Premature Buyer's Remorse?
coinpictures
Posts: 5,345 ✭✭✭
Over the past few years I've seen the prices I'm willing to spend on a per-coin basis rise. 3 years ago I would have NEVER considered spending more than $100 on any coin. That's slowly crept up... and up... now I don't think twice about buying coins I want for $100-300, and have spent $400-500 on a few isolated pieces.
Tomorrow is a big day for me though. I'm planning to pick up a coin that goes over the 4-figure mark, and a ways into 4 figures to boot. It's a huge jump for me, and I feel a little hinky about it. I have no doubts about the coin; it's certified by a major company, and I think it is primo for the grade. But I look at the raw amount I'm spending and say to myself "that's HOW MANY mortgage payments???". I kinda feel like I'm going off the deep end a bit.
On one level I think it's not that smart, considering that I'm borrowing the funds (albeit at a very low interest rate). But on the other hand, it's one of those "opportunity" coins that I know I'll kick myself if I don't buy it. Given the research I've done online at Heritage, Stacks, and Teletrade, and looking at other examples of the type/date, I honestly think it would be virtually impossible not to get my money back out of the coin if I had to.
Anyone else secondguess themselves when making a major leap in their level of coin purchases? (I'm talking about us regular working Joes out there, not folks with a virtually unlimited supply of money).
Tomorrow is a big day for me though. I'm planning to pick up a coin that goes over the 4-figure mark, and a ways into 4 figures to boot. It's a huge jump for me, and I feel a little hinky about it. I have no doubts about the coin; it's certified by a major company, and I think it is primo for the grade. But I look at the raw amount I'm spending and say to myself "that's HOW MANY mortgage payments???". I kinda feel like I'm going off the deep end a bit.
On one level I think it's not that smart, considering that I'm borrowing the funds (albeit at a very low interest rate). But on the other hand, it's one of those "opportunity" coins that I know I'll kick myself if I don't buy it. Given the research I've done online at Heritage, Stacks, and Teletrade, and looking at other examples of the type/date, I honestly think it would be virtually impossible not to get my money back out of the coin if I had to.
Anyone else secondguess themselves when making a major leap in their level of coin purchases? (I'm talking about us regular working Joes out there, not folks with a virtually unlimited supply of money).
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Comments
<< <i>I think it's not that smart, considering that I'm borrowing the funds (albeit at a very low interest rate). >>
Many people have echoed similar thoughts here and I full heartedly agree. It can be tough keeping to a budget considering all the excellent photos that are posted on these boards but I also think it's important to keep things in perspective for each collector's individual situation.
In doing so, I anticipate that the coin will maintain it's price or that it will appreciate
in value so that when I'm ready to sell, it will surely be worth at least what I paid
for it. (or at least that's my theory) Hopefully, I'll never have to sell my collection.
I want it to go to my kids and grandkids.
Big Dave
PS - I know you didn't ask about credit, but I'd never buy coins on credit.
Unless you're going to sell it soon for a profit.
My rule of thumb - if you can't pay cash for it, you can't afford it. (houses & cars excluded)
All of the above is my opinion... I could be wrong.
-------------------------
Good trades with: DaveN, Tydye, IStillLikeZARCoins, Fjord, Louie, BRdude
Good buys from: LordMarcovan, Aethelred, Ajaan, PrivateCoinCollector, LindeDad, Peaceman, Spoon, DrJules, jjrrww
Good sale to: Nicholasz219
<< <i>"My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity"
Food for thought.
That said, I would never borrow money to buy a coin, or any other luxury item. I don't care how sure-fire, can't miss the deal is, it is not something I would do, nor would I recommend anyone else do it. Especially if the person is a relative novice in the hobby (five years or less). Markets change, sometimes they turn on a dime, and what seems like a sure thing can become a pit to be buried in.
Personally I would rather own 50 PQ coins worth $1k each rather than 500 average coins worth $100 each. Quality (and rarity) over quantity is the way to go!
FOR SALE Items
I sell an unwanted coin of mine just to reduce the risk. It eases my mind in what I owe, and I tend to cherish the new piece a lot more...
<< <i>When this happens (and I am very close to your same financial situation),
I sell an unwanted coin of mine just to reduce the risk. It eases my mind in what I owe, and I tend to cherish the new piece a lot more... >>
I couldn't agree more. Ditto for Filam's post.
... I have no doubts about the coin; it's certified by a major company, and I think it is primo for the grade.....
......Given the research I've done online at Heritage, Stacks, and Teletrade, and looking at other examples of the type/date, I honestly think it would be virtually impossible not to get my money back out of the coin if I had to.....
My advise would be to go for it. Just make sure to sell a certain number of (relatively unnecessary and much cheaper) coins asap to reduce the cost, just like JZ and the boz suggested. With your photos, it shouldn't be a problem.
myEbay
DPOTD 3
I guess my mind has a hard time wrapping itself around the concept of "Holy Sh*t! $X,000 for ONE stinkin' coin???"
Now to get off my lazy bum and prepare more coins for sale. Buy some crap outta my store wouldja? Help support my addiction!
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I just have to ask, what is it?3Mark
<< <i>Dan:
I just have to ask, what is it?3Mark >>
Ditto. The opinions on this thread might change after a picture is posted
8 Reales Madness Collection
Also, it's a Lightside piece *GASP*
It's an 1873 seated liberty dollar proof. Only 600 minted. Last date in the series, one of the lower mintages. It fits in with my love of early proofs, and has some colorful toning, which makes it all the more attractive.
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To date, my largest purchase has been below the 500.00 mark, and I remember how that felt. There was some guilt, no doubt about it. It was a piece that I really wanted to add to my collection, but it took a lot of convincing on my part.
I don't think I could convince myself to purchase a x000 coin under normal circumstances.
FOR SALE Items
<< <i>There are coins that one simply must have... >>
Liteside?
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FOR SALE Items
But four figures??? Not yet, but it's coming ...
My OmniCoin Collection
My BankNoteBank Collection
Tom, formerly in Albuquerque, NM.
Surely this doesn't include credit cards!?
Can you charge the coin?
<< <i><<.. I would never borrow money to buy a coin.." >>
<< <i>Surely this doesn't include credit cards!? >>
<< <i>Surely this doesn't include credit cards!?
Can you charge the coin? >>
It does for me - I don't charge a coin unless I already have the money to pay for it and that money has been purposefully set aside for my coin purchase. I may use a credit card for the purchase if it eases the transaction, but not for any other reason.
If you are buying it retail, I would certainly ask about a buyback percentage. Maybe even get it in writing. If they aren't willing to go there, you might have to ask why.
Good luck with it. In the end it's personal, and there's no right or wrong answer here.
<< <i>Can't help you, sorry. I feel like I'm in the same situation.
To date, my largest purchase has been below the 500.00 mark, and I remember how that felt. There was some guilt, no doubt about it. It was a piece that I really wanted to add to my collection, but it took a lot of convincing on my part. >>
That dang King George III, 231 years later and he still affecting us Americans
<< <i>If you are buying it retail, I would certainly ask about a buyback percentage. Maybe even get it in writing. If they aren't willing to go there, you might have to ask why. >>
I did think of that very question and posed it when I picked up the coin. The dealer didn't hesitate at all and said he would buy the coin back at 90% of what I paid.
Interestingly enough, one of the other customers overheard our conversation, waited outside the shop until I left and said that if I ever needed to unload the coin he would pay me what I paid for it, no questions asked.
Not seeing very much downside on this one.
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<< <i>
That dang King George III, 231 years later and he still affecting us Americans
HA! That's the one... my highest pricetag to date.
I was proud of that coin, until I compared it against your 14 gulden. Someday, I will own one of those.
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I guess that when you find something that really really makes you happy, price becomes relative. I prefer to pay in cash, even if it means buying nothing for a period then kind of being naughty about the budget and splurging on one or two items.
I would avoid borrowing for anything, not just coins if it was possible, but sometimes you have to weigh the risks and rewards and decide what you are comfortable with. From the sound of it, barring a cataclysmic falling out of the miniscule mintage late 19th century high grade proof market and a dealer AND a fellow collector who go back on their collective word, I don't think you are going to be stuck with a lemon here.
Hell, if I could have all the money back that I have spent haplessly (and on credit) in pursuit of the opposite sex, my collection would rival The Hermitage's in Russia!
Nick
I'd say...
BUYER"S REJOICE
Unless the entire economy collapses...... In which case, you can still buy a loaf of bread with the silver content...
Seriously though, every now and then you come across that so called "once in a lifetime opportunity", this may have been yours..... So long as you weren't putting yourself DEEP into debt for it, and had a payment plan mapped out.... It's better to have purchased it (with the buy back guarantess), than to second guess yourself for years to come with the "road not taken"...
CONGRATULATIONS on a STUNNING COIN!!!!!!
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<< <i>
<< <i>If you are buying it retail, I would certainly ask about a buyback percentage. Maybe even get it in writing. If they aren't willing to go there, you might have to ask why. >>
I did think of that very question and posed it when I picked up the coin. The dealer didn't hesitate at all and said he would buy the coin back at 90% of what I paid.
Interestingly enough, one of the other customers overheard our conversation, waited outside the shop until I left and said that if I ever needed to unload the coin he would pay me what I paid for it, no questions asked.
Not seeing very much downside on this one.
Like I said, times and markets change. When they do, they often change quickly and there is no time to think or sell before the big drop. If the economy takes a dive, luxury items such as coins may be cut in half as many collectors sell to pay bills. That kind of price action in coins hasn't happened in a long time (over 10 years), so new collectors (less than five years experience) have no idea that it can happen. However, it can and almost certainly will at some point. It may be soon, it may be years out. If and when the big dipper comes calling, that dealer and many others might be out of business when a person is in desparate need of money and would take half of what he/she paid for it.
Of course there is also upside, and the coin bull market may live long and prosper and a person might double their money in a few short years. That said, I still would never borrow money to buy and would strongly suggest that any relatively new collectors also refrain from doing so. New collectors are often prone to making mistakes, and often pay too much. Buying on credit magnifies these mistakes.