The biggest mistake I’ve made, again
HJP
Posts: 423 ✭✭✭
Buying pretty coins that are cheap - thinking that by wrapping them in plastic you can make them more valuable.
This is the biggest mistake I have made in my quest to buy & sell coins - and one I see others making. Over and over again.
It is the fallacy of believing that a label with a numerical value sufficiently high will return you a profit. This was true until it wasn’t.
So, what can I learn from this awareness?
Buying coins that are produced in quantity for circulation or for presentation will no longer return a profit- for 99.9% of those who try.
Therefore, if you want to make a living selling coins, you better manage your cost of plastic. And buy coins that are truly beautiful- by many people’s measure.
HJP
5
Comments
Quantity versus quality will always be an issue and it is finding the balance that will make a difference.
Your comments make sense....fortunately I do not sell coins...I just collect...and collect.... and collect
Cheers, RickO
Can you show us some pictures of these coins you have been buying and discriptions. Beauty is in the Eye 👁 of the beholder! TYIA
@HJP
Can you elaborate on this? Money is made on the buying side, maybe your paying too much for the raw coins and not leaving enough margin once they get graded??
Thats an issue I see with many vest dealers
Buying pretty coins that are cheap is much better than buying unattractive/ugly ones that are cheap. That said, my guess is that your mistake was buying pretty coins that weren’t cheap (enough). Common coins, especially attractive ones, should sell easily, as long as they’re priced right.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
It seems that over the last several years, the value of modern (and to some getter all) high grade plastic continues its trajectory, downward. The rush to achieve 70 grade material has fizzled out into an expensive conundrum - for more than a few coin dealers & wanna bee’s.
When you are buying world silver coins at spot or say 2x spot (or more) for the better material (“better” being the operative term...) and then spending money to grade them, say $20 average cost for 1 oz silver coins ($30+ if you get 70’s) and the coins will just not sell for much more than spot or worse...what does that tell you about the real value of your coins? Collector or dealer.
If > @HJP said:
Your initial post primarily referenced “pretty” coins, but your most recent one sounds as if it’s about “high grade” ones. Those aren’t necessarily the same thing. But yes, there has been a downward movement for many coins - moderns and and non-moderns - during the past several years.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Ah, pretty to me.
High grade, I thought was the goal.
I was wrong
As a previous poster said "money is made on the buying side".
Wrong!!
It's made on the selling side.
You haven't made a penny until it's sold and the cash is in your pocket and only then you'll know if a profit was made.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
The real issue is-
What makes a coin relevant ?
Grade?
Mintage?
Beauty?
Rarity?
Why have we let plastic encapsulation with a simple numeric label (designated 1 thru 70) define the value of our coins?
There are more to coins, banknotes & to all objects of art, than can be completely and accurately defined by a number. A numerical grade is a start - but more is needed.
Especially now.
Money is made on the buy side.
So I wanted to show you some of my “recent CHEAP coins/tokens I bought these past few weeks”. Now I say cheap nothing over a Benjamin per coin some under $30.00. I am also buying All types as I do not have a preference. I just buy sometimes to much!
What is cheap to some might be pennies to others. I never really spend more a $70.00 on a coin/token cause I am a small collector.
I am curious on your “cheap” coins. I am different in that I have a full job and do NOT sell coins/tokens. Truth be told I don’t think I could afford to quit my job plus I like what I do at work.
What makes a coin relevant ?
Whether or not I really want to spend the money on that particular coin - that's what makes it relevant.
The rush to achieve 70 grade material has fizzled out into an expensive conundrum
What fizzled out was my willingness to pay up for an inferior coin in higher graded plastic. It's not an expensive conundrum if you don't play along unnecessarily.
I knew it would happen.
Beautiful coins & medals!
Nice to collect and try to make a buck. I keep trying!
Not all coins are equal, even if they grade the same. Are you doing your homework as to what is selling, calculating your required profit margin, and building your inventory around these?
I’m not a dealer, but before starting a business it’s best to take incremental steps so that the learning curve isn’t too costly.
"Got a flaming heart, can't get my fill"
Nice medals, the oddfellows civil war token is cool, thanks for sharing. Peace Roy
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If you look at the price you paid for a coin as a paid up futures contract, yes profit is made on the buy side.
Not so, if the price is all you are willing to pay.
EOC said the right thing. Totally.
Fact is this:
knowing exactly WHAT you buy at your price, is key!!! to make money!!!
Because then you will have no problems selling it at a profit!!
If you do know your market, you can NOT go wrong!!!
The MISTAKE you refer to is quite simple - NOT understanding the market.
A bullion coin is a bullion coin in plastic or not in plastic. All decisions on slabbing should be based on what the MARKET value of such a coin would be. Not everything whether old or new, pretty or ugly, will be improved by putting it in the appropriate slab.
The phrase "managing the cost of plastic" makes me wince, painfully.
Some things absolutely belong in slabs, but very many others do not.
How you buy things is key.
I bought most of my coins in plastic when the spot gold prices were real low, and will make a profit on 99.99 percent of them
@gluggo, really like the cwt you showed. I really wanted to bid on it, but had to many other bids open. I agree that the type of stuff you showed is a fun part of the market to play in.
For the op, my view is that the majority of coins will be flat or decrease in value. High end quality coins should do well, but you need to pay up for them. niche exonumia like gluggo showed is in my view affordable, and there is a chance for putting stuff in plastic and making some money.