Collecting key date Morgans for investment.

loanshark · May 25, 2005 1:06PM

Since completing my Morgan graded series, I have been investing in buying key date lower grade Morgans in the series. I learned in collecting this series that finding what I wanted in a key date coin was hard to find in just about any grade if it was slabbed in PCGS or NGC.

I also learned that not everybody had the money to collect a 1895-S in anything higher than a VG-40. Many collectors would be very happy to have some of the key date coins in F-12 or VG-20. I know that some of my favorite coins in the series are in those grades. They have that "been there" look about them.

What do you think the long term investment potential is in those types of coins?

I know I can always upgrade those that I have in lower grades as I improve my set and would like for the appreciation of the ones I am buying to help pay for them.

Loan Shark

Sunnywood · May 25, 2005 1:17PM

Buying coins as an investment is a bad idea. And by the way, I think you mean 1893-S, not 1895-S. I would suggest spending time in the hobby as a collector and learning as much as you can before you start trying to do this for a profit.

Sunnywood

GAT · May 25, 2005 1:20PM

I wouldn't be buying until the market goes much lower. There was a time last year where something like 40 1893-S Morgans came out of the woodwork and were listed on eBay at one time. That told me the market top was near.

numonebuyer · May 25, 2005 1:32PM

Investment in coins is a bad idea, unless you are prepared to hold them for a very long time and can sense when prices have peaked at the right time and can sell at that time. Easier said than done. Greed sort of gets in the way.

orie · May 25, 2005 1:32PM

I totally agree with sunny and gat.

I would rather have the 10 keys in f/vf then 10 common dates graded ms66.

BAJJERFAN · May 25, 2005 1:51PM

<< <i>Buying coins as an investment is a bad idea. And by the way, I think you mean 1893-S, not 1895-S. I would suggest spending time in the hobby as a collector and learning as much as you can before you start trying to do this for a profit. >>

HMMM!! Here in Iowa they have been trying to get the sales tax on coin purchases rescinded AND their principal argument is that it is the only "investment" which is currenly taxed. I would say that coins may not be a good investment or that coins are usually not a good investment BUT to say or imply that they are NEVER a good investment is flat out wrong.

numonebuyer · May 25, 2005 2:32PM

I said investment in coins is a bad idea. There are quite a few people that can make it work. There are many more that cannot. If you happen to have multiple different investments and can take the risk, then go for it. However, if it is your only investment then you better know what you are getting yourself into.

I happen to have multiple investments. I also don't mind the thought of my collection being worth some amount of money in the future. However, this is a hobby of mine and I treat it as such.

BAJJERFAN · May 25, 2005 9:50PM

Coins like any other investment have to be "actively managed" that is you don't just buy them and put them in a drawer for 30 years. Don't be afraid to sell and take your profits if the coins have appreciated in value. FWIW there are plenty of stocks and mutual funds that have turned out to be lousy investments.

numonebuyer · May 26, 2005 7:49AM

I agree with Bajjerfan. Investments must be managed.

Longacre · May 26, 2005 7:53AM

I can't believe someone on these boards is throwing around the "I" word in such a cavalier manner.

RYK · May 26, 2005 7:54AM

I can't believe someone on these boards is throwing around the "I" word in such a cavalier manner.

I agree...and without being publicly humiliated, let alone banned.

jdimmick · May 26, 2005 10:51AM

IMO, I believe that the majority of the Morgan $ market has since peaked, and we are now at best in a leveling off pace. Prices for several of the dates have had extreme run ups, in fact some so significant when compared to the availabilty seem all most insane. This has included higher end investment grade as well as collector grade issues. There may be an occasional Morgan or two that may see some more price gains, but I expect it to be minimal. If you can find good quality coins at a good price and dont mind waiting till the next market cycle, you may do okay, but I beleive at these prices, down side risk for the shorterm far exceeds the upside.

jim

coinkat · May 26, 2005 11:05AM

I guess that I can agree and disagree... please let me explain. Original rare date coins in the Morgan series are tough... the enhanced coins are available and less desirable... try and find an original 1893-s in VF30 TO EF45. It is not that easy..

morgannut2 · May 26, 2005 11:07AM

It might make sense to collect a key date in low grade if you need it to finish your set, but why buy more than one if prices for many of these have doubled in the past year or two? Of course dealer's ever increasing prices, based on higher wholesale prices, seemed to finally have meet price resistance. If the supply and demand curves finally crossed, does that mean Morgan's are about to crash in price? Have all the active collectors just stopped, or been tapped out money wise?

BAJJERFAN · May 26, 2005 1:04PM

<<"IMO, I believe that the majority of the Morgan $ market has since peaked, and we are now at best in a leveling off pace. Prices for several of the dates have had extreme run ups, in fact some so significant when compared to the availabilty seem all most insane. This has included higher end investment grade as well as collector grade issues. There may be an occasional Morgan or two that may see some more price gains, but I expect it to be minimal. If you can find good quality coins at a good price and dont mind waiting">>

If this is mostly true it doesn't seem like a very good time to be entering the hobby as a dealer since Morgans are likely to be a not insignificant part of your business. I would think we are likely in a lull and that there is yet more upside to this market.

loanshark · May 26, 2005 10:33PM

Thanks guys for all the replys.

When I used the term "investment" I really wasn't thinking about any type of return I could retire on. I already have the 401K, ESOP, and Mutual Fund investment going for me.

I collect coins because I enjoy the hobby, but at the same time, would like to know that the money I put in to it is not going down the toilet like some other peoples hobbies.

My interest in the key and semi-key Morgans came from the fact that for all the coin shows I go to trying to find these coins, they just aren't available in an NGC or PCGS slab. If you don't believe me try it for yourself. Look up the total graded population in the key date coins in this series and tell me if you don't think there are more than 3,000 Morgan collectors all chasing the same coins.

Loan Shark

tradedollarnut · May 26, 2005 11:00PM

The best investment in coins is a well thought out collection of something you like.... that way not only do you have the potential for monetary return, but also hours of personal enjoyment as well.

BAJJERFAN · May 26, 2005 11:20PM

That works well too Bruce!!

jdimmick · May 29, 2005 9:48AM

To make money in coins whether it be for Morgans or any other series, it doesnt matter whether prices go up or down, as long as thier are buyers. The money is made buying, and turning them. The local dealers do it here continually. They buy at 20% back and sell at bid/ask levels and make a tremendous amount of money!!

jim

PS: MY comments are reffering to local dealers in rebuttal to Toms comments. He had a fair shot at me considering he knows my potential future plans?

markglicker · May 29, 2005 9:55AM

Coins are better bought as a hobby, as an investment. If you do not know what you are doing, you can get creamed.

roadrunner · May 29, 2005 12:18PM

NOt considering your hobby purchases as a store of value with the potential to appreciate, is one step to ensuring that you end up with far less $$ than you put into them.

As TDN said, collect what you like, become an expert, and be extraordinarily fussy, and you will likely succeed. Fact is, 99% of those who buy coins are not anywhere near fussy enough.

roadrunner

Collecting key date Morgans for investment.

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