Random Collecting Thoughts and Questions

I'm new to collecting coins (see the thread in Introductions), and I have some thoughts and/or questions that I didn't think would be appropriate to ask in that forum.

Bullion coins are primarily "collected" by folks like us for a couple of reasons, but from a financial standpoint, it's really all about the silver. Correct?

Now, when were talking about getting coins graded, like MS69 or MS70, those coins are really bullion coins that are sent to get graded?

I'm partial to proof coins. Specifically American Silver Eagles. I'd like to get every available proof, but I've got a long way to go. Two major roadblocks that I see for myself is the cost of the coin sets, for example the 2006 three coin set and the 2011 five coin set. What is the best plan of attack to get those coin sets? Coin shows? Dealers? The internet? Depends?

Does the price of silver really effect the purchase cost of an ASE proof?

Sorry if these are "newbie" questions, but I'm a newbie to collecting. I'm limiting myself to ASE's only, so the more I can find out about them, the better.

 

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bullion coins can aslo be of platinum and gold. basically any precious metal.

Yes ASEs are silver bullion pieces intended for collectors, and if silver goes down, (which today skyrocketed down almost 4 dollars an ounce) the silver proof ASEs go down in value too, but not much. ASE proofs are really amazing coins.

And no most bullion isnt graded, unless its worth about more than 100 dollars, or gold bullion for example, so you get its official grade by the top TPGs hopefully.

I hope this answers it for you, any more questions please continue.

 

Thanks for the answers. I thought I've read somewhere that dealers send the whole box of coins to get graded, and only want the 69-70 coins. The rest is bullion? So regular folks like us can't buy bullion, I get that, but dealers get the first pick so to speak for the 69-70's?

Yes, the ASE are really nice coins, I like them a lot and I'm glad that I picked that coin to collect.

Any advice on buying the sets that I mentioned? What's the best way that you know of to get the best deal?

 

My opinions only:
(1) Bullion coins are primarily "collected" by folks like us for a couple of reasons, but from a financial standpoint, it's really all about the silver. Correct?

Not always - some just like complete sets of the coins. Not about making money, but completing a set.

(2) Now, when were talking about getting coins graded, like MS69 or MS70, those coins are really bullion coins that are sent to get graded?

Yes - bullion coins sent in for grading. Most times for profit - to sell the 70's, but not always.

(3) I'm partial to proof coins. Specifically American Silver Eagles. I'd like to get every available proof, but I've got a long way to go. Two major roadblocks that I see for myself is the cost of the coin sets, for example the 2006 three coin set and the 2011 five coin set. What is the best plan of attack to get those coin sets? Coin shows? Dealers? The internet? Depends?

I prefer coin shows and trusted dealers(in person or on the internet). Preferably somewhere you can see the coins first. Always a risk with pictures only.

(4) Does the price of silver really effect the purchase cost of an ASE proof?

Not always. At my local shop when I sold my proofs they bought them for more than spot. If I recall spot was in the 30's and they paid in the 40's. No - I do not know what they were selling them for at any point in time.

Again all are my opinions only and may not be what you encounter. And always good to ask for opinions.

 

PS - when I collected them I had raw proofs, graded business strikes and graded proofs. Both of the graded sets were 69's. I would not pay for a 70. Most came from ebay - but I kept bidding on dates until I won one at the price I was willing to pay. And several came from dealers online that had prices close to what I could get them on ebay. Again just my experience. All have since been sold.

 

Thanks for the response Mark! I suppose part of my "problem" is that for someone new, it's kind of hard to decide just what you want to do. For example, I'm getting the bullion for the kids. That's kind of like an investment, but more like collecting a set of coins (from their birth year) that they can have, that hopefully will be worth at least the silver should they someday decide to sell it (after I'm dead of course!).

Then, I've decided that I personally want to collect something that not only is a collection, but hopefully will be a decent investment. That's why I decided on the Proof ASE's. When I decided that, I really didn't know much about the entire collection that I'd have to buy.

Good advice on how to acquire those sets. I really like the coin dealer that I went to. I don't get the feeling that he's trying to take advantage of me. Seems like he's more interested in educating. I may even ask him to find one of the sets for me and I'll buy it from him. If I tell him what I'm willing to pay, and he can find it, get it, and make a profit that would be good for all of us.

 

Nothing wrong with collecting ASE, AGE, or any of them especially for the kids. And yes - they should hold their value pretty good. What I found on the raw proofs - all bought from the mint as issued, I made a profit over all. A couple of the later dates I think cost me more than they paid, but overall I made a profit. Don't know how much since I never really tracked them. On the graded coins I did okay - I had someone sell those and that cost me 5% off the top. The local shop would only pay bullion prices for them. On the graded coins I probably 5 to 7 percent on total cost. Not bad.

It is really good to have a local dealer you trust and like. My local shop I can go in and ask them anything. They work with me and help me a lot. They will walk me thru how they get a grade on the coin. Now - I do know I have to be careful in some cases and make sure I ask questions. I do know the more I know the better off I am when I walk in the shop. I can better identify the best coins for the price and they will even help there.

Now - not to burst your bubble, but I would not collect for "something that will be a decent investment". I don't know what that would be. The coin collecting market can move up and down. Some coins I bought and sold had lower prices when it came time to sell. And yes these were graded coins. So even if you bought nothing but high grade key date coins - they might not hold their value. Probably will, but there are not any guarantees. Me - I find a set I like and then start working the set. Some of these sets will take me more years to complete than I ever figured. I enjoy finding the coins and it is really nice when you can pick one up on heritage cheaper than anywhere else you can find. Now not always is that true, sometimes ebay, sometimes dealers - I do a lot of comparison shopping. Sometimes the quest is fun and sometimes it is down right frustrating, but always take your time to find the right coin. Again just my opinion.

 

As a YN, getting given an ASE by my Grandfather helped me find out that I really, really liked the looks of US coins... as a Type Collector, I started a US Typeset.

It is very nice gift

 

Great, great info, thanks! Decent investment was a poor choice of words. I suppose I meant that it "shouldn't" decrease much in value over the years. Of course, coins, just like any market are going to fluctuate. Since I'm a new collector, I'm really hoping that the fluctuation is in the downward direction, at least for a little bit anyway! I think the ASE set for me is just perfect. I think my biggest issue is that I tend to want things NOW. I've got to be careful with that. That kind of attitude won't get me the best price. Besides, if I finish that collection, that would mean that I'd have to start a new one.

So far, I'm having a great time in collecting them. I'm still in need of two 2000 ASE bullion's to finish off the collection for the kids. I'm going to fill in the gaps with the proofs that I need, and the sets are going to be a challenge. 2011 is just too much for me, especially when I know that it cost $200 from the Mint. As I get more experienced, I'm sure things will work out just fine.

 

Just a few random thoughts. Most everyone on this forum will tell you that coins are about as good investment as playing the ponies. You should collect what you like. We would like our collection not to go down in value, but appreciation in the financial sense takes second seat to appreciation in the aestetic sense. Now, some stuff. For coins or bullion slugs, there are two kinds, business strikes and proof coins. Proofs are special coins that are struck from specially cleaned blanks on special presses that turn out a coin with a mirror finish with some having either frosted devices or not. These coins were never meant for circulation and many of them have characteristics that distinguish them as proof coins, whether they get stolen and circulated or not. Proof coins are graded with a designation of PR and with a numerical value or nominally from 60 to 70 with the 70 being the mythical ideal coin with perfect strike and no blemishes. The business strikes are just that, coins intended for circulation. These coins are graded with a designation of MS (mint state) of from 1 to 59 for circulated ones and from 60 to 70 for uncirculated ones. In this catagory, ASE's are a kind of anomoly since they were never intended for circulation. However the US mint makes uncirculated ASE's which they sell to collectors. As you have said, some collectors buy huge quantities and have them graded in order to get the MS-69 and MS-70 ones to sell at huge premiums. The US government mint is a good source for the current year, and if they don't make that many, you can end up with a good investment. Check out the US Mint website to see what they have and how much they sell for. Happy Collecting and welcome to CoinTalk.

 

I love the ASE Proofs. I'm in the process of collecting the last 13 years of them in proof. I like them in the OGP.

 

Are any selling lower than the gov sold them? (Obviously not 70's)

 

I think what doug is saying is they may not hold the price from todays market. So you might pay $200 for a 70 and then 5 or 10 years down the road find 70's at $150. The drop from when I was collecting for 70's, and I only collected 69's, was a lot more significant than I mentioned. I know some of the 70's when I was collecting were from $700 to $1000 dollars and now you regularly see them from $150 to $300. So that drop was significant. In this case - since the collector is just starting he will be paying the current premium, not at the original issue price. With silver up there is a premium on the silver eagles, if silver tanks so could that premium. While I don't expect it, it is something the OP needs to keep in mind. Personally if he likes silver eagles - collect a basic date set to hand down to the kinds. I would do PCGS 69's - a basic date set of proofs and business strikes. I would not do the special strikes like reverse proof - unless he really wanted to. Just my humble opinion.