Key Date Collectors: Investors in Disguise

MidLifeCrisis

I've owned my share of key date federal coins. I enjoyed owning them. I think I made a profit each time I sold one.

But why do we collect key dates, really?

Most are not rare at all.

The design of a key date coin is almost always the same as that of a non-key date in the same series.

If you are a series collector, you have to get the key dates to fill the holes and complete the collection. But if you are type collector, why buy a key date?

The answer is probably because you think it will increase in value over time.

That's investing.

Unknown

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Moldnut

Pride of ownership is what I would say.

MidLifeCrisis

<< <i>So when you bought some of the most gorgeous examples of Colonials and what not from Coin RArities ON Line and others you never thought for a second that ypou were making a wise purchase? >>


Of course I did...every time. (Thanks, by the way. )

But the colonials I bought were not key date federal coins. Heck, they weren't even all that popular!

mrpotatoheadd

<< <i>But if you are type collector, why buy a key date? >>

Because you have determined it will make your persuit more challenging and personally rewarding than buying common date coins?

<< <i>That's investing. >>

Maybe for you, it is. I would bet that people who are not you will have different opinions on the subject.

RYK

I do not think that one can jump to that conclusion. Many collectors buy an SVDB or 55 DDO or 37D 3 legs because they are cool, iconic coins that we remember desiring in our youth. They have gone up in value in the past, but past performance is no guarantee of future coin investment success. In fact, the next generation of collectors may think the UHR, Wisconsin quarter "errors", and 08-W gold buffalos might be the coins to buy when they finally have the means.

MidLifeCrisis

<< <i>Pride of ownership is what I would say. >>


You couldn't get the same pride in owning a 1909 VDB Lincoln in, say, MS64 as you would a 1909-S VDB in the same grade?

Moldnut

<< <i>

<< <i>Pride of ownership is what I would say. >>


You couldn't get the same pride in owning a 1909 VDB Lincoln in, say, MS64 as you would a 1909-S VDB in the same grade? >>



Sure you can, but if you have dollars to get the BMW, why not.

MidLifeCrisis

<< <i>

<< <i>But if you are type collector, why buy a key date? >>

Because you have determined it will make your persuit more challenging and personally rewarding than buying common date coins? >>


Challenging how? If the key date is available at practically any large coin show, all you need is money.

Personally rewarding? Why don't you get the same amount of personal reward from owning the common date?



<< <i>

<< <i>That's investing. >>

Maybe for you, it is. I would bet that people who are not you will have different opinions on the subject. >>


Ha! Well, yes. That's why I started a thread. It's no fun to just keep these thoughts to myself!

RYK

<< <i>

<< <i>Pride of ownership is what I would say. >>


You couldn't get the same pride in owning a 1909 VDB Lincoln in, say, MS64 as you would a 1909-S VDB in the same grade? >>


Many grew up hoping to find 09SVDBs in change, or listening to their parents or grandparents talk about their search for them. When I, in my youth, visited the local coin shop, it was one of the most expensive coins in the case. It's part of the US coin tradition to value it, want it, and eventually (in many cases) buy it.

USMoneylover

<< <i>In fact, the next generation of collectors may think the UHR, Wisconsin quarter "errors", and 08-W gold buffalos might be the coins to buy when they finally have the means.[/q

It will definitely be interesting to see if that happens. Hope I make it to find out!

MidLifeCrisis

RYK - You make some good points. Many of us who collected when we were children dreamed of owning these key dates. We buy them as adults because we can.

But once you own one as an adult, then what? Are you satisified? Would you then sell it for a cheaper common date and save money?

Or, once sold, do you buy another example of the same key date, only to eventually sell that one too? Rinse, repeat...

I'm guilty of that. I've owned several 09-S VDBs, 55 DDOs, and others.

I think we buy key dates because we believe they will hold their value and we hope they will increase in value.

RYK

<< <i>RYK - You make some good points. Many of us who collected when we were children dreamed of owning these key dates. We buy them as adults because we can.

But once you own one as an adult, then what? Are you satisified? Would you then sell it for a cheaper common date and save money?

Or, once sold, do you buy another example of the same key date, only to eventually sell that one too? Rinse, repeat...

I'm guilty of that. I've owned several 09-S VDBs, 55 DDOs, and others. >>


I do not know the answer. I have never coveted the key dates. I have never owned those two examples. Perhaps that is why I never make any money in coins.

The two coins I remember wanting more than any other, as a boy, were the bust right half eagle and the Stella. I am not sure I ever saw either of these coins in person in my youth. I was intrigued by the design and symbolism of the former (still am) and the odd-balledness of the latter.

Perhaps this is where my sense of "buy what you cannot get (easily)" comes from...

mrpotatoheadd

<< <i>Challenging how? If the key date is available at practically any large coin show, all you need is money.

Personally rewarding? Why don't you get the same amount of personal reward from owning the common date? >>

I don't know. I didn't say that's what I thought- I just posted the first couple of thoughts that occurred to me as being something a collector might say. I expect there are far more reasons for collectors to collect than I could possibly hope to imagine myself. That being the case, I believe it would be foolish of me to answer for others regarding their motivations.

RYK

MLC, you could have just as easily titled the thread:
Coin Collectors: Closet Investors

MidLifeCrisis

<< <i>MLC, you could have just as easily titled the thread:
Coin Collectors: Closet Investors >>


True. But then how many "coming out of the closet" jokes would we have to endure?

RYK

<< <i>

<< <i>MLC, you could have just as easily titled the thread:
Coin Collectors: Closet Investors >>


True. But then how many "coming out of the closet" jokes would we have to endure? >>


Just saw this on FB:

Broadstruck

<< <i>But why do we collect key dates, really? >>



For me it's because as an adult I can afford some of the ones I drooled over in red book as a kid.

LogPotato

twitterpatted.


Regardless, "key" dates in ultra popular series are hardly rare.

RB1026

<< <i>

<< <i>But why do we collect key dates, really? >>



For me it's because as an adult I can afford some of the ones I drooled over in red book as a kid. >>



Same for me.

CoinRaritiesOnline

In my experience as a dealer, and working with many, many collectors, the pursuit of key dates seems more often driven by nostalgia (as noted by others here) than by speculation or investment. Not to suggest that these are mutually exclusive concepts.

oreville

Agreed with JA and others.

Also growing up and seeing paper plugs in the old blue Whitman coin books where the key date sat only made the coin more elusive and mysterious to me as a 10 year old collector in which I was told by the coin booklet that I could not have it and it was filled in by the booklet!

Definitely nostalgia and fulfilling a lifetime dream of a ten year old.

It also helps this 59 year guy stay connected to his 10 year old mindset. It is good to stay connected with his youthhood.

JamesMurray

<< <i>

<< <i>But why do we collect key dates, really? >>



For me it's because as an adult I can afford some of the ones I drooled over in red book as a kid. >>



Id go along with this , the key dates ive bought were never to resell , i bought them to complete my sets which will be handed down to the kids at a later date.I don't know what they are worth today as opposed to what i paid for them and honestly it doesnt bother me either way. If the backside falls out the gold market and we see 400 dollar an oz again ...that would bother me.

rec78

<< <i>

<< <i>

<< <i>But why do we collect key dates, really? >>



For me it's because as an adult I can afford some of the ones I drooled over in red book as a kid. >>



Id go along with this , the key dates ive bought were never to resell , i bought them to complete my sets which will be handed down to the kids at a later date.I don't know what they are worth today as opposed to what i paid for them and honestly it doesnt bother me either way. If the backside falls out the gold market and we see 400 dollar an oz again ...that would bother me. >>



Actually I think $400 would be a great buying opportunity - This will never happen though-There will be much intervention by buyers at a much higher level.If it does-I will mortgage my house, my cars,my wife and children, and purchase all the gold I can. You can't lose with gold-If it goes up you make out on what you already have. If it goes down you buy more. The government has set in place a fiat monetary system that will keep raising the debt ceiling which in turn de facto raises the price of everything including gold. There is no control over the price of gold anymore. More fiat currency in circulation means that more people will buy more gold and the price will keep rising. The price of gold will rise with the debt. If the government say- doubles the national debt, then gold will double also-unless we see depression-like controls.

Bob

Matrix1980

rec78

Hahahaha at my wife and children lolllllll!!!! Are they are not worth there weight in gold lollllll!!! But you are right at 400$ I would probably do some drastic things as well!!!

rec78

<< <i>rec78

Hahahaha at my wife and children lolllllll!!!! Are they are not worth there weight in gold lollllll!!! But you are right at 400$ I would probably do some drastic things as well!!! >>



I said would mortgage them- not sell them.(My children are 39 and 37 years old)

Matrix1980

rec78

lolllll

TwoSides2aCoin

A coin geek in disguise
That's impossible.

MidLifeCrisis

<< <i>twitterpatted. >>


I'm 45 years old. I'd never heard of that word before. I had to look it up. It fits.

lkeigwin

<< <i>

<< <i>twitterpatted. >>


I'm 45 years old. I'd never heard of that word before. I had to look it up. It fits. >>

Good fit indeed. Though I think it is twitterpated.

I buy keys to complete sets, but not exclusively. I don't need a '93-S Morgan, for example, any more than I need an old Porsche 356. But it's great to finally satisfy the lust.
Lance.

fastfreddie

<< <i>

<< <i>But why do we collect key dates, really? >>



For me it's because as an adult I can afford some of the ones I drooled over in red book as a kid. >>

2ltdjorn

<< <i>I've owned my share of key date federal coins. I enjoyed owning them. I think I made a profit each time I sold one.

But why do we collect key dates, really?

Most are not rare at all.

The design of a key date coin is almost always the same as that of a non-key date in the same series.

If you are a series collector, you have to get the key dates to fill the holes and complete the collection. But if you are type collector, why buy a key date?

The answer is probably because you think it will increase in value over time.

That's investing. >>




I would argue that collectors in general are investors

Elcontador

<< <i>

<< <i>I've owned my share of key date federal coins. I enjoyed owning them. I think I made a profit each time I sold one.

But why do we collect key dates, really?



I would argue that collectors in general are investors >>



Have to disagree with the last sentence. I've been collecting coins for over forty years, and if making money on investments was a primary issue, there are far better places than numismatic coins to put one's money. Ergo, I would not have bought a single coin.

I collected at first because I thought it was neat to full the Whitman albums. After that, I have collected because I like the design / look on various dates and denomimations of coins. As I have gotten older, I have been able to afford said coins in higher grades, which to me, is nothing more than owning more attractive examples of designs of coins which I liked in the first place.

The only coin purchases I made and kept of coins which I think are ugly are the three Shield Nickels I own (one in PF 5, and two in MS 66). I have never bought any of a number of denomination of coins because I think they are ugly. Also, the only reason I bought GSA CC Morgans in 1980 was to own a piece of history, as I have never found the Morgan $ per se to be an attractive design for a coin.