I hear you. Fight and defend away. I think that Laura would tell you not to bother though. I doubt she is offended. I imagine she doesn't even care....
Coin chivalry
Can't help myself
mark
Walker Proof Digital Album 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......
I put a post on this earlier and I can't find it now. I think it's important to know people who have access to what you are looking for and are willing to help you acquire it. This may or may not be a high profile dealer.
In terms of stretching to buy a coin, I will do this if it's something that I like that I know I won't see again for another 5 years if I don't buy it now. Usually, if I'm not looking at a top pop, it's not worth the additional premium. I have bought some really nice old copper in MS 65 RB, a knock your socks off CBH in MS 64, and an amazingly toned Liberty Nickel in MS 66, none of which I paid any premium at all.
"Vou invadir o Nordeste, "Seu cabra da peste, "Sou Mangueira......."
*Buy what you like but recognize when it comes time to sell you will be judged by the market*
Yep, feel free to go it alone. It often comes at a steep price. For what it's worth I've made money on every single Legend coin I've sold.
mark
Not to pry too much, but, I'd be very interested to know the hold time and percentage profit. There's a difference between an accounting profit and an economic profit. If you buy a coin for $5K and sell it for $6K, that's great if it takes a month, pretty good if it takes a year, and horrible if it takes ten years.
I believe the reason why dealers emphasize holding for five to ten years is to confuse collectors into believing that a mere accounting profit is actually an economic profit.
If I buy a coin for $1000 and sell it for $1500 ten years later, I have a $500 accounting profit. If the price of food, housing, energy, etcetera has risen 50% or more during the same time period though, I have a zero or negative economic profit. That is, my buying power hasn't increased by way of holding the coin.
Dealers want you to hold for a long enough time that general inflation and/or a rising market gives you an accounting profit, which they hope you will confuse with an economic profit. The retail/wholesale spread is big enough that it takes years, if ever, to generate a mere accounting profit much less an economic profit.
Originally posted by: Bayard1908 I believe the reason why dealers emphasize holding for five to ten years is to confuse collectors into believing that a mere accounting profit is actually an economic profit.
If I buy a coin for $1000 and sell it for $1500 ten years later, I have a $500 accounting profit. If the price of food, housing, energy, etcetera has risen 50% or more during the same time period though, I have a zero or negative economic profit. That is, my buying power hasn't increased by way of holding the coin.
Dealers want you to hold for a long enough time that general inflation and/or a rising market gives you an accounting profit, which they hope you will confuse with an economic profit. The retail/wholesale spread is big enough that it takes years, if ever, to generate a mere accounting profit much less an economic profit.
That logic eliminates my ability to brag about my unique and superb judgment in my 'profit' potential pickin' of dealers and their valued coins!
Originally posted by: MrEureka Laura's points about - developing a good relationship with a dealer, don't always go for registry points, don't overpay for coins in auction, don't be shy about paying a premium for a coin that's going to enhance your collection and hold your coin for a long term is just good advise.
No doubt. However, it's worth adding that if a good relationship with a dealer is a good thing, a good relationship with many dealers is even better. Not just because you'll get more great coins, but because you'll learn more and have more fun.
ARE YOU TRYING TO IMPLY BEING PLEASANT AND COURTEOUS TO ALL DEALERS AND PERHAPS TO PEOPLE IN GENERAL WILL YIELD THE BEST RESULTS?
Am I the only one that walks a coin show and feels like the reason the coins still offered for sale is not because a collector hasn't come by that needs it, but that they have problems for the grade and or are priced too high? They surely would have been bought and repriced by another dealer long before I got there.
Do you really believe this? If so, then why go to any show?
How do "fresh" coins make it onto the market? Are all of them sent to auction, sold to other dealers, or put on websites, so that none of them ever make it into a case at a show?
When a dealer gets "fresh" coins, isn't one option to put them into that dealer's case at a show? And do all of those coins sell to other dealers the first day? If that happens, what do those dealers do with these coins?
Not being critical or argumentative, it's that I've heard this before and I didn't understand it then and don't understand it now.
An authorized PCGS dealer, and a contributor to the Red Book.
When a dealer gets fresh coins. Sometimes, if you are known and trusted by the dealer, you can buy them before they make it into his case.
This past show, a dealer I work with was setting up for business. The show had just started and he had not put his new purchases/grades in the case. I was able to view them prior to the coins going in the case. A very nice coin was purchased and did not make it into the case for Joe Public to even have a chance at viewing. I'm a collector and not a dealer, so the coin is going away for awhile. No chance for a do-it-yourself collector.
He knew the coin would sell fast and was glad it was going to loyal customer and not a dealer for a quick turn around flip. If another dealer had bought the coin before me, the coin would most likely get marked up for the next buyer.
There isn't one method fits all in coin collecting. There isn't anything wrong to have more friends to help but there are more "questionable friends" than real friends. If you are targeted by greedy dealers, you will end up to pay way too much than do it yourself.
There is a winner, then there could be many losers. Many of you always made profit from the purchases of Legend. Don't forget there are folks did the same purchases but on the other end of the stick
Comments
I hear you.
Coin chivalry
Can't help myself
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......
The jist as I read it
In terms of stretching to buy a coin, I will do this if it's something that I like that I know I won't see again for another 5 years if I don't buy it now. Usually, if I'm not looking at a top pop, it's not worth the additional premium. I have bought some really nice old copper in MS 65 RB, a knock your socks off CBH in MS 64, and an amazingly toned Liberty Nickel in MS 66, none of which I paid any premium at all.
"Seu cabra da peste,
"Sou Mangueira......."
*Buy what you like but recognize when it comes time to sell you will be judged by the market*
Yep, feel free to go it alone. It often comes at a steep price. For what it's worth I've made money on every single Legend coin I've sold.
mark
Not to pry too much, but, I'd be very interested to know the hold time and percentage profit. There's a difference between an accounting profit and an economic profit. If you buy a coin for $5K and sell it for $6K, that's great if it takes a month, pretty good if it takes a year, and horrible if it takes ten years.
If I buy a coin for $1000 and sell it for $1500 ten years later, I have a $500 accounting profit. If the price of food, housing, energy, etcetera has risen 50% or more during the same time period though, I have a zero or negative economic profit. That is, my buying power hasn't increased by way of holding the coin.
Dealers want you to hold for a long enough time that general inflation and/or a rising market gives you an accounting profit, which they hope you will confuse with an economic profit. The retail/wholesale spread is big enough that it takes years, if ever, to generate a mere accounting profit much less an economic profit.
I believe the reason why dealers emphasize holding for five to ten years is to confuse collectors into believing that a mere accounting profit is actually an economic profit.
If I buy a coin for $1000 and sell it for $1500 ten years later, I have a $500 accounting profit. If the price of food, housing, energy, etcetera has risen 50% or more during the same time period though, I have a zero or negative economic profit. That is, my buying power hasn't increased by way of holding the coin.
Dealers want you to hold for a long enough time that general inflation and/or a rising market gives you an accounting profit, which they hope you will confuse with an economic profit. The retail/wholesale spread is big enough that it takes years, if ever, to generate a mere accounting profit much less an economic profit.
That logic eliminates my ability to brag about my unique and superb judgment in my 'profit' potential pickin' of dealers and their valued coins!
Laura selling Laura.
She does well at that once I can understand the "Laura Latin"
Oops, wrong thread. That's for investors.
``https://ebay.us/m/KxolR5
Laura's points about - developing a good relationship with a dealer, don't always go for registry points, don't overpay for coins in auction, don't be shy about paying a premium for a coin that's going to enhance your collection and hold your coin for a long term is just good advise.
No doubt. However, it's worth adding that if a good relationship with a dealer is a good thing, a good relationship with many dealers is even better. Not just because you'll get more great coins, but because you'll learn more and have more fun.
Am I the only one that walks a coin show and feels like the reason the coins still offered for sale is not because a collector hasn't come by that needs it, but that they have problems for the grade and or are priced too high? They surely would have been bought and repriced by another dealer long before I got there.
Do you really believe this? If so, then why go to any show?
How do "fresh" coins make it onto the market? Are all of them sent to auction, sold to other dealers, or put on websites, so that none of them ever make it into a case at a show?
When a dealer gets "fresh" coins, isn't one option to put them into that dealer's case at a show? And do all of those coins sell to other dealers the first day? If that happens, what do those dealers do with these coins?
Not being critical or argumentative, it's that I've heard this before and I didn't understand it then and don't understand it now.
An authorized PCGS dealer, and a contributor to the Red Book.
This past show, a dealer I work with was setting up for business. The show had just started and he had not put his new purchases/grades in the case. I was able to view them prior to the coins going in the case. A very nice coin was purchased and did not make it into the case for Joe Public to even have a chance at viewing. I'm a collector and not a dealer, so the coin is going away for awhile. No chance for a do-it-yourself collector.
He knew the coin would sell fast and was glad it was going to loyal customer and not a dealer for a quick turn around flip. If another dealer had bought the coin before me, the coin would most likely get marked up for the next buyer.
I think Laura offers a lot of good advice in the article to consider. There's definitely room different types of collecting in the same collection.
There is a winner, then there could be many losers. Many of you always made profit from the purchases of Legend. Don't forget there are folks did the same purchases but on the other end of the stick