the beginning of a morgan set/ looking for advice

[matty_kay]

So I am finally putting an end to my hoarding of modern coins and starting to look into morgans. I know they are pricey, 100+ years of appreciation will do that, but I was hoping some educated and experienced collectors can help a young kid out.

 

Mainly I'm looking for places online or in the northern california area to make my purchases as well as what would be considered a decent investment grade. Im not looking to complete this over night.

 

I heavily invest in stocks, mutual funds, and real estate so I would like an investment worthy set/ hobby that will round out my portfolio.

 

And, if not morgans, does anyone else have any suggestions on a possible long term investment worthy set?

 

Thanks a lot everyone.

[MikeInFL]

"does anyone else have any suggestions on a possible long term investment worthy set?"

 

Yeah, three points:

 

#1 -- learn to grade for a year before spending any serious money.

#2 -- coins are a terrible investment.

#3 -- if you are going to collect, collect what you like.

 

That said, if you really want to diversify your investments, I'd suggest precious metals, not coins.

 

Respectfully...Mike

[James_OldeTowne]

Unless you have a huge budget, I recommend an abbreviated Morgan dollar set - one example of each date. This allows you to avoid having to spend the huge bucks on the keys, yet you still end up with a fantastic set.

[MarkFeld]

Hi Matthew,

 

I wouldn't necessarily recommend rare coins coins as an investment. And as a general rule, a large % of buyers who acquire them for that reason, end up losing money. Among other considerations are the fact that rare coins have a much larger buy-sell spread than stocks do, they are less liquid and many non-expert buyers don't end up with what they thought they were buying, in terms of quality and/or rarity.

 

Collectors who take the time to study/learn a great deal about what they are buying, buy what they like and are patient in their pursuits, probably stand a much better chance of doing better financially than those who buy coins as an investment.

 

Perhaps you can do some reading, looking and studying, and figure out what appeals to you. Please don't be in a hurry to spend your money - many sellers will gladly take it without any regard to your best interests.

 

Also, if you are going to be searching on-line, there is no reason why you need to limit your search to Northern California.

 

I'd urge you to be cautious and extremely patient and realize that it's much easier said than done. Best of luck and enjoy.

[Arizonadesertrat]

I second what the others said, and add the following advice:

1. Learn something about Morgan dollars BEFORE you start shelling out $$ for one. Start by buying Q. David Bowers' book 'A Guide Book of U.S. Morgan Silver Dollars' (3rd edition)---it will cost you ca. $20 + tax. Read this book carefully, and understand that nice-looking Morgan dollars are not necessarily good investments. Also buy Bowers' book 'The Expert's Guide to Collecting and Investing in Rare Coins' and Scott Travers' book 'The Coin Collector's Survival Manual' (the edition that just appeared).

2. Understand that investment-quality Morgans are only a small subset of (mostly graded and slabbed) Morgans in the marketplace, even ones in high grades. Many date/MM coins in the Morgan series are common as dirt, even in MS65-66 grades.

3. It is imperative that you learn to grade Morgans---there is a huge difference in price between mint-state coins that differ by just one point in grade. Then learn to discern the difference between coins that are nice for their grades and ones that are not---the only way to do this is to physically inspect LOTS of Morgan dollars.

4. Be aware that you are contemplating investing in Morgan dollars at a time when the coin market is relatively high---this is not a good time for a novice to start 'investing' in ANY coins. Also note that coins are not fungible----if you need to get your money out because of an emergency, you may not be able to do so or might have to settle for a loss.

[Arizonadesertrat]

deleted

[BillJones]

The trouble I've found with date and mint collections, like Morgan dollars, is that it gets repetitive after a while. That's why I collect type coins and tokens where every piece has something different about it other than the date and mint mark.

 

As for investments, I’d look at more conventional things. Coins can be decent investments for collectors who hold on to their collections for a long time. That way the market has time to mature. Investors get antsy and often sell too soon.

 

I also question the concept of “investment grade.” If you are talking high grade / low population stuff the prices will be through the roof. If you can afford the coins at all you will be limited to perhaps no more than a couple coins per year. I used to do that with my early type coins, but I am (was) an obsessed collector. I had so much fun with the one coin I purchased plus all the pieces I’d purchased earlier, I didn’t mind going at a snail’s pace. Most collectors and investors can’t do that from what I’ve seen.

 

I’d also question the long term growth potential for Morgan Dollars. They are in many ways common coins that have had a dedicated collector following. Most other collector coins, like early copper pieces, have a more limited population of collectable pieces. Have Morgan Dollars seen their best days when it comes to price appreciation? The market, certainly for the more common dates, has been very stagnant for a couple of years.

 

[cpm9ball]

Hi, Matthew!

 

Like everyone has said, if you treat coins as an investment, you will in all likelihood, lose. Personally, I think it would be great to be able to get up in the morning, have coffee while viewing a price list of coins on TV like you would the NYSE, AMEX or NASDAQ, and when the price reached a certain point, call my broker and give the "Sell" order.

 

Take your time, read some of the books, try to learn a little about grading, look at a lot of coins, ask questions, read some more books and then proceed slowly.

 

Chris

[lkenefic]

Do you know how to make a small fortune in Coins???

 

..... Start out with a big one.

 

Seriously though, I'm inclined to agree with Bill in that I too question the validity of spending alot of money on "investment grade" Morgan Dollars. I think there are probably some individual pieces (not Morgan Dollars) that could move significantly in the next few years but I'm hard pressed to identify them in the current market. Given market instability, I'd probably wait to see exactly what PM's are going to do into the next administration. Personally, I think there's going to be upward pressure on the dollar which typically doesn't bode well for PM's. That being said...I've certainly been wrong before, and these are anything but "typical" times.

 

 

[robbyr-migration]

Matthew: after you have read what everybody has said, print out a copy of everything and read it again!!!!! I'm still loving this hobby and have never looked at it as an investment. just pure beauty of the coins and there history. i've made a couple of dollars out of pure luck (nothing major however!!) Main thing is take your time have fun and remember this is for the long run!!!!

[me0505]

Matthew,

 

I can't add too much more to what everybody has already said. I can however reiterate that you need to find what you like, learn about the series and pay what you think is fair.

 

Also, a hearty welcome to the boards!

 

Eric

[rrantique]

Matthew,

 

I can't add too much more to what everybody has already said. I can however reiterate that you need to find what you like, learn about the series and pay what you think is fair.

 

Also, a hearty welcome to the boards!

 

Eric

 

Welcome to the boards.