Buying coins in a rising market vs. buying coins in a falling market

dan1ecu

It's a little unnerving buying coins in a falling market because you don't know how much they'll fall.

It's also risky to buy coins in a bull market because you don't know when the bubble is going to pop, so to speak.

So, when are you most comfortable buying coins? Do you just not worry about the trends and buy what YOU think is a good value?

Dan

LanLord

much to my chagrin, I like buying coins all the time, perhaps not the most financially sound plan, but sometimes I am just a sucker for a cool coin.

JrGMan2004

I'm a collector, not an investor... unless I'm buying to resell, profit/loss means little to me...

BAJJERFAN

Depends if yer buyin to keep or to speculate and resell. Rising markets bring out the better stuff. If you buy nice stuff or better date stuff it will, I would guess, retain more of its value in a falling market.

MrEureka

I like collecting things that are so hard to find that I can't afford to "market time" my purchases. I buy whatever I can, whenever I can.

If I collected more common coins, I'd prefer buying in a rising market. I wouldn't hold common coins in a falling market because they can easily be replaced when the market turns back up.

BillJones

As a collector I MUCH prefer falling, weak markets because that's when you can get the best buys. The down side is that when things are bad, the "strong hands" keep their good stuff off the market. As a result you have hustle to find nice stuff. Down markets have provided me with many of the opportunities to buy the coins that now have in my collection, which have people saying to me, "How in HEQ did you get THAT?" Answer: I bought it during a down market.

As a dealer it's easier to sell in strong markets, but the down side is that you have to watch what you have in inventory in case the bouble bursts.

This market has been a "pain in the tail" for me. If people want better dates, it's almost impossible to find them, and when you do you have pay through the nose. THEN you have to explain the the want list customer that he has to pay over book because nobody is selling these coins FOR the book. And like some body else said, when the merry-go-round stops, some people are going to get hurt.

puff

>>I like collecting things that are so hard to find that I can't afford to "market time" my purchases. I buy whatever I can, whenever I can. <<

Hadleydog

Good thread!
I guess like JrGman2004 says it really depends if you are a collector or investor. As a collector, the bull market brings the nice stuff out so it's time to buy............the really nice stuff just isn't as available during the down turns so you have to take advantage of it when it does show up. If I were an investor I would only be buying key dates now as I believe they hold their value the best. JMHO.

mercurynut

I am into the hobby for the long term so all my purchases end up being a dollar coast averaging buys.

BAJJERFAN

<< <i>unless I'm buying to resell, profit/loss means little to me... >>



Thats sort of a cavalier attitude to have towards something that you may have spent several hundred dollars for. Even as a collector you should be mindful of the value of your collection. Unless of course you are Warren Buffet and not Warren Buffoon!!

Barry

I think "natural selection" keeps me from buying as much in rising markets. When I price a coin, I do so at a level I feel is reasonable (to me). If the market is rising, I'm often not willing to pay the current market price, so I wind up buying less. 4-5 years ago, I won 30-50% of the auctions I bid on. Now it's more like 10%.

ksteelheader

When the current market starts to drop, and it will sometime, I'll be buying all kinds of high grade coins. Because, the market will eventually start going up again.....

numonebuyer

It really just comes down to the coin in question. If I like the coin and the price is even close to fair (and I am pretty liberal on my interpretation of fair), then I will buy it.

Conder101

<< <i><< unless I'm buying to resell, profit/loss means little to me... >>

Thats sort of a cavalier attitude to have towards something that you may have spent several hundred dollars for. Even as a collector you should be mindful of the value of your collection >>


Why??

I buy coins because I enjoy them and they give me pleasure. I really don't care what my coins are worth as I do not plan to part with them until I die. As far as I am concerned the money I spent for the coins is gone and I'm not worried about it. What ever my heirs get for the coins doesn't matter to me either. For them i will be like "found money" and they will probably be tickled with whatever they get. If they get ripped that's not my problem.

I also get pleasure out of going to the movies. Should I be concened about the value of the movies I've seen?

Boom

Just like the stock market....Buy low- sell high. Be prepared for both a fast unloading and the long haul....Flexibility!

matteproof

"I also get pleasure out of going to the movies. Should I be concened about the value of the movies I've seen?"

Superb analogy and point Condor. matteproof

291fifth

Always buy with great selectivity. If you feel an area of the market has become severely overpriced, don't buy. The coin market can turn down violently in a very short period of time. Ask the folks who were around in 1965-6, 1982, or 1989. Solid collector coins tend to be less affected by downturns.

cladking

<< <i> Solid collector coins >>



It's interesting how the definition of this changes over time.

MrEureka

Even as a collector you should be mindful of the value of your collection.

Why?? I really don't care what my coins are worth as I do not plan to part with them until I die. As far as I am concerned the money I spent for the coins is gone and I'm not worried about it. What ever my heirs get for the coins doesn't matter to me either.

Conder - I'm sorry to hear that you have no heirs about whom you care enough to want to see them inherit a larger estate. Nevertheless, let's stay a bit more on topic. Why would you care what your coins are worth? Well, if for no other reason, you should care because (unless you're unfathomably stinkin' rich) one day an expensive coin will come along, you will fall in love with it, and the only way you'll be able to buy it is by selling some other coins. On that day, you will be glad you have a more valuable pile of coins.

BAJJERFAN

Good point Andy!! Sometimes to upgrade I have to sell one in order to buy one so I would like to get the most for the one I'm selling.
I'm not so much worried about what my heirs will get since I have no idea what my coins might be worth at the time of my passing. Of course I have no plans or intent to sell either, but one never knows when life may force oneself to alter those plans.

PutTogether

<< <i>

<< <i><< unless I'm buying to resell, profit/loss means little to me... >>

Thats sort of a cavalier attitude to have towards something that you may have spent several hundred dollars for. Even as a collector you should be mindful of the value of your collection >>


Why??

I buy coins because I enjoy them and they give me pleasure. I really don't care what my coins are worth as I do not plan to part with them until I die. As far as I am concerned the money I spent for the coins is gone and I'm not worried about it. What ever my heirs get for the coins doesn't matter to me either. For them i will be like "found money" and they will probably be tickled with whatever they get. If they get ripped that's not my problem.

I also get pleasure out of going to the movies. Should I be concened about the value of the movies I've seen? >>





What if (god forbid) you need a pile of money BEFORE you die. I can see not caring about the daily bid/ask on your coins - but do be ok with spending 10K or so on a coin that you couldnt resell for five bucks in a pinch.........thats no good.

Conder101

If I run into a coin that I fall in love with but can't afford then it will be an unrequited love, I'll pass. (This has already happened.) As for what you do when you need a pile of money, keep a good credit rating, and insurance. (About the only reason you would NEED a pile of money unexpectedly would be in the result of accident/illness or for funeral expenses. As a believer in living wills and euthanasia(sp) this does not concern me greatly.)

earlwbollinger

I buy as a collector, so selling isn't as important.
Upgrading is interesting though, you do have to sell off the lesser grade coin eventually.
Honestly, I seem to always lose money selling (not always, but it seems that way), so maybe I'd better just keep all the coins until I die.

FrattLaw

If people are thinking that they need to sell off their collection in an emergency -- you need to start thinking about other more liquid investments. I'm with Conder on this one. I don't track how much I pay for my coins or when I buy them. For me this is a hobby. As soon as I start worry about buy/sell prices it becomes more like work. I'd much rather buy stock/bonds for investments and the brokerage house will track the value of my portfolio.

If you don't already have a Certified Financial Planner, I strongly suggest that everyone here contact one. I have a great one in California if anyone's interested. As we are aware having a strong relationship with a dealer is important, having one with a CFP is even more important.

Michael

cladking

<< <i>I buy as a collector, so selling isn't as important.
Upgrading is interesting though, you do have to sell off the lesser grade coin eventually.
Honestly, I seem to always lose money selling (not always, but it seems that way), so maybe I'd better just keep all the coins until I die. >>



Most collectors should figure on getting about 80% of their money when they sell things
which they held for a short time. Even in a rising market there's a tendency for the price
paid to reflect the hot market. In rapidly rising markets even short term holds can do well
and some collectors are very close to the market so will have paid less and sold at closer
to market price.