How much more are you willing to pay for exceptional coins?

There's obviously no right answer, but I'm curious how other collectors here determine how much of a premium to spend on coins that are high-quality for their assigned grade. That includes coins with strong strikes, attractive toning, or just exceptional eye appeal in general.

Personally, I am usually reluctant to spend more than 20-25% more than the market price for an exceptional coin, which exposes me to less risk of taking a loss if I try to sell the coin later on but also prevents me from acquiring some truly beautiful coins. I'm interested if people here have their own hard and fast limits (up to 50% more than market price, up to 2X market price, etc) or if they make decisions on a case by case basis. Also, what's the highest premium you've ever spent on a coin?

 

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The older I get, the more willing I am to pay for an exceptional coin. I have passed up enough coins that I look back and regret now. I don't buy coins with the intent of ever selling them so as long as I'm happy with the coin, the price is worth it. I allow myself a monthly budget of $50/month so take this thought with a grain of salt.

 

It's a case by case basis. I'm not willing to pay much of a premium just to own a coin, despite how much I like it. I don't plan on selling my coins, but if my heirs decide to, a big premium can vanish like dust in the proverbial wind.

 

It depends on what I want and what the coin in question is.

 

It all depends.. It boils down to personal choice. If you HAVE to have the coin, then it's more likely worth more to you than what current market values are. I just won a really nice looking '37 Buffalo Nickel on eBay that I paid market value on, but my snipe that I set for it was far above market. To me, I HAD to have it. I am very happy to have won it at the price I paid, but was more than willing to pay up to the next grade level on it.

 

I try to be cautious with saying I have to have a particular coin. There are a lot of nice coins out there. If I miss one because the premium gets too much, another one generally cones along.

 

Correction. I paid on the high side of Market for it. But I did pay less than the retail listed on PCGS price guide. It's in an older PCGS holder.

 

Is it in a rattler/doily/black holder?
Does the coin have attractive toning?
Is the coin by any means rare?
Is the coin undergraded?
Is the coin designed by Christian Gobrecht?

All that determines how much I pay.

 

I have bought some coins that just grabbed me and might have paid more than some would, but like I said it grabbed me. I have also early on bought coins because I didn't have that one and thought I'd never see another. I have since realized if it's in my budget there's a lot of them out there and if I miss that one I'll get the next one. I have seen coins posted on here by @robec @gbroke @Lehigh96 etc.etc. that if I could ever find one like some they post I'd pay extra. There are so many beautiful coins on CT that I know went for far more than price guide, but there have been some real beauties that were bargains. I don't really see how anyone could have a hard and fast limit as to what a premium should be when beauty is in the eye of the beholder.

 

All I can say is I'm glad that buyers generally don't consider relative scarcity when buying/bidding, or advising others. I generally don't buy in auction fashion, but place my absolute bid in the final seconds. I don't bid in open consignment auctions where what's considered "Shill Bidding" is allowed for the "House", or the "House" is been known to state/post a grade above that stated by the TPG.

Although I don't personally keep track of what I consider to be "Fair" market bids, EBay currently reports that I'm winning 86% of my auctions.

I believe we all know that fair market price is determined by many variables, as is generally true of most commodities where a monopoly hasn't been "assigned". Although I subscribe to publications, and follow markets, I bid based on projected value and market scarcity, independent of biased reports. I'm a contrarian who has stated on this site a value for an item going into auction of 2-3 times the consensus value stated by majority. My prediction was correct, as have been "extravagant" winning bids relative to published value statements of "experts".

I believe personal education is the best tool for bidding/buying, rather than following advise from possible fools, as us.

JMHO

 

Generally, I will always pay below market/book value, but that's how I roll. I'm not a serious enough collector yet to pay that much, nor do I have unlimited funds to go with my unlimited wants, lol.

That being said, I can see myself paying market/book value if I am getting near to completing a set, and/or I can see the coin appreciating, not that I really plan to sell my coins, unless it's to upgrade or I have duplicates.

 

I buy very few coins. I'm up to 4 this year but that's more than normal. I'm not really looking at the price as much as knowing that someone in the future will want the coin as much as I do.

 

OK a few questions
1 If a coin was raw and very unique variety and you knew it most probably wouldn't straight grade would you buy it?
2 What is more important to you rarities or condition ?
3 Would you be able to accept a detailed coin knowingly just to obtain the variety or key?
4 What would be your cap on such a coin? Or would you just pull the trigger because this opportunity may never come again?

The reason I ask is that on a few occasions I have come across a coin that has been on my hit list as a variety collector . I realize that not all collectors collect varieties , however in just about every series there's a key coin.
To the variety collector some varieties can surpass the cost of a key coin in a series . Now let say the coin in questions above is in the Vf - Xf range of condition but has issues . ... buy or fly?

 

I believe that is how it was previously posted?
Variety, or not. A coin that is more than accessibly superior for it's grade. That's the one! I will pay a high dollar for.

 

Yes on all conditions, under specific circumstances, which will vary dependent upon the type/date/conditions.

I could cite numerous examples, but I'll hypothesize on just one,
let's say a 1911D $10 Indian, XF technical condition, cleaned.

The current listed Grey Sheet value for the above coin is stated as $1100, the price more than quadruples in AU condition. More than 7 times in "Mint State".

I believe it can be readily shown that the "top Tier" TPG currently over-grade cleaned/dipped coins of certain types/dates by multiple grades from technical specifications. I've shown examples in previous threads on this site.

Under specific conditions for that coin, I could see myself paying triple "Grey Sheet" pricing, and sending the coin to one of the "top tier TPG", believed notorious for "selective" grading disparities.

I've numerous "top tier" TPG certified coins that have anomaly conditions with seemingly unusual grades. An expensive example is a 1924D Standing Liberty quarter, graded MS67 by one of the top two "1st tier" TPG, where not one character of the date is complete. The price guide value for the coin is $3500.

JMHO

 

I guess my first question would be: premium over what? If it's an auction situation, you're only going to pay $X if someone else was willing to pay $X-1, and one can argue that's essentially market value.

But, let's not go down that road. Most of my purchases are pretty low dollar. I've paid $75 for a Lincoln cent that catalogs at like $3 before. I've paid $250 for a Morgan that's probably a $50 coin by its grade alone. Within the realm of what I can afford, there's no limit to the premium I'll pay if I want the coin bad enough.

 

It really depends on what coin it is. I think most coin's ones pay for are overpriced anyways by the time they get to us, the collector. Case in point. I went to price some half cents in the same grade I bought mine in, holdered and everything. I was told greysheet for an 1808 half cent VF 35 NGC C-3 was 185 and the shop would probably offer 150.00 I paid over 300 for mine. NGC has the market value at 250.00. Browsing around other places on the net, and there weren't many, the same coin in same grade etc, asking price was over 600.00! So sometimes I think some of these dealers or places just make up a price that sounds good. So for me, I find a price I am comfortable with or willing to pay and stick with that.

 

Most of the coins I buy don't come up for sale in close proximity frequently enough where its really possible to answer this question because the market values aren't really known. It is a guesstimate.

What I can say though is that I'd never pay more than a relatively low premium (similar to some mentioned) for coins where essentially identical coins exist by the dozens, hundreds or even thousands which is exactly what applies to most US coins. I don't find any common coin exceptional, regardless of the quality or eye appeal.

 

Here's an example that I can give. I collect nickels and I bought a proof example very modern very common for the grade and very inexpensive as well. PCGS has it listed at $20 I had already purchased one for PR69DCAM for around $5 probably less but not more it is very common in this grade. That being said I also purchased one for $18 the exact same coin simply because it was toned up and I loved the look of it. Now it's still in my opinion a coin that can be bought for under $5 simply based on the date and condition, but the color makes it unique and that's why I was willing to pay 4x's what I thought it was worth. Now had it been a $100 coin probably not but for one that cheap I want miss $18 too soon.

 

1. Yes, in a heartbeat...and often do.
2. Rarity, but both figure in as I want a coin that falls in the same general range as its mates in the collection.
3. Of course. Otherwise, question 1 wouldn't apply.
4. My price depends on my bank account at that particular point in time. In the past, I have paid 4 to 5 times the so-called "market rate" for a coin that I wanted; at other times I have turned down coins I really wanted at half the going rate because I didn't have the disposable income at the time. (Seldom, admittedly)