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MidLifeCrisis
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Worst Buys in 2001
Some of the most intelligent and successful coin buyers I’ve ever known, and this includes some of the current “big names” in the coin business are constantly trying to identify trends before they become common knowledge while looking for outstanding values others have overlooked.
After being around some of the “top guns” in the coin business I’ve developed a theory. These key people, who are capable of spending many millions of dollars if the right deal comes along, develop shopping lists by removing coins from them rather than adding to the list. They are eager to consider purchasing anything—unless it is on the “black list” of proven bad choices. Often the list of coins to stay away from has been created based on negative personal experience. When you lose money on a coin that experience tends to stick with you and makes you cautious about buying the same thing again.
These are some of the coins I would absolutely AVOID buying during the rest of the year—maybe forever!
Statehood Quarters. The novelty and curiosity surrounding this series is history. Once unusual pocket change has now become common pocket change. If you have State quarters you can sell at a profit take these profits now. By no measure can any of these coins be considered rare. They have been hoarded by the millions. To maintain interest in the series The Mint will continue to generate bloopers and blunders. I’m guessing the next marketing scheme will involve creating coins struck from two reverse dies. For this reason, I can’t suggest completely ignoring the series. Quick profits may become available and they should be quickly taken. Keep in mind a lot of ho-hum states with ho-hum designs are going to get their special coins before we see an end to the series. And the minute the Average American realizes that one of the new quarters is just as worthless as any other quarter the game has been played. This has happened.
Common Grade Gold Coins. I don’t see the bullion markets doing much for the rest of the year. I do see demand for average condition gold coins declining further. There has always been plenty of this material around and the telemarketers and promoters can only peddle so much of it. It’s seems many promoters are discovering they can do just as well peddling novelty items and other semi-numismatic material while avoiding the high cost and risk associated with maintaining gold inventories.
Common High Grade Coins. Avoiding this material is not really new advice, but it is prudent to offer the reminder that what was once a special coin in a MS-65 or MS-66 PCGS holder isn’t nearly as exciting anymore. The promoters have really worked this market hard during the last few years and there are now plenty of disappointed customers with material they would dearly love to sell. Maybe condition will always be king. It seems to help if the coin matters as well.
Supposed Rarities. In my view there are too many expensive coins floating around in the marketplace. A $30,000 coin used to be something special and its importance was obvious and important to serious numismatists. Now the market seems littered with “valuable” coins where the value is primarily associated with hyper-condition, strike, or other elements that are not directly related to traditional considerations of what made a coin rare.
I see substantial downside risk in owning recently (several decades or less) discovered finest knowns, especially when aside from the grade, the coin is hardly a classic rarity. Collectors have traditionally collected coins in certain ways. A collection usually has a theme and purpose. Acquiring a random basket of supposed rarities has often been more a function of the dealer community than the objective of collectors. When you must explain to the customer why a particular coin is so expensive and valuable you are asking for trouble.
Do you have some “worst buys” that should be added to this list?
ksdjflaskjflaksjdflajsdlfkjasdlfkjasldfkjasldkfjasldkjfasldkjffasdjkfalsjdkflasdjkfasjdflas
Worst Buys in 2001
Some of the most intelligent and successful coin buyers I’ve ever known, and this includes some of the current “big names” in the coin business are constantly trying to identify trends before they become common knowledge while looking for outstanding values others have overlooked.
After being around some of the “top guns” in the coin business I’ve developed a theory. These key people, who are capable of spending many millions of dollars if the right deal comes along, develop shopping lists by removing coins from them rather than adding to the list. They are eager to consider purchasing anything—unless it is on the “black list” of proven bad choices. Often the list of coins to stay away from has been created based on negative personal experience. When you lose money on a coin that experience tends to stick with you and makes you cautious about buying the same thing again.
These are some of the coins I would absolutely AVOID buying during the rest of the year—maybe forever!
Statehood Quarters. The novelty and curiosity surrounding this series is history. Once unusual pocket change has now become common pocket change. If you have State quarters you can sell at a profit take these profits now. By no measure can any of these coins be considered rare. They have been hoarded by the millions. To maintain interest in the series The Mint will continue to generate bloopers and blunders. I’m guessing the next marketing scheme will involve creating coins struck from two reverse dies. For this reason, I can’t suggest completely ignoring the series. Quick profits may become available and they should be quickly taken. Keep in mind a lot of ho-hum states with ho-hum designs are going to get their special coins before we see an end to the series. And the minute the Average American realizes that one of the new quarters is just as worthless as any other quarter the game has been played. This has happened.
Common Grade Gold Coins. I don’t see the bullion markets doing much for the rest of the year. I do see demand for average condition gold coins declining further. There has always been plenty of this material around and the telemarketers and promoters can only peddle so much of it. It’s seems many promoters are discovering they can do just as well peddling novelty items and other semi-numismatic material while avoiding the high cost and risk associated with maintaining gold inventories.
Common High Grade Coins. Avoiding this material is not really new advice, but it is prudent to offer the reminder that what was once a special coin in a MS-65 or MS-66 PCGS holder isn’t nearly as exciting anymore. The promoters have really worked this market hard during the last few years and there are now plenty of disappointed customers with material they would dearly love to sell. Maybe condition will always be king. It seems to help if the coin matters as well.
Supposed Rarities. In my view there are too many expensive coins floating around in the marketplace. A $30,000 coin used to be something special and its importance was obvious and important to serious numismatists. Now the market seems littered with “valuable” coins where the value is primarily associated with hyper-condition, strike, or other elements that are not directly related to traditional considerations of what made a coin rare.
I see substantial downside risk in owning recently (several decades or less) discovered finest knowns, especially when aside from the grade, the coin is hardly a classic rarity. Collectors have traditionally collected coins in certain ways. A collection usually has a theme and purpose. Acquiring a random basket of supposed rarities has often been more a function of the dealer community than the objective of collectors. When you must explain to the customer why a particular coin is so expensive and valuable you are asking for trouble.
Do you have some “worst buys” that should be added to this list?
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