Liquidity question from a beginner

Discussion in 'Coin Chat' started by Farmergolf, Oct 27, 2018.

  1. tommyc03

    tommyc03 Senior Member

    All good advice above. But not all is hopeless as far as profits are concerned. A lot depends upon your time frame. I started collecting in 1966 so I can say that I would likely see a profit on many of my better coins when the time comes. I also started collecting comics the same year. Paying only cover price through the 90's I am going to realize a nice profit having held them for so long. Many of them languished for many years as far as desirability but waiting this long many became sleepers and exploded in price for various reasons. But I'm talking a 50+ year waiting period. Barber halves and quarters have mostly seen some nice increases over the years. And a "sleeper" I would suggest is the Seated Liberty Dime series which has been overlooked for far too long. I'll stay away from P.M.s except to say...watch the market on a regular basis and check Kitco to do so. But do not attempt to "play" the market. Very few have succeeded.
     
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  3. JCro57

    JCro57 Making Errors Great Again

    Well stated
     
  4. BooksB4Coins

    BooksB4Coins Newbieus Sempiterna

    Fair points, Jeff, but if there was a simple one-size-fits-all answer everyone would be doing it. My greater hoped-for point was mostly that one can essentially hedge their bets by learning and thinking outside the box than by assuming or taking a one-size approach even if there are no guarantees.

    To try to address the stated concerns:

    -An honest and knowledgeable dealer, should one take this route, should be able to recognize a truly special example, but the question is if they'll pay up for it. If honest and they've a fair market it, there's no reason not to for a coin capable of selling itself at strong money to the right buyer. Of course not all dealers are this way, but still when one searches out added value, especially if they didn't have to pay up for it, this puts them in a better position than simply buying a potentially maxed out label. This holds true regardless of what the assigned grade may be, and if one is willing to go out of their way to maximize potential, the same should hold true for selling.

    -If one cannot afford to wait a reasonable time for the right buyer, they probably shouldn't be in the market for such coins to begin with. I understand and respect the fact there are exceptions, but this takes us back to the aforementioned.

    -When it comes to inherited coins, all bets are off no matter what it is. Someone approaching the situation wisely will do so regardless just as someone wanting instant money will often just take what they can get. Paying more for a coin at the time of purchase in no way guarantees one will recoup a greater percentage of that price at the time of sale.
     
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  5. TheFinn

    TheFinn Well-Known Member

    If you like metals, and want something older, $20 Gold St Gaudens and Liberties in AU to MS63 are a great buy. Not much above melt value, they are beautiful and big!
     
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  6. Farmergolf

    Farmergolf Member

    Thank you Finn! I will look into that I like the idea of collectability and being close to melt value
     
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  7. calcol

    calcol Supporter! Supporter

    Based on the initial post, liquidity, not profit/loss, was the question. The most liquid coins are in NGC or PCGS holders. These coins can always be sold quickly. If they are relatively high grade for the issue, the major auction houses will always take them on consignment. The expected selling price now and in the past can obtained from NGC or PCGS auction prices realized.

    Based on the OP's initial purchase (1883CC Morgan in MS66 ... hopefully in a NGC or PCGS holder), he or she already has a taste and the means for relatively rare, high grade coins. As far as liquidity goes, the OP is already on the right path. I advise, like others have, to read, surf the net, study, and go slow with purchases at first.

    As far as making a profit (more realistically, minimizing loss) goes, that's a whole different topic.

    Cal
     
  8. Farmergolf

    Farmergolf Member

    Thanks Cal. Yes I know profit will be hard to come by and I do plan on holding for time and keep adding higher graded coins My purchase is in a PCGS holder. I paid $675. I am sure that is not a great deal but I think it is a fair price Thanks again everyone taking time to help me out
     
  9. calcol

    calcol Supporter! Supporter

    Try to go to some of the major shows if possible. For US coins, these would be Long Beach, CSNS, ANA, FUN, and Baltimore. Most of these are held more than once per year. You can a learn a lot from the educational sessions, but early-on, you'll learn more chatting with other collectors and dealers. These shows have a least one major auction house conducting an auction. The coins will be available for viewing in a room separate from the auction room. It's a great opportunity to see hundreds of graded coins. If there is a club near you, try to attend meetings.

    Cal
     
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  10. NYandW

    NYandW Makes Cents!

    Great thread, thank you. I trust Farmergolf will heed the sage advice here. Welcome.
     
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  11. COCollector

    COCollector Well-Known Member

    Generally, 19th century and early 20th century U.S. silver coins are liquid -- especially high-grade coins with eye appeal.

    That covers a lot of coin types. Buy what YOU like.

    And whatever coin types you choose, consider the "Box of 20" collecting method.
     
    Taurus57 likes this.
  12. GDJMSP

    GDJMSP Numismatist Moderator

    No, coins aren't more stable. In fact their prices and values change on a daily basis. And with the higher dollar coins prices can drop as much as 50% in just a month or two. When the current bear market began, some coins that had just been purchased at $150,000 were sold 2 months later at less than $75,000. That's not exactly what you'd call stability.

    On the other side of the coin, take a very common and inexpensive coin like the Kennedy half dollar. When the previous bull market began, in just 3 years their prices increased 300%. That's not exactly stability either.

    Granted those are just a couple of examples, but they make the point - there is no stability in the coin market, none ! Never has been and never will be.

    Now of you want to see it in pictures, try this link -
    https://www.pcgs.com/prices/frame.aspx?type=coinindex&filename=index

    Play around with it, explore. Use the links below on that page, where it says Market Segment Indexes, to see the various segments of the coin market, and over various time periods and you'll see what I mean. As an example, this is a graph of the coin market as a whole over the last 10 years.

    [​IMG]


    It doesn't exactly instill confidence does it. This is the same graph since 1970.

    [​IMG]


    See that big peak in '89, people who bought coins during that rise and fall are still losing money 30 years later. Kinda like the folks who bought coins during the last bull market which began in 2001 and fell off a cliff in 2008. The current coin market, as a whole,, today is at the same level it was in 2003. Again, no stability there.

    Buy and collect coins because you like them, not because you think you might be able to make money.
     
  13. eddiespin

    eddiespin Fast Eddie

    Mercury is already liquid if you can find coins made of it. I know, I know, cheap shot. Here's a tip in return for it. If you're thinking about liquidity, you're starting off on the wrong foot. Approach this hobby like a hobby, not an investment.
     
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  14. ewomack

    ewomack 魚の下着

    If you're looking to increase your investment by purchasing coins, just turn and run away right now. Coins are collectors' items and so completely dependent upon collector and market variations and preferences, not unlike the unpredictability of antiques and other collectibles. They do have the advantage of (usually) being worth at least their melt value, but selling a coin for melt is typically not a gratifying experience (unless melt happened to increase exponentially, which happens once in a great while).

    Given this advice, you may wonder why any of us on this forum even purchase coins. Sometimes I really don't know. I have severely limited my buying recently because, honestly, I'm not sure that I see the value anymore. But that's just me.

    Perhaps the best thing to do would be to purchase a coin, not one that's too expensive but also not too common, and try to sell it for more than you paid for it. This will likely result in a sobering experience.
     
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  15. -jeffB

    -jeffB Greshams LEO Supporter

    I've seen more than one person here recommend that all collectors occasionally sell some stuff, just to calibrate their expectations about value. You don't have to become a flipper; just make sure you understand the relationship between what you're paying and what you (or your heirs) can expect to get when you sell.

    You'll also gain important info about the dealers you negotiate with. I've been going to our local shows for years now. There are one or two dealers I'll go to first with most things I want to sell, because they're consistently honest and fair. There are a couple of dealers that... well, let's just say I won't go to them first.
     
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  16. GDJMSP

    GDJMSP Numismatist Moderator

    That's the best way there is to learn about the coin market ;)
     
  17. John Johnson

    John Johnson Well-Known Member

    I think just about everyone is telling you yes, higher grades are generally easier to sell, and that is true, but there is another thing you could think about if your budget doesn't allow for high dollars coins. At the nearest coin shop to me the dealer will not always buy raw coins, in any grade, but he loves government packaged mint sets because he can sell them very fast, so he will always buy them at a very good price. If you're just starting out those mint sets, especially the silver sets, are not a bad way to go.

    I've been giving my nieces and nephews silver mint sets for Christmas every year for about 20 years. I know that if they like them, they will keep them, and if they don't it will be easy for them to turn the coins into cash.
     
  18. Farmergolf

    Farmergolf Member

    Thanks for all the great responses .I was not looking for a investment but thought might be more stable, seems that isn't the case. I have decided to start to collect mercury dimes. Why? Well few years ago my grandfather gave me a ton(prob well over 1000)of mercury dimes he saved for silver value only. I figure instead of just sitting in my safe I can put together a book of them with my kids and have fun and enjoy them instead of just sitting in safe . Most are well worn but sure when I go through them can find decent ones to start with . He told me when he gave them to me that 1916-d is worth money but don't bother looking as I checked them all before I put them in the jar! Sure do miss that guy :(
     
  19. longshot

    longshot Enthusiast Supporter

    Getting a book, or 2 or 3, sounds like a good idea! There are other better dates, the 21 & 21D come to mind, also the 31D & S. Also a couple of overdates.
     
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  20. -jeffB

    -jeffB Greshams LEO Supporter

    In particular, set aside all the 1942-D dimes for a careful check. The 1942/1 Philly dime is hard to miss, but the 1942/1-D is more subtle. Even if your grandfather was searching for The Big Rare Date, he might have overlooked the 1942/1-D.

    I'll see if I can find the thread from the guy who bought a $30 eBay three-coin lot, 1942-P/D/S uncirculated, because he was pretty sure the D was the overdate. Turned out he was right, and it graded high enough to be a $20K+ coin.
     
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  21. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    That's a thread I would like to see too. Love it when the little guy wins every now and again!
     
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