Collection Valuation

coinaesthetics

I'm interested in methodologies for establishing a more-or-less accurate valuation for one's coin collection. We all know the truism that a coin is worth only what someone is willing to pay for it. But what's a viable way to establish a reasonable estimate of the worth of a fairly large collection with a fair number of scarce-to-rare coins (for estate purposes, for instance)? I use archives (mainly Heritage's and PCGS' CoinFacts) for comparable, recently-sold coins coins, especially to establish prices for my NGC coins, always trying to gauge true appeal, especially if my coin seems high or low for a given grade. Of course, I always back out the Buyer's Premium from those selling prices. My PCGS Set Registry is maybe two-thirds of the worth of my entire collection, so I do use their changing prices to track how the market is treating my PCGS coins. This might give my PCGS coins a more current pricing than my NGCs (and some ANACs). I have an impression that the PCGS Price Guide price for high-end coins is generally pretty close, and for the toughest coins, sometimes even a bit low, but that their prices for easier coins -- say, under $3,000 or so -- are usually somewhat higher than true market value, but I'm unsure how far to mark these coins down. Any opinions about what I'm doing right and wrong in valuation?

ajman

I think you're on the right track, because it is so difficult to valuate a collection. I use recent ebay and Heritage auction prices realized to value my collection. I think that's a fair and safe bet.

ctf_error_coins

Try to put a valuation on a major one-of-a-kind error coin collection

morgantype

I generally take the purchase price, and reduce it by 20% to calculate the current "value" of my collection.

Granted, this is a very rough estimate, and it doesn't account for the fact that I may have WAY overpaid for a coin.

I like your idea about using the PCGS guides and backing off a bit as well.

Have fun, and let us know what your arrive at.

RYK

The only real way to get a fair evaluation is to have it appraised or have someone make an offer on it. Most people who use PCGS/NGC price guide, even if they "back of a bit", will significantly overestimate the market value. Same with purcahse price.

Sunnywood, an advanced collector who likely did very well when his collection sold, talked about taking his purchase price and subtracting 35%, and this seems reasonable to me. Like most financial calculations, it is usually best to err on the conservative side and be happily surprised if you are wrong than it is to have higher expectations and be unhappy when you have miscalculated.

coinaesthetics

Thanks, ajman. By the way, I'm descended from Benjamin Franklin, and agree with him about beer.

coinaesthetics

Now, the one-of-a-kind errorvaluation sounds impossible....

coinaesthetics

Morgantype, do you have a web site?

ctf_error_coins

<< <i>Now, the one-of-a-kind errorvaluation sounds impossible.... >>



Not impossible, you just have to have Market Knowledge and Know Valuations for all the major error types in the collection.

Only a handful of people could do this tho, ok maybe handfuls