Collecting the grade right before the big price jump

dan1ecu

It makes sense (at least on my budget) to pay ~$500 for an MS66 rather than ~$2500 for an MS67, or ~$100 for a 64 vs. ~$1000 for a 65, and so forth.

Do any of you specifically go for coins that are graded just below the big jump in price? What are your thoughts regarding doing this?

Thanks,

Dan

ddbird

If you look hard enough, Im convinece you can find an undergraded example. Maybe not if the price jump is extremly significant, but dont be too stuck on what the slab says. I find alot of inconsistancies in some of my slab grades.

PutTogether

You're right on the money. I shopped around forever to buy this coin in premimum quality 64 rather than spend the cash on an ok 65 example. It's kind of the same logic along th elines of buying an AU58 instead of an MS60.

Does this coin really scream "IM NOT AN MS65" to you?

solid

I agree 100% - if you take the time to be selective and purchase PQ coins
in the undergrade, I believe you can get a LOT of coin for the money!

Also consider that listed populations are inflated (sometimes severely) from
all of the crackouts and you have a PQ coin that may be (much) scarcer than
the pops would indicate.

Ken

PutTogether

<< <i>Also consider that listed populations are inflated (sometimes severely) from
all of the crackouts and you have a PQ coin that may be (much) scarcer than
the pops would indicate. >>




That's an excellent point. Often times when there is that huge jump in price for one point, the point just below the high dollar one has way inflated pops frompeople continually trying to get upgrades. For example, constantly trying to turn a 64 into a 65. There are actually much fewer 64s then the pops would indicate, because they keep getting graded as 64.

This ALSO means there are fewer and fewer really really PQ 64s, since a bunch of the 64's keep going right back into 64 holders. Makes the hunt fun, and ultimately rewarding.

Shamika

<< <i>Do any of you specifically go for coins that are graded just below the big jump in price? >>


With mint state Buffalos, I absolutely have to target these grades most of the time. I do bite the bullet on occasion, however.

09sVDB

Sometime ago I started a thread on this. The topic was AU58/MS64 VS. MS60/65. The price jumps are huge here. While I feel that if I can afford he coin in 65 I buy iy but the value definately lies in the 58 and 64 coins.

KurtHorn

For quite some time, I favor buying Walkers in 64. I feel that in many of them there is greater value because the 65's are an inflated price IMO.

greghansen

Buying a premium coin one grade level below the 'money grade' is a very strong collector strategy in my opinion. PQ coins at the level just below the money grade will hold their value very well. I don't even worry about upgrade candidates. I just want the 64.5 coin when there is a 10X difference between 64 and 65 prices.

Edited to add...that is a nice '28 Peace by the way! Good example of a smart way to collect. Now if you could find a '28-S in MS64 that looked like, you'd really have something at anything near 64 priced. That coin goes from $900 bid to $14,000 bid between MS64 and MS65.

BigGreek

This is certainly the case for Walkers. You can put together a very nice
short set in 64 without breaking the bank.

Then there are the short set Mercs where a nice set in 65 can easily
be had.

Baley

I do it. AU58 and MS64 are probably my favorite grades

TheRaven

I think that buying the best you can afford for the money is always a good way.

And buying below the big price bump is always a smart way of doing that.

Especially if you are trying to put a run or set of them together.

CarlWohlforth

The replies are answering a different question than the one asked.

I'm sure everybody would agree that, in whatever grade you are looking for, a PQ coin is more liquid, easier to sell, and looks almost as good as the next grade up. It is always good to buy the best coin out there for the grade. It can never be bad to buy an undergraded coin or one on the verge of the next grade. This is not limited to the grade before the big price jump.

How about asking if you should buy an average for the grade coin in the grade before the big price jump? I went through a collection of Morgans like that. It was assembled with the thought that these coins were the best investments. However they stayed flat in price while the higher grades, DMPLs and CCs went up in price.

If the grade before the price jump is in your price range than that is great, go for it.