Why do collectors knowingly take losses on the newest minted coins? 1 1

[The Neophyte Numismatist]

I can't wrap my head around this.  Every year, collectors clamor for the new dated coin.  They pay many times over face for Loomis rolls.  Later in the year, the graded coins come out and they go for huge money.  Within a year of the graded coins coming out, one cannot give the Loomis rolls away for face value, and the prices on graded coins drop and stabilize.  The cycle seems to happen continuously, every year.

This reminds me of Madi Gras beads.  When at Mardi Gras, the beads are "important" and can almost be used as currency.  People will literally fight over them.  Bring them home, and they become plastic junk.  The value goes to nothing - zero.    

Back to coins - Are we just caught-up in the moment?  Are we just so impatient that we are willing to take known losses as collectors?  I am not collecting as an investment, just for fun... but the boom/bust cycle on these new coins seems to be all-but-predictable.  

Why is there a race to buy these new coins, when losses seem inevitable on 99.99999% of them?  

Edited January 26, 2022 by The Neophyte Numismatist

[JT2]

its fomo (fear of Missing Out) bud!  and I gotta have one NOW!!!  I normally wit until all of the hype starts to die down and well if i cant get one then so be it......

[Hoghead515]

Thats why Im holding out on the new Morgans. Gonna hold off a year or two and then try and work on getting a set. Hopfully the prices will drop

[The Neophyte Numismatist]

On 1/26/2022 at 12:11 PM, Hoghead515 said:

Thats why Im holding out on the new Morgans. Gonna hold off a year or two and then try and work on getting a set. Hopfully the prices will drop

I agree with your strategy on the 2021 Morgan and Peace Dollars,  the premiums on those coins are too high.  I do think they will plateau and come down a bit.  I don't like how the Mint handled the Morgan and Peace roll-out, and the price gouging that has resulted.  

However, I am taking about regular, old pennies, nickels, dimes and (especially) quarters.  I see these regular issue coins being sold in regular Loomis rolls at 2-4X face.  I think, "well, they can ask whatever price they want but collectors are smarter than that!"  Not true, the seller has 80, 100, 200 already sold.  I get FOMO, but they will mint tens of millions of these coins... there will never be anything rare about them.  

I will never be concerned that I will not be able to get a Maya Angelou quarter... not because I don't want one or think its a bad coin, but because I know they are going to mint MILLIONS of them.

Edited January 26, 2022 by The Neophyte Numismatist

[JKK]

It's easier than learning about old coins. Old coins make some people's brains hurt. And ancient coins make a lot of old coin collectors' brains hurt.

[J P M]

My brain hurts just thinking about new coins. Just like hog I will wait.  Heck I waited 36 years before I bought 1 ASE  

[Rummy13]

I don't ever pay more than face for Loomis rolls. I do get some rolls from the Mint that chargers a premium. but that is not what the OP is talking about. I think some people just don't want to spend the time looking for good coins, they believe that there is a far better chance of finding that rare coin in those rolls. But I can get those Loomis rolls at my bank for face. If I miss a coin coming out of the mint, I find waiting 3 years will bring the price back down most of the time.

[JT2]

any modern coin can be picked up for just about face value.   some of this new the mint is coming out with isnt worth the metal it is made with... I am with hog. 2 or 3 more years we can get those morgan and peace dollars for about half the price....or i just wont get them.  as for the commems these days nothing but garbage 80% of them are.

[Coinbuf]

I find that many of the comments above are spot on.   As @JT2 noted FOMO is huge for some people, and some of it is a registry phenomenon.  If you are or are gunning for a top spot in the modern registry sets like ASE's or first spouses as an example, you have no choice but to shell out to have the coin(s) you need before the year end.   And of course, you have the flippers who don't care about the price if they are able to flip a coin for a profit.

[gmarguli]

There are a lot of people that need that ego boost or the instant gratification. Not just coins. Look at new model cars where people pay way over sticker because they have to have it now. 

I used to buy from the Mint to slab and resell. Super important to be one of the first to list for sale as the prices drop fast. I'd place an order the second it went on sale and pay for express shipping. I'd literally repackage it at USPS/UPS the day it arrived to overnight it to the TPG. Once the grades posted, up on eBay with a stock photo. I always worried that they buyers would return the item after seeing the price drop. They didn't. 

At least with the Mardi Gras beads you have the memories of a good time. 

[RWB]

It's all a vast tax write-off, managed by the Russians so they can get WIC cards.