Rare coins

I have just started coin collecting again after several years of being busy. I have always collected common type coins. I am now looking at the rare coin market. It seems to be a little more expensive. If one were to start collecting more expensive coins would it be better to have 4 $250 coins or 1 $1000 coin? Just a question as I ponder collecting higher quality items.

 

Log in or Sign up to hide this ad.

An interesting question. I suppose it depends on the reason you're collecting. The approach one takes should depend on whether they're collecting for enjoyment or investment.

Let me start by saying I have a bit of a bias in that I do not recommend people collect coins as an investment. It is very risky, there are a lot of variables involved, and the market moves up and down, just like any other market.

If you are collecting for enjoyment, you typically want the best example possible of the coins you are interested in. Take the Mercury dime series, for example. If you want to collect the key date in this series, the 1916-D, you will run out of $1,000 very quickly; probably before you hit VG. On the other hand, you would have no problem putting together a whole set of Mercury dimes, minus the 1916-D, in VF for under $1,000.

Back to your original question.

I personally would prefer four $250 coins to one $1,000 coin. This offers diversity (always important in investments, see disclaimer above) as well as better options in liquidity should you ever need to sell.

I'm sorry...I tried to give you stuff to think about, but it doesn't really look like I've answered your question. I'm thinking there is no right or wrong answer. It just depends on the individual and his/her goals.

 

i like the old saying of "buy what you like" and "buy the book first then the coin." so with that said if you like the 250 dollar coin buy them. if you like the 1000 dollar coin get it. only you can say where your tastes lie. just remember to always have fun. and buy coins that expand your mind with the research you have done to obtain them.

 

What makes you happy?

The only question I would ask is, "what will make me happy?"
It may take you some time to answer that - start reading Numismatic News and Coin World for a month or two so you can get reacquainted with the hobby then follow what please you most.
I found early on that reading the weekly publications was as important as anything else I did to learn.


Ben Peters

 

Hi welcome to Coin Talk, I agree with what was said, collect what you like and what makes you happy.
Bill

 

Buy what you like. I now try to get a coin in the highest grade I can afford. Welcome to cointalk.

 

I personally would prefer to spend 4 to 5 hundred on 4 $250.00 coins than 6 to 7 hundred for a $1,000.00 coin. Since I buy on Ebay and don't usually pay book, that's what I use for a reference, since the majority of what I buy are lesser valued coins (condition usually) and the better quality ones go too high, so I stick with the better deals. However, if I can get a $1,000.00 coin for 4 hundred, oh yeah!

Ribbit

 

WELCOME TO THE FORUM.
As to what you mentioned. For one thing my suggestion is to again stop collecting coins. If you start again there will be that many less for me out there you know.:smile AND keep away from Mercury Dimes. I need more.
As you have already read it is so much up to you. And what your future plans are. How much money you want to spend. Just lots of things to consider.
One thing I do suggest is to consider liquidity. By that I mean if you plan on eventually selling what you have, you may want to investigate even now which coins are the easiest to sell off. For example a Jefferson Nickel may have your eye appeal but reselling them may present a problem due to not a real lot of collectors. Not to knock that specific coin but just not a real popular coin. Now if your go for Lincoln Cents you would always be able to sell those anywhere. Just examples though and may not even apply next year. This hobby is sure complicated you know.

 

Buying coins as an investment I would spread my money aound some rather than just buying one. Remember the old saying about investing to not put all your eggs in one basket. If I was buying as a collector to form a set of something I would think about where I think the coinmarket is going from here. Key(s) coins can cost as much as four or five non-key. If you think the market is headed down maybe get the more commons now and the key(s) later. If you think the opposite is going to happen maybe do the opposite. You have already been given some very good advice that coins as an investment only can be very risky. So I would also advise to not buy a coin you don't like because it may be part of your collection longer than you expected.

 

What a blast to find this forum. Some very good advice and much to think about. Thanks for the input. I must go and figure out what coins float my boat. Thanks

 

It would be better to have one $250 coin that is worth $250 than one $1,000 coin that is worth $250. When you move up to those prices, it takes a lot of study first to ensure that you don't pay to much because of a cleaning or other flaw that is all but undetectable when you start collecting.

 

Don't forget that what makes you happy now may not make you happy later after you learn the mistakes you made by not knowing enough about what you bought beforehand (overpaid, overgraded, cleaned, hidden flaws later revealed, etc). You want to reduce your tuition costs as much as possible. We all pay them, but some less than others. Listen to Doug (GDJMSP)!

I always buy the best that I can afford - quality over quantity is my objective.

 

I'm not a fan of CAC, but Doug Winter is on point about buying quality:

In this market, it pays to be a fussy buyer. If I were a collector of New Orleans half eagles, I would personally rather have a choice, original AU53 than a not-so-choice and not-so-original AU58. Even though the holder says that one of the coins is five points “better” than the other, my eyes told me that the lower grade coin was aesthetically superior.

My buying guidelines have always been that I want a coin that is in the top 5-10% for the grade with choice, original surfaces, nice color and good eye appeal. I want the sort of coin that will get a sticker when I send it to CAC. In the new coin market of 2009, I am repeating this to myself every time I look at a coin (be it at auction, in another dealer’s inventory or when a collection is sent to me by a specialist-collector). I’m being ultra-careful not to slacken on my quality standards and neither should you.

http://www.coinlink.com/News/general-collecting/the-new-rules-coin-buying-in-2009/

 

Mr. Zip,

Everyone has given you some really good advice and opinions on how to get restarted back into coin collecting, so my advice and opinion probably won't help much but I will give it a go!

After much research, you must decide what Types, Series and Denominations of Coin Collections that you are going to put together. Prices must be considered as some Types or Series have much higher starting prices with prices through the roof for the high grade specimens. The next consideration would be the Grades of the coins that you want in your' Collection(s). The grades of coins in a collection bear much significance on the resell of the coins as a complete Collection and having identically graded and identical or similar eye appeal is a plus, plus, plus!

I think that is I had the money, I would set everything else that I have aside and begin putting together fairly high grade Type Sets! These really seem to be hot commodities in most big Coin Auction environments!


Frank

 

This is great advice. If you skimp and get the MS-64, after you own it for a year and get used to it, you'll probably be mad at yourself for not spending the extra bucks to get a 65 or 66. If within reason. Of course you can always sell and upgrade but it's an added hassle.

 

when i decided to collect Wartime silver nickels the very first thing i did was look at several coins from the various grades to see what i liked then compared my taste to my wallet. from there, i settled on a grade and started my search having a grade and look in mind.

this approach requires me to look at a large number of coins for ones that will compliment the others in the collection. this is excellent practice to hone grading skills and to get a sense of what is common in the market for a given type. if finding a coin in MS66 is proving difficult, it might be understandable that a single grade difference commands a big jump in cost.

hope this helps.