Building a better collection
Rittenhouse
Posts: 565 ✭✭✭
Over the past few months I’ve seen too many posters buying “problem coins” - cleaned, AT, damaged, ugly dark toning, etc. The rationale seems to be “Yeah it’s cleaned (or AT or whatever), but I think it’s a nice coin. I like it.” Whether this rationale is genuine, “whistling in the dark”, or just plain self-delusion doesn’t matter. A couple decades of experience on both sides of the table and working on major reference works tells me the end result is gonna be the same: the buyer or his/her heirs are in for some major disappointment.
And please don’t delude yourself with the old line that “This is for enjoyment only, I’m never gonna sell.” Fact is most of us WILL sell as we move into retirement, find other interests or because our heirs have no interest in coins. And, if your intent truly is to pass along to your heirs, have the courtesy to pass along something decent – would YOU like to inherit the proverbial swamp land?
The fact that you are posting here shows that you have above average interest in, and probably knowledge of, coins. So, it’s certainly time to face the one simple fact of coins: problem coins often depreciate over time and end up bringing problem prices; below ave. coins appreciate only slightly or stay flat and bring below ave. prices; choice coins appreciate the most and, being highly sought, bring choice prices.
The only exception to this rule is for truly rare coins - coins that have only a few known pieces. These are highlights of a collection and, within reason, problems are tolerated.
How do you tell what above ave & choice is? Join the clubs and talk to the collectors who have built or are building the best collections. Talk to those who write the reference books and talk to those who catalog the major auctions. Beware of dealer advice, in my experience too many dealers will tell you a holed & plugged, cleaned, AT piece is better than ave.
Build your collection with above average and choice coins in whatever grade you collect and leave the junk for others. Not only will you be rewarded with a fine collection, but you or your heirs will realize the best prices when the coins are sold. ‘Nuff said???
And please don’t delude yourself with the old line that “This is for enjoyment only, I’m never gonna sell.” Fact is most of us WILL sell as we move into retirement, find other interests or because our heirs have no interest in coins. And, if your intent truly is to pass along to your heirs, have the courtesy to pass along something decent – would YOU like to inherit the proverbial swamp land?
The fact that you are posting here shows that you have above average interest in, and probably knowledge of, coins. So, it’s certainly time to face the one simple fact of coins: problem coins often depreciate over time and end up bringing problem prices; below ave. coins appreciate only slightly or stay flat and bring below ave. prices; choice coins appreciate the most and, being highly sought, bring choice prices.
The only exception to this rule is for truly rare coins - coins that have only a few known pieces. These are highlights of a collection and, within reason, problems are tolerated.
How do you tell what above ave & choice is? Join the clubs and talk to the collectors who have built or are building the best collections. Talk to those who write the reference books and talk to those who catalog the major auctions. Beware of dealer advice, in my experience too many dealers will tell you a holed & plugged, cleaned, AT piece is better than ave.
Build your collection with above average and choice coins in whatever grade you collect and leave the junk for others. Not only will you be rewarded with a fine collection, but you or your heirs will realize the best prices when the coins are sold. ‘Nuff said???
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Comments
Tom
Or, does it have too many problems?
Russ, NCNE
See paragraph 5 of my post. Join the Fly-In club, buy the books & talk to those who wrote them. Get the major auction catalogs & talk to the catalogers. Sorry, there are no short cuts. Scans won't cut it.
ksteelheader,
Nothing wrong with an adult buying what he wants. Problemn is adult buying what he wants and then endlessly whining when his coins don't bring crap.
I have a few early cents with gouges, nicks, scratches, etc. I think it is great that I picked them up for about $20 to $30 each. These pre-1800 cents could have been made with the copper from George and Martha Washington's copper pots. The history to me out weights the fact that they will probably loose money. Some people collect for profit (speculators) and others collect for the knowledge gained. I also have an 1861 second restrike Confederate States of America. These restrikes are off of the canceled dies, and cost about $10 if you can find them. The die in which produced the coins is in the Smithsonian. How can a person go wrong learning. After all, you can't take it with you.
It is my choice to collect what I want, if my heirs don't like it they should start their own collection!
One man's trash is anothers man's treasure!
President, Racine Numismatic Society 2013-2014; Variety Resource Dimes; See 6/8/12 CDN for my article on Winged Liberty Dimes; Ebay
Collecting has many more facets than the ultimate price at auction. Less than perfect coins will still sell, they just wont appreciate as much, and to many collectors...who cares? I personally would rather own two or three hundred really neat circulated Fine or Very Fine Barber Halves than one or two condition rare Mint state examples of the same. Yes I could buy them and stick them in a safety deposit box and sell them 25 years down the road for a gain. That would not fuel my coin addiction one bit however.
Throwing ones money away on coins is not on anybody's mind, enjoying the hobby is however. You must realize that many coins are now bought on the internet with scans and are true auctions. It is the market place setting the price, whether the coin is choice and ultra rare or run of the mill average. By those same dynamics the coins will sell for the going market price down the road.
Wise words about seeking the best known, talking to other collectors and informing oneself to the utmost. Those words of wisdom will always benefit the collector.
Filling a wheat cent album with VG examples not only costs less, is very rewarding to many, but it will fetch close to the prices paid to get those coins in the first place. It is relative to the type of collecting experience one seeks out.
Tyler
it is not financially possible to come up with that kind of cash for type coins. In that case,
circulated coins in VF, XF or AU which are at the top of their grade might do the trick. Since almost all coins
will be sold or traded in your lifetime, every defect and detraction on a coin you purchase, will be there
in all its glory when you trade or sell. Always pick the best quality for the grade you purchase. This will
often mean that you will pay over gray sheet, but quality usually never comes at a bargain price.
Camelot
<< <i>it’s certainly time to face the one simple fact of coins: problem coins often depreciate over time and end up bringing problem prices >>
ludicrous to assume that everyone, or even most everyone, that collects coins is concerned 1st w/ it's future value. i collect my coins FOR ME & couldn't give a rat's rear-end how much my heirs get for 'em in 40 years. the financial stuff i plan to leave them is totally exclusive of my coin collection - that's what 401k's & ira's are for.
sorry, but it's stupid to worry about all that crap. if you like the coin, BUY IT
K S
Experience the World through Numismatics...it's more than you can imagine.
Karl, that's exactly what I would do if I had even half of your money!
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
You didn't respond to Russ's question!!! I think he may have shot some holes into your theory there.
Perhaps those holed coins are the only kind of coins that are worthy of being entrusted to our heirs?
advice, but I believe there are some exceptions to it. The most dramatic ex-
ception is in cleaned or unattractive coins. While such coins may be ugly or
lack much demand, in many cases they will be available at a tiny fraction of
what a nice coin would sell for. Many cleaned coins can be carried as a pocket
piece for a while and will soon appear as an attractive specimen at a somewhat
lower grade. This applies to most better date circulated coins with major surface
problems so long as they are shallow.
If you want a nice VF 1877 indian cent just buy a cleaned XF and wear it down.
It will not always be effective, but the wins will more than pay for the losses.