Do you own any coins that you can no longer afford to own?

RYK · June 25, 2008 12:38AM

I have a coin that I purchased 5 years ago which has risen in value six-fold since I purchased it (and that's without considering the upgrade angle). At the time, it was a moderate-priced coin, and now it is one of the two most valuable coins in my collection. Along the way, I have considered selling it, especially since it no longer fits any current collecting theme, realizing that I will probably never have the opportunity to buy one again. I like the coin a lot, but the profit from this coin would erase every single collecting error I have made in the last five years and then some.

I have no immediate need for the money (after paying taxes, I would probably buy more coins with the funds), but I could see someone in a similar position being forced to sell the coin to buy a new car, pay for college, put a down payment on a house, help a family member through a financial crisis, etc.

I have decided to keep the coin for the time being.

What would you do?

MrBreeze · June 25, 2008 12:41AM

Keep it.

I am currently going through a similar scenario. I decided that if I could not get the coin back in the future (due to rarity or price), I would not sell it. Of course, that is subject to change if I go broke.

doh · June 25, 2008 12:41AM

I'd keep it until I really needed the money. Selling it with the thought that you might need the money at some point in the future isn't the wisest idea because 1) you might be leaving some profit on the table if you sell it now and 2) you'll lose the enjoyment of ownership (possible more important than point 1).

My two cents.

Walmann · June 25, 2008 12:42AM

Always hold cards that you don't need to play. Keep the coin.

rhedden · June 25, 2008 12:49AM

I own several coins that have risen in price steeply enough that I would not want to purchase one right now. Example: Chain Cent. I only paid $2k for mine, and I think it would cost $6k-$10k to replace it. I could afford another one, but I wouldn't want to spend that kind of money on it.

ricko · June 25, 2008 12:50AM

I agree with Walmann. Cheers, RickO

slipgate · June 25, 2008 12:51AM

If I was you I'd hold a giveaway and "pay back" the board members for all they've done for you. That would make a nice giveaway and you would be hailed as a hero!

guitarwes · June 25, 2008 12:53AM

If you really really really really like the coin, keep it if you don't need the money. If it's just a coin that is sitting in your collection that could generate more coins in your current preference, sell it. After all, it's just a coin. Would you be truly truly truly heartbroken if you couldn't ever buy another one....really? In my case however (which everyone has different circumstances), I would sell that sucka. Being labeled a "Hybrid Dealer/collector" yesterday by myself and Longacre...

, I would use it to pay other expenses and to fund other coin purchases.

Why did you say the thing about paying taxes? If you send it to me and I sell it for you, there are no sales tax on coins in Ga.

-wes

mgoodm3 · June 25, 2008 12:53AM

Sell it and buy something really cool.

ziggy29 · June 25, 2008 12:54AM

When you say "no longer afford to own," I assume you just mean you couldn't afford to buy it now?

fc · June 25, 2008 12:57AM

easy, sell it. make a nice profit and be happy.
learn to do it with every coin you decide to sell.
material objects are not the key to happiness and when you can get out
of them while making a profit, that is golden.

61D?

Patches · June 25, 2008 12:59AM

Launch it! Take a nice long vacation, the memories will last longer

Patches · June 25, 2008 1:00AM

yeah, yeah, yeah...the coin will last longer. But I meant for RYK

RYK · June 25, 2008 1:01AM

61D?

Nope...close, though.

TwoSides2aCoin · June 25, 2008 1:02AM

I buy them when I can't afford them knowing that I will never be able to afford them later.
I know it sounds dumb, but it's still fun.

RYK · June 25, 2008 1:06AM

<< When you say "no longer afford to own," I assume you just mean you couldn't afford to buy it now? >>

Actually, it has not risen to the unaffordable category, but at this rate, it will be there in a couple years.

Despite that I tend to be a poor coin speculator, I recognized the value of this coin five years ago and tried unsuccessfully to buy multiple examples.

TwoSides2aCoin · June 25, 2008 1:13AM

RYK, I've always seen you as cautious collector but your choice in coins is miles from "poor speculatin' .

COINB0Y · June 25, 2008 1:14AM

I would simply make a change in your Will that states:

'the "coin that I purchased 5 years ago which has risen in value six-fold" should be overnighted to COINB0Y upon my death."

I'll never sell it, I promise!

jfoot13 · June 25, 2008 1:15AM

look at the coin then look at the money
which ever one you like best is what you put in your pocket.
The time to sell a coin is when somebody is willing to pay moon money for it.. NOT when you NEED the money..
I'm just an old country boy, I like keeping things simple..

Raybob15239 · June 25, 2008 1:16AM

If you sell now and the value continues to rise, you will regret it. If you keep it and the value drops, you will regret it. If you sell and down the road want it back, and its unaffordable, you will regret it. So, to sum up, whatever action you take, you will likely regret it.

RYK · June 25, 2008 1:16AM

material objects are not the key to happiness and when you can get out
of them while making a profit, that is golden.

So more money is the key to happiness?

yellowjacket · June 25, 2008 1:16AM

I have coins that have dramatically risen in price. I'm glad I bought when I did; however, I could still afford to buy them now.

What's nice is you can sell when the time comes to buy another coin that would be "too expensive," and add that to your collection!

Garrow

LincolnCentMan · June 25, 2008 1:17AM

Do you own any coins that you can no longer afford to own?

No, but I used to own them....

-David

SirAnthonyAC · June 25, 2008 1:18AM

<< Actually, it has not risen to the unaffordable category, but at this rate, it will be there in a couple years. >>

That is presuming the price continues to rise at the same pace of course. I have 4 Cal Ripken rookie cards I brought in the early 90s for $50 each, when they were pushing $90... I was presuming they'd be unaffordable in a couple of years but, well... you know.

But, to address your question… if you really like the coin and enjoy having it or you want to leave it for the kids, then keep it.

If you no longer enjoy having it, then I would say sell it and get something else you’d enjoy more.

fc · June 25, 2008 1:22AM

<< material objects are not the key to happiness and when you can get out
of them while making a profit, that is golden.

So more money is the key to happiness? >>

it helps ;-)

Seriously though, that is not the key to happiness either but it is a form
of security that would allow you to pursue other things. A family member's
education that will bring you happiness, a long needed vacation that will
bring your family closer together, etc...

anything like that which a material object cannot do for you.

i think i basically talked myself into a circle. i guess my point was that often
people buy objects and never recoup what they paid. Basically a bunch of
junk. In your case you can not only get out of it but make money which will
allow other adventures that might bring more happiness then just a round
disc of metal.

Nysoto · June 25, 2008 1:29AM

The decision would be easy if you knew that you will never collect the series again - sell it. So if there is a chance the coin or series will interest you again, it would be best to hold on to it.

I have a bad habit of collecting coin series that become unaffordable soon after I finish most of the collection. I could not afford early halves in the grades I have them now, or early gold. I like the coins and have no desire to sell them. I actually don't like buying or selling, I just enjoy owning the coins.

BECOKA · June 25, 2008 1:35AM

So here is the question,

Is there a coin or multiple coin that are not obtainable in your current collecting focus that you could now obtain if you sold this coin?

jmski52 · June 25, 2008 1:36AM

The tax considerations are real. Unless you gotta have the money right now, why sell it?

On the other hand, it may well be that your longterm capital gains will jump from 15% to 35% on the coin if you sell it later.

RYK · June 25, 2008 1:38AM

<< So here is the question,

Is there a coin or multiple coin that are not obtainable in your current collecting focus that you could now obtain if you sold this coin? >>

Owning the coin is not preventing me from buying something else I want, coin or otherwise. (I think that answers the point of your question.)

Now, if MrsRYK decides we need a new master bathroon, bye-bye coin.

saintguru · June 25, 2008 1:46AM

Keep your winners, sell your losers.

Years ago, Warren Buffett was asked by a few board members whether or not they should consider selling their 16% stake in Coco-Cola. It was by far themost profitable business they owned and their investment was up something like 20X.

His reply was "How do you explain to a shareholder selling your best asset? It goes against the simplest rules of investing. These are the thinhs we STRIVE to find, not remove." Then he quoted Mae west "Too much of a good thing is wonderful."

That speaks volumes.

ziggy29 · June 25, 2008 1:49AM

<< Now, if MrsRYK decides we need a new master bathroon, bye-bye coin.

>>

You'd better make sure the missus doesn't read over your shoulder, or else a new master bath will be in your future.

adamlaneus · June 25, 2008 1:50AM

You phrase your question oddly. There is no 'gold ownership tax' although there are storage costs. (Ever hear of a standing timber tax? It's what the government does to make you cut trees down on your land)

It sounds like you have a virtual wad of cash burning a virtual hole in your pocket.

What would I do? Nothing. Sit. This is a good way to avoid a Big Regret in selling a coin you did not have to nor want to.
These coins are not investments to me to be bought and sold on a whim. Money is only important in as much as I have enough to live.

One suggestion. Whilst this spark of a thought of selling is in your mind, don't go looking too hard for any other coins you really really really want more than this one. That would be a way to flip-flop. Just slowly save up for the next one and acquire it outright. Trading, although tempting, can also be costly and can involve regret over the traded coin.

Oh yeah. I almost forgot...

This Thread Is Worthless Without Pics!!!

coolest · June 25, 2008 1:53AM

First, like stock, the coin has not risen in price until you sell it. Second, what is the coin? Don't be shy, send a photo.

Russ · June 25, 2008 1:53AM

<< Owning the coin is not preventing me from buying something else I want, coin or otherwise. >>

Phew! That's a relief.

Russ, NCNE

Placid · June 25, 2008 1:58AM

No.

BECOKA · June 25, 2008 2:08AM

<< 

<< So here is the question,

Is there a coin or multiple coin that are not obtainable in your current collecting focus that you could now obtain if you sold this coin? >>

Owning the coin is not preventing me from buying something else I want, coin or otherwise. (I think that answers the point of your question.)

Now, if MrsRYK decides we need a new master bathroon, bye-bye coin.

>>

Then keep it. Saint Guru actually has a good point, you can't have too much of a good thing.

Sounds like even if the bath comes, it would be cheaper to pay interest since this coin has turned out to be such a promising investment.

RYK · June 25, 2008 2:09AM

Shamika · June 25, 2008 2:14AM

<< I have a coin that I purchased 5 years ago which has risen in value six-fold since I purchased it (and that's without considering the upgrade angle). At the time, it was a moderate-priced coin, and now it is one of the two most valuable coins in my collection. Along the way, I have considered selling it, especially since it no longer fits any current collecting theme, realizing that I will probably never have the opportunity to buy one again. I like the coin a lot, but the profit from this coin would erase every single collecting error I have made in the last five years and then some. >>

I purchased an S-VDB in PCGS 65RB back in 2000. At the time I paid $1,400 for it, but the retail value quickly excalated and after a few years it was worth more than $3,000. Lincoln cents are/were no longer my primary collecting interest, so given the opportunity to sell it for more than $3,000, I did. No regrets what so ever.

pennyannie · June 25, 2008 2:15AM

What is the coin? You are in a unique situation. You do not have to sell the coin or any coin to pay the bills and have a good time. But you have worked hard all your life and made prudent decisions that puts you in this strange place. One side of you says sell and the other side says keep. Sell the coin and buy some art.

I know quite a few older people ( late 70's, early 80's) that worked hard all there life, saved money along the way. They never bought a new car or if they did they kept it for 20 years, always paid cash for washers, dryers, furniture. They are now recieving monthly natural gas checks of at least 40k and up to 100k a month. They do not know how to enjoy it. They do not buy anything nor really want to. At least you are not in there boat.

tradedollarnut · June 25, 2008 2:16AM

When i am in a similar position, i simply place a price on the coin where i am happy if it sells, and happy if it doesn't sell. Usually, this involves projecting ahead a year and saying 'if you want it at next year's price, you can have it'. This method allows me to bypass the inevitable regrets that I either sold it too cheap or didn't try to sell it at the right time.

BECOKA · June 25, 2008 2:18AM

<< When i am in a similar position, i simply place a price on the coin where i am happy if it sells, and happy if it doesn't sell. Usually, this involves projecting ahead a year and saying 'if you want it at next year's price, you can have it'. This method allows me to bypass the inevitable regrets that I either sold it too cheap or didn't try to sell it at the right time. >>

This actually sounds like a good philosophy. Although it kind of means everything is for sale at the right price.

291fifth · June 25, 2008 2:20AM

Given the poor investment alternatives out there at the moment, I would keep the coin.

Mowgli · June 25, 2008 2:20AM

As collectors, unless we need the money, we only sell when we are no longer interested in a coin or a series of coins. It sounds like you are no longer interested in that series. Why not sell it to someone who is?

saintguru · June 25, 2008 2:22AM

<< 

<< When i am in a similar position, i simply place a price on the coin where i am happy if it sells, and happy if it doesn't sell. Usually, this involves projecting ahead a year and saying 'if you want it at next year's price, you can have it'. This method allows me to bypass the inevitable regrets that I either sold it too cheap or didn't try to sell it at the right time. >>

This actually sounds like a good philosophy. Although it kind of means everything is for sale at the right price.

>>

Bruce will sell his sexual services for a less than the cost of grading a common coin.

That was one of the deals when offered, I "PASSED!!" on.

yellowjacket · June 25, 2008 6:29AM

9 times out of 10, when I sell a coin for a nice profit, the funds are soon plowed back into the collection in the form of a new addition. The trend is often to look back at the liquidated assest and not to focus on the advancement of the new acquisition.

Garrow

IGWT · June 25, 2008 6:50AM

Sell if your coin has less value to you than the money that someone is willing to pay . . . regardless of profit or loss.

PerryHall · June 25, 2008 7:05AM

Sell it and you will regret it for the rest of your life.

IGWT · June 25, 2008 7:16AM

Sell if your coin has less value to you than the money that someone is willing to pay . . . regardless of profit or loss.

Of course, the corollary rule is that you should keep the coin if it has greater value to you than the money that someone is willing to pay . . . regardless of profit or loss. Dammit, Jim, I'm a collector, not a dealer.

MajorDuty · June 25, 2008 7:45AM

I'd keep it, personally, whether it 'fits' in a collection of mine or not....especially if it's a coin I'm fond of, and it sounds like you are.

DeusExMachina · June 25, 2008 8:07AM

<< When i am in a similar position, i simply place a price on the coin where i am happy if it sells, and happy if it doesn't sell. Usually, this involves projecting ahead a year and saying 'if you want it at next year's price, you can have it'. This method allows me to bypass the inevitable regrets that I either sold it too cheap or didn't try to sell it at the right time. >>

That is great advice.

DMWJR · June 25, 2008 8:13AM

I couldn't afford to replace them ... unless of course I sold the ones I had!

Do you own any coins that you can no longer afford to own?

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