And being at the right place at the right time. Two factors dominate collecting - One – collectors are largely motivated by a profit incentive. Two – the coin market is “trend” driven, influenced by factors inside and outside the coin market. http://www.coinweek.com/opinion/commentary/half-century-coin-market-trends/
The article is right on. Since times of antiquity through the 1800's and part of the 1900's coins were physically used heavily on a daily basis. A $1.00 gold coin was worth $1.00 for whatever one needed to purchase. Today, buying as a collector, I enjoy having something historical that I know was used a long time ago and sometimes wonder what paths the coin took before making it into my collection. I really appreciate it when I can find a coin with age that maybe someone else also found special and just held onto and just maybe put it away somewhere safe. Antique coins were sometimes minted in the thousands and more, but many are just so used that today they are either just plain very badly worn or melted down. The actual number of antique gold or silver coins minted vs the actual number left in good shape for collectors is probably more limited than we really know. Limited supply almost always equals higher value. On the subject of use of coins in today's market, I hardly ever use actual money for anything since the advent of credit cards, so I am sure that is why we are seeing a trend aimed more at collector coins. Actually, if you think about it, people used to only be able to buy locally and regionally and possibly through ads in newspapers. With the internet, availability has just gotten a lot easier so like most other collectibles the high prices paid years ago will be much lower in today's market due to availability. I personally buy what I love without expectations of profit. The days of finding that "great find" and making a ton of money is really gone. What is more scarey is that if you think you found something great, it may just be fake or counterfeit.
What's trending lately? Seems like everything I want to buy (lately) has been trending. Commems are supposed to be on the downalator but I don't see it when I go to buy on Heritage. I make what I think is a reasonable offer (bid) I get outbid every time. I refuse to pay the kind of money these idiots are paying.
You are doing the right thing by figuring out what you feel is a fair price and not raising above it. I have not figured out $100% how Heritage Auctions works. I did purchase recently a Commemorative Bald Eagle on Ebay for far less than what they were trending for at Heritage. I sometimes put the shoe on the other foot and think from the sellers end who also has a commission. Some no reserve auctions may have a silent reserve where the auction house bids up to the reserve to protect the seller. One of the main paperweight auction houses works this way. When I fill out the listing agreement I fill out the minimum that I would be willing to accept. What auction houses hope for is a last minute bidding war where emotion takes over. You did good, another will come along.
I found this a most interesting comment. In sharing your sentiment whenever I hold some of my older coins, I also wonder how they were used and spent.
