When (if ever) do you collect "problem" coins?

[shirohniichan]

There has to be some sort of cost/benefit analysis we do when we decide whether to buy a cleaned or otherwise no-longer-original coin.

 

I just bought a cleaned 1876 quarter eagle, and two years ago I bought a lightly cleaned 1876 half eagle. 1876 was a year that double eagles were minted in large numbers but quarter, half and eagles were very few in number at the Philadelphia Mint. A cleaned eagle would have set me back at least a few grand, but I never found one for sale.

 

If I could have found a really scarce coin problem-free at a decent price I would have been ecstatic. What I did find was cleaned and only about 1/4th the price of a problem-free example with similar details.

 

Where do you draw the line (if you have such a line)?

[jtryka]

It all depends on the price and how hard the particular coin is to find. I bought some "sea salvaged" 1836 half eagles a few years ago, and I am perfectly happy with them.

[gmarguli]

I try not to buy problem coins. They might seem like a bargain, but when I go to sell the coins I'm sure the original coins will go up in value much faster and be easier to sell.

 

I'd rather spend $1000 on a coin that will be easy to sell in 5 years at $1250 than spend $200 on a coin that will take forever to sell at $225.

[braddick]

For me there are two types of problems coins. The first are those that are created in an attempt to "improve" the coin such as whizzing or tooling.

 

The second is accidental in nature (kind of), like an old scratch or rim nicks.

 

I understand the problem is re-selling problem coins but on some of the earlier classics I have no problem owning a coin that has problems associated with wear and tear from everyday commerce.

I mostly keep away, but am occasionally attracted to some of the Bust material with an issue or two (or three...).

 

 

[Hoot]

When it comes to some of the large cents, especially those pre-1800, I look for examples that are good looking, even if they are so-called problem coins. Attached is an example that I picked up for less than 40 bucks. I like the coin quite a bit, it's very attractive, and the corrosion on the coin - at least in person - matters little for seeing the overall character.

 

I've sold a few net graded coins in ANACS holders and had no problem getting a reasonable price on each - anywhere from 60% - 90% of bid for the net grade. There's a good market out there for classic coins and rarities that are net graded or graded with NCS.

 

Hoot

[EVillageProwler]

Several years, I lost out on two R.8 Early Dollars. They were both problematic but still relatively decent. I never thought I'd get so annoyed at not being able to acquire problem coins!

 

I lost out to a highly respected board member who has since sold them through semi-private treaty. He didn't know me then, so I will refrain from putting a hex on him.

 

EVP

 

[shirohniichan]

I try not to buy problem coins. They might seem like a bargain, but when I go to sell the coins I'm sure the original coins will go up in value much faster and be easier to sell.

 

I'd rather spend $1000 on a coin that will be easy to sell in 5 years at $1250 than spend $200 on a coin that will take forever to sell at $225.

 

Ironically, the last problem coin I bought yielded the best return when I sold it. If the coin is so scarce others hardly ever come up for sale, even problem coins hold their value.

[reid1836]

I collect problem coins as gifts to my young children. It helps keep their interest in the hobby. It also gives dad something interesting to share with them.

My most recent purchase was an authentic 1918/7-D nickel which had been acid dated. It will make for pleasent evening of looking through reference books and a thorough going over of their current collections.

[BillJones]

The most I ever paid for a problem coin dated back to when I was collecting half cents by die variety. It was an 1805 Cohen-2 half cent that had Good-4 sharpness, but was ground salvaged with other damage. I bought the coin from the late Roger Cohen himself. All of the diagnostic marks were very clear, but it was a pretty ugly coin. About 15 examples were known at the time, and I paid $1,000 for it.

 

A couple of years later I gave up on the collection because I could take it no further. I sold the coin to a specialist dealer for $100 profit.

 

Since then I’ve purchased a very low grade, badly rusted example of a token that was made from iron that was recovered from the Confederate iron clad, the Merrimac or Virginia. That piece was priced at well below $100 and was from a collector friend who was terminally ill. It was kind of a remembrance piece.

 

[goose3]

I try to stick somewhat to key date coins, so for me to even consider a problem coin, no matter what the problem, it has to be absolutely Dirt cheap, otherwise I will pass and wait for a problem free one.

 

I've never had much problem selling problem coins because there will always be a market for them, especially in Key dates where they are in demand.

[CarlWohlforth]

One person's problems are another's treasure

 

[shirohniichan]

Carl, you wouldn't happen to have an 1876 eagle on that hat of yours, would you?

[CarlWohlforth]

Sorry, Shiro, there is no holed 1876 Eagle on my hat! I'll keep my eye out for one though

[Conder101]

Hoot, any time you want that $40 back just let me know!

[James_OldeTowne]

Do you mean like THIS ? It wouldn't bother me to own this coin.

 

James