Let's here what you think ! First, for the purpose of this conversation, we will accept as a given that: 1 - we are speaking from the collector perspective 2 - as a collector, we are NOT collecting "just" to have fun, but also to invest in a market. Here's my thoughts and what has worked well for me "when I've applied it" in practice (at least so far). 1 - as noted in the forum many times: A > the investment side of a coin transaction is made on the "buy" B > the margin on dealer stock is often the biggest detractor on the "buy" What I try to do is remove the dealer and this margin from my "buy". The idea is to buy investment coins for what a dealer would pay (or less). That essentially means you have to intercept the supply of coins from the "market to dealer" flow. The best value stream for sneaking in I've found: - collector to dealer. - heir to dealer. - other seller to dealer. The idea is to replace the "dealer" in that equation with "collector" (you) so you have a collector/heir/or other seller to collector transaction. The motivation for selling point for each of these three type of sellers is distinctly different than that of a dealer. * Heir's (and often times 'other sellers') don't have to worry about 'margin' at all... any $ they get on the transaction is often 100% profit, so they really have no "loss" point in the transaction. Best place to find these guys: 1 - ebay, you'll have to sift through a lot (thousands) of auctions to find a single buy at dealer (or less) cost for a quality and in demand coin,, but I've done it many many times. You'll also get burned here and there also, but the better you get the less often you get burned,, and when I say burned, I mean you wind up paying retail cost or a bit more.... 2 - run an ad in the paper offering to buy coins,,, this costs $ and many times nets a lot of junk, but it offers you the chance to catch a 'whale' or two, where ebay would have thousands of others jumping on that fish. * Collectors generally have a price point in mind, but aren't trying to make a living selling,,, so are generally happy with a loss, get some money, and likely roll it back into another coin or an upgrade of the same coin. Best place to find these guys: 1 - coin shows - a lot of collectors bring in coins to trade or sell to dealers at shows... don't be afraid to step in and speak to someone at a show if you notice them showing dealers or other collectors thier stock.. there is no crime in America that says you can't swoop in and offer someone a better deal for something they are trying to sell. 2 - ebay, as above 3 - ad in the paper, as above * try to stay away from local auctions, garage sales, etc... It will probably do you some good to go to these a few times just to see what is there, but from my experience the local auctions are run by folks who know what they have and shill any coin values beyond a reasonable price.... garage sales are full of junk mostly, maybe some winners there,, but likely a waste of time and resources,, that said, 'whales' could also be out there waiting,, I've just never found one at garage sales, but have heard stories. ** get creative, build a better mouse trap (coin trap),, classifieds, craigslist, etc... spend time actively looking (I've found a few in random places like this,, and I mean GOOD ones !) If you want coin investment to pay, you'll have to do more than those around you (like anything),,, the more work you put into avoiding coin margins at the "buy", the better you'll do with your investment in coins. Upshot - Avoid buying from dealers and paying thier margin, seek to buy from thier sources (or others) at thier cost or less.... and most importantly: NEVER FALL IN LOVE WITH COLLECTING COINS, or like any good meth addict, you'll end up on the dealers doorstep. :devil:
Ok, you lost me right at the get go. If we're looking at this from a collector's perspective, then yes, we are just collecting to have fun. If we were collecting to invest in some market, we'd be investors, not collectors. Investors do collect, but collecting commodities and valuables is not the same as collecting for fun. It's hard to read on with such a striking contradiction of perspectives. Guy
Some collectors collect coins for both: 1 - fun & 2 - investment ..... so we are assuming that the collector we speak of is inclusive of both 1 & 2,,,, rather than just 1 "or" 2.
