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When considering the purchase of a high value coin....
MGLICKER
Posts: 7,995 ✭✭✭
.....What potential risks are you considering? The criteria for high value of course varies for each of us.
The first two things that I look at are a change in market conditions for the series and physical loss of the coin.
The first two things that I look at are a change in market conditions for the series and physical loss of the coin.
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Which would I rather have. That said I rather have ten $1k coins than one $10k coin even though prevailing wisdom recommends to the contrary. With this collecting strategy my risks are spread out and no one coin will sink me so I am free to buy what I want.
<< <i>I basically consider the money gone forever. I just don't understand why someone would buy something knowing that they are going to sell it in the future... >>
It could be our heirs selling the coin, or of course they could pass it down for a few centuries. I believe though that most of us consider resale on the big stuff.
I also have a bunch of $50 Civil War tokens and So Called Dollars that are for enjoyment purposes only and the resale value is of no importance.
<< <i>I basically consider the money gone forever. I just don't understand why someone would buy something knowing that they are going to sell it in the future... >>
You may not agree, but for some coins I view it as a way of scratching the itch of "being a consumer" knowing what I buy has the ability to retain value. Some buy cars/clothes/food, I enjoy my life and I "consume" coins.
a fair price I'll be happy with. I might lose a few dollars or I might make a few dollars, but selling the last consideration on my mind when I'm buying.
<< <i>Pile of cash test
Which would I rather have. That said I rather have ten $1k coins than one $10k coin even though prevailing wisdom recommends to the contrary. With this collecting strategy my risks are spread out and no one coin will sink me so I am free to buy what I want. >>
Exactly. Well said.
How esoteric the series is as a proxy as to how easily I will be able to resell it
How rare is it, really. i.e., How many are currently on the market
Auction records
The advice of other dealers/collectors that specialize in the series
How much money I have in the bank
The number two thing I consider is how likely do I think that will happen.
Below a certain price point, though, I don't care.
Your price point may vary.
<< <i>The number one thing I consider is how would I feel if the value of the coin went to $0 overnight. >>
If you're still willing to pay the price if the resale value was $0 is a good test.