Many common or a few key dates?

When I was just starting out, I was advised NOT to buy the key coins first, for several reasons:

1) It's better to start out with the cheap stuff because you can get a feel for a coin series without shelling out a lot of money.
2) With the cheap stuff, there is little haggling over grade, but with the more expensive stuff, what is bought as an EF may end up being sold as a VF.
3) There are lots of fakes of key date coins, and it's easy to get burned if you don't know what to look out for.
4) Coins that are considered "keys" now may not necessarily be considered "keys" later.

 

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Lots of good advice, but I think this is the best

 

That is a great idea, however I'm not sure I want a bunch of expensive key date coins in a 7070. Not exactly the safest place for a coin.

 

p.s. as for the question posed by the OP, I would focus on fewer coins rather than many. More importantly, I would strongly recommend against looking at anything numismatic as an investment -- in almost all cases coins are a TERRIBLE investment. Not because they don't appreciate in value, but rather because of the buy-sell spreads, transaction costs, and potential pitfalls for the inexperienced (or even experienced!) in the minefield that is the coin game. IMO, of course.

 

Why not some of each ? Buy some junk silver and build a set from that and get the keys to complete it.

 

I collect morgan dollars and would think about having both, I have a great collection of 62's, 63's, 64's, and 65's graded by NGC and PCGS, most common dates, and I have a couple of key dates, such as the 1895-s in about EF-45 and the 1892-S in about VF-30, I also have a lot of raw coins that would grade very high if I sent them in, however, it is not always worth it. I like to stick to the CC also, they have a unique luster about them and could be affordable if you buy a common date in higher grades, unlike the 1895-s in Ms-63, which would get about $6,000, a common CC in Ms-63 could be bought for around $200. If you are looking for Ms-63 and want coins that are not common and are not high priced I would stick to the CC's.
---Hope this helps
------K2Coins

 

This should be stickied or something. Too many people see historical returns and think coin collecting is a foolproof investment. Even dealing with a reputable dealer these costs eat your returns alive. Either one has to say I am buying and holding for 40 years, get advanced knowledge to be able to get great deals on rarities, or just accept the fact that this is a HOBBY, and any financial gain you get from it is a bonus, the real value is the enjoyment. Dealers, to me, promote "investment" too much.

Keep collecting!

Edit: To the OP, if you are thinking of this purchase as an investment, do me a favor. Buy something from a dealer for the best price you can get, then go to another dealer who doesn't know you just bought it and see how much he offers you. This is the tremendous headwind you are facing. If you love the coins, enjoy them, then great. If only to get increased returns be careful.

 

I totally agree with the above posts. I have been collecting coins on and off for 45 years and over that time I have made over $100k of gains in bullion, but lost about $10k (at least) in all the "rare" coins and currency I've bought. I think of it now as allowing my gains owning bullion to fund my losing endeavor in collecting coins. It's rare that I ever sold a coin for more than i paid for it. However my bullion (junk pre-64 silver coins, ASE's, AGE's) has been a huge winning play. Collect (and buy) rare or scarce coins because you enjoy them, not to make money.

 

Smart.

Think of it this way... if you were a fisherman, which would you rather have in your trophy room - one big, impressive marlin or 500 minnows ?

I'm not saying buy just one big coin. But I think a few great ones are much better then hundreds of average ones.

 

just watch out for counterfeits (especially counterfeit coins in counterfeit PCGS/NGC slabs) ... this is the biggest reason i avoid the really big ticket items

 

My plan is not so much an investment for myself. My investment is in the enjoyment of the hunt. I fully expect never to get rich off my coins. It will be an inheritance windfall for my kids. Even if some of my coin values fall 50% a few Morgans worth $1000 each is a nice chunk of change (yes it's an intentional pun) to inherit. That doesn't even cover the remaining common Morgans.

 

If I got a big bonus that was not needed in my budget, I would buy some key Lincolns. They are my current focus. I would go to my coin dealer and get some raw keys (learning all about counterfeits first of course) so I can add them to my set, then get some commons in superb condition as well. I am a set collector. If I did not care about completing the sets, I would focus exclusively on rarer dates.

Please post what you end up buying. I love learning what other people do with spare cash.

 

Panzerslayer
Depending on where you are making your purchase from? I have placed a big ticket item and a common item on the counter at a coin shop and they will discount the common item because I am buying the big ticket item (Key Date Coin) This way you get both and get a little more for your money. I do this quite often at coin shops and booths at the flea market. These guys are always there and that way if I get a problem coin I can take it back with.
Big Ed

 

Ok, if it is for your gratification, and you can justify it to yourself that way, then have a great time. I waste money on coins and coin books as well, and if you want to use this opportunity to improve your collection then I am all for it man.

I just wanted to make the point that its hard to make money on collectible coins unless you are the dealer. The pride, the self worth, and the enjoyment out of owning rare coins that you cherish is worth it, I just wanted people to remember the investment aspect of the hobby has huge hurdles to overcome before it pays off.

Have a great time!