Options
The "time value of ownership"
cameron12x
Posts: 1,384 ✭✭✭
This is a general topic which correlates with some of the purchases which all of us have probably made in our lifetimes.
There is always a better cell phone, a better computer, a better TV, a better car, a better house and, sometimes even a better life! For most of us, however, there are almost ALWAYS better coins. But we acquire those which we can, when and while we can.
The "time value of money" concept is often used when making larger purchases, especially when borrowing or buying on credit. But I would posit that the "time value of ownership" is sometimes even more important.
What if a scarce coin rarely comes up for sale, but you really want one NOW, while you're still very much interested in acquiring one? Do you wait a year for the perfect example? Two years? Wait until you have more available funds? Wait until you're retired? Wait until you're dead?
To me, the bottom line (within certain constraints) is to acquire what you can, while you can. That maximizes the enjoyment of a hobby or avocation, IMHO. If you buy a piece that you ultimately want to upgrade, why not enjoy that piece of numismatic history now, in the present? The "opportunity cost" of not doing so is perhaps missing some enjoyment of the craft?
Rare coins are an investment for many. So, the dynamics may understandably be completely different for those folks. But for those of us who love collecting simply as a hobby, the time is NOW.
Enjoy today!
There is always a better cell phone, a better computer, a better TV, a better car, a better house and, sometimes even a better life! For most of us, however, there are almost ALWAYS better coins. But we acquire those which we can, when and while we can.
The "time value of money" concept is often used when making larger purchases, especially when borrowing or buying on credit. But I would posit that the "time value of ownership" is sometimes even more important.
What if a scarce coin rarely comes up for sale, but you really want one NOW, while you're still very much interested in acquiring one? Do you wait a year for the perfect example? Two years? Wait until you have more available funds? Wait until you're retired? Wait until you're dead?
To me, the bottom line (within certain constraints) is to acquire what you can, while you can. That maximizes the enjoyment of a hobby or avocation, IMHO. If you buy a piece that you ultimately want to upgrade, why not enjoy that piece of numismatic history now, in the present? The "opportunity cost" of not doing so is perhaps missing some enjoyment of the craft?
Rare coins are an investment for many. So, the dynamics may understandably be completely different for those folks. But for those of us who love collecting simply as a hobby, the time is NOW.
Enjoy today!
0
Comments
<< <i>What if a scarce coin rarely comes up for sale, but you really want one NOW, while you're still very much interested in acquiring one? Do you wait a year for the perfect example? Two years? Wait until you have more available funds? Wait until you're retired? Wait until you're dead? >>
It really depends as there are many levels of scarcity. Many coins which appear to be scarce aren't, and vice versa. I've worked on teaching myself to wait until I find as perfect of an example as I can hope to find, and pass otherwise. There are several coins in an upcoming auction in my current area of focus which are almost great and my initial reaction was "Yes!" but upon further investigation I've since decided to pass on several of them. They are still good coins, but I know that the small problems I was justifying away would leave me searching for a better example in a few months.
Ulitmately, what a person should do can only be decided by them. Many numismatists are content without owning any coins. Others have bushel baskets full of junk. I think most people here would emphasize quality, but that's all relative. I don't spend a lot of time or effort trying to figure out which chain cent is the nicest. I like finding the nicest coins that I can with the money I have available at the time. No matter what level you collect at there are always people ahead of you and people behind you resource-wise. I can respect any collection if it's interesting. I'd love to see a set of well-matched MS-63 Morgans, and quite honestly, I might even find that more interesting than the #1 Morgan registry set. The one I can drool on, the other I can aspire to improve on.
<< <i>There is always a better cell phone, a better computer, a better TV, a better car, a better house and, sometimes even a better life! For most of us, however, there are almost ALWAYS better coins. But we acquire those which we can, when and while we can. >>
Yes, and no. I've purchased a toned commemorative 6-7 months ago for $220. The price was no big deal- I probably could have gotten it for a little less if I tried, and I might sell it for a little more if I really wanted to. But, I do not want to. Why? I have yet to see toning on it like any other similar coin. I guess that's what (natural) toning does- it gives your coin a unique "fingerprint" that speaks more than a number that a TPG service gives in a holder. When I saw it, I knew that I wanted it, because not only did I like it so much- but I knew that I'd never come across a similarly toned coin again. If I thought that the toning/quality would come up again in the future, well... I would have just admired it and moved on.
<< <i>The "opportunity cost" of not doing so is perhaps missing some enjoyment of the craft? >>
Nah- not to me, anyway. Part of the fun is going through many, many listings on the internet and in person, emailing my friends about it, taking my time to examine them, negotiating, maybe passing up on some offers that went nowhere, just to do it all over again. When I do land "the one," there's no better feeling than the sense of accomplishment after doing all that homework.
Interesting topic, though.
Interests:
Pre-Jump Grade Project
Toned Commemoratives
Often the anticipation of something is more fun than having the something.
<< <i>Oh forgot to add this important tidbit:
Often the anticipation of something is more fun than having the something. >>
So said Mr. Spock to the husband to be of his newly ex-betrothed.
"The "time value of ownership""
That's when I sit in my chair and look at my turbine blade and Lusitania wreck fragments and read my books and am back in 1909 and everything else falls away.
Eric
<< <i>Often the anticipation of something is more fun than having the something. >>
No question, "the hunt" is often times more fun than the prize!
I've been looking for an affordable Charlotte gold example since my 1838-C QE was stolen in 2009. How many times have a I personally seen a 1838-C come up for sale since then? Just a couple of times.