New trend in auctions? Investor/ collector

pennyannie

I was bored last night (forums were slow) and started looking at some recent Heritage auction books that were laying around the house. In the front of the books they give you a little snippet of the collector, who they were, when this happened and so on. I noticed quite a few of the auctions were sets put together in spans of 15 years are less. Some of the people selling thier collections are not that old. The Husak collection, Compradore Registry, Anaconda ( a little different reason) and some others. Some of these sets seem like the owners/builders went on a buying spree after the fall in the late 80's and early 90's and some as recent as 2002+. It appears to me that basicly the day these collections were completed it was time to auction. I guess i am old fashioned. I am building my collection as something that can be held in the family for generations to come. I do not plan on leaving my heirs 1000's of coins but rather 100 nice ones, they can sell the rest if i have not already done so. But these last few Heritage sales seem more investor oriented. Sets were put together and then sold. None of the passing the coins down thru the family or just enjoying the completed collection. Just show me the money. Some of the last auctions were not because the collector had died and the family was selling, some of these people are still mobile and appear to have many more years ahead to live. I have seen quite a few registry sets are put up for sale the day they are completed. Is the thrill of accomplishment the driving force and once completed it is time to move on? Some of it seems to me, Show me the money to heck with collecting, this may have started as a hobby but turned to the profit motive side. Anyone think these or have comments good or bad?

pennyannie

I forgot to add that maybe some of these big time investor/collectors are seeing the handwriting on the wall and believe that it is time to sell while the selling is good.

jdillane

<< <i>I forgot to add that maybe some of these big time investor/collectors are seeing the handwriting on the wall and believe that it is time to sell while the selling is good. >>



This protracted bull market seems a likely factor....

WaterSport

Standard operating procedure with many top 20 sets here...2-3 head for auction EVERY year. I call it the yo-yo effect if you’re below # 20.
These folks do not owe us an explanation, but it does make you wonder.
WS

Elcontador

Many of the very well to do seem to have short attention spans. In the time away from their businesses, they set up projects for themselves, and set about accomplishing them as quickly as possible. When the first project is done, it is checked off the list and then they move onto the next one. They keep themselves busy this way, which apparently is what makes them happy.

I know a very wealthy entrepeneur in Brasil who is like this. He owns a series of supermarkets. He retired, and now is trying to climb all of th highest mountains in Europe in a short a timespan as possible. In this manner, I think a number of said individuals have put together expensive registry sets in eighteen to twenty four months.

OP, it's all about the money. About 10 years ago, some marketers in numismatics decided that appealing to the people I described earlier was the new paradign for them to makes lots of money. They kicked a golazo (a beautiful gol) and made a fortune. Registry sets, more crackouts, and more coin doctors and AT'd coins followed.

Might add that you need to be selective about what market segment you are addressing. There is no longer such a thing as a coin market. The areas where you see the most demand, and the pre-1835 material have gone crazy because of what I have described. However, much of the market has actually gotten less expensive in the last five to ten years.

PF Liberty Nickels have gone nowhere, the 83 N/C Nickel in MS 66 has gotten much cheaper, as have gem type Barber and Seated Dimes and Quarters. Two cent, three cent, and Shield Nickels have been so dead for so long, that it seems only numismatic versions of necrophiliacs are interested in them. Type Gem SLQs have also been flat pricewise, as have type MS 63-4 Seated $s.

My rule of thumb is that I see where the crowds are going, and I move in the opposite direction.

pennyannie

I like your rule of thumb. That is one reason i went to proof Liberty and V-nickels. I can afford them.

NHSBaseball

Interesting answer, elcontador. I think you may be dead-on about the "Type A" personality collectors to whom completion of a set is the goal, then they move on. I do understand this motivation to an extent. The only set that I have completed is the full set of Walking Liberties in G-AU that got me back into collecting. I still enjoy breaking them out to look at from time to time, but I have not purchased another Walker since. I had originally thought about upgrading, but then got sidetracked into Bust Halves (which I couldn't afford) and Bust Half Dimes (which I can't really afford either!).

Additionally, if the perfect coin came along, I would have to seriously consider selling off the Walkers to fund it if I had no other way of raising the cash. It would have to be (for my budget) a pretty spectacular coin and amazing deal, though.

As far as liquidating collections after a short period, I think it's a good thing for collectors in that some really great coins are not locked into a collection for decades.

Longacre

Fifteen years is an eternity in the coin collecting world. I think the typical hold time for a Registry Set collector between build up and sale is probably about a year or two.

Steve27

I think the run-up in coin values over the last 15 years has more to do with this phenomena than "short attention spans." The temptation to cash-out while prices are high is the real motivator IMO.

pennyannie

So do this make them investors? collectors? I think quite a few take some lumps when they sell there registry sets. I have heard of some dime collectors that got about 50 cents on the dollar.

bidask

I have been collecting 45 years, have alot of nice coins but have yet to start a registry set.

mrpotatoheadd

<< <i>But these last few Heritage sales seem more investor oriented. Sets were put together and then sold. None of the passing the coins down thru the family or just enjoying the completed collection. >>

I don't see any reason one person can't enjoy the process of completing sets just as much as another person enjoys admiring completed ones.

<< <i>Just show me the money. >>

But isn't that basically the same thing you're saying about your coins here?

<< <i>I do not plan on leaving my heirs 1000's of coins but rather 100 nice ones, they can sell the rest if i have not already done so. >>



edited to add...It seems to me that these two comments are contradictory:

<< <i>. Is the thrill of accomplishment the driving force and once completed it is time to move on? Some of it seems to me, Show me the money to heck with collecting, this may have started as a hobby but turned to the profit motive side. >>



<< <i>I think quite a few take some lumps when they sell there registry sets. I have heard of some dime collectors that got about 50 cents on the dollar. >>

pennyannie

Mrpatatoehead- The 1000 coins i refer to is crapola. They would get hosed at the local coin store. I would not sale any of them but do not want to burden the family with tons of albums and slabs that would never be looked at or enjoyed. In fact a 100 coins may be to many for a non collector. Just one nice box of coins should suffice. I would hope that my finances are in good enough shape they would not be forced to sale to collect the money. I totally understand the thrill of the kill. Some of these are quite impressive sets. If i could afford to put together a top notch set i would like to keep it.

I wish my parents had a collection ( of some sorts) to pass down to me that came from thier parents for me to pass down. The only thing my parents saved was a few hundered circ steel cents worth 15 bucks. I would never sale those no matter the price offered.

bidask

Even my own kids think I am a geek. They are not interested and they may as well be looking at horseshoes. Nope, when I pass whatever is left goes to HERITAGE.