You look at a coin on Heritage Auctions and see that the five most recent auctions of the same grade have previously sold for anywhere between $300 and $900. That's quite a range in prices, at least for someone fairly new to collecting like me. I understand that it's an auction and prices can vary, but how much of a difference does your examination of the photo make in your decision to bid up the price? Or do you think most of the variance in price is just the number and competitiveness of the bidders? Also, if you see just the slightest bit of what looks like toning in the photo of a coin, can it really impact the price of a coin like the one above by as much as hundreds of dollars?
the photo may be giving away a variety or error that someone sees,or they feel it should be graded higher.,and really wants,thats how prices can range
Rare die varieties and toning can have a large impact on prices. However, it is important to understand that all coins at a given grade aren't equal. Grading takes place on a continuum, not at discrete points. A nice MS65 might be worth double the price of a marginal MS65. Heritage allows people to inspect coins in person for many of their auctions. If a MS65 coin is considered to have a decent shot at MS66, it might go for a lot more money than the average MS65, which will often go for a lot more than a marginal coin.
Right after I posted my questions I saw a PF68 Franklin cameo on Heritage that had previously sold for $460 in one auction and $4,600 in another. Your anwers help explain why there can be such a big swing, but it's an interesting challenge for someone trying to learn and build a collection how to figure out what a coin is really worth. I guess that's the difference between buying as an investment and buying as a passion. I'm probably somewhere in between.
All coins should be evaluated individually, regardless of what a price guide might suggest. Also, it can be quite dangerous to bid in Heritage auctions, or any other auctions, without seeing the coin in-hand or having it examined by a knowledgeable, trusted person first.
There are also differences between grading companies, some are stricter than others. Because of pops and registry, supply and demand, can generate huge price differences for coins with the same grade, but in different company's holders. For novice collectors, I strongly suggest buying coins at the lower grades at lower prices until the collector has a much better handle on grading and pricing. For the average collector it may take a year to learn the basics of grading and five years or more to learn the finer points of high grade mint state grading. The time needed tends to be longer if the collector only shops online (vs. seeing coins in person).
I'd say for coins under $5,000 or so it makes a difference. But on coins worth around $5,000 and up, it's of less importance because I'd imagine most of the bidders on those coins are either viewing them in person and/or having a representative view the coin in hand on their behalf prior to bidding.
For the record, I'm mainly trying to buy the highest grade possible of modern coins, which are more affordable and help me avoid making mistakes. Mainly in the $25-75 range. But I'm starting to look harder at the next tiers up. I can't attend auctions far away, so I'm left with either buying them direct at a coin show or dealer, or buying them online.
The first step Scott is to look at the pictures of all the coins with the different prices. On many, you'll see the reason. On others you won't.
I'm confused. For modern coins (post 1964) the top pops (highest graded coins available) often cost hundreds or even thousands of dollars. I guess if you limit the price paid to $75, you can't get hurt that bad, but that kind of money won't get you near the top quality coins. Some modern collectors prefer raw coins hand picked from mint sets and/or proof sets. They are usually less money than graded coins, and often times the quality isn't all that different from the $25 slabbed coin level (especially after adding buyer's fees and shipping). Collect what you like and enjoy the hobby.
RedTiger, I shouldn't have used the word modern. I probably should have said "recent". For whatever reason, I like U.S. halves. So I'm buying PF70 Kennedy ultra cameos from over the last 15 years or so and plan to put them away for a long time. I've also bought some lower graded Franklins. I'm actually more interested in building a collection of Franklins than anything else. As I learn more, I'll start buying older dates for the Kennedys, earlier than the mid-90s, when the prices start getting into the hundreds, if I can afford them. Then buy better Franklins. I've ready many times you should buy the best quality coins that you can afford. But then I also read, like your prevous post, that you should buy lower grades at lower prices in order to diversify and avoid getting burned.
