Price of quality in coin collecting.

erwindoc

Coin collecting is often about buying the best pieces you can afford. In my decision making, I often use auction trends for comparing various years/mintmarks to determine values. Thanks to the internet I can look at photos and compare coins easily. Recently, I became interested in acquiring a particular coin, that is not especially rare. Typically it brings $160-180 at auction, even for nice appearing coins. I found an example of a very nice coin, but the current owner wants $265 for it(after negotiations). They claim that the price is justified by the strike and eye appeal. Although I am certain that it is a nice coin, I am not convinced and therefore inclined to pass. However, I wanted some additional collector input before totally walking away. So, what is the price of a quality coin in the same grade? Is is worth paying over 1.5 times the typical value for it? For a rare coin or key date, I guess one could argue yes. For this coin, I dont know. Looking forward to the answers.

bidask

<< <i>Coin collecting is often about buying the best pieces you can afford. In my decision making, I often use auction trends for comparing various years/mintmarks to determine values. Thanks to the internet I can look at photos and compare coins easily. Recently, I became interested in acquiring a particular coin, that is not especially rare. Typically it brings $160-180 at auction, even for nice appearing coins. I found an example of a very nice coin, but the current owner wants $265 for it(after negotiations). They claim that the price is justified by the strike and eye appeal. Although I am certain that it is a nice coin, I am not convinced and therefore inclined to pass. However, I wanted some additional collector input before totally walking away. So, what is the price of a quality coin in the same grade? Is is worth paying over 1.5 times the typical value for it? For a rare coin or key date, I guess one could argue yes. For this coin, I dont know. Looking forward to the answers. >>

What is the coin?

ambro51

If this is a genuine rare or scarce coin overall paying a premium for a very PQ example is wise. If the coin is a high population date or MM I would not pay extra since no doubt other PQ examples can be had in the future at list price.

ianrussell

<< <i>Coin collecting is often about buying the best pieces you can afford. In my decision making, I often use auction trends for comparing various years/mintmarks to determine values. Thanks to the internet I can look at photos and compare coins easily. Recently, I became interested in acquiring a particular coin, that is not especially rare. Typically it brings $160-180 at auction, even for nice appearing coins. I found an example of a very nice coin, but the current owner wants $265 for it(after negotiations). They claim that the price is justified by the strike and eye appeal. Although I am certain that it is a nice coin, I am not convinced and therefore inclined to pass. However, I wanted some additional collector input before totally walking away. So, what is the price of a quality coin in the same grade? Is is worth paying over 1.5 times the typical value for it? For a rare coin or key date, I guess one could argue yes. For this coin, I dont know. Looking forward to the answers. >>



Is the $160-180 reference hammer price or all-in including buyer's fees?

Regardless, depends on the coin. You mention "typically", which gives the impression that it comes on the market regularly. Is the coin toned? For $85 extra, if you really love the coin, then it's probably worth it, particularly if you've researched a lot and are satisfied there are not a lot more at the same quality.

What's the coin?

RedTiger

What is the typical price of one grade higher? How often does that particular date, mintmark, grade come up for sale? How many coins have you looked at and passed on in that grade? Over what period of time? How much expertise do you have in grading that series? All of these are factors.

There is no "one size fits all" answer, and no right or wrong answer.

keyman64

In the realm that you describe, I would have to say that patience is a virtue and you should pass. There will be a number of good auctions later this year, not to mention eBay. That would be my advice for a coin in that realm. I have gone through the same thoughts many times over.

Greg

291fifth

Pass. Never overpay for common coins. Another one will come along and it will probably be reasonably priced.

Steve27

Sounds like you did your homework, so pass, and find another.

erwindoc

The coin is an 1899 Liberty nickel in MS64. In MS65, the price jumps up quite alot(400-600 I think). The coin has no remarkable toning except a golden hue which is common for these coins. I think I could justify up to 20% higher, which would put it in the 220 range at max, even though the dollar amount is not all that high. I doubt it is going anywhere anytime soon, so I will keep looking for the time being. If after looking at several from the date, I may change my mind. Thanks!

Great debate!

ricko

Is there a 'no questions asked' return policy? Seeing the coin 'in hand' would be the best determination. Other than that, what you are doing is fine. No sense in spending high dollars because the seller likes the coin. Cheers, RickO

PerryHall

<< <i>If this is a genuine rare or scarce coin overall paying a premium for a very PQ example is wise. >>



Is it possible to overpay for quality?

coinguy1

<< <i>Coin collecting is often about buying the best pieces you can afford. In my decision making, I often use auction trends for comparing various years/mintmarks to determine values. Thanks to the internet I can look at photos and compare coins easily. Recently, I became interested in acquiring a particular coin, that is not especially rare. Typically it brings $160-180 at auction, even for nice appearing coins. I found an example of a very nice coin, but the current owner wants $265 for it(after negotiations). They claim that the price is justified by the strike and eye appeal. Although I am certain that it is a nice coin, I am not convinced and therefore inclined to pass. However, I wanted some additional collector input before totally walking away. So, what is the price of a quality coin in the same grade? Is is worth paying over 1.5 times the typical value for it? For a rare coin or key date, I guess one could argue yes. For this coin, I dont know. Looking forward to the answers. >>

It is/should be an individual decision, based on how much you like and want the coin compared to others of the same date and grade. The premium might be worth it to some collectors, but not most others.

It doesn't matter what the seller thinks about the strike and eye appeal, or even, whether others agree with him - what counts is what YOU think.

By the way, I disagree with your view that paying a large premium for a "rare or key date" might be more justified than paying one for a a more common coin. It's the individual coin that counts and the buyer for it.

Billet7

If the coin isn't rare, the grade isn't rare, and the quality isn't very rare (you could find the same level of quality within a year) then I would pass. If it would take you many years to come across a comparable coin, then the premium is worth it. JMHO.

coinguy1

<< <i>The coin is an 1899 Liberty nickel in MS64. In MS65, the price jumps up quite alot(400-600 I think). The coin has no remarkable toning except a golden hue which is common for these coins. I think I could justify up to 20% higher, which would put it in the 220 range at max, even though the dollar amount is not all that high. I doubt it is going anywhere anytime soon, so I will keep looking for the time being. If after looking at several from the date, I may change my mind. Thanks!

Great debate! >>

As described, that does not sound like the type of coin to pay any premium for, much less, a large one. But it is still your preference, opinion and decision that counts.

jesbroken

"The coin is an 1899 Liberty nickel in MS64. In MS65, the price jumps up quite alot(400-600 I think). The coin has no remarkable toning except a golden hue which is common for these coins. I think I could justify up to 20% higher, which would put it in the 220 range at max, even though the dollar amount is not all that high. I doubt it is going anywhere anytime soon, so I will keep looking for the time being. If after looking at several from the date, I may change my mind. Thanks!"



Sounds like you answered your own question: if the coin is not a rare or hard to get date, has no greater than normal strike, no fantastically attractive natural color and you do not feel it will increase in value any time soon, then your answer should most likely be Pass.

joebb21

to common to pay such a premium in my opinion..

WTCG

1899 Nickels aren't as common as, let's say 1881-S Morgans, but they aren't rare. Premium quality struck Liberty Nickels in MS64 can be purchased for around $200 and since the described coin doesn't bear any unique characteristics that would make it worthy of a strong premium, it probably isn't worth the seller's asking price.