mmarotta

Collectors often buy a lesser item now, intending to trade up to a better example, later. This usually is not a sound strategy. The buyer is typically caught in the margin between retail and wholesale. Buying retail and selling wholesale is the wrong way to invest your money. I learned this advice from one of the columnists for Coin World. The arithmetic is unforgiving.

It is true that we enjoy owning the lesser item until we can afford the better one -- or so we say.

What do you say?

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Mike M
Michael E. Marotta
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susanlynn9

Sometimes purchasing a lower grade with plans to upgrade is the only way for a collector to fill a hole in their collection. This is especially true when all that are left to complete a collection are the key and semi-key dates. It is fortunate that, with the advent of the internet, a wider market is available in which to sell the coin. Provided that the collector does not over-pay for the lower grade, it is very possible to recoup the money initially paid for the lower grade coin. The fact that key and semi-key date prices tend to stay relatively stable because of the lower supply helps to make this is a viable option for the collector with limited funds. I do not think this is a good practice with the more common coins, as it is harder to realize a good or a break-even return as there tends to be a much larger supply available of these coins. With some thought and planning, I believe buying and upgrading can work but the collector should research the market thoroughly and look through past price guides to see what the trend of the coin has been over the last five or ten years in order to have some idea of what to expect. Obviously a coin that has been slowly dropping over a 5-year period would not be a good candidate for this method. One that has been slowly increasing in value could be a wise investment. So, this method could work for the conscientous collector. Just my 2 cents.

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Susan
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Pennycase

Personally, I buy the highest grade I possibly can within my income range, the problem with those who wish to buy a lower grade, then upgrade eventually, is they are more than likely those who collect by date/mintmark, from my experiences with collectors that I know in my town. It's hard to make even a slight upgrade when dealing with some of these key-dates, as most know I collect for beuty, and eye appeal, not rarity or mintages, etc.

National dealer

Many dealers often suggest buying the best coin for the dollar simply because the collector often never upgrades. They watch the values go up and miss the opportunity to upgrade. They never really appreciate their collection because they end up wishing that they had upgraded at the time. Too often they allow this cause them to leave the hobby.
Too often collectors look to buy quantity instead of quality. They would much prefer to buy 5 coins for $100 than 1 good coin.
While there is nothing specifically wrong with this approach, it must be done because the collector is happy with their purchase. That is the most important aspect of this hobby.

Pennycase

I never upgrade for the simple reason I have to look at a coin for at least 2 hours before I purchase, I've been going about a year looking at this barber quarter my dealer has for sale, still trying to decide rather or not I want it, he has kept it in his safe all this while .......... Yeah, i'll eventually get it. Once a person knows his extreme limits on what he/she will spend on a coin, they are in the good, especially if they can save money and have the patience to wait.... One major reason I do not play the upgrade game, is because I've already set the limit on each coin I own to be no more than 500.00 in value, if I continued to uprgrade, untill 10 years down the line, I have a 10,000.00 coin, and somehow that coin gets stolen, or I did something wrong and it has been damaged, I know mentally that I could not handle something like that. I believe this is something that all flatlanders need to consider when and if they decide to go with the upgrade game.

ziggy29

Collectors need to assess their reasons for collecting and the value they put on enjoying the lower-graded piece until they can "trade up."

You're right financially that it often makes little sense. However, the value of accomplishment one feels by filling that challenging hole, even with a lesser piece than they eventually aspire to have, is something that every individual will value differently. Some would value it highly enough to make it "worth" buying now and upgrading later, and some would put little value on that feeling and choose to wait and save their dollars.

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Tim (ANA R-167586)

"Free speech is not to be regulated like diseased cattle and impure butter. The audience that hissed yesterday may applaud today, even for the same performance."

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Andy

I don't believe in upgrading unless one's economic earnings upgrade drastically as well. Coin collecting should be like anything else, you buy what you could afford. Now the second question should be should I buy three inexpensive suits or should I pool all my money to buy that one sweet suit. That is up to the individual. I think what most people do is first buy the three suits to fill the closet and then get that once a year suit to add splender to thier wardrobe. As for myself, if I started younger I would just buy the best coin for the best price even if that means I could only buy one coin a year. Just think about the mint collection one could then have in twenty years, especially if they are dealing with ancient gold coins. Should have started younger!

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We reap what we sow.

tonphil1960

Well, The last time I collected I was buying $25 to $50 coins, I had trouble scraping up the money for them and I felt that I would never complete my collection. Since I am starting from scratch and trying to build 2 collections, Barber Dimes and Classic large Cents, on the dimes I won't pay much more than $10 per coin in Fine, the Large Cents will be much more, probably about $40 to $50 in G4, but it's a short series. If I complete these two collections I will be happy and see no reason to upgrade. Sometimes the lower the grade a coin has the more appeal it has, at least to me. I won't go lower than Fine for silver and G4 for copper though.

JMO Tony

jody526

Hello, Tony

I don't want to disappoint you, but you probably won't have much luck completing the Barber dime collection in Fine grade at $10 per coin.

Maybe you're not talking about a complete date/mintmark set, though.

tonphil1960

Hi Jody, i am starting with only the P mint. I might not even go on to the others at all. If I can do Dimes, Quarters and Halfs, just the P's I'll be satisfied........

thanks Tony

jody526

I see. Well, you're still going to have trouble with the 1894 and probably the 1896, and I don't see any way you can can buy an 1895 in F-12 for around $10.

Good luck, though.

tonphil1960

Hi Jody, Yes I know these 3 will cost me more but to complete the collection I have to go for it.

Tony........