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Is this fuzzy thinking?

skier07skier07 Posts: 4,712 ✭✭✭✭✭
I'm mostly a collector or accumlator of Morgan and Peace Dollars. When I was a kid 35 years ago I began to
buy mostly higher end silver dollars. I always had money as a kid because I worked after school and I was
an avid collector.

My collection remained mostly dormant until a few years ago. For whatever reason my interest in coin collecting
reemerged. A lot had changed since I went on sabbatical. The biggest change was of course the advent
of grading companies. I began to buy coins mostly on ebay or the big auction houses. I almost never bought
raw coins and I only buyed from the big two and sometimes ANACS. I don't have the foggiest idea where
the closest B&M coin shop is in South Orange County, Ca. I'm buying higher end coins, mostly 65's and 66's if
affordable and I'm also picking up a lot of DMPL's. These coins are within my budget and I'm only buying from
seemingly repdutable dealers on ebay who have a return policy.

I have returned a few coins but for the most part I have been relatively satisfied with my purchases. I feel
as though my coin with it being slabbed has an intrinsic value associated to it. Even if I purchase a 65
that was generously graded my coin has the intrinsic value of a 65. Morgans are a very liquid commidity so
if I ever do want to resell a $500 coin I should have no difficulty.

Does my thinking make sense? Am I unaware of a downside risk? Let me reiterate that I am trying to buy
the nicest coins I can, it's just very difficult for me to buy coins that I can actually see live. If I were to buy an
expensive coin I don't think I would want to pull the trigger without being able to see the coin first.

Comments appreciate.

Bruce

Comments

  • AUandAGAUandAG Posts: 25,027 ✭✭✭✭✭
    Sounds logical to me!

    There was a time when Morgans and Peace, at least most of them, were priced
    higher than they are today. When silver was almost $50 an oz comes
    to mind. But with high end coins I think you are right. They aren't making any
    more Morgans or Peace dollars that I'm aware of. Good luck,
    wecome back!
    bob
    Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
  • BearBear Posts: 18,953 ✭✭✭
    Please leave fuzzy thinking to the bears.

    We are already fuzzy.image
    There once was a place called
    Camelotimage
  • GATGAT Posts: 3,146
    Haven't the slightest idea where a B & M shop is in south OC. There's a nice one just down the 5 fwy in Carlsbad. The owner is a very nice guy and honest.
    USAF vet 1951-59
  • cladkingcladking Posts: 29,892 ✭✭✭✭✭
    There's nothing wrong with your thinking that I can see and good luck.

    You seem to be enjoying it so you must have some sort of eye for it. The
    fact that you've rejected some coins seems to indicate this. I even agree
    that a slab imparts some intrinsic value even if the coin is a little overgraded
    since there will be some buyers for it even in this state.

    There is always risk. It's simply unavoidable. Products become obsolete
    and collector tastes change. But if you're learning and paying attention you
    can even make money selling buggy whips or silver art bars.
    tempus fugit extra philosophiam.
  • skier07skier07 Posts: 4,712 ✭✭✭✭✭
    Carlsbad is in San Diego County about 40 miles south of me. There are a few scattered
    coin shops in North Orange County which I have never frequented.

    Bruce
  • BECOKABECOKA Posts: 16,961 ✭✭✭
    Looks all good to me. image
  • I have had a hard time selling Morgans lately in a couple of auctions. (Raw and slabbed both) Either no sale or it went for a too-low price.

    I could be that I'm too new on eBay... and don't yet look like a trustworhty dealer. (Feedback is 44 -- 100%)

    But My Indian Head cents and Liberty nickels have done VERY well. The word 'hotcakes' comes to mind...

    So, after my eBay rep comes up a few more points, I'm going to take another stab at the Morgans.

    Sidenote: Could the Home Shopping Networks and other TV coin shows be hurting the Morgan market???

    Since you are staying with the top TPGs, you are keeping yourself on solid ground. If the Morgan market slips for a year or two, hopegully you are able to ride out a little dip.
    //ab

  • cladkingcladking Posts: 29,892 ✭✭✭✭✭


    << <i>Sidenote: Could the Home Shopping Networks and other TV coin shows be hurting the Morgan market??? >>




    If they are then it's probably by not offerring these as much as
    other venues. They do offer and sell a lot of Morgans but they
    are almost invariably circ or mere BU. This might get a lot of peo-
    ple started on collections but it doesn't do much for the market
    now.

    They offer very few scarcer or higher priced Silver dollars.
    tempus fugit extra philosophiam.
  • IGWTIGWT Posts: 4,975
    It's a mistake to think that a slab affects intrinsic value. It's extrinsic. Otherwise, you're good to go. image
  • BochimanBochiman Posts: 25,789 ✭✭✭✭✭


    << <i>It's a mistake to think that a slab affects intrinsic value. It's extrinsic. Otherwise, you're good to go. image >>



    That's what I was thinking too. When you go to sell, esp if to a dealer at a coin show or something, you can pretty much rest assured you will run into some who try to downtalk your coin. So, slabbed grade of MS65 or not, it may not easily sell at that level.

    Now, on ebay, with good pics and a good rep, as long as the market isn't dropping, you should be ok if the coin is nice. I just wouldn't get too comfortable with a piece of paper grading the plastic slab

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • There is a lot of risk, and a lot of difference between a nice MS65, and a marginal one. A nice one might sell for double what a marginal coin at true auction, even if the coins are in the same company's holder. ANACS is definitely a step lower on expensive coins that are over $500 in value, and many will move at a discounted price at true auction.

    It is very difficult to judge coins at MS65 and MS66 from photos online. DMPL and PL are another ball of wax, and again difficult to see in some photos.

    So I don't like the plan at all if resale value is the main thought. There is a lot of risk in terms of coin market risk. A lot of expertise is needed to pick quality coins at this level. If a person had the grading expertise and market knowledge necessary for seemless execution, they probably wouldn't be asking for advice, they'd probably go ahead.

  • dizzleccdizzlecc Posts: 1,129 ✭✭✭
    Considering that most of your purchases are made online from images I would suggest you be selective and not take very many gambles.

    It is tempting when you see a fuzzy pic of a better date in a PCGS holder that is selling below market value to take a gamble and try to get a bargain.

    Most of the time it is not worth the effort.

  • skier07skier07 Posts: 4,712 ✭✭✭✭✭
    Thanks for all the feedback.

    I'm at this point a collector as I have never sold a coin before. I may sell some of my duplicates to help me acquire
    the more expensive coins I'm in pursuit of. This is a hobby to me, I don't like pissing money away, but on the other hand I
    am not motivated completely by the financial pendulum. If the market craps out it will create a better buying opportunity
    for me. I'm in this for the long term. Maybe I'm wierd, my wife says I am, but derive a lot of pleasure looking at my
    coins and going to sleep knowing I have a 65 Peace dollar slabbed by PCGS.

    Now if I could only get my son interested. He keeps on tellling me he is going to melt down my junk.

    Bruce

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