Mid Grade Rarities

Exbrit

Very generalized question: What is your opinion of collecting mid-range rarities (AU) that are expensive, but not super expensive as the finest graded coins (MS62 - maybe MS63). Waste of money as mid range rarities will not retain their value or a solid strategy for collectors?

I know that many will bring up that collecting is for enjoyment and not for investing, but hopefully every collector who has any amount of money tied up in their collection does not want to loose much of it when it comes time to sell.

This is somewhat related to the quantity vs. quality discussion some time ago. Would you rather have a complete collection that is mid grade or a few of the finest or near finest rarities?

SmEagle1795

To me, it depends on the price spread. The notion of "finest known" for many collecting spheres outside of US coinage is a misnomer: it's probably just the finest graded today and a dozen generational collections in Europe have better examples raw. Therefore, I try to buy "very nice" examples of types which are in the upper tier of known examples.

Personally, I don't believe in spending 10x more for a coin with 0.5% fewer marks or wear: the difference between MS6x and MS6(x+1) is entirely unimportant to me.

7Jaguars

And I concur. I just don't see the crazy prices that we have seen. On the other hand, even with non-graded TPG pieces, some are quite rare. As a collector they are hard to come by and occasionally cost more than we would like to play. But I think that a VF or so coin will not always bring a great resale.
One example I can think of is the currency 1853 groat in VF or EF - very scarce to rare but on the rare occasion one shows up it may go for a song only. On the other hand a nice 63 or so quality coin can do well - witness the like in the 1841 sovereign or half crown.... blah, blah.

EVillageProwler

I’m in agreement with @SmEagle1795 and @7Jaguars in that I do not think “macro price difference for micro quality difference” is a wise move in a market segment where micro-grading is not the norm. Likewise, I’d always chase the pieces that have some attributes that mainstream collectors can appreciate: great eye appeal, great design, great historical context. A super rare German States Taler in EF40 might be pricey today but it’s unlikely to increase in relative value to the rest if the series. A common date MS65 Taler from Saxony has a better chance of appreciating in value (relative to overall series performance).

Kriska15

I wouldn't say its worth it to go for a high mint state coin. However, some people may not be satisfied if its not Mint State. I'd say the difference between an MS61 and MS63 really does not mean much, especially when we know those grades may actually be reversed or the same. I only really aim for coins that I think will grade MS.

coinkat

I use an analysis predicated on the following:

First, develop an appreciation for the series in terms of characteristics and how often dates within the series are offered for sale;

Second, seek quality coins for the grade. Quality will sell at an AU grade over a higher grade if that higher graded coin is mediocre;

Not all coins within the same series have to be collected at the same state of preservation

The coin itself should speak volumes... Not necessarily the plastic that the coin is currently housed in.

TheRaven

if a EF is $100, an AU is $250 & Unc is $1000, I would have a hard time forking over $1000 in this example. I would rather find a nice AU and put the rest of the money elsewhere.

That Unc is likely to rise faster in price compared to the AU over time. I am not a box of 20 collector, i like to have a bunch of coins.

EVillageProwler

@TheRaven,

Your example shows that your real dilemma is a matter of budget and not necessarily a debate over relative value.

I used to collect early US Dollars (Flowing Hair and Draped Bust) in high circulated grade, but I never could afford an 1794 simply because I’d rather have a set minus one than one minus the rest of the set.

The reason I didn’t chase them at the MS level was due to both budget and the relatively small quality difference between a lustrous 55 or 58 compared with a slider in a 62 or 63 holder. (A true MS in that series will cost much much much more!)

And in your example if AU at $250 vs MS at $1000, there are plenty of examples where an AU50 is worth less than 1/4th that of a 63. But if you’re comparing an 58 to a 62, then maybe I’d agree with you. This is assuming that $1000 is not a budget-busting amount.

EVP

TheRaven

I wasn't thinking about any series or coin specifically with my numbers. Just an example.

I agree with you I would rather have a series less 1, then 1 less the rest.

Most of the question is personal taste and budget.

TwoKopeiki

I still believe in being patient and "buying the best quality you can afford". Quality is a combination of factors like technical grade, eye appeal, rarity, etc...

amwldcoin

Some people focus on midgrades! While mine isn't darkside nice original midgrade coins are more appealing to me than MS coins! For the money I have invested in my AU58 set I could have easily assembled an MS63-64 set! I don't believe I am by myself either!

@Exbrit said:
Very generalized question: What is your opinion of collecting mid-range rarities (AU) that are expensive, but not super expensive as the finest graded coins (MS62 - maybe MS63). Waste of money as mid range rarities will not retain their value or a solid strategy for collectors?

I know that many will bring up that collecting is for enjoyment and not for investing, but hopefully every collector who has any amount of money tied up in their collection does not want to loose much of it when it comes time to sell.

This is somewhat related to the quantity vs. quality discussion some time ago. Would you rather have a complete collection that is mid grade or a few of the finest or near finest rarities?

asheland

Great thread.