You have X to spend on coins - what % are you willing to allocate to that one special coin? UPDATED

coinguy1

This question is for those who think of coins from either a collectors' or investor's point of view...

Let's say you know you will have X amount to spend for rare coins over the next year. Do you set a pre-determined maximum % of that amount that you are willing to spend on 1 coin? If so, what % is your limit? And, do you find yourself sticking to that limit?

I have some thoughts/opinions on this subject and will share them after folks have had time to respond with their own ideas. Thanks in advance for your input.

Bear

I would buy a coin no more then twice what I could afford.

LanLord

I would gladly spend all of it on a single coin, if the money and coin came together at the same time.

Problem is that has never happened.

RYK

I am with Bear--I would spend up to 200% for that special coin. Now, Mark, please get off the computer and go find it for me.

MrEureka

500% if the coin is priced right!

Bear

Show off.

rlawsha

I would spend 1/3 to 1/2 of my funds on that one coin. I would not spend all of my funds because a lot of the fun in coin collecting is in the hunt. It wouldn't be any fun for me to just sit back and not participate in the hunt for new discoveries.

coinguy1

Anyone else? Andy's the current "leader" at 500%.

Colorfulcoins

For the right coin, I would spend whatever I could afford. I the past when I did have such a guidline for spending, I did spend about 4x my budget to buy a coin.....I was so nervous about spending that much on a single coin that I turned around less then 6 months later and sold the coin. To this day, I have yet to spend that much money on a coin again.....not because I wouldn't ( have several coins where I spend up to 75% of that amount) but because I haven't seen another coin (that I could afford) that compells me to spend that much!

Russ

I have a budget of $10. If the right coin came along, I'd blow the whole wad at once.

Russ, NCNE

Kriek

The percentages are variable, but I suppose 100% could be shot for a single coin.

coinlieutenant

100%

goose3

if it's smoething that I don't think I'm going to run across again for QUITE some time I will do whatever I can to try and get it no matter if it's all of my money for a typical year or double.

The last time that happened was when I got my PCGS G6 chain for 3000.00 in Dec. of '02!!!!!!!! What a deal that has ended up being!!

Peaceman

My problem is that I have $ allocated.... the coin isn't available.....

Lakesammman

No - I have no plans or budget and buy on impulse...

tsacch

I would spend 50% on one coin and spread the rest around

Hedger

Let's see. I have a monthly budget of $200 which means I could spend $2,400 a year on one coin. Problem is I don't want to blow a whole years budget on a single coin and further more I'm not allowed to spend ahead of my budget. Wife has strict rules about that. Boy, am I a whimp.

FullHorn

Im with tsacch on this one, no matter how nice the coin I need more than one to hold my interest.

BigMoose

Mark, I have spent 100% of my yearly planned coin budget in the past on a single coin, and would gladly do so again if I could find the "right" coin. For me, that would probably be a blazing gem R&B 1794 large Cent, preferably with the St. Oswald provenance!

jdimmick

If I saw that one special coin that I had to have and wanted. I would spend it all plus whatever I could scrounge up to go with it to buy it, whether or not it took the budget for the next two years.

jim

KlectorKid

Sure I'd blow the whole thing on one coin. Every cent and more. If I liked a coin enough I cant see why I shouldnt.

BAJJERFAN

Well for me I think it would depend on which of several coins that I always seem to want would come along first. I wouldn't pass up one good deal now for something that "might" happen later. How much over budget? Who knows!

kranky

I'd spend 100% of my yearly coin budget on a single coin, no problem. But 500%? C'mon, that would mean no coins for five years!

MrEureka

Anyone else? Andy's the current "leader" at 500%

More to the point, I think in terms of what I can afford to spend in the very long run, and then I make sure that whatever it is that I'm collecting fits in that budget. The rate at which I spend the money will then be driven by the opportunities to buy the coins, and I wouldn't hesitate to exceed my annual budget to buy the right coin.

puff

I would mortgage the farm if need be if a particular coin became available that I decided I coulldn't live without, and that it was a coin that I was fairly certain that I would never have the opportunity to acquire again.

So find one for me Mark and put me to the test!

oldcameoproofsguy

I'm with the 100% crowd. However, I don't invest in coins, I just like collecting the nicest coin that I can possibly afford at the time. I'd rather buy one really good coin than five pretty good coins.

michael

if i was a collector buying coins

i would buy coins i like with money discretionary funds i can afford to lose

and only buy special coins that i really like and can live with a long time again as a collector with specific collecting goals in mind

i would try to within reason

have a budget and if the unexpected special coin came along sometimes i can get it sometimes NOT





michael

michael

great thread topic


michael

RegistryCoin

nevermind.

coinguy1

As a collector, if I were to find that truly special coin (or other item) that I just had to have for my collection, I'd probably spend whatever my budget (and wife) would allow. In fact, I have done so on more than one occasion.

However, even having said that, I believe that there are other considerations/factors/realities involved. How many of us really and truly get more enjoyment from one neat coin (item), than we do from 2 or 3 or more less costly, but still-neat ones?

And, what about the financial considerations, especially if one is not a pure collector (and let's face it, few of us have the luxury of being able to ignore, completely, the financial aspect of rare coin "collecting")?

My point is twofold:

1) While I think everyone should buy what they like, I believe that many of us lose sight of the fact that we can often get as much or more enjoyment from two or more less-expensive items than we can from one more-expensive one.

2) I think it is important that people not "put all of their eggs in one basket" (whether that "basket" be one coin or one type of coin) unless they KNOW they wont need those funds in the future and they understand that they might have a hard time liquidating a more expensive and/or esoteric item.

Your thoughts and opinions?

Goldfinger

If the investment aspect of the purchase is important, it would be foolish to spend the whole thing on one coin. If you're thinking of possibly selling your coin(s) within a couple of years, you probably shouldn't even seek more expensive rareties, which will be less liquid and more susceptible to steep declines in value.

mgoodm3

Probably 1/3 to 1/2. I like getting presents regularly.

Clankeye

The Texas Rangers blew most of their budget on A-Rod, and not only did it not help them--it hurt them.

There might be some lesson that can be applied to numismatics in there. Then again, maybe not.


Clankeye

prooflike

I'd spend it all on one coin that I wanted... I could always sell it and then buy other stuff.

MadMonk

Mark, Mark, Mark.....

It would depend on the coin. If my budget was 500.00 for the year, and I found a KILLER example of a particular coin that I needed for my collection at 325.00, and it's wholesale was 250.00, I would probably get the coin.
There is a point of stupid money, and as I am a collector, it's tempting to indulge, but my common sense forces it's way into my thinking, and says, Monk, how Mad are you going to allow yourself to be. Where else is that money needed. Think of all the starving children. I have paid full retail for a few of my coins, and I'll tell you for sure, they are the nicest I've seen for the year and mint.

Coins101

I don't have a budge, until my wife looks the the $$ spent. Then it is over.

Keep in mind, I am not buying thousands of dollars worth of coins. Generally, I try to stay around $2,000 per year, sometimes less. They do seem to add up fast though. If I see something I like or want, or that is a good deal, I will go after it. But again, it will not be a $2,000 coin unless I know I will turning around and selling it for more.

Nysoto

I do not have a "centerpiece" coin. I look at coins as "three month coins" - the time it takes to save for the coin. I have two 4 month coins, they are the most expensive, but lots of 1-3 month coins. I get the same enjoyment out of an interesting and rare half dollar die marriage in F12 as I do with a AU55 draped bust half.

puff

>>>2) I think it is important that people not "put all of their eggs in one basket" (whether that "basket" be one coin or one type of coin) unless they KNOW they wont need those funds in the future and they understand that they might have a hard time liquidating a more expensive and/or esoteric item.<<<

Mark...... I'll stand by my "mortgage the farm" statement I made earlier in this thread if I see a particular coin I want........

The way I feel about it if you have worked all of your life depriving yourself of alot of things you would like to have had, or done while raising a family, etcetera, and you are responsible for no one other than yourself then what the hell....... Buy what you want and sell the farm!

coinguy1

<< <i>Buy what you want and sell the farm >>

Sorry, Puff, you need to list that farm of yours on the BST forum, not here.

puff

<< <i>

<< <i>Buy what you want and sell the farm >>

Sorry, Puff, you need to list that farm of yours on the BST forum, not here. >>

Myqqy

I understand the principal of finding a truly gem coin that you need for a collection, and spending your entire budget on that one coin. But I know myself pretty well at this point, and I know that I would be miserable if I kept myself from coin shopping for an extended period of time because of one purchase. So now I try to balance finding quality coins that still allow me to make regular purchases... and it's getting a little difficult!