What factors do you consider when evaluating a coin for purchase?
RYK
Posts: 35,797 ✭✭✭✭✭
A tangent from another thread, assuming that you want/need the coin for your set and you have the money to purchase it, what goes in to the thought process of purchasing a coin.
When I am considering a coin for purchase, I ask myself these questions:
1. Do I like it?
2. Is it original? (answer need not be yes, but still an important question)
3. Is it priced reasonably for the grade?
I am not overly concerned about the absolute grade (I am not a registry player) but more interested in the eye appeal and originality for the assigned grade. While I prefer original coins (#2), sometimes dipped or lightly cleaned (market acceptable) coins have enough eye appeal to override my concern for originality.
Anyone else?
When I am considering a coin for purchase, I ask myself these questions:
1. Do I like it?
2. Is it original? (answer need not be yes, but still an important question)
3. Is it priced reasonably for the grade?
I am not overly concerned about the absolute grade (I am not a registry player) but more interested in the eye appeal and originality for the assigned grade. While I prefer original coins (#2), sometimes dipped or lightly cleaned (market acceptable) coins have enough eye appeal to override my concern for originality.
Anyone else?
0
Comments
If it's for the "Flip", Price.
Jim
5. If I'm buying it for the business, can I sell it and make enough money from it to warrant the risk of putting it in inventory.
6. If I'm buying it as a collector, am I willing to risk the money on this over the long haul? OR if it is something the NO BODY collects (in the past NO BODY collected Civil War tokens and 19th century presidential campaign medalets) am I willing to probably never see most of this money again? NOW people DO COLLECT Civil War tokens and presidental campaign medalets so I've gotten to take my cake and eat it too.
1) Scarcity in the overall series
2) Overall eye appeal
3) Originality
4) Better than expected luster, strike
5) Location/number of marks within grade
6) Price and potential appreciation
<< <i>A tangent from another thread, assuming that you want/need the coin for your set and you have the money to purchase it, what goes in to the thought process of purchasing a coin.
When I am considering a coin for purchase, I ask myself these questions:
1. Do I like it?
2. Is it original? (answer need not be yes, but still an important question)
3. Is it priced reasonably for the grade?
...............? >>
And, variation on Bill 's point #4, is it something I collect? I do like a lot of coins, but if they 're not something I collect, I wouldn 't buy them.
2) Can I afford it?
3) If answer to 2 is 'no', is it sufficiently obscure or rare that I'll buy it anyway?
4) Will my wife find out about it?
2) Is the price in the range I want to spend?
1. Scarcity
2. Eye appeal (sometimes a picture seals the deal)
3. Originality
4. Discussion with the dealer or other knowledgeable collectors (assuming that they are experts in what I am buying)
5. Will they deliver it to my work address so my wife does not find out?
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
If that is a problem for you, I know how to help.
In my question, I am assuming that I need the coin for my set AND I have the money available. If not, why consdier buying the coin in the first place? "assuming that you want/need the coin for your set and you have the money to purchase it, what goes in to the thought process of purchasing a coin?"
2) Is it consistent with the quality that I want?
3) Is it priced fairly or reasonably?
4) Is it an opportunity that is very timely?
5) Does RYK want it too?
1. Can I flip it for a profit?
2. Can I flip it for a big profit?
3. Can I flip if for an obscene profit?
Russ, NCNE
Although if it is just a very light line or two that you can't really tell very much I might consider it if it's a nice original coin.
And no.... I don't consider the fingerprints as attesting to the originality of the coin.
i generally collect at a certain grade level, so when i'm looking at coins i'm already focused on grade and eye appeal, whether the coin is raw or holdered. if it seems to be the grade i want my main concern is where it's priced at according to the grade. too much is too much. the exception i'll make is with some medals which are rare with less than 50 struck; since they don't show up very often i'll buy in whatever grade can be found if the price is right.
al h.
Do I like the look of it enough to want it around for a while?
Does it appear free of detracting factors which might affect future resale?
Is it on the nicer end of its grade?
Is it priced reasonably?
For practical purposes, I define "priced reasonably" as "can I be reasonably confident that, if I had to resell it tomorrow, I could escape with a net 80% or more of what I spent after whatever fees and expenses would be associated with doing so."
1. If I feel like I am talking myself into a coin, I have learned to stop myself. The coin should sell itself without any help from me.
2. I prefer to buy the coin from a dealer (or collector) who knows the series well. Sorry, Russ, there goes the obscene profit, but I think it protects me from an obscene loss.
3. If there is a detracting mark to which my eye keeps tracking, stop, and put the coin away. I have learned (the hard way) not to take a coin that has something that continues to bug me. An almost trivial mark today often looks like someone took a sledgehammer to the coin a year later.
<< <i>When I am considering a coin for purchase, I ask myself these questions:
1. Can I flip it for a profit?
2. Can I flip it for a big profit?
3. Can I flip if for an obscene profit?
Russ, NCNE >>
1. Do I need it for a set I'm working on?
2. Does it match the "look" of the rest of the set?
3. Is it original?
4. Eye appeal
5. Grade
6. Cost vs. market price
-g
I'd give you the world, just because...
Speak to me of loved ones, favorite places and things, loves lost and gained, tears shed for joy and sorrow, of when I see the sparkle in your eye ...
and the blackness when the dream dies, of lovers, fools, adventurers and kings while I sip my wine and contemplate the Chi.
1) Does the coin catch my eye/stand out in some way, in terms of eye-appeal, color, etc.? I try to avoid coins which are ordinary and go for ones which have some special appeal/personality.
2) Is it graded accurately (in my subjective opinion, at least)? I care a great deal about stuff like this and pass on many coins as a result, even at the expense of potential profit.
3) Is it free of noticeable/bothersome imperfections/distractions? Many coins are accurately graded, but still undesirable to me.
4) Is it priced reasonably/fairly? I think everyone draws the line at some point, regarding price - it's just a matter of where the line is drawn.
<< <i>In order of what typically goes through my mind when examining coins......
1) Does the coin catch my eye/stand out in some way, in terms of eye-appeal, color, etc.? I try to avoid coins which are ordinary and go for ones which have some special appeal/personality.
2) Is it graded accurately (in my subjective opinion, at least)? I care a great deal about stuff like this and pass on many coins as a result, even at the expense of potential profit.
3) Is it free of noticeable/bothersome imperfections/distractions? Many coins are accurately graded, but still undesirable to me.
4) Is it priced reasonably/fairly? I think everyone draws the line at some point, regarding price - it's just a matter of where the line is drawn.
2) Don't you really mean is it overgraded?
2. does it fit in my collection w/ the rest of my coins?
that's about it.
K S
When I look at a coin and say "wow to myself" it's mine.
The rest is just stuff to me. Did I say I'm just a collector?
<< <i>Don't you really mean is it overgraded? >>
Mike, I suppose I do. After all, if the coin were under-graded, #'s 1, 3 and 4 might not be so important.
Is it an Overton variety that I need?
Is it an interesting sub-variety for a variety I own? die cracks, cuds, EDS, rare die state
Does it have an interesting error? double edge lettering, double profile or strike, planchet defects, off center
Is it original?
Does it have excessive marks? - does not matter with rare varieties
Eye appeal?
Price - only matters if I don't have the cash to buy
grade - a factor only on common varieties
2. Does the coin have above average eye appeal for the series.
2. Is the price reasonable?
3. Do I think about it after I've seen it?
4. What is the likelyhood of finding the same date in the same grade and above characteristics, etc.
5. Do I need the date/mm for my set of Morgans?
"Bongo hurtles along the rain soaked highway of life on underinflated bald retread tires."
~Wayne
2> is it orginal?
3>how low mintage is it.
4> how much?
5> do i trust the person or dealer im debating buying from?(if no i go bye bye).
6>if all is good then i buy it and think ok how do i explain this to my mom ( who flips out when i spend more than 50$ on a coin).
does it have "michael" eye appeal?
is it a "value" coin?
does it have extraspecial extraordinary qualities?
is it worth as much out of the holder as in the holder? in other words how much of the coins value is in the plastic?
do i have the discretionary income for such a purchase?
can i live with it for a long long and maybe even longer time?
is it something that meets my collecting parameters?
michael
<< <i>4) Will my wife find out about it? >>
The best way to fix "the wife problem" is to show her that you have made money on the coins that you have purchased. I got off to a good start on that one. When we purchased our first home, I sold an original 1909 Proof set to raise a good part of the down payment. Since I tripled my money on an item that I had held for about 7 years, she quickly understood that money spent on coins was not "down a rat hole." Since then my coin "investments" (actually my collection) have only gotten better, and spending money on coins has long been a part of our household budget.
I remember tolking to an old time New England collector who has since passed on. When his wife found out about how much his collection was worth and how much he had made on it, she said, "Why didn't you spend more on coins?"