Do your homework! posted by audrop

[CSJournals-migration]

Avoid being a collecting whore.

 

After reading a post from W.K.F. recently, I was reminded of my collecting 'beginnings'. I was so enamored with the trinkets that the mint was selling and their proof surfaces, that I wound up buying some 'pretty' worthless stuff. I remembered my grandmother buying mint sets in the sixties and thinking that they would be a good investment, until I went to my local coin shop and found out they were worth about what she paid for them 30 years ago. Don't misunderstand me. If you buy mint products because that's what you want to collect, so be it. Just as long as you realize that chances are they have very little appreciation potential. After my experience with 30 year old mint sets, I decided I needed to re-focus my collective thinking.

 

I was never too fond of collecting Walking Liberty Halves or Barber Quarters or any set where the only difference is a date or mint mark. It seems redundant to me. I have found my collecting niche in mint and proof sets of the birth years of my ancestors. In the 1875 mint set w/ gold there are 32 coins; including but not limited to, a 3CN. 5 Seated Liberty dimes ((a P, 2 each CC and S, (mintmark above and below)), 3 twenty cent pieces (P,CC and S), 4 Trade Dollars (P, CC, S and S/CC), a G$1, a couple of $2 1/2 gold pieces, half eagles, eagles and double eagles! In one 138 year old set you have a pretty good jump on a complete type set of U. S. coins, and you truly are holding pieces of history in your hands. Can you imagine where these coins have been and in who's pockets?

 

Basically, I started collecting anything shiny and new, but as W.K.F. says, "two of the major factors in determining value are mintages and collector demand". Generally speaking 'supply and demand' drive the market and the mint provides too much supply for the demand. My advise, 1) make a list of the coins you want, in the grade you can afford, 2) buy the highest grade you can afford after figuring the total cost of the coins you desire and your annual coin budget, and 3) try to stick to your plan! Resist the temptation to even look at coins that are not on your list. Every time you change the parameters of your collection it costs you money. In the short term, you are lucky to be able to sell your coins for what you paid for them.

 

Honestly, I find myself buying a better coin than I can afford on occasion, like my 1876 MS64 DCAM 20c piece (pop. 2/2), but I NEVER buy a coin that is not on my list! Some deals are just too good to pass up and you need to be ready to pounce when the opportunity presents itself. Due to this acquisition, I will have to buy a couple of coins in a lower grade than was my original intention. Check the original mintages and the pops from NGC and PCGS to try to find potential bargains out there and good hunting.

 

See more journals by audrop

[RichH]

You have an excellent buying philosophy and strategy. Very good comments on why it it so important to research before you buy, and also how you need to set goals and properly budget your coin purchases.

 

Thanks for sharing and continued success !

 

Rich

[Mohawk]

This is a good post, addressing something that I think a lot of us have gone through at one time or another. I know I have. It's pretty easy for me to fall in love with a coin, no doubt and I used to be all over the place with my collection. Sure, I had a lot of coins, but also no sense of completion and little satisfaction. I was recently on a discussion where the topic was scaling back and focusing in on your few main areas of interest. I think this is a good approach for many of us, I know it is for me. My main area of collecting interest is coinage of the Ottoman Empire......it's a challenging pursuit, particularly in Mint State. And the key dates.....man. There are Ottoman keys that may only come on the market once every 3 or 4 years, if that. And in problem free condition, bump that out to 10 or 20 years. In other areas, such as in U.S. coinage, if you miss one opportunity to nab your key date you can be fairly sure you'll get another chance at some point, unless your key is something like a 1913 Liberty Nickel or a 1927-D Double Eagle. With Ottoman, it's not like that. Collectors buy the few surviving examples of the keys and hold them forever. I remember missing out on one of the key dates for my nickel 20 Para set because I was scattered all over the place with my collecting and lacked the funds to purchase this coin, which is one of my main dream coins. This was about 3 years ago, and I've never seen another one for sale again in all that time. I'm still kicking myself. Hard. I may never get another shot at this coin.

 

So it's good to keep your eyes on the prize and have the resources available to grab those dream coins when they become available to us. Your advice is excellent. I also agree with your points on modern mint products. They're very rarely moneymakers, so if you're into numismatics for that reason, you should definitely avoid them. I have a few moderns, I think we all probably do, but I have them just because I like them and they're not a serious pursuit. They're like my U.S. collection, just a series of one offs that caught my eye. But I'm following your advice and making a list tonight, and I'm going to make sure I have funds at the ready in case I get another shot at my dream 20 Para. And I'm going to fight the urges to buy one offs as that's another drain on my resources for my main pursuits. Your advice is good, and comes from sound experience. I think we'd all do well to incorporate your strategies in our own collections. Thanks for this sharing of your thoughts and experiences.

~Tom

[Six Mile Rick]

Well Guys,

Just me of course!! I purchased a few MODERNS last week and added them. Of course I was satisfied with the new additions and would have been fine for a few weeks or so. BUT after reading these messages I got the jones'n going on and went and spent some more hard earned money on some MORE MODERNS ----- THANKS!!

 

 

signed- The Collecting Whore

[Mohawk]

Hey Rick,

I certainly did not mean any offense to collectors such as yourself who collect moderns for enjoyment. Any participation in this great hobby of ours is something I admire and respect, no matter how you do it. I was referring to people that think they're going to get rich with a run of Proof Sets and things like that. I collect coins that aren't moneymakers myself, namely Chilean Libertad 5 and 10 Pesos. They're moderns, they're not moneymakers, but hey I dig them! But I've definitely decided recently to narrow my focus after reading some posts on here and reliving some of my blunders in my head. You like your moderns, Rick, and I know and totally respect it. I think you collect moderns for all the right reasons, the main one being that you love and enjoy your coins. That should be first and foremost on all of our lists!! So please, don't think I meant you or anyone any disrespect with my response.

~Tom

[Six Mile Rick]

Mohawk (Tom) --- It's all good bud!!

I enjoy competing for the lowest prices on modern proof 70's. I acquired 3 coins after reading the journal that will nearly complete 2 years.

2008 clad Kennedy -- FMV = $180 ---- purchase = $59.95

2009 clad Kennedy -- FMV = $120 ---- purchase = $42.95

2008 Sac I paid a bit higher at 67% FMV but as a trio in costs I think I did well.

[audrop]

I believe some of you misinterpreted my post. W.K.F. said he felt like a 'collecting whore' the way he jumped from one collection to another (bed to bed). I was trying to provide to others how I finally conquered that situation by providing three steps that worked for me. Just because you collect 'moderns' does not make you a 'collecting whore' (W.K.F.'s words not mine). If you jump from one collection to another and amass a jumble of different coins without completing anything, then you might be considered a 'collecting whore'. Best to all !

Dan

[brg5658]

I believe some of you misinterpreted my post. W.K.F. said he felt like a 'collecting whore' the way he jumped from one collection to another (bed to bed). I was trying to provide to others how I finally conquered that situation by providing three steps that worked for me. Just because you collect 'moderns' does not make you a 'collecting whore' (W.K.F.'s words not mine). If you jump from one collection to another and amass a jumble of different coins without completing anything, then you might be considered a 'collecting whore'. Best to all !

Dan

 

I think of myself as an eclectic collector, not a whore. Series collecting bores me to tears, but type collecting is interesting to me. To each his/her own, but I think the term "collecting whore" that WKF coined does little for describing the differences in collecting philosophies. This is a hobby, and as such, there is by definition no "right or wrong" way to do it.

 

Now, with regard to your 8R collection, splendid looking set! (thumbs u

[jgenn]

It's so easy to be led astray by all the interesting coins out there. I've begun a limited adventure into other crown sized silver coins to complement my 8 reales collection. 2 English Crowns, 2 German and 1 Austrian Thaler, a Spanish Netherlands Patagon and a French Ecu so far and I'm beginning to realize the danger I'm in. ~jack