I bought the most expensive coin in my collection earlier this year at Long Beach. I was about short half the cash; I borrowed from my line of credit for a few weeks. If I hadn't, similar examples sold for ~10% more in the post show auction. Spending a few dollars in interest saved me thousands and got me a great coin that's one of the keystones of my collection.
Credit is a VERY useful tool, if used responsibly and paid off, in a few months.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
You guys that are willing to accept the risks that come with credit to fund a hobby are more hardcore than me. I worked the majority of my life to get rid of debt and I’m not about to go back. Not willingly anyhow.
I decided a long while back to not exceed a certain percentage of my net worth in collectibles. The opportunity costs are just too high. Perhaps this means the hobby isn’t wrapped around my brain stem like it once was, but so be it.
DE's... collect. ...Limiting.??
1)Storage... ? where should I put the coins and feel safe?
2)Premium to gold. Too high ... I reduce... Very low.. I increase.
Inventory high's 2020. Today... 10% lower than the top.
I am a newer collector (started April 2020), and I primarily focus on U.S. Half Cents and Type Coins. Early copper is my favorite.
One of each. I don't need more than one. Duplicates are not for me.
Some combination of price and attractiveness. I have a quite hard cap of $2000 for any single coin (I don't collect gold; I've broken that cap only three times now), and I don't like to buy ugly coins (a lesson learned when I bought a G04 version of the 1916-D Mercury dime to finish the set, and I really don't much like it). So there are some holes in my collections that won't go away until I hit the lottery (and I don't play the lottery); like the 1893-S Morgan dollar and the 1916 standing Liberty quarter.
You need to take inflation into consideration and raise your cap.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I could say funds in some cases but that’s boring.
There just aren’t enough people offering me monster toned Mercury Dimes that I am looking for. And, some people have the nerve to offer these coins to others…and they have the nerve to accept them instead of sending them my way.
Instead I will blame others. Lol
Looking for Top Pop Mercury Dime Varieties & High Grade Mercury Dime Toners.
Yeah. Except both my wife and I recently have retired, which, for some reason, seems to have affected the amount cash available for coins....
That said, I do understand inflation (even if our pile of money doesn't); I stretch from time to time when the coin deserves it.
Money is a limiting factor, but fatigue with certain classes of coins is another.
Modern U.S. coins are an example. The mint issues so much stuff now, it’s almost impossible to keep up with it. The issue prices are getting outrageous, and reasons for issuing and collecting them flimsy. Add to that having to jump through hoops on the Mint’s archaic system to acquire “rare limited editions,” and you have ample reasons to ignore the whole thing.
I am down to pretty much a silver Proof set per year. There might be something interesting for the 250th American Revolution anniversary, but that will be the extent of my interest beyond annual Proof sets.
The hunt his over when you get older and next upgrade is years of hunting away. My Time is more worth-while doing other things. Younger Competitors in your face telling you they are going to beat you in your registry sets. so maybe I will sell into their lust as dealers use to say to me.
When your registry sets are a few 100rths of a point away from number one but if you see an upgrade you must sell a coin your competitor will buy and exceed you anyway. I am now putting my time focus on selling 100 's of my coins but only buying a few in comparison. complete sets will go last in large auctions. Selling is a learning curve just like hunting and buying once was. I am trying to embrace this new paradigm.
My collection is focused on half dollars, Bust and Seated in PCGS holders and Barber thru Kennedy (2016) in Capital Holders. The collection also features numerous other finished series in Capital Holders. Pursuits will include finishing remaining series.
Cannot see a point where enough will be enough. Started collection as a child; dormant but kept the collection intact for decades; back with vigor for going on three decades; likely be buying coins until my time is done.
Financially, yes.
That's the reason I don't buy more coins I can afford in the sense that I have the money. Money is also the reason I don't expand outside of what I buy now.
There are also many coins I have some interest in, but nowhere near current prices. This applies to practically all US coinage.
Congrats Chris! Getting your first home is a huge step!