go for the keys

here is a nice article that i beleive serious people should read

http://www.coinnews.tv/Going-for-the-Keys.htm


here are my thoughts. buy the keys first if you cant afford tobuy the keys first dont get into the make believe world that you will finish your collection

 

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I know that this article presents a popular opinion about key date coins, but I am going to have to dissent. My reason is very simple. The key dates of any series by nature have much less availability in the marketplace. You can't just go out and buy one whenever you want, you have to wait for them to hit the market.

Since the key date coin will be the cornerstone of your collection, the most important numismatic piece, and the most expensive, it is absolutely essential that you purchase a key date coin that possesses the quality and eye appeal that will make you happy and proud to own that coin. Simply buying the first available that hits the market in the grade that you want is IMO, a huge mistake.

Of all of the coins in your collection, the one you don't want to regret buying is the key date. Take the 1916-D Mercury Dime for example. This coin is extremely expensive in every grade and I have seen some absolutely butt ugly 1916-D's over the years. I would rather not own the key date than settle for the ugly duckling.

From my own personal collection, you can see that I follow my own advice. The key date to the Jefferson War Nickel set is the 1943/2-P with the 1945-P as a distant 2nd semi key. I presently own every Jefferson War Nickel in MS67 with the exception of the 1943/2-P. There have been at least 25 auctioned by Heritage while I have been building my set, but not one of them has met my standards for my collection. I want an MS66+ with either vibrant luster and monochromatic toning or a rainbow toned example. If I have to wait 5 years for the right one to come along, so be it, I will wait.

Just my two cents on the subject.

BTW, the guy who wrote that needs to learn how to properly use papagraphs. It was absolutely painful to make it all the way to the end.

 

You make a good point Paul.

I have advocated buying the keys first as well, but only after your education and tuition coins have been purchased.

This is simple economics because the keys rise faster and higher in an up market, the longer you wait, the more expensive they get. This is however assuming they are available, and thats where your thoughts come in.

TRUE key dates are not always available.

 

i agree completely. Sometimes finding the key at that moment is just not feasible. Will I halt all barber dime buying until I get my uber elusive 1897 O, absolutely not, there are other coins I need in that set, and until I find the right coin, I will focus on the others, all the while knowing I need to be on the lookout for an 1897 O somewhere between VG and F

 

I think the best way to obtain the key date is to create a key date fund. In essence, have the money available to buy the key date and put it aside. If that means you can't buy any other coins of the series for a few months than that is your sacrifice. If you do this, when the key date hits the market and grabs your eye, you will have the funds available to purchase the coin. If you don't have the money available, you will have to let the coin pass you by. If you never put the money aside, you will always have to let the coin pass you buy, and you will never obtain you key date coin.

Trust me, if a 1943/2-P Jefferson Nickel in MS68 hits the market next week, I have the money set aside already to obtain that coin.

 

there is also more to collecting than filling holes. Hole filling is best left for other activities.

Ruben

 

Can we ever just enjoy this hobby?

Ruben

 

Funniest comment ever written on Cointalk right there folks.

 

when we can buy great slw for $50 have u started looking yet?

 

That's a really deep subject.

Over my years at collecting, I thought it best to buy the keys first.
This changed over time to just not waiting till the very end.
The times I did wait, I felt rushed to finish the set.
The keys need to be something to be proud of in my opinion.

 

Lol love it BOOOIIIINNNNNGGGG

 

I have chosen to be a type collector, not a series collector. Thus I have the freedom to ignore the "key date" obsession. I understand the inherent value in collecting low mintages, but I really don't want to exhaust my money on a low quality 16-D merc when I can feel the joy of buying/owning a gem merc plus some other gem type where I can appreciate all their beauty.

 

Send me $50 bucks Geraldene, in gold and we will start searching

 

That too is my concern. It always appears where some individual with way to much money blurts out that we should all run out and buy the most expensive of everything. I guess if your really wealthy, don't care about a hobby, only interested in bragging about my stuff is better than your stuff, then naturally go for the most expensive coins too.
Me! I like collecting coins. I really don't care what they are worth. To me it's a hobby.
I like cars too but I'm not about to do like Jay Leno and collect millions of dollars worth of cars.

 

GD you forgot to take him to the hospital again and while you are going there Ruben dont forget to nominate

 

Yeah - if anything I avoid Key dates. Coins are Beautiful and not accounting objects. I try to buy beautiful coins, and that is expensive enough sometimes.

Ruben

 

I think that most average collectors do not worry about key coins as we cannot afford to put that amt of money out for a coin,especially in todays economy. Key coins are overrated IMHO.

 

I don't agree

I wouldn't say the keys are over-rated. They aren't making anymore. If it's a low mintage and many have been lost, worn or beat up, that leaves a very small pool of 'nice' ones available when there's high demand. Naturally, the supply and demand factor kicks in and makes them worth whatever people are willing to pay to get one.

The 1916-D Merc is an obvious key and is not over rated. Of the 264k minted, how many could we say their whereabouts are known or left in existence? Very few people would even know it was valuable if they were to find one. Say we know of 50%. Maybe that's way high. What percentage of those actually have good eye appeal and stand above the rest? Now the number really gets down there. The Merc. dime set is otherwise a relatively cheap set to assemble, which probably makes it pretty popular with collectors.

If somebody would have held a bag to catch all the 1916-Ds falling off the presses as they were made and sold them to hobbyists, there still might not be enough to meet demand. Therefore, if somebody wants one, you better want it bad and you will pay. The current prices of them would indicate to me that there are far fewer in existence than one would guess.

That being said, I would never pay 4k to get one. I'd rather buy a G-VG and have money left over for other stuff. But there must be enough people willing to, to keep higher grade ones at that price and more.


Back on topic........... I don't agree with buying the keys right off the bat. Maybe it depends on how much you have available to spend on coins. I also have noticed that my interests change over time. I would hate to buy the key and lose interest in the set.

I think better advise would be to start the set you think you can afford while still enjoying the rest of the hobby. There's type coins on my list. It would not be enjoyable to me to spend an entire year focusing on just one set. Or buying the key and focusing on that set.

If it's a set within your means, and you anticipate living for several more decades, you will eventually finish it if you want to. If all I had was the key date left to buy, that would actually give me MORE incentive to want to get it than buying it first. To each his own I guess.

 

I understand the buying the keys thing, but am still young and hope my income will go up sooner or later. For now, I'm happy just buying coins/paper I like and can afford. I also understand waiting for a good example, not just the first key you see when you have the money. Just passed on the key of the Icelandinc coins with a mintage of only 300. It went for $250ish, XF/AU, but with problems/white spots. I let it pass (on avice from another member) but wonder if/when another will appear. That is part of the fun. The dream/struggle/victory. Without the struggle, the victory is not as great for me. Be kinda boring for me to just go out and buy my way through a set.

 

Your on the right track there. At coin shows I've seen completed sets for sale of all types of coins. I really don't understand why anyone would just buy the entire set all at one time but they do. Why not just send someone out for that instead of even going to look?