My own coin index
Gazes
Posts: 2,315 ✭✭✭✭✭
For some time i have kept my own coin indexes because i wasnt happy with what was available. I mention it in case others want to do the same.
I have 4 indexs that follow prices based upon coins that were offered by 4 dealers. Without going into a ton of detail i will select around 3 coins from a dealers new inventory and add it to the index. I try to use coins that are relevant to me (the type of coins i collect, the price range i collect, etc). I dont worry about coins i have no interest in since the index is for my own private purposes.
I will then follow the price of those coins based primarily on auction data but sometimes dealer listings.
What i like about this index is
1) it tells me something about the dealer. Do their coins go up in value? Are they fairly priced ? How does dealer A's coins do against Dealer B?
2) it helps me focus on the markets i collect. Im only examining coins i collect so i dont get irrelevant data for coins that i have no interest in
3) the index offers some reality. Coins that were actually for sale for real amounts. And the price trends follow for the most part prices actually realized.
This is not easy to do and takes some time. The data is more useful over long periods of time. At the end of the day, my own index has been far more helpful to me than others availble.
Comments
I like the premise a lot. So it's 4 indexes of 3 coins? I imagine they'd have to be fairly common coins that you're tracking, otherwise, the sales data may not be there. Can you give a blinded example?
I use 4 dealers (thus 4 indexes) and when they have new inventory i add usually 3 coins to the index (sometimes less if there are no new inventory that interests me). Once i have 25-75 coins i stop adding and just track. I will from time to time drop a coin or add a coin.
Creating your own index from coins that are being auctioned makes sense to me with the transparency of prices. I’m not sure how accurate a dealer coin index would be. How do you know how much the dealer sold the coin for and if it even sold? There are some dealers who if they are unable to sell a coin pull it from their website and consign it with another dealer or auction house.
Good question. The dealers i track i am familiar with. Some dont discount any new inventory. Some will discount if in inventory for awhile. I think im pretty accurate but again since it is just for me it does not have to be down to the dollar. Overall it helps me get an idea of the big picture of the types of coins i collect.