My Tuition Costs, In Detail - How do you compare?
BryceM
Posts: 11,857 ✭✭✭✭✭
Since I got into the slabbed coin scene about two or three years ago, I've kept track of my purchases and sales using the "My Inventory" feature of the set registry here at PCGS. I put it on a spreadsheet today to take a look. During that time I purchased 180 coins and sold 82 coins. My buying and selling activity has mostly consisted of BU Peace Dollars, 1900s Federal type coins, some early type coins in affordable (to me) grades, a 12-piece gold collection, a few moderns, and a handful of classic commems. Most of the coins that I've sold have been duplicates from upgrading. I have not included anything that could be considered a bullion purchase. For various reasons, the sort of information that I'm providing here isn't generally openly shared with others. I hope someone finds it useful on some level.
My tastes and purchases have now settled into a pattern that I'm comfortable with. I probably pay more for each piece now than at first, but I also have much more confidence in what I'm buying these days. I've made a few mistakes, made a few minor scores, and generally learned a lot in the process.
At present, the numismatic value of my collection represents maybe 5-10% of my total assets and that's a number I'm comfortable with. This is the part I have fun with and if someday it turns out to have been a good investment, even better. My traditional retirement funds get fed first, and they're kept strictly apart from the hobby. There are a few other "non-traditional" investments I've made which hopefully will bear fruit someday.
Of the 82 coins that I've sold, I made money on 25 and lost money on the others. Without getting into exact numbers (nobody's business!), to date I've averaged a recovery of 95% of my initial purchase price on those 82 coins. These coins were all held less than 2 or 3 years and I've included shipping, auction juice, commissions, PayPal and eBay fees in the numbers. For persepective, most of these coins were worth a few hundred dollars each - some more, some less.
Hopefully these 82 coins represent the majority of my early mistakes and inexperience. I'm keenly aware that the entire coin market could explode or go south at any moment. I'm also keenly aware that there might be unexpected surprises at some future date when it comes time to sell the ones I still have. The coins in my current collection are hopefully better than the 82 that I've parted ways with, quality-wise.
For a new collector, I don't think I've done too poorly. I'm sure there are plenty of people who have done much better in similar circumstances, but probably there are people who have done much worse. In terms of actual dollars "lost", I've had a whole lot less fun while spending a whole lot more money on other forms of entertainment. Keeping my finger on the pulse of the hobby by paying attention to the wealth of information here on the boards, building relationships with good dealers, and sharing information back and forth with other hobbyists has been a tremendous help. I've also probably been through a dozen coin-related books in the past year or so. I wonder how many more collectors there would be if those who were burned early on in their collecting career didn't call it quits and take up other pursuits.
Your thoughts?
My tastes and purchases have now settled into a pattern that I'm comfortable with. I probably pay more for each piece now than at first, but I also have much more confidence in what I'm buying these days. I've made a few mistakes, made a few minor scores, and generally learned a lot in the process.
At present, the numismatic value of my collection represents maybe 5-10% of my total assets and that's a number I'm comfortable with. This is the part I have fun with and if someday it turns out to have been a good investment, even better. My traditional retirement funds get fed first, and they're kept strictly apart from the hobby. There are a few other "non-traditional" investments I've made which hopefully will bear fruit someday.
Of the 82 coins that I've sold, I made money on 25 and lost money on the others. Without getting into exact numbers (nobody's business!), to date I've averaged a recovery of 95% of my initial purchase price on those 82 coins. These coins were all held less than 2 or 3 years and I've included shipping, auction juice, commissions, PayPal and eBay fees in the numbers. For persepective, most of these coins were worth a few hundred dollars each - some more, some less.
Hopefully these 82 coins represent the majority of my early mistakes and inexperience. I'm keenly aware that the entire coin market could explode or go south at any moment. I'm also keenly aware that there might be unexpected surprises at some future date when it comes time to sell the ones I still have. The coins in my current collection are hopefully better than the 82 that I've parted ways with, quality-wise.
For a new collector, I don't think I've done too poorly. I'm sure there are plenty of people who have done much better in similar circumstances, but probably there are people who have done much worse. In terms of actual dollars "lost", I've had a whole lot less fun while spending a whole lot more money on other forms of entertainment. Keeping my finger on the pulse of the hobby by paying attention to the wealth of information here on the boards, building relationships with good dealers, and sharing information back and forth with other hobbyists has been a tremendous help. I've also probably been through a dozen coin-related books in the past year or so. I wonder how many more collectors there would be if those who were burned early on in their collecting career didn't call it quits and take up other pursuits.
Your thoughts?
0
Comments
Neat post, but you did not mention how much money you spent on books and self education before you started buying coins. You say you started buying 2-3 years ago but looked at books only in the last year or so?
Eric
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
If you are keeping score as an investment, then you may consider buying trends and not things you necessarily like (except when those two thing align). If you are collecting, buy strong and enjoy for years and let your heirs take the loss (or gain) :-)
And like you said you learned......that is a cheap education in numismatics.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Those are only the books I've been through in the past year. I started doing quite a bit of reading and learning about the time I got started in collecting again - say a year or two before I got into the slabbed coin game.
AMRC,
Investing is what I do with my retirement plan. I've never really considered coin collecting as a legitimate investment. Stressing about that would take too much of the fun out of it. Anyone who treats their collection as their primary retirement plan is taking quite a risk IMO. If, in the end, my collection returns anything above and beyond true inflation it will just be a bonus. I hold to the theory that those who end up with the best returns are often those who had a lot of fun, became very knowledgeable about the hobby, did the work to find quality pieces, and treated it as a hobby.
<< <i>Onedime,
Those are only the books I've been through in the past year. I started doing quite a bit of reading and learning about the time I got started in collecting again - say a year or two before I got into the slabbed coin game.
AMRC,
Investing is what I do with my retirement plan. I've never really considered coin collecting as a legitimate investment. Stressing about that would take too much of the fun out of it. Anyone who treats their collection as their primary retirement plan is taking quite a risk IMO. If, in the end, my collection returns anything above and beyond true inflation it will just be a bonus. I hold to the theory that those who end up with the best returns are often those who had a lot of fun, became very knowledgeable about the hobby, did the work to find quality pieces, and treated it as a hobby. >>
Eric
I've been at it about a year and a half. As far as cost if tuition, I really don't know because I haven't sold any coins. I've traded a few and think value wise did pretty well. I haven't purchased alot of books, but have several on CC stuff, Morgans and GSAs.
Several of my early purchases I would not buy now. I bought a fair bit of low grade stuff that wasn't a bad value, but doesn't fit with what I'd like to do in the hobby. I bought too broad a range of stuff without enough thought and research. I am much more patient now and am getting better at evaluating a few series of coins. I still have a LONG LONG way to go, but I feel I'm on the right track. I am also more comfortable pulling the trigger if an opportunity presents itself.
As far as education, this place is truly unbelievable and has been a huge asset to me.
Do understand that Internet forums tend to be a self-selecting mechanism. Winners and those that do relatively well financially tend to report. Embarrassed losers or those that made big financial mistakes tend to stay quiet. In the worst cases, the losers quit the hobby in disgust over the huge financial losses they take.
You have a healthy perspective. Collecting coins should be a love, not an investment. I am certain I am behind the curve but I am perfectly comfortable with that. Most of what I have I truly enjoy and while I hope it will help me one day with old age expenses it is not what I rely on.
Lance.
THANKS!
Eric