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"Every purchase is an eventual sale"
RYK
Posts: 35,801 ✭✭✭✭✭
in the words of our departed friend, Bear, in the context of making a decision on a coin purchase.
Do you disagree or agree? How does this apply to your collection, your acquisition strategies, and what you are willing to pay for a coin (if at all)?
Do you disagree or agree? How does this apply to your collection, your acquisition strategies, and what you are willing to pay for a coin (if at all)?
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-Paul
I want my coins to be wanted by others when it is time to sell.
Touring my first show hammered home that fact. There are lots of "coins" but there aren't that many !coins!. And there certainly aren't that many $!coins!$ that get you into them at a price point that makes sense.
I don't have the capital to pay thru the nose for the best and brightest. Therefore I try and hit the $ and ! points within my range and use those as stepping stones to bigger and better stuff.
Or so I hope. Helps to have knowledge people to ask and ask and ask (and guide when needed).
I was heavily into esoteric items a while back. While I still enjoy these types of items - I am now much more cautious in purchasing them after trying to unload a few of them. Very thin market. I now stick mostly with CBH and metal. Never much of a problem converting to cash when in need.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Sort of obvious, isn't it. >>
If you add "in the purchaser's lifetime", it becomes less obvious. I own a number of coins I can't imagine
ever selling. Others were purchased with the knowledge that they were only "rentals", long or short term.
<< <i>
<< <i>Sort of obvious, isn't it. >>
If you add "in the purchaser's lifetime", it becomes less obvious. I own a number of coins I can't imagine
ever selling. Others were purchased with the knowledge that they were only "rentals", long or short term. >>
......If my son is interested when he is grown, I hope to pass my coins on to him......
......I collect old stuff......
<< <i>Sort of obvious, isn't it. >>
Not really because allot of coins get stolen or damaged or lost .
<< <i>I like this quote and think collectors would be wise to keep it in mind when buying. >>
As I mature as a collector, whenever I consider a purchase, I always calculate my potential exit strategy and cost. I am more likely to buy an expensive coin for "x" that I know exactly how and where I can likely sell for "x minus 10%" than I am to buy a coin for "half of x" that I would have no clue how to get rid of if I changed my mind. There are some coins and some price points for which I do not really care, but it is good to go through this thought process before you sign on the dotted line, rather than after.
Sort of obvious, isn't it.
Of course it is, but people behave here all the time like it is the best kept secret in coins.
I mean, if you're buying a coin just to resell it that doesn't really seem like collecting to me...more like business.
But then again, if a coin comes around that replaces one you think you want to keep, then I guess my theory goes out the window.
<< <i>Personally when I buy a coin I buy it because I love it and (potentially) plan on keeping it...
I mean, if you're buying a coin just to resell it that doesn't really seem like collecting to me...more like business.
But then again, if a coin comes around that replaces one you think you want to keep, then I guess my theory goes out the window. >>
While I do subscribe to your school of thought that you should buy coins because you love them, one must be aware of their own fatality. You'll eventually die and beforehand, your coins will either have to be sold or given away (or possibly buried as mentioned, but that seems a bit of a disservice to the coin community
The key isn't buying coins just to resell them - the best scenario is where you can buy a coin that you love which you can still resell at some point because someone else will love it. Irrespective of finding a replacement coin, this logic should hold true with all coins.
In a perfect world, we would all have children/grandchildren who enjoy coins as much as we do but if we don't, it would be best to be sure that they know exactly what the coin is worth and a minimum point to resell at, and we should all be aware of that number when purchasing a new coin or assessing a current coin because metal will most definitely outlive our carbon-based bodies.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
In most cases, this means eye appeal trumps rarity or any other factor.
I will sometimes purchase with the mindset that I don't mind paying a little to "rent" a coin from the market for a while, if that's what it comes to, if it's a piece I like very much and the cost of ownership doesn't amount to a lot. I can't afford to hold a very large collection at one time, but I've been able, for a while, to host some really neat stuff with this mentality. Moreover, because I try to be conscious of potential liquidity in the first place, it often turns out the market pays me for my time as the custodian.
"She comes out of the sun in a silk dress,
running like a water color in the rain...."
Same here. At any moment in time, I like every single coin in my collection but few are perfect for me or irreplaceable (often with something I like more). Experience has taught me which coins to buy and which coins look like they are good purchases for me at the time and are not so down the road. Ideally, it is probably best to make smart purchases and hold them forever, but that mindset does not work for everyone. The second best strategy would be to make smart purchases, coins that are going to be in demand and enjoyed thoroughly by the next owner, and sell them when you need the money for something else (preferably another coin).
<< <i>I like this quote and think collectors would be wise to keep it in mind when buying. >>
Well spoken.
<< <i>Agree.
I want my coins to be wanted by others when it is time to sell.
Touring my first show hammered home that fact. There are lots of "coins" but there aren't that many !coins!. And there certainly aren't that many $!coins!$ that get you into them at a price point that makes sense.
I don't have the capital to pay thru the nose for the best and brightest. Therefore I try and hit the $ and ! points within my range and use those as stepping stones to bigger and better stuff.
Or so I hope. Helps to have knowledge people to ask and ask and ask (and guide when needed). >>
One day you will have the $'s !
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>in the words of our departed friend, Bear, in the context of making a decision on a coin purchase.
Do you disagree or agree? How does this apply to your collection, your acquisition strategies, and what you are willing to pay for a coin (if at all)? >>
Bear also spoke of a 'holding period' that he desired for his heirs.
The best collectors and the better coin dealers advocate a holding period, often many years, when considering an eventual sale of their coins.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>
<< <i>in the words of our departed friend, Bear, in the context of making a decision on a coin purchase.
Do you disagree or agree? How does this apply to your collection, your acquisition strategies, and what you are willing to pay for a coin (if at all)? >>
Bear also spoke of a 'holding period' that he desired for his heirs.
The best collectors and the better coin dealers advocate a holding period, often many years, when considering an eventual sale of their coins. >>
The context of the quote was years earlier than his "Legacy Collection".
type2,CCHunter.
<< <i>"Every purchase is an eventual sale" >>
This is going to be a Zen type of thread, isn't it?
K
My 1866 Philly Mint Set
With all of that I tend to seek "value for the money." I tend not to buy coins that I think are way overpriced, even if I have little intention of reselling. The few times I have, either by mistake (not knowing the prices) or by choice (knowing the prices and paying more), I have regretted it. It still pains me to look at those overpriced coins.
Last summer I consigned a wack of coins to a major auction house and netted a loss of ~20%. Granted most of these had a short hold time, but still that wasn't and isn't cool in my book.
Am I doing better now with recent acquisitions? I have no freaking idea. Do I have to sell to find out? Probably.
<< <i>Red Tiger makes an interesting point- I spend "hobby money" on my collection too but that doesn't mean it's money I'm never expecting to see again. At some %age loss I haven't quite wrapped my head around the purchase decision transitions from "ok" to "not so good".
Last summer I consigned a wack of coins to a major auction house and netted a loss of ~20%. Granted most of these had a short hold time, but still that wasn't and isn't cool in my book.
Am I doing better now with recent acquisitions? I have no freaking idea. Do I have to sell to find out? Probably. >>
I don't understand why -20% is not cool for short term numismatic holds. That would be typical or perhaps even above average for most collectors. It may be a case of unrealistic expectations and/or an unrealistic view of your own coin skills (grading skill, access to skills, market knowledge).
I would guess that -30% or even -40% net, would be average for a collector buying at typical collector venues and selling at a typical auction house and paying typical fees.
Holding period ranged from 9 months to 2 years, and my loss was net of a 10% back-of-bid vig as well. If you're telling me I did "ok" by collector standards, well... that's pretty sad.
- Jim
<< <i>Unless you're literally being buried with it, of course everything will eventually sold.
-Paul >>
Speaking of that, I wonder how many Chain Cents, other Large Cents or Colonials were buried with people.
Reminds me of that old line, "you can only rent beer."
There was a fellow in the antique toy world who alwys said that "the thrill is in the chase." I agree 100%
The next day he was marketing the coin to a prospective buyer
<< <i>I used to not worry about the eventual sale. I learned the hard way on some fairly expensive coins that you shouldn't buy a coin without giving at least some consideration to what others would think about it.
In most cases, this means eye appeal trumps rarity or any other factor. >>
Ah yes, we've got to watch out for those infatuated lovers of color, luster......labels!
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
Steve