My Strategy
RoelSports
Posts: 107
Collect coins in the highest grade available...hold for a period of time, and disperse....many of these coins are pop1 or 2...can't see losing on this startaegy, as long as I hold long enough...scr
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Comments
What is the goal of your strategy? It would be easier to comment knowing that.
Now, why didn't I think of that? Thanks, man.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
<< <i>If collecting trends change and people decide to look at their coins more than the holders they're in when building a collection, the difference between a 67 and 68 becomes less important, and the order of magnitude price differences between the coins at the top grade and the next one down erodes. >>
Or if people don't have enough money to buy the 67's and 68's, their prices won't hold up either.
An authorized PCGS dealer, and a contributor to the Red Book.
Study and learn those series that most interest you; learn how to grade; don't be a slave to numbers, as several recent threads have amply illustrated the perils of trying to out guess the slab mills; enjoy what you buy, share your knowledge, make time to travel to a major show at least once a year, make friends, and enjoy the camraderie of these people when you meet at shows. One of the greatest learning experiences in all of numismatics is to attend the summer ANA, or FUN, or Baltimore shows.
While it may prove more difficult to follow this strategy than the one you proposed, it will be more enjoyable and memorable, and yes, in the end, more profitable.
Slumlord, that's my current strategy, and I am sticking with it.
You can overpay for anything, but there are lots of people out there who don't believe that's possilble.
<< <i>Study and learn those series that most interest you; learn how to grade; don't be a slave to numbers, as several recent threads have amply illustrated the perils of trying to out guess the slab mills; enjoy what you buy, share your knowledge, make time to travel to a major show at least once a year, make friends, and enjoy the camraderie of these people when you meet at shows. One of the greatest learning experiences in all of numismatics is to attend the summer ANA, or FUN, or Baltimore shows.
Slumlord, that's my current strategy, and I am sticking with it.
I thought you were going to buy pop 1's, hold them a few years and then sell them at a loss....umm...I meant profit.
I cannot make up my mind.
Will’sProoflikes
This guy says he's doing what we all do best which is collecting what he enjoys
while making money along the way. If it's working for him then it can't be wrong.
As far as "moderns" some people seem to still be stuck in the 1960's. That's back
where moderns started and we're now well into the 21st century. A Colorado quar-
ter may have a big pop increase but the older moderns which are widely collected
have very little chance of seeing big pop changes at the high end.
Believe it on not more than two generations have come and gone since "moderns"
were new.
Even the ultra-moderns (post-'98) are starting to get a little long in the tooth.
<< <i>Pop top moderns for which buckets full of coins are yet to be submitted are in a rather tenuous position. >>
<< <i>I think buying top pop moderns will be a losing enterprise >>
<< <i>Modern coins especially proofs are for the most part common in MS70 or PF70 condition >>
Strange, but I don't see where he mentioned anything about moderns in either of his posts. If you guys are going to rush in to bash moderns you probably ought to find out first if the topic actually is moderns.
Russ, NCNE
Russ, NCNE >>
Actually it seems like moderns are growing in populartity and are appearing in more and more auctions!
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Sounds fine as long as you don't care about losing money. Pop 1's and 2's sell for huge premiums. The strategy depends on that already huge premium increasing. Often there are only 2 or 3 bidders at the end of an auction for a top pop. That may leave only 1 or 2 willing buyers at just below the price you paid. If there is only one bidder that bumped the price up with you, it may be a LONG way down when you are the one selling, unless more buyers appear. If buying from a dealer, the price is usually even higher than at auction.
Holding for a long time period adds another element of risk. No one knows how long the major grading companies will remain the way they are. Grading standards have and will continue to evolve, with a general loosening of standards over the past 15 years, making more and more high grade coins available for most dates and mintmarks. Another risk, is if there is a change in ownership, or a shift to a new grading standard, such as the proposed 100 point scale, or the widely talked about computerized tag grading, who knows what the old top pops will regrade at? Today's top pops may well grade out higher with more separation under any new system, but they may not, and the person holding the old top pop may be holding a common grade coin after the new system is implemented.
Nothing wrong with buying top pops if that is what floats your boat. However, there are elements of risk where the coins might very well go down in value in the long run. Enjoy the hobby.
Always remember that dealers make most of the money in the hobby. The collectors that do well financially love the hobby, have a talent for grading, and spend countless hours learning about coins and making contacts in order to be able to buy coins at better prices. Collectors that lean heavily on third party grading without developing their own expertise are probably not going to do that well financially.
<< <i>
Sounds fine as long as you don't care about losing money. Pop 1's and 2's sell for huge premiums. The strategy depends on that already huge premium increasing. Often there are only 2 or 3 bidders at the end of an auction for a top pop. That may leave only 1 or 2 willing buyers at just below the price you paid. If there is only one bidder that bumped the price up with you, it may be a LONG way down when you are the one selling, unless more buyers appear. If buying from a dealer, the price is usually even higher than at auction.
Holding for a long time period adds another element of risk. No one knows how long the major grading companies will remain the way they are. Grading standards have and will continue to evolve, with a general loosening of standards over the past 15 years, making more and more high grade coins available for most dates and mintmarks. Another risk, is if there is a change in ownership, or a shift to a new grading standard, such as the proposed 100 point scale, or the widely talked about computerized tag grading, who knows what the old top pops will regrade at? Today's top pops may well grade out higher with more separation under any new system, but they may not, and the person holding the old top pop may be holding a common grade coin after the new system is implemented.
Nothing wrong with buying top pops if that is what floats your boat. However, there are elements of risk where the coins might very well go down in value in the long run. Enjoy the hobby.
Always remember that dealers make most of the money in the hobby. The collectors that do well financially love the hobby, have a talent for grading, and spend countless hours learning about coins and making contacts in order to be able to buy coins at better prices. Collectors that lean heavily on third party grading without developing their own expertise are probably not going to do that well financially. >>
All good points. My earlier post presupposes that he has already been profiting from this strategy.
There is inherent risk in buying any collectible and this includes both the pop tops and what he's collecting.
You're right, he said nothing of moderns. I was giving an opinion on what top pops I thought would be more likely to appreciate the most, just my opinion, warn you, as I have been known to lose money from time to time. My point was that I think the older coins versus more recent ones are more likely to have had a greater percentage of available population submitted, so therefore they are more likely to not have their population change rapidly and thus are more likely to appreciate the most. Just my opinion.
Will’sProoflikes
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."