What should collectors do at this time

Bear

During this period, take the opportunity to sell your mistakes, sell your sub par material

and upgrade your collection with high quality material.We may be heading into a period

where only high quality coins, rare dates and classic series will hold value. Moderns are OK,

but like any investment, one must spread the risk among a number of series within the coinage

relm.Nothing goes up forever. In an upswing, correct your collections defects and faults so that

you can purchase more and better specimins during the inevitable downswing.

Shamika

Sage advice.

IrishMike

Bear, some good points. One thing I am doing is watching closely what prices are on coins that at one time I thought I wanted to own for the long haul. Some of these prices are telling me very loudly that now is the time to sell, for example mint rolls of 2001 sac, 2001 and 1999 silver proof sets and original commemorative packaging. Even the clad 2001 sets are selling well. The point is keep your finger on the pulse of the market. Sell high and buy low.

GottaGetCoins

No one can predict the future. The fact is we are in a trend. No one knows until it is over when it ends.

How do we know its near an end?

You cannot be afraid to buy here, theoretically, if the market doubles from here you must buy at the top.

Analogy: Party starts at 9pm, you get there at 11pm...still plenty of time to have fun.

GottaGetCoins

If you are a buy and hold, most studies show that if you try to time the market and miss slightly, you are better off holding

Bear

GGC, as with a rose garden, occassionally one must severely prune the plants

if you are to enjoy flowers the next spring. I did not say sell your collection, merely

take this opportunity to prune it back.

paigowjohnny

<< <i>During this period, take the opportunity to sell your mistakes, sell your sub par material >>


Unfortunately, my mistakes are classics...over dipped and cleaned and sliders....not may people want them

Bear

Might be wise to take a small lose now, or a bigger loss later.

We all make mistakes, we all take losses on coins, most of us even learn from

our mistakes. Of course ,when your a bear, it sometimes takes a little longer

to learn. Bear

DHeath

Bear,

Smart post. Collecting is a marathon, not a dash.

cladking

No one ever went broke taking a profit. And if you can take a profit
on mistakes and lower grade common coins then it might be a good
time to do it. By the same token one has to be concerned that the
market's direction could turn away from high grade or go in some ot-
her direction so one should be concerned with maintaining some ba-
lance not only from a collecting standpoint but also from a "portfolio"
standpoint.

cladking

...and of course buy, buy, buy because the market is hot, hot, hot.

GottaGetCoins

Many people have gone broke taking profits. If you take small profits and big losses, you will go broke. You must take small losses and Big profits....of course if you are trading.

nwcs

Yep, already done all this. Although I think the "bull" has already passed on the <$500 collector coins. The kind 95% of us collect.

Cladiator

I'm a coin collector so I'll use this time to collect coins

MacCoin

I dumped all my junk last month and am watch for the coins I really want. I will be more carful buying only the best grade coin my budget will allow thiis coming year.

keets

We may be heading into a period where only high quality coins, rare dates and classic series will hold value. Moderns are OK.............

hey Abe

not to belabor the point that's been made many times before, but this same thing has been repeated ad nauseum by collectors through the years----------Moderns are OK.............----------and as we all know, they were all moderns at one time. high quality coins, rare dates and classic series may in fact be reliable in terms of holding value, but focusing on those areas exclusively lends itself to investing, or at least to collecting with an eye focused strongly on increasing value.

the humorous bend to all this is the various threads about collecting vs. investing. most collectors are really collecting with an eye towards realizing something more than just the enjoyment of the hobby. perhaps it's as simple as not losing too much at the point of sale, perhaps it's the fun of finding gems for low prices and holding to grow. either way there's some investing taking place. otherwise, your advice would fall on deaf ears and be ridiculed.

the tendency when things heat up is to be somewhere close to where IrishMike is in thinking. if i've bought something and it hasn't accelerated as i'd have hoped, it doesn't mean it's a loser and should be dumped, unless the bend is more towards investing. some of my collection is stagnant and will be for quite some time, but i enjoy it for what it is. other parts which have lost my interest are the ones that need to go, stuff like a coin that has an appearance that i don't like as much as when i purchased it or ones that don't have a "slot" in my collection. they are glaringly apparent when prices are up!!!!

your one contention that i would call unwise---upgrade your collection with high quality material---you seem to correct when you close by adding correct your collections defects and faults so that you can purchase more and better specimins during the inevitable downswing. the latter is definitely the way to go. just as the "goldbugs" come out of the woodwork when the price peaks, many buy high ticket items at the top of the climb which has always seemed illogical to me. i've already put the brakes on spending except in areas where i know the pricing well and can get a nice coin for a good price, or raw coins that i can holder and resell. otherwise, i just enjoy watching the busy-ness around me.

al h.

mgoodm3

Thanks for the advice, but I'll just run away screaming, thankyou.

GottaGetCoins

Keets--great advice, you obviously know your stuff but whats a newbie to do? I cant just sit and wait for a correction. If I like a coin I buy it, Im not investing. Would I like the value to go higher? YES!. I buy saying "If the value goes to zero, its OK"...everything else is gravy.

keets

hey GottaGetCoins

i'm on your side if you're a collector and if you are here chiefly as an investor, well, you're pretty much on your own. i would never want to be held responsible for your wealth being flushed down the proverbial toilet!! Mr. Bear has offered good advice in that area, key dates in better affordable grades, like an MS63-64 1932-D Washington Quarter with strong luster or 1909-S VDB Lincoln Cent in MS64RD PCGS, no carbon spots and looking bright. those are almost guaranteed to do well in any market.

i'm like you though, i don't have money i can't afford to let sit stagnant tied up in my collection. if the market went exclusively to melt tomorrow, no Numismatic value, i would be bummed out but not destroyed----and i'd still have some nice historical artifacts!!! time and mistakes have taught me to be careful what i buy and not to do so randomly. i've learned what i enjoy collecting, what i have easy, affordable access to, what i'm good at grading and what i can easily sell if i so choose. i try to stay within those boundaries and thus far i'm enjoying myself and my collection is shaping up nice, with direction and appearance.

i would tell a Newbie like you, if that's what you are, to dabble with buying coins right now but to be very serious and studious about grading, what series your instincts lead you to and where prices are going. keep records of stuff like that and when you see an opening, step in. go to shows, come here and learn by asking questions and using the PM function with other like-minded collectors, find a dealer you can trust. with discipline, knowledge and some experience, when things cool off you'll be well placed to take advantage of those three aspects.

al h.

Peaceman

Please.... let the market's going up.... the market's going down... take my advice threads STOP....

aussielover

keet- very wise tips..



Thanks,
Brian

Bear

Peaceman, a wise collector prepares for both extremes. Thus they are neither suprised

nor caught overextended or short of cash.

keets

hey Peaceman

maybe we should all keep secret what we've learned by sometimes painful experience. NOT!!!

al h.

braddick

Long Term, or Short Term?
BEAR: Excellent advice, for the long term. For the short term though it is easier, via venues such as eBay, to sell $200.00 coins than it is $5,000.00 coins. Fast Moving Dimes VS Slow Moving Dollars.

A $200.00 coin may be sold for $250.00 whereas that $5,000.00 coin probably won't sell for $6,250.00 (25% increase in both scenerios) quickly. Inexpensive coins move rapidly but the expensive ones require a bit more work and promotion.

Bear

True, the Top of the line expensive coins are best handled by a National

auction house, or a major dealer dealing specifically in such coins.