How much thought do you put in about selling a coin when you buy it?

TopographicOceans · January 30, 2015 12:49PM

When you buy a coin for your collection, do you think about what its future value will be when you will sell it?
Do you do any research on it's past and current value and try project its future value from that?

Is there any formula you use, a best guess or just plain don't think about it?

When I do any investment, I have an exit strategy; both a stop loss as well as a target price to sell.

But I don't think of coins as an investment and don't put any thought into what its future value could be. I just buy it because I need (OK, want) it.
I realize that's not a smart thing to do, but they're coins and I guess I just think of them differently.

Broadstruck · January 30, 2015 12:53PM

I've mentioned the importance of considering an exit strategy prior to purchase plenty of times on this forum over the years.

DollarAfterDollar · January 30, 2015 1:10PM

100%.

lasvegasteddy · January 30, 2015 1:15PM

ideally
the goal is to buy money makers to fund my keepers and keep the lights on at pcgs
next

and no...it's not working too good for me
finding money makers is for some...but is a rare thing for me

Timbuk3 · January 30, 2015 1:41PM

My problem is that I don't really have
an exit strategy !!!

msch1man · January 30, 2015 2:08PM

<< My problem is that I don't really have
an exit strategy !!!

>>

100% collector...if I'm thinking about selling a coin before I even buy it, I shouldn't buy it.

Boosibri · January 30, 2015 2:47PM

Almost all of the time.

Broadstruck · January 30, 2015 2:53PM

<< 100% collector...if I'm thinking about selling a coin before I even buy it, I shouldn't buy it. >>

An exit strategy has nothing to do with selling...

Just making sure you don't bury yourself by paying more then you know you could at least break even at if you needed to sell.

If your buying coins and paying multiple times PCGS values you better do some soul searching before writing the check.

msch1man · January 30, 2015 3:12PM

You're probably right...I probably should think more about an exit strategy when I buy. Problem for me is, when I buy a coin, I like it enough that at the time I buy it I honestly don't see myself ever getting rid of it. The reality is, interests/situations change and there are some coins that I do eventually sell.

ARCO · January 30, 2015 4:06PM

for coins under $200, i don't have any concern about how I will sell it or much it will sell it for. Sure, i don't want to overpay too much, but if I love the coin, I just want to own it and I have lost money on a coins that the owning/appreciation was worth the price I paid.

For coins over $200? Not much changes really...

Tyler

coinkat · January 30, 2015 4:14PM

I think more in terms of surviving population, whether the coin is a quality for the grade example and has the look that I value and how often the coin really surfaces. If it is readily available, it is probable another example will show up. If not, and the coin has the look, one has to factor opportunity into the analysis.

TwoBitWilly · January 30, 2015 4:33PM

As a set builder I do my best to buy nice eye appealing coins that fit the budget.

But then again I don't buy into the little green/gold footballs on slabs either.

Case in point was offered a very nice looking AU58 1885 IHP for 63 money just because it had been blessed by CAC.
to me it makes no sense to me to be upside down on a coin before I even get it home (zero upside value for me and or my kids when I'm gone).

Working on 5-6 different sets at a time has its advantages as I can wait for the right coin for the right price so I'm not upside down on them.

Sure I've bought coins that I had to sell but didn't loose much on them,but for the most part the ones I sell I make money on that more than makes up for the ones I lose on.

So to answer your question I put thought into what I buy and for the most part resale value plays a big role in the coins I buy.

3keepSECRETif2rDEAD · January 30, 2015 4:46PM

...an alchohic mixed drink needs to be in a liquid form to drink...the smoother the liquid, the easier/quicker it is to get down

Erik

jmski52 · January 30, 2015 9:27PM

I buy Modern Bullion coins strictly as a speculation with the intent of making a profit in the long run, but I end up admiring the designs and execution with a secondary objective of creating a collection.

Conversely, until recently I would admire Large Cent surfaces & detail up front, with the secondary objective of buying coins that could be resold easily because of their grade & eye appeal.

Collecting isn't incompatible with making a profit, but perhaps the sequence of the priority is somewhat reversed.

Broadstruck · January 30, 2015 9:41PM

<< Sure I've bought coins that I had to sell but didn't loose much on them,but for the most part the ones I sell I make money on that more than makes up for the ones I lose on. >>

You never make up a loss in this hobby...

Sure your checkbook might balance out making a profit on the next sold, but as you as that's a coin you would have done well on anyway you still took a loss on the other.

Hope this makes some sense?

MrHalfDime · January 30, 2015 10:02PM

"How much thought do you put in about selling a coin when you buy it?"

None. Not one bit. I am assembling a reference collection, for study, and the coins I buy are strictly for study. If one day I do sell my collection, and if they do realize some measure of profit above the purchase price, so be it. If not, that is okay too. And if my heirs sell the collection after I am gone, it is found money to them, so return on investment is not an important factor. As one has already said, "if I'm thinking about selling a coin before I even buy it, I shouldn't buy it."

BigMoose · January 30, 2015 10:12PM

I have thought about it a lot more in recent years. But, the coins I have done best on over the years, the ones that just screamed "Buy Me", I gave no thought whatsoever about selling when I was in the process of buying them.

Sonorandesertrat · January 30, 2015 10:57PM

<< I have thought about it a lot more in recent years. But, the coins I have done best on over the years, the ones that just screamed "Buy Me", I gave no thought whatsoever about selling when I was in the process of buying them. >>

I agree with this. Watching the evolution (slow dissolution?) of the hobby over the course of four decades has caused me to become concerned since the last recession hit. What is happening now seems different, not just another bear market. It's two tier at best, and many hobby enthusiasts simply don't have the money to continue buying coins. The high rollers will continue on, but what about the rest?

TwoSides2aCoin · January 30, 2015 11:05PM

Before purchasing I think : "Man Joe, you're a loser. You could make so much more money doing ______, or _________, or __________. What the ____ is your problem ?'

Then I pay. Olde fashioned horse tradin' skills are necessary in this bidness.

jmcu12 · January 30, 2015 11:19PM

I always have an exit strategy. But each coin is different so the strategy is different.

With this said sometimes the exit strategy is that I will lose money, but in those cases (which is most cases) that's not really an issue - I'm doing it because I love collecting.

silverpop · January 30, 2015 11:34PM

buying

if the coin gets my notice

selling

find the price people are willing to pay for said coin

SAM5969 · January 30, 2015 11:36PM

<< 
You never make up a loss in this hobby...

Sure your checkbook might balance out making a profit on the next sold, but as you as that's a coin you would have done well on anyway you still took a loss on the other.

Hope this makes some sense? >>

I understand what you are saying but I have to respectfully disagree with the principle.

If you buy coins in any quantity at all (a few dozen per year to infinitude), it is a numbers game .. there will be an inherent proportion of winners to losers in varying degrees with most hovering around the +/- 10% margin.... If you don't enter the game, you will not incur the risk of the losers, nor will you reap the rewards of the winners.
The object of the game is to have more winners than losers and to maximize return on the winners. Although I have no evidence as I do not participate myself, I suspect that many dealers play this game by these rules. Obviously there are some who will NEVER sell at a loss (ego?) and will take the coins to their grave before they lose a nickel .. They are stubborn and either fully liquid with no need for cash flow or they will eventually go out of business. In either case, they are people I prefer not to deal with in any walk of life

JJSingleton · January 30, 2015 11:48PM

I don't really think in those terms.

First, I have no plans on selling my collection unless I am at death's door which hopefully will be decades away. I would never try to venture a guess what the market will be at that time so considering a selling strategy now is just silly.

Second, I am very choosy in what I purchase but not so choosy in the price I pay. I am certainly willing to pay a premium for outstanding coins. I am a true hobbyist who buys less than a hand full of coins a year and I do not see the money I spend on coins as an investment. I consider those funds expensed. Although I am not completely blind to fact that the collection does have value and needs to be cared for. As such, if I were to die suddenly I believe my collection would be extremely easy for my heirs to liquidate with the instructions I have left in the safe deposit box with the coins.

LindeDad · January 31, 2015 12:42AM

I think that how dealers think has a great effect on what collectors pay for coins.

ricko · January 31, 2015 12:45AM

I do not buy coins with any thought of selling them. Other than some darkside gold, I have never sold a coin. Nor do I intend to sell any. I enjoy my coins and their history. I also have bullion coins - for their beauty and value - but the value would be for my heirs. Cheers, RickO

Barndog · January 31, 2015 1:20AM

<< "How much thought do you put in about selling a coin when you buy it?"

None. Not one bit. I am assembling a reference collection, for study, and the coins I buy are strictly for study. If one day I do sell my collection, and if they do realize some measure of profit above the purchase price, so be it. If not, that is okay too. And if my heirs sell the collection after I am gone, it is found money to them, so return on investment is not an important factor. As one has already said, "if I'm thinking about selling a coin before I even buy it, I shouldn't buy it." >>

I'm sure they are aware that my offer to pay quadruple face value still stands

MrHalfDime · January 31, 2015 1:26AM

"I'm sure they are aware that my offer to pay quadruple face value still stands"

Oh, we're up to quadruple face value now? How generous. I'm sure they know how to contact you should the need arise. Hopefully it won't involve a trip to Alaska.

Barndog · January 31, 2015 1:27AM

<< "I'm sure they are aware that my offer to pay quadruple face value still stands"

Oh, we're up to quadruple face value now? How generous. I'm sure they know how to contact you should the need arise. Hopefully it won't involve a trip to Alaska. >>

You are welcome to join us for salmon fishing any time (summer preferred, since that's when the salmon visit too)

TwoSides2aCoin · January 31, 2015 1:33AM

<< I think that how dealers think has a great effect on what collectors pay for coins.

>>

If someone could tell me how dealers think, I might be better at it than what my attempts at it are showing. I wish someone would BUY as much as I do. Do you ever hear dealers complaining about what WE HAVE TO BUY ? No. We complain about what we have to sell that collectors or not… brought to us.

So it ends up Non Collectible Coins , non circulating collectible coins , in fact… sitting in a collectible store that few people come to collect. And even fewer online

Because ? Well because that cell phone service is costing a guy 4 Morgan Dollars per month.

Shamika · January 31, 2015 1:39AM

I don't invest, I collect. And although I've taken losses on a number of pieces, I've come out ahead overall. Thus I'll maintain my current "investment" strategy.

ctf_error_coins · January 31, 2015 1:44AM

I have bought coins for my personal collection that I never thought about selling.

Of course I think about selling EVERY coin that I buy for my error coin business inventory. I would be an idiot not to.

coinnut · January 31, 2015 2:46AM

Absolutely none. Up until now and hopefully for at least the next 10 years I'm 100% a collector. It's a hobby for me, not a business.

Baley · January 31, 2015 3:05AM

<< "How much thought do you put in about selling a coin when you buy it?"

None. Not one bit. I am assembling a reference collection, for study, and the coins I buy are strictly for study. If one day I do sell my collection, and if they do realize some measure of profit above the purchase price, so be it. If not, that is okay too. And if my heirs sell the collection after I am gone, it is found money to them, so return on investment is not an important factor. As one has already said, "if I'm thinking about selling a coin before I even buy it, I shouldn't buy it." >>

thanks for saving me the typing, with respect to my collection of early quarters and halves by die variety and die state,

with respect to higher grade type coins and bullion, I'm generally aware of the potential risks and rewards of resale, but don't dwell on it, as the horizon is many years out.

bosco5041 · January 31, 2015 3:06AM

Yes I do give it some thought, but who knows what the future holds so I buy what I like and what I enjoy. I do try to buy coins that to me have solid value which luckily are the coins that I like.

Rarity · January 31, 2015 4:03AM

<< I have thought about it a lot more in recent years. But, the coins I have done best on over the years, the ones that just screamed "Buy Me", I gave no thought whatsoever about selling when I was in the process of buying them. >>

Totally agree.

OKbustchaser · February 1, 2015 11:52PM

<< 

<< "How much thought do you put in about selling a coin when you buy it?"

None. Not one bit. I am assembling a reference collection, for study, and the coins I buy are strictly for study. If one day I do sell my collection, and if they do realize some measure of profit above the purchase price, so be it. If not, that is okay too. And if my heirs sell the collection after I am gone, it is found money to them, so return on investment is not an important factor. As one has already said, "if I'm thinking about selling a coin before I even buy it, I shouldn't buy it." >>

thanks for saving me the typing, with respect to my collection of early quarters and halves by die variety and die state,

>>

What Bailey said about what Mr. Half Dime said.

66Tbird · February 2, 2015 12:27AM

The concept is part of my buying strategy. Good for the grade, and just before the price jump (with eye appeal). Most of my collection has upgrade making the sell off easy. I still have the core and I'm simply waiting it out. Along with a CAC submission sometime soon.

TwoSides2aCoin · February 2, 2015 12:38AM

If you were a dealer , would you ?

If you were a serious collector, wouldn't you ?
One small tidbit of interest for me is "HOW does one measure the amount of thought going in ? "

BillJones · February 2, 2015 1:14AM

In recent years the "exit strategy" has not figured greatly in my coin buying. I don't spend a lot of time being a slave to the Gray Sheet any more. I consider it, but if you are going to be competitive in the purchase of scarce, in demand coins, you are not going to get much with Gray Sheet inspired bids. I use auction results and the PCGS price guidelines. I might be buying deck chairs on the numismatic Titanic, but I am having fun.

DennisH · February 2, 2015 1:39AM

98% of the time I put a LOT of thought into my buying decision.
The other 2% tend to be the favorite coins I own.

winky · February 2, 2015 7:17AM

I buy the rare coins first but most of the time I am not concerned about cost as much as I am about filling the hole in my registry set. Here lately I am putting more thought in it tho as I am retired now. I think that means less money to throw away.

MGLICKER · February 2, 2015 7:18AM

<< 100%. >>

My answer as well.

roadrunner · February 2, 2015 8:41AM

100%. But I've also violated that rule a couple of times in 30 years.....all of them poor decisions too that resulted in losses or in under-performance.

If I like a particular coin and can see it being worth more today, or significantly more 5-10 years down the road, I'll buy it. Why buy something that you feel has no real future when there are so many good coins out there to choose from that might have very bright futures? And this can be a matter of buying a very high quality - problem free coin of a fairly common date for a decent price. It doesn't have to be about buying pop tops or monster toners.

To me, price and quality are so intertwined I don't think I can even separate them out when making a buying decision.

rec78 · February 2, 2015 10:01AM

None. I am a collector and when I decide to sell it makes no difference what I paid for them. The current value is the current value. A coin dealer will have different perspective than a true collector.

DollarAfterDollar · February 2, 2015 10:21AM

I'm a firm believer that you have to sell coins here and there to ensure you're not paying too much for them when you buy them. There are some who have more money than I who just buy, buy and buy some more but the smart play is to keep your fingers on the pulse of the business.

If you get toasted a few times, you learn who the dummy is.

ctf_error_coins · February 2, 2015 10:22AM

<< A coin dealer will have different perspective than a true collector. >>

I am a true collector and a coin dealer.

I really does matter what you buy a coin for.

Walkerfan · February 2, 2015 11:26AM

I've studied my series for a long time, so I know which coins are nice for the grade and issue and which aren't. The problem is that the really good coins can go for 'moon money' or at least a strong price. But if you want to put together a good PQ set; you are going to have to pay up at times and that doesn't bother me, once in a while, as long as the coin is nice. I have gotten some gorgeous gems very reasonably, as well. To answer the original question----I don't think about it a lot, as long as I am still reasonably in the stratosphere. Besides, the really nice coins will hold their value and appreciate over time and I am in it for the long term. That is my 2 cents.....

JCMhouston · February 2, 2015 12:11PM

I don't consider future value at all when I buy, because I don't believe in magic so I can't predict the future. For coins that are reasonably available I do look at recent comparable sales, because I don't want to pay more than is necessary. But for actual rare coins its simply a matter of if I can afford it when it becomes available.

JohnnyCache · February 2, 2015 12:50PM

Not as much as I probably should, but I'm working on it.

How much thought do you put in about selling a coin when you buy it?

Comments

Leave a Comment