White Hot for rarities when Buying . . . How about Selling?
DRUNNER
Posts: 3,873 ✭✭✭✭✭
I just read an informative blog on the fallacies of trying to sell Pop 1 pieces to major dealers and 'losing your chance' when hoping for moon money if you play hardball and expect big returns. All-in-all, it made sense. But . . .
This same major player repeats the mantra of ultra-rarities being the only things not suffering in this (relatively) 'down' market. Buy quality, we only sell quality, stay with top-pops, CAC rules, pity the buyer of widgets, etc.
OK, I guess I must be missing a nuance. If you have top rarities, are you supposed to be willing to take it on the chin because a true collector (not investor) would be unconcerned (by definition) with wringing top value from a Pop 1 piece when selling? Should you be willing to 'stretch' to purchase in order to support your local ultra-rarities dealer in these hard times, but the same 'stretching' to sell is perceived as a heinous no-no and breach of etiquette? I guess it matters to some degree how you do it.
So, what is it? Should we stretch to buy those Pop 1s because dreck will always be dreck, but when we sell, the mantra of 'quality will always be king' just doesn't ring true? Aren't these moon-money ultra rarities always touted as the one thing that will always hold value, thus when sold they should also command high premiums?
Thought I'd briefly step out onto the wild side . . . no disrespect meant . . . but I like to probe the seemy underbelly where I'm not supposed to look.
Drunner
This same major player repeats the mantra of ultra-rarities being the only things not suffering in this (relatively) 'down' market. Buy quality, we only sell quality, stay with top-pops, CAC rules, pity the buyer of widgets, etc.
OK, I guess I must be missing a nuance. If you have top rarities, are you supposed to be willing to take it on the chin because a true collector (not investor) would be unconcerned (by definition) with wringing top value from a Pop 1 piece when selling? Should you be willing to 'stretch' to purchase in order to support your local ultra-rarities dealer in these hard times, but the same 'stretching' to sell is perceived as a heinous no-no and breach of etiquette? I guess it matters to some degree how you do it.
So, what is it? Should we stretch to buy those Pop 1s because dreck will always be dreck, but when we sell, the mantra of 'quality will always be king' just doesn't ring true? Aren't these moon-money ultra rarities always touted as the one thing that will always hold value, thus when sold they should also command high premiums?
Thought I'd briefly step out onto the wild side . . . no disrespect meant . . . but I like to probe the seemy underbelly where I'm not supposed to look.
Drunner
0
Comments
Collectors lose money. It is their fate.
I just paid top dollar (maybe too much) for this in an auction. It’s 1825 quarter eagle in PCGS MS-61 with a CAC sticker. This is the most common date of a rare type, the 1821-7 open collar quarter eagle. This is the kind of material from which I’ve some money and which does a better job of holding its value, at least for me. It’s old; it’s in decent but not the best condition; and it’s got some overall, not just condition rarity behind it. The estimates are that there only 80 to 100 of these coins in all grades.
The rest of what I have all but thee of the major type coins from half cent to double eagle. The grades range from VF-25 for a 1796 Quarter to PR-70 DCam for modern Jefferson Nickel. I only have the nickel because I thought it would be unusual have at least one coin that a TPG called “70.” And it was not very expensive.
That’s my approach, and I’ve done OK with it financially, and have had a whole lot of fun in the process.
As for selling your coins, walking around a bourse trying to sell them is a drag. The ways to go is to consign to major auction, consign the material to a dealer you trust or buy a table at a major show. Otherwise a lot of dealers will just beat you up and tell you your stuff doesn’t amount to much even when some of them would love to buy it. At lot of these guys are weaker financially than you might think.
<< <i>Dealers make money. It is their right.
Collectors lose money. It is their fate. >>
Dealers don't have "a right" to make money. Having been a dealer for 10+ years I can tell you that making money in coins is a matter of experience, a little talent and a lot of hard work.
Collectors don't have to lose money. The main reason they money is that they don't hang on their stuff long enough, or they the wrong stuff for the wrong reasons. So far I'm conderned being a registry slave is a roard to financial disaster for most collectors. Buy you will really enjoy, not what you think others think you should enjoy. That way you will put the time and effort into it to be an educated buyer.
edited to add; Ive also bought quite a few coins as of late from members of this forum and felt I got a very decent shake also.
Theres just a better feeling about it all doing it this way.
Drunner