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How many coins do you need to sell in order to learn how to buy at the right price?
TopographicOceans
Posts: 6,535 ✭✭✭✭
I use Quicken to track my finances and I have my collection valued at what I paid for it.
I know that is not the case, since there are costs to sell
But I don't know good my buying prices are until I see what I can sell them for in the current market.
Coins I bought at auction are one bid increment above what someone else valued it at the time and coins I paid the asking price are pretty much unknown.
I know that is not the case, since there are costs to sell
But I don't know good my buying prices are until I see what I can sell them for in the current market.
Coins I bought at auction are one bid increment above what someone else valued it at the time and coins I paid the asking price are pretty much unknown.
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Latin American Collection
All of that aside, selling a few coins by a variety of methods from time to time is a great way to learn.
I don't think there's a direct correlation between the quantity of coins sold and the level of knowledge attained by the experience. Some people have a natural aptitude for it and others can learn it over time. Some people (most?) harbor at least a few irrational thoughts about their collecting and the finances involved. Some are truly fools, and are ruthlessly preyed upon.
All of that aside, selling a few coins by a variety of methods from time to time is a great way to learn.
I agree with that premise that selling is a great way to learn.
Some collectors boast that they have never sold a coin. Their collection would probably be better and they would have a better understanding of the market if they had.
If you are young you may be able to make a profit before you retire but don't count on it.
Just my thoughts, not to harm or upset anyone.
When you get into paying $100's or $1,000's of dollars for an old Coin with beautiful corrosion and rare plastic encasements
then you are going out on a limb. You are engaging in a strange game that most people would never play.
How do you play this game with the least risk?
Yes indeed, that is the question.
Most 10 year old children know the answer. Us " grown ups " are too intelligent to know the answer. :-(
Some of the nicest coins are bought without thoughts of selling in mind. These are the coins that surface years later and become big winners. That said, purchase with the intent to hold long term and don't be afraid to stretch for quality as quality is very resistant to market fluctuations.
Very much agree.
I have sold a lot of coins in the short term for upgrades and whatnot and have almost never lost money. I usually break even or I make a few bucks, so I must be doing something right. The coins that I really paid up for (only a few) or the ones that I paid retail for (many); I plan to hold for the long term. I don't feel concerned at all about the prices that I've paid.
“I may not believe in myself but I believe in what I’m doing” ~Jimmy Page~
My Full Walker Registry Set (1916-1947)
https://www.ngccoin.com/registry/competitive-sets/16292/
5,087 + or - 600.
I have lost money on most of the coins that I have sold. I consider the loss as the rent for having them in my possession, I do manage to keep an image of most of them though for sentimental reasons.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore...
I use Quicken to track my finances and I have my collection valued at what I paid for it.
I know that is not the case, since there are costs to sell
But I don't know good my buying prices are until I see what I can sell them for in the current market.
Coins I bought at auction are one bid increment above what someone else valued it at the time and coins I paid the asking price are pretty much unknown.
Interesting. I've tracked my personal finances in Quicken since 1996 but have never considered entering my coins as individual assets in Quicken.
I do have a spreadsheet in which I track what I buy coins for and attribute Ebay Bucks earned against the purchase price of each coin purchased.
When you get into paying $100's or $1,000's of dollars for an old Coin with beautiful corrosion and rare plastic encasements
then you are going out on a limb.
Truth.
I use Quicken to track my finances and I have my collection valued at what I paid for it.
I know that is not the case, since there are costs to sell
But I don't know good my buying prices are until I see what I can sell them for in the current market.
Coins I bought at auction are one bid increment above what someone else valued it at the time and coins I paid the asking price are pretty much unknown.
Well instead of selling them to a dealer, you would do better if you could sell to the same person/collector that he will sell to. Hard for the average collector to have access to the retail end of the market.
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
You need to sell 7 coins before you understand.
Why the number 7??
Some of the nicest coins are bought without thoughts of selling in mind. These are the coins that surface years later and become big winners. That said, purchase with the intent to hold long term and don't be afraid to stretch for quality as quality is very resistant to market fluctuations.
Sometimes. But I see collectors taking this to the extreme as an excuse for paying way above current retail price ranges.
- long term holding doesn't guarantee profit (sometimes it helps)
- you have to buy the right coins and have a good eye for quality for this to work
It's not smart to play the game of "it doesn't matter how much I pay because I never sell anything" unless you really don't care how much you or your family will potentially lose.
I use Quicken to track my finances and I have my collection valued at what I paid for it.
I know that is not the case, since there are costs to sell
But I don't know good my buying prices are until I see what I can sell them for in the current market.
Coins I bought at auction are one bid increment above what someone else valued it at the time and coins I paid the asking price are pretty much unknown.
Interesting. I've tracked my personal finances in Quicken since 1996 but have never considered entering my coins as individual assets in Quicken.
I do have a spreadsheet in which I track what I buy coins for and attribute Ebay Bucks earned against the purchase price of each coin purchased.
I use Quicken to track my net worth and download transactions daily from my bank and brokerage accounts, but my Coin Collection account stays at what I paid for them.
That probably overstates my net worth, which isn't good since I'll think I'm richer than I am - and that would make me spend more money on coins.
Dozens and still don't know what I'm doing.
But it's fun!
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
On the other hand, I rarely see a buffalo hunter chase panda or koala bears. Each to their own in this game of coins.
As others have said, is it the right material? Or your position in the food chain. Apparently ones emotions can get one to buy a coin further down the line than one should.
It appears that unless you invest in a B and M or show table fees, it it pretty hard to buy a coin at the ground level. Competition can get so fierce that it seems that ones edge is based on customer base developed over time. If you have a large base with many customers to sell to then ones purchase price can be stronger than one with no known customers who can't feasibly pay much at all.
I see the trade off as paying retail for a coin as a collector with associated premiums, or investing in a business and all the associated risk and time investment. But it's all a game of buying at one end of the line and moving it along a little (or all the way if you can) for profit. I've got some stomach for that but mostly I don't get too caught up in it. That game interests me less and less and just boil it down to saving and buying things that I like and keep relationships alive with folks that appreciate them as much as I do.
He had paid $30 for a BU '31-S Lincoln and couldn't get an offer over $12.
I started paying less immediately. When I went to sell my buffalo nickel collection in 1968 most of the coins brought a small fraction of what I had paid but thanks to a couple of good buys and higher prices I still eked out a tiny profit.
You have to know market values and these evolve over time and the way you learn them varies.
I'm a fast learner. Only one.
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest of them have to pee on the electric fence for themselves." Will Rogers
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
It depends.
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest of them have to pee on the electric fence for themselves." Will Rogers
Nothing like visions of a good weenie roast before bed.
"Seu cabra da peste,
"Sou Mangueira......."
mark
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Now , on the collection side of the house, often I have had to stretch a great deal to aquire a coin I want personally, those are hard to profit on , especially in a market such as this. Currently , I only add something to my stuff when its a somewhat fair price. I like owing certain things, but also lately don't want to pour a pile of money down the drain, that I will never see again.
Then there is the collector. I would fall into that category. When my collecting interests change, I liquidate what I am no longer interested in, and understand I may or may not come out ahead. Recently I took a bath on a proof set run I had owned for years. I just wanted to clear out what I was no longer interested in. It is my opinion (worth what you paid for it, lol) that the proof set market post 1950 has entered a period not unlike the classic commemorative market. I see no upside in the distant future, so rather than keep coins that are not going to increase in value from the bottom we are in, I chose to liquidate them.
I don't think it is the number of coins you have sold as that is just transactional detail. Rather it is what you paid for them in the market in which the coins were acquired. I am above water for most of the coins in my type set collection, including liquidation costs, i.e. selling fees and shipping & handling.
The entire perspective is really about understanding both sides of the coin market and being a realist in terms of the value of coins, particularly the ones you own personally.
that usually I get a fair deal.... I have overpaid for a few, but I really wanted them, so I do
not feel bad about it. Cheers, RickO
that usually I get a fair deal.... I have overpaid for a few, but I really wanted them, so I do
not feel bad about it. Cheers, RickO
I do not sell coins... that would be a learning experience for me. I do buy coins.. and I feel
that usually I get a fair deal.... I have overpaid for a few, but I really wanted them, so I do
not feel bad about it. Cheers, RickO
Have you ever regretted a purchase? Or are you disciplined enough with your ability to choose coins? I find the approach admirable.
It's taken a few hard lessons over the years and going through some hard times when forced to sell.
I feel no longer like a fish.
I may have made the transition to shark.
I'm much more selective in quality and balance cost/resale
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
getting the other guy to learn how to sell at the right price is the tricky part
Liberty: Parent of Science & Industry
I give away money. I collect money.
I don’t love money . I do love the Lord God.
If you have the patience to learn how to properly grade and gain expertise in a specific area that is fairly ripe to find bargains at shows, auctions, etc....then you can literally buy a good coin on every purchase. This was much the way it was in 1974 when I started looking for under-rated seated coinage that was priced ridiculously in the guides. It wasn't hard to find coins that were worth 2X to 3X what you paid even when paying "apparent retail" from dealers. This knowledge could be gained in 6-12 months just by looking at thousands of coins at shows, shops, and auctions.
Is it easy to do? Probably not. But it can be done. Most of us still find ways of running into frequent mistakes along the way. You can learn market pricing just by frequent exposure to the market and tracking what coins sell for at shows, auctions, and private party.
I think I have a pretty realistic sense of what I could realize if I had to liquidate my holdings tomorrow -- and how much I'd be leaving on the table compared to taking a month, or a year, to do the same.
I have been wanting to do a spreadsheet with those three price columns.
Liquidate via ebay 99 cent auctions
6 months to sell
2 years to sell
All of course would have to be educated guesses
Cost would not be important for this little exercise