What do you consider to be an "acceptable" loss, in terms of a percentage?
renomedphys
Posts: 3,650 ✭✭✭✭✭
I know things are in a downturn, so it's no surprise that I took a big hit on a consignment of coins that, well frankly, I probably shouldn't have bought in the first place. Buy high, sell low, I always say! But seriously, there are a lot of ways to look at a situation like this:
On the individual coins, I lost about 60% of the value over the course of one year. Shoot, I've done far worse in the stock market.
In terms of my entire collection, it amounts to about a 3-5% loss, so hey, no biggie, right?
I bought the coins to fill holes in a set. Those coins have been replaced with superior coins that were acquired more cheaply that I would have ever been able to when I bought the original three.
I'm a collector, and on occasion collectors must accept these sort of losses in the pursuit of the finest possible collection.
But it still hurts!
Oh well, live and learn. Thanks for letting me post my catharsis. You're all such nice people!
On the individual coins, I lost about 60% of the value over the course of one year. Shoot, I've done far worse in the stock market.
In terms of my entire collection, it amounts to about a 3-5% loss, so hey, no biggie, right?
I bought the coins to fill holes in a set. Those coins have been replaced with superior coins that were acquired more cheaply that I would have ever been able to when I bought the original three.
I'm a collector, and on occasion collectors must accept these sort of losses in the pursuit of the finest possible collection.
But it still hurts!
Oh well, live and learn. Thanks for letting me post my catharsis. You're all such nice people!
0
Comments
Camelot
We don't get any return on a lot of the things we buy in life, but we still get some candy when the whim hits us once every so often.
<< <i>What do you consider to be an "acceptable" loss, in terms of a percentage? >>
None...I want the whole coin. I never understood those guys who collect clipped ones.
suffered some sort of loss over time, maybe with the exception of Eliasberg.
It's sort of the nature of the hobby. If you want some of the nicest you have to
be ready to buy when they're available & that means sometimes you pay too
much. But like the Bear said,,,100% is unacceptable.
You're still havin' fun aren't you?
R.I.P. Bear
<< <i>On the individual coins, I lost about 60% of the value over the course of one year. >>
Wow, really? I can't think of any coin that has gone down that much in value over the course of just a year... as far as I can tell, the coin market still seems to be relatively stable. Unless you paid high-end retail prices for the coins and then proceeded to sell them below wholesale, I just don't see how you could have lost quite that much.
<< <i>Matt, I strongly doubt that anyone who engages in serious coin collecting hasn't
suffered some sort of loss over time, maybe with the exception of Eliasberg.
It's sort of the nature of the hobby. If you want some of the nicest you have to
be ready to buy when they're available & that means sometimes you pay too
much. But like the Bear said,,,100% is unacceptable.
You're still havin' fun aren't you? >>
Actually, there are a lot of "serious coin collectors" who have never suffered a loss over time. I'm one of them. Do I have coins in my collection that I would realize a financial loss if I sold them today? Yes, but since they won't be sold until after my death there will never be a financial loss on them.
To seriously answer the OP, it depends on why you are selling. If you just want the cash to replace the coin with a better example then you should be willing to accept a much smaller loss then if you were selling to raise morgage money.
"there is an ass for every seat" you just need to find the right ass....
I wouldn't sell anything for a loss unless it was for the well being of my family...
If your loss, plus what you paid for the upgraded coins, is less than you would have had to pay for the upgraded coins last year, things have turned out fine.
I crossed dozens of Lincoln wheaties and Peace dollars last year, from NGC to PCGS. Where a grade drop was dramatic, price-wise, I sold the NGC coin if it didn't cross at grade. Where it wasn't going to really hurt I accepted the possibility of a downgrade ("cross-at-whatever, PCGS") and it happened maybe 20% of the time. Some downgrades were later sold at a loss; I can't remember how much, percentage-wise.
I don't get worked up by this. To me this hobby is wholesome entertainment I shouldn't engage in if I can't live with some loss. Even with unwholesome entertainment, like gambling at Vegas, I go for the fun and expect it will cost, however deluded I am about my smarts.
Lance.
<< <i>
<< <i>On the individual coins, I lost about 60% of the value over the course of one year. >>
Wow, really? I can't think of any coin that has gone down that much in value over the course of just a year... as far as I can tell, the coin market still seems to be relatively stable. Unless you paid high-end retail prices for the coins and then proceeded to sell them below wholesale, I just don't see how you could have lost quite that much.
It might depend on the venue used for selling. Some venues have huge fees as a percentage on coins below a certain dollar threshold. It is easy enough to get to 60% after paying all the fees, shipping, possibly additional fees for setting reserves and coins not selling, maybe slabbing fees. The original poster also mentioned consignment. For relatively low value items consignment fees alone might be 20% to 30%. Some sellers might have Ebay fees of 10% to 15% on top of that. Then add in postage to ship the coins, packaging, and it can be a heavy load on some items.
As for Bear's 100%+, the way some are getting there is to buy on credit, and pay 20% to 30% interest for a year or more, then maybe add in some late fees because they can't even make the minimum payments on time.
These days, the cash wholesale vs. full retail price spread is often so wide, that on many coins, a person can take an immediate 40% to 50% hit if buying at full retail price and selling at an average wholesale price. So to me, 60% doesn't seem unreasonable after a year of modest price declines. Folks on the forum often are thinking more along the lines of about buying at low retail and then putting in several hours of work to sell at retail via Ebay or similar. Counting the labor cost, camera equipment, that kind of operation can also be more than a 100% loss, depending on how much a person values their time.
Of course, the loss of many, many dollars, happens
to me all the time. Buy high, sell low, add in the dealers
or auction house fees, commissions, tax and walla........
LOSS....LOSS.....LOSS......LOSS.....LOSS.....LOSS....LOSS
Camelot
<< <i>Wow, really? I can't think of any coin that has gone down that much in value over the course of just a year... as far as I can tell, the coin market still seems to be relatively stable. Unless you paid high-end retail prices for the coins and then proceeded to sell them below wholesale, I just don't see how you could have lost quite that much. >>
Guess you haven`t seen the bloodbath in the Franklin series...just to mention one of the worst...
"Because I can"
myurl The Franklin All Old Green Holder Set
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
Hoard the keys.
(tongue in cheek)
You are not alone, I've lost %60 on some coins...
When the decision came to sell, I was feeling a pretty strong financial pinch. Since then, the pinch alleviated itself in the form of a nice hefty raise and bonus, so the woes don't really apply anymore.
The coins I decided to sell were ultimately not going to be a part of my collection. They were simply just not for me, and I knew it once I got them. Having been replaced with "the coins I want" made the decision simple.
And yes, I did pay a lot more for them than I should have in the first place. The fact that the "new better" coins came to me at a relative bargain certainly takes the sting out of the loss. That, and the fact that I can stop wincing at the ones I let go for things that most rational collectors would consider "trivial imperfections".
And yes, I'm still having tons of fun, if for no other reason than the fact that I now have the collection that I've been chasing for most of my life. You can't really put a price on something as cool as that
Empty Nest Collection
Matt’s Mattes
<< <i>Many kind words here, and a few that must be taken with a grain of salt.
When the decision came to sell, I was feeling a pretty strong financial pinch. Since then, the pinch alleviated itself in the form of a nice hefty raise and bonus, so the woes don't really apply anymore.
The coins I decided to sell were ultimately not going to be a part of my collection. They were simply just not for me, and I knew it once I got them. Having been replaced with "the coins I want" made the decision simple.
And yes, I did pay a lot more for them than I should have in the first place. The fact that the "new better" coins came to me at a relative bargain certainly takes the sting out of the loss. That, and the fact that I can stop wincing at the ones I let go for things that most rational collectors would consider "trivial imperfections".
And yes, I'm still having tons of fun, if for no other reason than the fact that I now have the collection that I've been chasing for most of my life. You can't really put a price on something as cool as that
"
the pinch alleviated itself in the form of a nice hefty raise and bonus,"
THIS YEAR?
Where do you work, AIG?????
(Priest) BLASPHEMY he said it again, did you hear him?