Buying just before the grade/price jumps

tjkillian

I'm into type coins and indian cents. I find it very difficult to find coins right before the big price jump. For example, a 1861 quarter. Everywhere you look there are plenty in MS-65, but very few in MS-63 or MS-64. The price goes from $850.00+ to $3200.00+ when going from MS-64 to MS-65. In the population reports, there seems to be more coins in MS-63 than in MS-65, yet there are very few in MS-63. Do most collectors prefer to buy the best they can afford, the finest available regardless of cost, or buy at the sweet spot (right before a big price jump)? Except for Indian cents, I cannot appreciate a coin going from MS-65 to MS-67 when the price is 10x. For that much money I always think about how many more coins I can get. Am I alone?

Tom

Russ

Tom,

No, you're not alone. I run in to the same thing in my short set Walkers and my Two Cent pieces. It's pretty frustrating sometimes.

Russ, NCNE

barberlover

Tom, you are not alone, but i found a 65, where i couldn't find a 64 in a long beach bullet sale a little over a year ago. It had obvious original toning and full unbroken luster on the obverse bpicture, the reverse picture looked washed out, but my instincts told me that it was just the angle of the lighting and not the luster that made the reverse looked washed out so i did a last minute bid and won the coin in pcgs 65 for 2300 total.

I guess i lucked out, my instincts were right and my 65 has full luster on both sides.

It's one of the coins i'm not selling. Or hopefully won't have to. Les

b.t.w. Tom, that is a great seated half

Barry

When there is a steep price jump between grades, I always buy on the lower side. There's just too much uncertainty with grading, and ever-changing standards, to justify forking over the big bucks.
WHile this mostly happens with MS coins, as a circulated example, look at the 1927-S SLQ price jump from F to VF. Is that nuts, or am I missing something?

boz

If the coin is a true 65, and you can afford it, what is wrong with going for the 65. To me, a higher true grade justifies the price. I would rather have quality than quantity! Opinions welcome.

darktone

Tom, there are a lot more buyers for $850 coins than there are for $3,200 coins. mike

wingedliberty

I feel your dilemma. The best suggestion I can give you is to take your time and proceed gradually.
Quality over quantity and enjoy the thrill of the hunt.

Brian

nwcs

I buy below the cost spike, and hope to find a raw coin that is above the cost spike that wasn't recognized. Like an AU standing lib quarter. Many look just like generic MS62s but a MS-62 may cost $250, but an AU-55 will cost about $60.

jdimmick

I buy the best that I can afford, and always take quality over quantity. But there are a few exceptions where I will settle for a grade just below the big jump, vs not having one at all, but usually the quality of the piece I choose is of the higher end of that grade.

Some examples:

1912-s Liberty Nickel PCGS-64 (original nice untoned beauty with solid strike ) near miss 5 (looks better than most of the other 4's I have seen, and many of the 5's in eye-appeal.

Current 64 bid/ask is now 1350/1475 Ms-65 is 3460/3800 (but a nice one will run closer to 4700)


1909-s VDB PCGS-64 red Nice coin with full original red 64 bid/ask is 2180/2375 Ms-65 3900/4200 (nice one will run 4600+) Actually, wouldnt mind finding a nice 65 here, but havent seen one worth the 2500 upgrade for a point yet.

coinkat

As WingedLiberty said, quality over quantity. I consider buying the highest quality for the grade of rare/better date coins that I can afford because they will always be in demand. I think you are on the right track. If type is what you are seeking, seek better dates and quality for the grade.

fcloud

Tom,

There are a lot of people with you on this one. I would love to put together a set of top pop coins, but the pocket book doesn't allow for that. I can get some very nice coins at the "break point" for a lot less money and the only real difference is a point or so on the plastic. I am sure we have all seen coins in which look like they could be in a higher holder. Coins like that I think are a wonderful bargin.

JoyofCollecting

I'm there with you buddy. For my series I like to collect AU58 and MS63 coins. The MS63's are within my price range (right before the big jump usually) and a good portion of the AU58's are MS64's and MS65's (nice strikes with lots of luster) with very little rub. I'm always very happy when I find a beautiful AU58 in a date/MM I'm looking for and pay about 50% of MS63 money......but if I see a nice MS63 in a date I'm looking for...well then...it's hard to resist not taking out my wallet. But, I won't pony up three times MS63 money for an MS65 coin......those coins just have to go to the type collectors and/or float between dealers for a few years.

MacCoin

as soon as I spend big bucks on a coin the price drops the next week.