Don't Even Think About Buying the Common Dates First

Coinosaurus

An old collecting axiom holds that you should buy the rare coins in a set first, because "they go up in value faster than the common dates."

Is it really true that the price ratio between rare dates and common dates will always go up forever?

If a 1909-SVDB is currently worth seven 1909-Ss, why should that number automatically go up? At some point doesn't the ratio have to spring back?

What is inherent about rarity that it should always be relatively more important over time?

Isn't it possible that at some point in the future something besides rarity will come into vogue

DRUNNER

My simplistic take . .

I completed my Dansco Lincoln Set around 1995. Did the keys right. I am now in the process of pricing it to sell at an April show where I have a table. I have found that the commons have not gone up much at all (average grade of the set is XF40--prior to 1930, all after that is BU+). My keys have gone up well, my semi-keys are OK, and the commons have basically stayed static.

Just my observation . .

Drunner
(Only one Doily Lincoln---the 1984 DDO)

MrEureka

It's all about the long term trend of rising prosperity. The more money we have, the more we're willing to overpay for the best stuff.

RYK

Why buy the commons at all?

ecichlid

Buying the common date coins first allows you to learn your craft and make smaller mi$takes.

LotsoLuck

<< <i>Buying the common date coins first allows you to learn your craft and make smaller mi$takes. >>




Lotta truth to that.

LVGT

I agree...I started collecting CBH's a year ago. I'm very glad I mainly purchased later date or lower grade coins at first. I know much more than I did now and will not make the same mistakes that I made on a few coins. Those mistakes, I can now get out of without a significant loss, or in some cases a profit.

fivecents

<< <i>Why buy the commons at all? >>

I have never been a set builder myself. I'll buy some nice key dates and maybe a few cool better dates and I am done.

melvin289

An example for the argument to buy the keys first. Four to five yeara ago I could have bought an MS-65 Lafayette Dollar for from between $3500 to $5500. Now you can't get one for less than around $9000. The commems I did buy have not increased in value anywhere near the Lafayette. I have waited so long to purchase that one coin I don't think I ever will buy the coin. So I have moved on from commems to other set.

Ron

RedTiger

Common silver coins in low grade have out performed everything, even the top keys. That $5000 that bought that Lafayette five years ago, put into 90% rolls might be worth $25000 in silver value today, vs. the $9000 -15% in fees or spreads to sell. Why do folks interested in appreciation bother with numismatic coins? So much more complexity, so much more is lost to dealers and grading services and auction houses.

The rather obvious answer is that past results guarantee nothing as far as future prices. That goes for keys, as well as silver or gold, or any numismatic coins. Don't fall into the trap.

/edit to add: one of the top numismatic coin categories for the past year, if you can call them that, is generic MS63 and MS64 Morgan dollars, up about 80% in one year, while many Morgan keys are flat to down or at best up 10%.

metalmeister

I agree, buy tons of commons and learn the ropes before dropping down big $$$ for the keys.
My opinion only. There are always buyers for NICE commons.

MrEureka

Why do folks interested in appreciation bother with numismatic coins?

Read my post above and the answer should be obvious.

RedTiger

<< <i>Why do folks interested in appreciation bother with numismatic coins?

Read my post above and the answer should be obvious. >>



I guess that is why so many of the doom-and-gloom crowd have sold all or most of their numismatic coins. They don't believe in a rising tide anymore, at least not in this country.

MrEureka

I guess that is why so many of the doom-and-gloom crowd have sold all or most of their numismatic coins. They don't believe in a rising tide anymore, at least not in this country.

Correct. And they will be proved wrong. Not that some other countries won't do even better than the USA.

melvin289

This is a hobby. I am not in it for the money. Yet, I would like to be able to spend as few of my dollars as I can to gain the coins I want.
A pile of silver bars or junk silver coins does nothing for me what-so-ever. I will not get out of this world alive and try to enjoy what time I have here. Amassing junk silver for it's value is like marrying an ugly woman because she's rich. There has to be more to life than that. I want some enjoyment while I am here. I enjoy coins.

Ron

RedTiger

<< <i>This is a hobby. I am not in it for the money. Yet, I would like to be able to spend as few of my dollars as I can to gain the coins I want.
A pile of silver bars or junk silver coins does nothing for me what-so-ever. I will not get out of this world alive and try to enjoy what time I have here. Amassing junk silver for it's value is like marrying an ugly woman because she's rich. There has to be more to life than that. I want some enjoyment while I am here. I enjoy coins.

Ron >>



As always collect what you like and enjoy the hobby. There is no reason to try to insult those that don't like what you like. Some folks like common old low grade coins, and enjoy them just fine. The hobby is a big tent with room for all of us. It isn't "us" against "them." We are all coin collectors, even those of us that might like buying old silver coins near melt value. There are those that buy key dates only, those that buy commons only, those that buy top pops only, those that buy junk box coins only, those that buy all of the above. There is room for all of them in the big happy hobby of coin collecting.

/edit: again, the trap is to think that past price history will be future price history. No one knows if prices are going to go up or down for any of the categories, though folks can guess. Whether it be keys, or commons, or silver, or gold, or whatever.

MrEureka

Amassing junk silver for it's value is like marrying an ugly woman because she's rich. There has to be more to life than that. I want some enjoyment while I am here. I enjoy coins.

Marry her. I'll be glad to take the cash and give you coins.

melvin289

<< <i>Amassing junk silver for it's value is like marrying an ugly woman because she's rich. There has to be more to life than that. I want some enjoyment while I am here. I enjoy coins.

Marry her. I'll be glad to take the cash and give you coins. >>





I think I will shut up and go to work for a while.

Ron

500Bay

<< <i>Why buy the commons at all? >>

MidLifeCrisis

My thoughts on this subject

291fifth

<< <i>Why buy the commons at all? >>



There really is no reason to buy commons if your collection has a financial outlook.

ricko

For some, coins are a business, for others, a hobby. It may be comforting to consider a rise in value of your 'hobby', however, if that is your interest, there are much better uses for your money. Cheers, RickO

BillJones

<< <i>

<< <i>Why buy the commons at all? >>

I have never been a set builder myself. I'll buy some nice key dates and maybe a few cool better dates and I am done. >>



I am also not a set builder, aside from type sets, but I have nothing against common date coins, tokens and medals. If an item has a cool history and is a source of interest to me I'll buy it if I can afford it, regardless of the rarity.

For example in the Civil War token field there are some collectors who won't collect anything that is more common than an R-7 (est. 11 to 20 known). Just think of the all the great historical items they are missing! And the problem with some of their high rarity stuff is that the rarity is contrived. Many of these pieces were struck in the 19th century to sell to collectors. That's it. Those items entire history consists of, "It was struck and then it went into a envelope or coin cabinet." That sounds pretty boring to me.

messydesk

<< <i>My thoughts on this subject >>


Mine, too (on the second page, I think).

RichieURich

<< <i>Buying the common date coins first allows you to learn your craft and make smaller mi$takes. >>



What Ecichlid said. Unless you have a lot of knowledge about the coins in the series before you start.

melvin289

A day late note on this thread.

If I have insulted anyone it was not meant as an insult. Please accept my apology if I have offended anyone on this thread.

Ron