How do you consider how much you will pay for a coin?

mrpaseo

I have to do research of current value auctions every time I consider purchasing a coin, however, if and when I ever get the chance to make it to a coin show, how would I determine what is a good price for a coin?

Ray

Dennis88

Look at a lot dealers, and always try to knock something of the price (from the lowest offcourse). I got good experiences with this..

Dennis

DesertRat

I follow a simple rule. If I really really like the coin and the price is such that I can afford it without taking food off the table, I'll most likely buy it. I know for a fact I have paid more than I probably should have in the past, but in all reality, at the time I made the purchase I was ok with the price and have never kicked myself for having bought. If I see something nice (not just coins) and say "damn! that's nice but I really can't afford it" , it doesn't get bought. I have heard it said many times that a coin is only worth what someone is willing to pay, regardless of pricing guides. For me, at least, that is the truth.

Just MHO. Now don't go sending me PM's about how you have this great deal for me hehe

tradedollarnut

The only way you can truly figure it is opportunity cost. How bad do you want it compared to what else you could spend the money on [or invest it into]. Thus, the value of the coin is related to the value of everything else in your life...

nwcs

I usually try to see what the coin generally sells for. And then it's a matter of how comfortable I feel in laying down the money. If I'm in the bit wary of spending it, then I won't.

Russ

It depends on whether I'm buying it to flip, or for my own stash. If buying to flip, I estimate what I think it will bring and try to rip it for half that. If buying for my own stash, I'm willing to pay slightly more.

Russ, NCNE

BAJJERFAN

<< <i>I usually try to see what the coin generally sells for. And then it's a matter of how comfortable I feel in laying down the money. If I'm in the bit wary of spending it, then I won't. >>



Sort of the approach that I use. If common ms66 Morgans are going for $350 to $400 I try to stick in that range. I look a lot closer if a coin is priced too far on either side of that range.

mgoodm3

I generally buy coin that I really like, as long as they are somewhere in the general price range that the quality and series goes for. I don't mind paying a little more for something I like.

mhammerman

Surely there are other opinions but I do buy nice coins and it seems that flexibility is the key to getting good coins at a good price. A good price doesn't necessarily mean cheap. Of course looking at the auctions is a good way to judge the value of a coin because that is what someone is actually willing to pay for a coin at that point in time, regardless of the tpg number put on it. It is not uncommon to see a called ms 63 coin only commanding mid/low 62 money in auctions. A seller might be asking for 64+ money for a coin but the only buyers are at 62, that is what the coin is worth at that point in time, 62 money. By the same token a very nice called au 58 can easily command 61 money if someone has a strong desire to own that coin and if it is a nice coin for the called grade. So, flexibility is my watchword for buying coins and buy the coin, not what some holder rates it at. What someone is willing to pay is what the coin is worth, not grey sheet, not tpg's, not previous sales. It is only worth what someone is willing to pay. A smart buyer will buy the coin for what it is worth to that buyer based on the recent sales of similar coins.

With that said, what is paid for a coin is based on who's buying it. A collector might just have to have a certain coin and a nice one may bring a premium from a collector, maybe 30%-40% but I (as a collector) can certainly stand in that line on a couple of coins...an au 58 that sings to me and a green pcgs 63 that you need sunglasses to look at. A dealer with a collector "want list" may pay a premium for a coin if he has a buyer at a premium or a bin directive from the collector.

What the coin is worth is also based on what the coin looks like. There are a lot of ugly 61's and 62's that might be worth something on paper but if it's ugly...it is hard to pay top dollar for it.

That's my approach and I do own one mistake so no one is perfect or as I tell my wife..."No one is good all the time!" I keep a running total on the dates sold/grade and price for the coins that I am looking to buy so I have a pretty good handle on what that grade should look like, what it could cost and what my chances of seeing another one offered might be.

As a final comment, it seems to me that it is hard to make a living flipping/resubmitting coins but there are some that make a living at it and they certainly have my respect because they are on the market and well hooked up...much higher level of play than the discriminating collector has to exercise but flippers have to stay on their game all the time and for that they deserve distinction.

Just my comments for what they are worth, not trying to get splatted with tomatoes here. Good luck!

Mike

kyleknap

I think TDN hit it on the head. It's all about what the coin is worth to you, and what other luxuries you will be forgoing to own it (like food for a week). Here's An interesting tidbit on this topic from our friend Adrian: link.

Kyle

khayse

I start with seeling what similar coins have gone for at auction recently. Then I see how often the coin comes up (maybe
this will be my last chance to grab one for awhile). Then I compare it to some of the others sold. Is it run of the mill and the
next one that comes along will probably be better or is this a special speciman? Then how much will this coin improve my
collection.

I'm 74% done with my Walker set and things are starting to get a little tough. Coins I'm looking for don't come around as
often. I think I made my first addition to it for the year last week. That's a lot of time to be spending on the sidelines.

-kHayse

jdimmick

If its something that I want for myself, then its the amount that it takes to pry it from the sellers hands, or till I surpass the amount of money that I have to spend trying to find out what that amount is?.

sliderider

I try to get a feel for what similar pieces have sold for in the recent past. Fortunately, it's relatively simple on ebay , Heritage and Teletrade to do just that. Heck, Teletrade shows the last 5 results at the top of the listing you are looking at. Ebay and Heritage you have to search the archives a little. I also consider how the piece looks (blast white, attractively toned, hideously toned) and I take the populations and demand into consideration. Some pieces I'll make my high bid early and walk away, and if I win I win, others I'll nurse the auction right up to the very end and overpay if necessary to keep the snipers at bay.

cladking

How much I want a coin and my estimation of the accuracy of the market price are
the largest determinants of my maximum price. Frequently the guides are not a fair
reflection of market price and market price is not always a good reflection of true
value. Within this framework I still try to get the coin as cheaply as I can but rarely
will have to go all the way to my maximum.

catfish172

<< <i>I follow a simple rule. If I really really like the coin and the price is such that I can afford it without taking food off the table, I'll most likely buy it. I know for a fact I have paid more than I probably should have in the past, but in all reality, at the time I made the purchase I was ok with the price and have never kicked myself for having bought. If I see something nice (not just coins) and say "damn! that's nice but I really can't afford it" , it doesn't get bought. I have heard it said many times that a coin is only worth what someone is willing to pay, regardless of pricing guides. For me, at least, that is the truth.

Just MHO. Now don't go sending me PM's about how you have this great deal for me hehe >>



Ditto for me. I'm no reseller.