"Buy the best you can afford" vs. buying lots more lower-grade coins with the same money

dan1ecu

Which do you do?

Do you look for the very best, highest grade pieces even if you can only afford a couple of coins per year, or do you buy lower grade, less expensive coins so that your dollars go a lot farther?

I'm assuming that your answer will depend on whether you're a pure collector, a collector/investor, or a pure investor...

Dan

tradedollarnut

I'm assuming that your answer will depend on whether you're a pure collector, a collector/investor, or a pure investor...

Why is that? What if I prefer to collect high grade coins vs invest in lower grade coins?

RYK

I try to buy coins that are original and nice for the grade, irrespective of the grade, for my sets. Sometimes that gets me an "expensive" higher grade coin, sometimes an "inexpensive" lower grade coin.

TommyType

<< <i>I'm assuming that your answer will depend on whether you're a pure collector, a collector/investor, or a pure investor...

Why is that? What if I prefer to collect high grade coins vs invest in lower grade coins? >>



I think it has more to do with whether you're solvent, rich, or filthy rich.

For some of us, it depends on what we find in change that day.

morgannut2

Actually-- if you do the math on my series (Morgans), the best investments over the last few years were the top ten LEAST common (key/semi-key) dates in AU or less, rather than best grade in date. In other words as an investment, you were better off with ten AU 1894P's and 10 1893S F-12's (ORIGINAL), than buying the "best"; but only one of each. Essentially your premise of grade verses volume is a false one, IMHO.

Lets say it another way: You should buy the best and MOST UNIQUE you can afford that are special in some way. Common coins are not great investments and may start to be accumulations rather than collections-- unless each coin is unique or especially eye- appealing for the date (beautiful rainbow toning, originality, DMPLs, etc.).

XpipedreamR

I only want to buy coins that thrill me to look at.

mgoodm3

i'm generally happier with the one quality coin in the long run, though I don't always live by that rule.

vega1

I agree with morgannut, the 'best' is not defined by me as the highest grade. It may be a low grade key date. But to answer your question, I absolutely go with the 'best' coin I can afford rather than fill my collection up with a bunch of less expensive but more common items. I would go with a lower grade key date over a high grade common coin any day.

gemtone65

Excellent synopsis, Morgannut2. If you want to collect the largest number of coins regardless of condition, rarity or eye appeal, put your pocket change in a piggybank. Otherwise, if you desire to combine a meaningful collecting focus with investment considerations, re-read Morgannut2's advice and implement some variation thereof.

jdimmick

For me, I buy coins that apeal to me. I like originality, and coins with above average eye-appeal. if I can afford them I buy them, if I cant , I dont. Some are expensive, some are not so expensive.

Sequitur

or do you buy lower grade, less expensive coins so that your dollars go a lot farther?

I think collectors should strive to avoid this. I hope Mirabela doesn't mind, but I'm linking a BST thread where he was selling some admittedly marginal grade material collected by a relative in the 1960s and 1970s (post has been edited, but I quoted the original language).

Nice coins and collection, but I made the observation that it would have been preferable to cut down drastically on the number of coins, and instead make a concerted effort to acquire extraordinary pieces. And what a collection could have been amassed in the 1960s and 70s if that had been done. If those coins were gems, it would be a most enviable collection today, from both a financial and numismatic perspective.

Would I rather have one extraordinary gem or 1,000 run-of-the-mill coins? I'll take the extraordinary gem every single time. (But morgannut2 makes a good, informed point about the investment perspective and AU coins.)

Hedger

I only buy extra fine in raw. The high grade stuff is less risky in slabs.

tmot99

I tend to buy nice coins. Not always the highest priced, but typically not lowest either. Yes, I could only buy 1 couple of REALLY nice coins a year, or, I can lower the grade or buy more common coins regularly throughout the year. Part of the enjoying of the hobby is buying nice coins whether it be a MS66 Jefferson nickel or an 1795 silver dollar in VF35.

Tsimmerdown

How expansive are your collecting goals? Do you have a set collecting goal? In other words, how many coins do you need to complete the set that you are working on? And also consider, how quickly do you want to complete that set? If it's a large, expansive set, that you want to finish within a shorter period of time, then maybe you should go for quantity over quality. However, if you have a highly specialized collecting goal with only a few dozen pieces to complete the set, then I would recommend going for better pieces.. quality rather than quantity. Personally, I'm doing the latter. My current collecting goal when complete will be only about 40 - 50 pieces. I don't intend to finish it anytime soon, so I'm not really in a rush. Therefore, I try to buy better items rather than buying as many as I can. However, as I described, your collecting goal should help determine your buying strategy!

MrEureka

I've purposefully chosen to collect series of coins that are inexpensive and very difficult to find. That forces me to accept some lower grade coins along with the gems. But it also allows me to buy THE BEST THAT I CAN FIND, whenever I can find it. I've found this approach far more enjoyable than chasing trophy coins and straining the budget.

ColonialCoinUnion

<< <i>I only want to buy coins that thrill me to look at. >>



Of the responses so far, I agree most with the unfortunately named 'XpipedreamR'. Irrespective of whether you are a collector or investor, newbie or crusty veteran, rich or financially challenged I'd suggest you buy coins that you enjoy looking at.

I personally take no pleasure in owning a worn, damaged, ugly coin simply to fill an empy spot in my album and so I don't own any such coins.

This is not to say that everying I own is a brilliant gem - it isn't - but all my coins share the common characteristic of making me feel good when I look at them.

BillJones

I have bought the best coin that I can afford, but I don't go nuts. If a one point grade improvement will cost me thousands of dollars, I know that I have hit my limit as a collector. As for the business, I'll get what the want list customer wants, but I might give him or her some advice first. If they still will the coins with the big jumps, I do the best I can to give them the best coin possible.

Baley

I don't buy the best that I can afford for each coin, but the best value grade for the issue in my opinion.
For early (pre-1806) stuff, that's usually VG or Fine, maybe a higher grade circ for a more common coin.
For mid era stuff like civil war era, it might be AU58 or MS 61 or MS64 that gives me the most bang for the buck
post WW2 I like Gem bu and proofs, but don't generally go for post-1964 coins or ga-ga grades.
In the case of ultra modern 21st century coins, I'd rather have a whole set in PF68 than one single coin in PF70

AJ2525

I guess I'm the nut from the other side of the world.

I like my accumulation. Yes, I'm interested in upgrading and actually having high grade coins, but I also like having lots of coins. I'm a packrat, hoarder, what-have-you. I'm aware my collection is worth very little and I could probably trade in the thousand wheat cents I have for one high grade wheat, but I think it's cool I've found most of those wheat cents by looking through rolls or my change. I guess I'm hooked on finding "treasure" out of the thousands of coins practically making beaches in our banks and currents of commerce.

I'm starting to realize maybe I'm not so much a collector as someone who goes through coins and likes them for difficult to explain psychological reasons.

zkcoins

I will do both! I will buy fillers until the really big fish comes along! Then when I find "the one" I will upgrade it! I would like to add that even my fillers have to look good, or I will trade them for another filler!

The problem is that I often can't bring myself to sell my lower graded coin! I form this bond and its hard to sell them!

roadrunner

Because the lower grade key date coins have done well in the past few years doesn't mean that trend is now in force long term. In fact, from here, those coins may not move upwards any further over the next 15 years. Whose to say? Let's just say they did a lot of catching up from the 1982-2002 period when high grade coins ruled the roost. On the flip side, higher grade Morgans have been very overlooked the past few years and are probably being accumulated (along with classic commems, type coins). They are one of the bread and butter areas of the market not yet hyped since the turnaround (one exception would be common date Morgans, toner Morgans, and CC Morgans).

As far as the high grade coins not having done well: you could have bought the monstrous raw GEM 1893-s Morgan (now PCGS MS67) out of the Vermeulle sale in late 2002 for a "measly" $414,000. And that was well below sheet at the time. I would not be surprised to see that coin worth more like $750K today. And that coin has a shot at a MS68 grade down the road...which would make it an even better buy. Not a bad return for one of the finest, if not the finest.

roadrunner

0i812

At one time I just tried to put together a large and varied collection. I have now concentrated on pre- Civil War American coinage(still a daunting task). This makes buying some higher grades prohibative for me. I will search for the highest grade possible in a certain type and buy less coins per year. I have found this works out well when you go to sell or upgrade.(I explained in an earlier thread my disapointment when I sold off my "Moderns") But I say do what makes you happy. I love my smaller collection and find that I rarely want to sell anything these days. I also find myself doing more reading and research on the coins I have and certainly looking at them more often then when I had Album after Album on the shelf in the den. Mike





<< <i>"Happiness is not a fish that you can catch" >>

TonedPeaceNut

Why are these mutually exclusive????? Why can't you do both???

I love album collecting. There's nothing quite like an album full of coins. However, I would never crack a really high grade coin to put into an album. Though I have cracked lesser (AU-58 thru MS62) for albums. Grades might range from F/VF to MS, depending on the denomination, for the album. For example I bought a F-15 Seated Liberty No Motto for my Dansco Type set.

I also like high grade examples, or at least the highest and best quality I could afford. I couldn't afford a PR65+ Barber Half -- but I did pick up a nicely rimmed toned PR63CAM example with some hairlines for about $1000.00.

Granted if I sold off all my lesser coins I might be able to purchase a couple of really high grade examples, but who wants a collection of 4 coins.


TPN

parkave

Quality will be remembered long after the money is forgotten!

ccex

After collecting U.S. coins in the '70s, late '80s, and from '99 to the present, I have finally curbed my appetite to fill albums with low grade and/or problem coins. Yet the question posed here still troubles me. I still don't have the patience to spend my coin budget on only 2 or 3 coins per year.

When I go fishing, I hope for nice walleyes, Northern Pike, or bass, and don't have the patience of a Muskie fisherman. Still, I throw back all the little ones I reel in. I can't afford a fishing trip that will probably yield nothing, and would not be satisfied fishing for bullheads or little perch. Similarly, I spend dateless Buffalo nickels and common 1950s wheat cents while I search for original mid-grade 100-year-old coins and don't even try for registry set quality or 18th century coins.

As mentioned previously, some of the lower grade key dates may be a better investment than higher grade common dates. In the last year, I have benefited most by my XF 1896-O, Fine 1895-O 1896-S and AG 1916-D dimes. These were the best that this impatient collector could afford at the time. I'm glad I didn't buy rolls of AG-G common dates from the same era, or even lots of common dates in AU to MS-62.

saintguru

I'm in the minority, but with what I collect (Saints) buying the best coins that can be found (reasonable pricing and eye-appeal MUST be taken into consideration) is the way to go. Having a pop150 ms64 vs. a pop9 ms65...I'll take the 65 any day!

BAJJERFAN

<< <i>Granted if I sold off all my lesser coins I might be able to purchase a couple of really high grade examples, but who wants a collection of 4 coins. >>



Exactly!!

AgMe

As a collector, only the highest grades with exceptional eye appeal will do.

When people see my collection, they instantly recognize my "theme/preference".

...that being said... I do have a silver hoard (I just love the way it looks in piles) & all the foreign coins friends bring back from trips (they usually will bring me back each denomination from each country they visit).

-g

SG58

For anyone who has to work for a living and not go overboard on coin spending, but truly enjoys the history and ownership of scarce and rare coins, here are my thoughts: buy the less expensive low grade stuff! But stick with the low mintage classic series, where the number of coins available is definitely limited. Buy certified coins when you can. Low grades such as AG or Good or Very Good are fine as long as the coin has good eye appeal for the grade and there is a demand for the date. Examples are low grade 1794-1805 half dimes; 1796-1804, 1809, 1811, 1822 dimes; 1824 quarter; 1801, 1802 halves. In the later series: early 1870's CC mint dimes, quarters, and halves. Seated dollars: 1850, 1856-1857, 1861-1867, 1870-CC, 1872-S. All these coins have low mintages and are not overly expensive in low grades and are truly scarce. I stay away from copper due to corrosion and verdigris problems.