Coins increase in value?

Agree key dates seem to hold their value the best. Right now it does seem some types of coins are coming down in value. I know one I just recently won 2-3 years ago coins in the same grade were 200 to 300 more.

And as for those running time - they look really good to me. You want me to run a mile you better have a bear behind me and you better hope I don't pass just one of you all.

 

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I've often amended that advice to, "buy the best coin you can understand at the best price you can."

 

That would be good -- except that you often think you understand the coin better than you actually do.

 

And that's the issue I've mostly had. I'll buy a nice raw coin that I feel I got at a good price and later I learn more and realize that the person that sold it obviously knew more than I did and was the one getting the better end of the deal. I'm not sure if I'll ever get good enough at grading and recognizing borderline details coins as the experts. There are those that hate slabbed coins but I have come to the realization that the best coins from obsolete series have probably been slabbed and are probably the best to spend my money on.

 

Yeah, you don't have to be faster than the bear, just faster than the slowest of the group!

 

Aren't you supposed to also hang bells on the slowest one?

 

I've quickly learned not to expect any coins to appreciate in value, especially the kind I can afford. Although if some prices are coming down right now, maybe it's a good time to buy.

 

When I started collecting late 1960's early 1970's I am guessing spot gold was in the $150.00 range. So anyone that fortunate enough to have gold back then has at the very least seen that grow by X10 roughly.

The most spectacular difference in my mind is the insane values being placed on doubling errors. I look on Google at the price graph for those (55/55 - 72/72 cents) and it floors me. I believe those pieces are vastly overpriced and due for a market correction.

The thing that is unchanged are the coins that hold the deepest regard in my heart. The worn flat V-nickels and Indian cents that crowd every dealers bargain box. Those pieces were bargain box finds back then and are bargain box finds still today and are (romantically to me anyway) the biggest bargain in numismatics. Where else can you hold a piece of 19th century history in your hands for a a cash outlay of fifty cents or so?

 

Excellent points all.

Another aspect that should be considered is the fact that when the average collector sells, they're not likely to pull down full high retail. Unfortunately, there's usually more to it than simply comparing two price/value points.

 

One of the best resources would be the Yeoman Red Book. You can learn so much from it. Keys dates are low mintages and each series has a grading system. The grading is generic and the prices are an average but you can learn a grading system that will assist in your buying. Local coin shops are also good to learn from as well as coin shows. A LCS is where you can hang out and get to know the owner. If they are good and caring they will be glad to teach you.

 

Many times when we start collecting something, we have a certain mission or objective in mind. Then 30, 40, 50 yrs later we find that mission/objective has changed, sometimes multiple times.

For example, I wish that 50 yrs ago someone jump started my thought process and instead of "collecting sets", started looking for the best I could find in type sets, key dates, etc. So for example, while I have every cent (well, not Zincolns) going back to the mid 1870's & sporadically going back further than that, many of them are not really quality specimens. While I have upgraded many of these over the years, I realized that it was not necessary to get all of them & should have focused more on quality & types (at least for ME).

If you're into this just for the fun & entertainment, that's one thing, & you don't have to be concerned about future values.

But if you're looking for increased value over time, then you must be more discriminating in your selections & hunt for the best (in types, or key dates, or anything that makes that issue special, to you) & pass on lesser specimens.

 

I don't think you learn much from the red book about grading; especially the higher grade coins and borderline details coins. Also, the red book coin values are higher than reality.

 

And by this process you become more aware of what you really understand about the coins you're buying. If you're self-aware and perceptive enough, you also learn what you don't understand. Sometimes, purchases push or slightly expand the limits of your understanding, but they should never be far outside them.

One of the first things to understand is that just because a price guide for a certain coin in a certain grade says $X, it doesn't mean that $X is the price that should be paid for that coin. Once you realize that, then you are aware that you have to explain to yourself what makes a coin worth more or less than the guide shows before you can make a wise purchase.

 

Well, you're supposed to hang bells on a collar around the bears neck, so you know when he's coming - but that gets a little dicey!!

 

I've learned that not all coins at a given grade are alike; especially mint state coins. I saw a gorgeous 1881-CC PL Morgan at a coin show a few weekends ago that would, in my opinion, be worth more than most price guides would show at MS 65. My guess is that it would get at least a green bean.

 

Do you consider the 1959 Jefferson nickel to be a key date? It has about the same mintage, and they weren't widely hoarded like the 2009 was. So they should be a lot less available in mint state than the 2009. And there worth squat.

Spot price of gold for most of the late 60s early 70s was $35 an ounce. I remember when I first started collecting in 1972, I could've bought double Eagles for $65-$80.

I collect Conder tokens, back when I first started collecting coins I could've bought uncirculated pieces for two dollars apiece. Mint red pieces were three dollars apiece. I didn't buy them as I didn't have the book on the series. The book cost $100.

When I did start collecting them seriously in 1997, uncirculated pieces cost $20-$25, mint red pieces were $30-$40. The book was still $100.

Since then the book has been up to $200 and is currently around $125, it's almost impossible to find uncirculated pieces for less than $200 and mint red pieces can go for $300-$350. So you're talking roughly a 100 fold increase on price for these tokens since I started collecting.

 

That's for sure, and I do agree with the advice that every collector should try selling a few pieces to set their expectations.

My comments, though, apply even if you carry all your coins to your grave. If you buy the expensive coins too early, you're more likely to pay more than you need to, and more likely to end up with a coin that doesn't look as good in the light of your increasing knowledge.

 

As I said earlier, the Red Book values are higher than normal as they are a generic pricing regardless of location. I also stated that the grading system in the Red Book is basic, meaning it can give you an idea of what to look for and a possible grade when buying. If you don't know the grading system and professional graders use a different standard it can only assist you in getting a better coin at a better price point.

 

Agreed again. However, even if one does keep their coins until death do they part, in the vast majority of cases someone will inherit them and means the same applies, even if indirectly.

 

This is a neat thread. I have a small collection of Red Books that I've found at bookstores for 10 to 25 cents, and it's always fun to see how far prices have come. (Adjusting for inflation, of course)

I've been collecting for nearly 15 years, and the only direction I've seen coin prices go is down.