How do you determine how much of a premium to spend on a coin that is choice for the assigned grade?
dan1ecu
Posts: 1,573
If a 65 sells for around $1000, and 66's usually go for around $2000, would you be willing to spend $1500 for a nice 65?
Is there a rule of thumb that guides you in deciding how much of a premium to pay for a coin that is high-end, and therefore more desirable that most?
Dan
Is there a rule of thumb that guides you in deciding how much of a premium to pay for a coin that is high-end, and therefore more desirable that most?
Dan
0
Comments
For a nothing special coin with nice eye appeal and very solid surfaces for the grade a 20-40% premium to bid is not unusual.
Problem is, you have to be able to grade to tenths of a point to figure out a price (ie. 65.0, 65.2, 65.4, 65.6, 65.8.....misgrade or very low end, very average, solid, above average or PQ, reasonable shot upgrade potential)
roadrunner
It's what I am willing to pay to own it.
Edited for spelling.
I like really old crap, so there is not so much 65 - 66, it's mostly 15 - 30 and an occasional 40 - 45.
So how do I determine price? I reach in my pocket, I look at a wad of cash, I compare it to a coin.
One or the other wins!
As with most prices, best to check what real coins are trading for on Ebay, Teletrade, Heritage. For commonly traded coins, these sites will often have a relative wide range of prices realized for given coins in a given grade. Let that be your guide.
Other indicators to look at are what are premium level dealers advertising the coin for in Coin World ads, and compare that to grey sheet prices. That shows how much premium the dealers want to get when selling.
For thinly traded issues, pricing is much more difficult. In today's market, the sky is often the limit for a nice coin that is rarely offered.
and the High is $1,000. In this case a low end ms67 one that just slips into the grade (if even) has questionable value. With consideration that 700 coins have been graded ms66 and the nicest 5% may look as good or better. Yet when only 54 have been holdered in ms67 A coin that is highend for the grade. Should bring
a strong price. IMO
chris
<< <i>Offer your local dealer a truly choice-for-the-grade coin and see how much of a premium he is willing to pay. Use that as your guide. (I suspect in most markets the answer is going to be zero.)
Edited for spelling. >>
Most dealers will look at the label, get out the grey sheet and then offer you 10% back of bid. A PQ coin frequently needs to go the auction route to get PQ money.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I set aside for myself. Sometimes this is not the poptops, as I need to make a living. Right now my box of set aside Lincolns number about 150 When low on coins to sell I dip in looking for the least of them to sell. And as more come in the number once again increases. The quality of these coins are constently being
increased by this method. If compared to a set randomly built, the difference would be clear. As would the price offered from the right buyer. I would not expect
that buyer to reside at my local coin shop.
<< <i>Offer your local dealer a truly choice-for-the-grade coin and see how much of a premium he is willing to pay. Use that as your guide. (I suspect in most markets the answer is going to be zero.)
>>
While I'd agree with many of the comments in this thread, this is the attitude
a collector normally needs to have. You're better off picking and choosing among
the coins that the seller is willing to "give away", picking those which are under-
graded, or those you like the most than playing the market for "premium quality"
for the grade. There is a tendency to just pay a premium you'll never get back ot-
herwise.
<< <i>Rule of thumb : Check coin, Check wallet
I guess it also comes donw basically to: How much do you want the coin? What can you spend without questioning yourself over and over about?
I recently made a darkside purchse that is much more than I care to spend. However, the coin is a solid example for it's grade and is genuinely scarce. I've seen none finer in recent memory. So, I paid top end retail plus a bit more to acquire it. Life is short, and I think that's why God made overtime!
Edited to add: If your looking to make a buck ignore all I've just said. I'm not in it for the money any more, just the love of the pursuit and the rewards of a quality collection.
Looking for alot of crap.
But if an MS-65 sells for $1,000 and an MS-66 sells for $2,000, paying $1,500 for a choice, PQ MS-65 would almost certainly be too much IMO. I would think that $1,100 to !.200 would be more in order.
Of course if you think that the MS-65 in question is a slam dunk for a crack-out and upgrade, $1,500 might be reasonable.