"20" unsolicited collecting tips/suggestions
coinguy1
Posts: 13,484 ✭✭✭
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I have previously posted this on a couple of other forums, and thought I had done so here, too. But if I did, I can't find it - I am, no doubt, rusty using the search feature.
I understand and appreciate that some of you will disagree with some of this advice, and that is absolutely fine.
"Following, in no particular order of subject matter or importance, are my unsolicited comments and advice about coin collecting for collectors....
I have previously posted this on a couple of other forums, and thought I had done so here, too. But if I did, I can't find it - I am, no doubt, rusty using the search feature.
I understand and appreciate that some of you will disagree with some of this advice, and that is absolutely fine.
"Following, in no particular order of subject matter or importance, are my unsolicited comments and advice about coin collecting for collectors....
- Buy/collect what YOU like. But keep in mind that when it comes time to sell, not everyone else will necessarily like what you did/do.
- Examine as many coins as you can which have been certified/graded by the most highly respected grading companies. This can be done at coin shows and in auctions and is a great way to improve upon your grading skills.
- The best way to improve your grading ability is to find someone who is highly qualified AND willing to spend time reviewing coins with you. That person can be a dealer or collector, but he needs to be more than just a friend - he needs to be a teacher. Many individuals are "qualified" OR "willing to spend the time", but few are BOTH.
- Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you.
- Don't be afraid or embarrassed to ask lots of questions. You and just about everyone else can learn a great deal that way.
- Be aware of privacy and security concerns. It might not be fun to do so, but it's extremely important.
- It's always good to get a second opinion. Doing so doesn't make you less knowledgeable, worthy or confident - it simply makes good sense.
- Don't try to get bargains at the expense of quality and desirability for the coins you're buying, or you'll likely end up with sub-par coins which aren't bargains, anyway.
- Generally, I advise against "investing" in coins. Even if you are very well informed, based upon buy/sell spreads and other factors, the odds are against your success. That said, I understand that many collectors end up spending significant sums of money on their collections and can't/shouldn't ignore the financial implications.
- If you are going to "invest", I'd suggest diversification - not putting too much of your money into one coin or one coin type. I'd also recommend staying away from especially esoteric and/or illiquid and/or currently "hot" items.
- While it is not a pleasant mindset to engage in, think about and plan for how your coins should be disposed of if/when something happens to you. Make your spouse and/or family and/or friends and/or an attorney aware of your wishes. If you have a particular dealer or coin/auction company that should be contacted, have that information recorded, along with costs, sources, purchase dates, etc., of your coins.
- Eye-appeal is hard to ignore, but technical quality shouldn't be over-looked/compromised.
- If you participate in auctions, whether over the Internet or in person, set your price/bidding limits in advance and stick to them. Auction fever hits many bidders, and almost always to their detriment.
- Find time for other activities that don't have anything to do with coin collecting. Don't make coins your whole life - life is too short for that.
- If you are going to stretch to buy a coin, do it for a coin which is truly special and/or virtually irreplaceable, not on an ordinary one. There are far more of the latter than of the former, and there will almost always be other opportunities.
- Don't talk yourself into buying a coin. If something about it bothers you now, there is an excellent chance it will bother you as much or more later.
- Don't be lulled or suckered into a false/unrealistic sense of security by the strength of many areas of the market that we have experienced for several years now. There are good markets, and, while some current participants might not have experienced them yet, there are bad markets too - I promise.
- Do not buy rare coins on a sight-unseen basis, regardless of the seller or the images.
- Enjoy our hobby.
- I repeat, enjoy our hobby."
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Comments
Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
<< <i>Don't talk yourself into buying a coin. If something about it bothers you now, there is an excellent chance it will bother you as much or more later. >>
That talking coin that I bought is really bothering me now. It needs to shut up.
"No don't lock me away again. I'll be good. Aiieee!"
Don't buy yourself a talking coin.
Also, don't eat your coins.
Too bad a list like this wasn't issued to me at my first coin show. Could have saved me some time, money and headaches
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
So what should you do when said dealer in not interested in buying back said coin?
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
<< <i>This list will really pass the test when Bear gives it the Thumbsup! >>
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BONGO HURTLES ALONG THE RAIN SODDEN HIGHWAY OF LIFE ON UNDERINFLATED BALD RETREAD TIRES
<< <i>4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you.
So what should you do when said dealer in not interested in buying back said coin? >>
That easy there are a lot of dealers.
Find the right one.
Have to add. Or it might give one a clue to think about what one is collecting.
I had to talk myself into buying an 1873-CC trade dollar in PCGS MS63. At the time, I hadn't learned how poor the date usually comes. While I never truly loved the coin, it was a decade before a finer example came out of the woodwork. And I made a significant profit when I sold it.
I purchased the Eliasberg 1885 trade dollar sight unseen based upon its reputation alone. It was in New York when I flew into Wolfeboro to view the lots and never did view it before it was bought from Jay Parrino.
I have 'invested' huge sums into coins and done quite well - fortunately in a rising market. I have also specialized when investing - because I felt that I knew as much or more than many of the people offering me the coins in those areas.
bob
All good stuff.
Looking forward to reading your posts, thanks for returning to the forum.
Robert
<< <i>"Buy the Keys" might help round out your fine list of suggestions. >>
Bad idea for the novice that doesn't know much. Buying the keys early will often mean low quality junky keys for the money, or worse. Another bad idea for the novice is "buy the best grade you can afford." Again the novice will often end up with low end junky looking coins with a high technical grade, often overpaying by a good margin for low quality.
<< <i>4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you. >>
I don't understand this. Do you mean at the price you bought the coin for, the dealer's retail price? Certainly you can't mean buy the coin at the retail price and sell it back at the wholesale price.
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<< <i>4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you. >>
I don't understand this. Do you mean at the price you bought the coin for, the dealer's retail price? Certainly you can't mean buy the coin at the retail price and sell it back at the wholesale price. >>
I didn't mean any particular price level. If you never try to sell any of your coins, there's a good chance you wont know how fairly (or unfairly) your sources have been treating you, how liquid (or illiquid) your coins are, or whether you've been buying good or problem coins. Yes there are other ways to obtain that information. But for many collectors, it is an eye-opening experience when they finally try to sell something.
Edited to add: You are not alone in your questioning of that particular tip of mine. Of all the ones on my list, it is probably the most frequent recipient of criticism.
I will not criticize number four, because it is backed by solid logic. I will say that I, personally, have never sold one of my coins - that is because I really like them and have collected them as a hobby, not as a business. Nor do I intend to sell them (with the exception of my gold - since most of it (some exceptions) was really purchased years ago as an investment - that now has borne considerable fruit.
That is a marvelous list of tips, and for those who do not know you, may I add 'Mark is a very knowledgeable numismatist and will help people who ask, with expert advice and the calm, step by step guidance of a teacher.' Cheers, RickO
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<< <i>4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you. >>
I don't understand this. Do you mean at the price you bought the coin for, the dealer's retail price? Certainly you can't mean buy the coin at the retail price and sell it back at the wholesale price. >>
I didn't mean any particular price level. If you never try to sell any of your coins, there's a good chance you wont know how fairly (or unfairly) your sources have been treating you, how liquid (or illiquid) your coins are, or whether you've been buying good or problem coins. Yes there are other ways to obtain that information. But for many collectors, it is an eye-opening experience when they finally try to sell something.
Edited to add: You are not alone in your questioning of that particular tip of mine. Of all the ones on my list, it is probably the most frequent recipient of criticism. >>
Mark, not to unnecessarily belabor this, but this is my point. Dealers generally buy coins at wholesale, then try to sell them at retail. That's how they stay in business. A collector, however, doesn't learn a thing about that (i.e., what it takes to sell coins, realistically), when he or she buys the coins at retail, then turns around and tries to sell them at retail. He or she "learns," rather, only when the coins are bought at wholesale, then offered at retail.
That said, I do understand your point, now, better, though, I think. A collector doesn't "know" whether he or she made a fair buy, or not, until he or she goes to offer that coin, at the current retail price. If the dealer was indeed a good and knowledgeable dealer, that coin should go at that retail price, I agree. Selling one of your "gems," every now and then, is a means of "checking up" on your dealer, you're saying (as I now understand it; this Rule #4).
Edited to add: And that's darn good advice.
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<< <i>4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you. >>
I don't understand this. Do you mean at the price you bought the coin for, the dealer's retail price? Certainly you can't mean buy the coin at the retail price and sell it back at the wholesale price. >>
I didn't mean any particular price level. If you never try to sell any of your coins, there's a good chance you wont know how fairly (or unfairly) your sources have been treating you, how liquid (or illiquid) your coins are, or whether you've been buying good or problem coins. Yes there are other ways to obtain that information. But for many collectors, it is an eye-opening experience when they finally try to sell something.
Edited to add: You are not alone in your questioning of that particular tip of mine. Of all the ones on my list, it is probably the most frequent recipient of criticism. >>
Mark, not to unnecessarily belabor this, but this is my point. Dealers generally buy coins at wholesale, then try to sell them at retail. That's how they stay in business. A collector, however, doesn't learn a thing about that (i.e., what it takes to sell coins, realistically), when he or she buys the coins at retail, then turns around and tries to sell them at retail. He or she "learns," rather, only when the coins are bought at wholesale, then offered at retail.
That said, I do understand your point, now, better, though, I think. A collector doesn't "know" whether he or she made a fair buy, or not, until he or she goes to offer that coin, at the current retail price. If the dealer was indeed a good and knowledgeable dealer, that coin should go at that retail price, I agree. Selling one of your "gems," every now and then, is a means of "checking up" on your dealer, you're saying (as I now understand it; this Rule #4).
Edited to add: And that's darn good advice.
Even if you don't actually sell any of your coins, if you ask the dealer(s) who sold them to you what he'd/they'd pay for it/them, you might learn a great deal. For example, he might say that he has no interest in buying at this time. Or, even if price levels have remained unchanged from when you bought, he might only be willing to pay you 50% or 70% or whatever of the price he sold it to you at. Or, on the other hand, (probably much less frequently
And Rick, thank you for your nice comment.
It'll be the first show I'm heading out to without a Greysheet.
While that might sound like a stupid idea I'm expecting to have fun.
"Inspiration exists, but it has to find you working" Pablo Picasso
<< <i>Even if you don't actually sell any of your coins, if you ask the dealer(s) who sold them to you what he'd/they'd pay for it/them, you might learn a great deal. For example, he might say that he has no interest in buying at this time. Or, even if price levels have remained unchanged from when you bought, he might only be willing to pay you 50% or 70% or whatever of the price he sold it to you at. Or, on the other hand, (probably much less frequently
Very good. I'd have never thought of that. Thanks.
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I don't understand this. Do you mean at the price you bought the coin for, the dealer's retail price? Certainly you can't mean buy the coin at the retail price and sell it back at the wholesale price. >>
Selling coins is when you learn what they are really worth. It's pretty
easy to buy coins at highly favorable prices but it's much more difficult
to realize full value or most of their value on sale. Untill you sell some
coins you won't really know what this value even is.
There are a lot of advantages to knowing the market value since it will
help in buying and selling and this means your collection will cost less
and be worth more.
Offering back to the same dealer is generally OK but remember if he re-
cognizes the coin he's going to stretch as far as possible and this will
distort your perception of the value. It's usually better to sell to other
dealers. Except for coins in wide demand it's important to sell to spec-
ialists as most dealers won't have a customer for your coin and will bid
accordingly.