The flipside - How would you NOT spend the $50,000,000?
MrEureka
Posts: 24,332 ✭✭✭✭✭
If you were in charge of a $50,000,000 rare coin fund, what or which coins would you ABSOLUTELY NOT place in it?
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
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It would be impossible to spend $50,000,000 without anyone finding out in a short time.That would take 3-5 years. I would NOT spend the money if ANYONE was on to what I was up to in the market place.
Stewart
To go further, I probably would not buy anything that a minor difference (needing a glass to differentiate) in condition would trigger a severe price hike.
I firmly believe in numismatics as the world's greatest hobby, but recognize that this is a luxury and without collectors, we can all spend/melt our collections/inventories.
eBaystore
09/07/2006
Supergrade moderns
E-Bay ACG coins
and will no doubt continue to do well. People with a lot of experience in these
areas are likely to be able to pick out some winners, but the fact remains that if
new collectors don't come on board MOST of the high priced classics are likely to
lose substantial percentages of their values. If new collectors don't come on board
then the moderns are likely to retain most of their value and might even gain. Why
buy classic coins which may or may not be original, may or may not be overgraded,
and are dependent on a third party opinion to even be saleable? One is usually bet-
ter off remembering the old adage that "the trend is your friend" anyway. Fifty mil-
lion dollars would be a drop in the classic market but would stand the modern market
on it's ear. This would make spending the money somewhat more difficult.
buy classic coins which may or may not be original, may or may not be overgraded,
and are dependent on a third party opinion to even be saleable? >>>
cladking, Are you saying that there are no modern issues that are not overgraded as well? As far as original, how about all the wildly toned certified silver eagles that people pay silly money for because someone left one in their desk drawer or a cardboard album for a few months? And as far as NEEDING 3rd party opinions to even be saleable, I would think that most modern issues fit that description to a tee, FAR more than classic issues. What do you think most MS68-MS69 modern issues like memorial Lincolns, Roosevelt dimes, state quarters, etc. that bring hundreds or thousands of dollars in PCGS holders would bring in cardboard 2x2's as raw coins?? My guess is you would be lucky to get between 2-5 cents on the dollar for them without the holder. Try cracking out a PCGS 2002 MS69 Lincoln and see what you are offered for it as a raw coin sometime. JMO.
dragon
You mean the stuff that ALWAYS goes up? When was the last time anyone lost money on one of those coins....
Please don't ask.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>
cladking, Are you saying that there are no modern issues that are not overgraded as well? >>
Certainly there are some overgraded moderns, but for the main part moderns have
not been "maxed out" in grade as a result of multiple submissions.
<< <i> As far as original, how about all the wildly toned certified silver eagles that people pay silly money for because someone left one in their desk drawer or a cardboard album for a few months? >>
One should try to learn about what he's spending his money on and this applies equally
to classics and moderns. For the main part you'll have to look a while to find moderns
which have been doctored or counterfeited to the degree the classics have. Granted this
is largely because moderns are not as valuable and the doctors haven't had as much time
to work on them.
<< <i>And as far as NEEDING 3rd party opinions to even be saleable, I would think that most modern issues fit that description to a tee, FAR more than classic issues. >>
Most moderns still trade raw except in very high grade. Indeed there are many moderns
with quite small populations which aren't worth the cost of slabbing. Even a "common"
classic like a 16-D dime in low grade would need to be slabbed, if for no other reason than
that many unslabbed examples have serious question as to their authentity or originality.
A comparably "common" modern would sell for a few dollars.
<< <i>What do you think most MS68-MS69 modern issues like memorial Lincolns, Roosevelt dimes, state quarters, etc. that bring hundreds or thousands of dollars in PCGS holders would bring in cardboard 2x2's as raw coins?? My guess is you would be lucky to get between 2-5 cents on the dollar for them without the holder. Try cracking out a PCGS 2002 MS69 Lincoln and see what you are offered for it as a raw coin sometime. >>
Actually mint state examples of modern regular issue coins hold their value reasonably
well outside the holders. This is also true for many other sorts of moderns, though not all.
Try selling an MS-67 1969 quarter in a 2x2 sometime and see what kind of offers you get.
No, your corner coin shop probably doesn't deal in such coins and may offer pennies on the
dollar. The modern market is still a small fraction of the size of the classic markets and the
high grade modern market is just a part of the overall modern market. Find a dealer in this
niche and you'll get a reasonable offer.
Just as I would not recommend anyone buy a modern coin for investment, IMO it is the height
of short-sightedness to dismiss the fastest growing segment of one of the hottest areas as
some sort of aberration as so many have.
K S
<< <i>I would avoid any classics except as a collection. ......Fifty mil-
lion dollars would be a drop in the classic market but would stand the modern market
on it's ear. This would make spending the money somewhat more difficult. >>
Hi clad. Even if Moderns increased in value "percentage" wise, wouldn't the the dollar increase be a factor? For example, if a $5 modern coin doubles in value - a 100% increase - the coin would be worth ten bucks! Basically, you would need to "hoard" MANY coins and make MANY sales (lots of labor, effort, paperwork, etc) to reconvert those MANY coins back to cash. Seems daunting! What am I missing? matteproof
50,000,000 / 30,000 = 1666
So, one could purchase 1666 PCGS PR 70 DCAM 1963 one cent pieces. Opps, I forgot the 15% buyers fee, hold on a minute.
50,000,000 / 34,500 = 1449
Hey, wait a second, this sounds just too good to be true!
<< <i>
Hi clad. Even if Moderns increased in value "percentage" wise, wouldn't the the dollar increase be a factor? For example, if a $5 modern coin doubles in value - a 100% increase - the coin would be worth ten bucks! Basically, you would need to "hoard" MANY coins and make MANY sales (lots of labor, effort, paperwork, etc) to reconvert those MANY coins back to cash. Seems daunting! What am I missing? matteproof >>
I might do well to reconsider the whole point and concede it.
Yes. It would be extremely difficult to spend so much money on moderns even
if you were to include some higher priced gems. A great deal of effort would go
into finding, handling, storing, and then selling so many coins. With so much mon-
ey entering the market, some prices would react immediately and substantially
raise the cost of the coins. However, in ten years well selected moderns are likely
to do much better than doubling and 50 million will no longer be so large a part of it.
Coins are widgets, and just like any other widget should be pursued for the joy and education that may be derived from it. If a profit is realized from it then all the better. If not, then so be it. There is NO profit more valuable than happiness. I'll tell you something though Clad. If I were ever to get interested in Moderns (I'm a Classic's guy) I know the first person I would go to is YOU. Your knowledge and wisdom on Modern coinage is second to none. And you sound like a great guy too. Thanks!
matteproof
Craps is NOT an investment.
Now.......RED.......on roulette...........THERE's an investment.
Back to the topic. I wouldn't spend the 50 mil on Coin Vault on TV..........but I'd call em for the exact figure on "stretch pay." How many operators do you think they'd trample to handle the call PERSONALLY??
If you look at the buy/sell spread for coins in the same light as the "house edge", throwing dice (at least taking odds on the pass line) is a solid investment.
Watch out for those come out rolls topstuff - that 7 & 11 is crushing on the "come out roll" for us "don'ts" - YO ELEVEN!
matteproof
matteproof