Morgan Question cocnenring best grade to collect and First Post

Hi, name is David and I'm in Southern CA. Just wanted to ask a few questions after doing some reading and websearching.

The first question I have is about grade of coin. I've read on more than one website that the best grade to collect is MS65. My personal dilemma is that I actually find many XF45s to be more pleasing to my eye (in pictures) in terms of character....been around the block so to speak, rather than a MS65 that's been entombed from its original discovery. I also have found a few AU55s on EBay that certainly I'd like to have because of the same eye pleasing quality to me. So, the question to the board is: Is it true that most collectors believe that anything lower than an AU rating is nothing but scrap?

Would I be wasting my money invesing in a series of XF45s? On the other hand, if MS65s are so expensive in certain years, is there really a market to sell them if times get tough (I mean to sell and not loose money in what you paid for them)? I see plenty of high end MS65s on EBay that appear to be within the suggested price range of lets say Numismaster's price guide . . . but no offers. Most offers on Ebay appear to be for those coins that have low start bid price. Does this mean that the 'average' person would rather buy the low or mid grade coins because buying MS60s is just too expensive and might appear too risky because of price?

The other thing I've noticed while surfing the web is that there are some folks that believe certain coins should be collected over others. For instance, a few sites recommend choosing from the Top 5 Benefit Factor rated coins. One site defined these coins as 1895, 1892CC, 1894, 1878CC 1883CC as the best coins that have the chance for price appreciation in the future. Without knowing how old the site was, I then shifted my attention to another site that had the top 5 coins as 1889CC, 1892CC, 1893, 1893S, and 1895O. It seems that benefit factor values change so that the top 5 choices change every so often. The only thing that remained consistant was that the CC marked coins had more potential increase in value as they supposedly appeared more often in the top20. So, I could just focus on a certain grade (MS65 or XF45 or AU55, etc) and limit attention to just coins that are considered more desireable in terms of possible appreciation. But is this just silly?

One website suggested that there's value in coins that haven't seen appreciation or given much attention. The list given were the following coins: 1879S R78, 1892, 1897S, 1899S and 1902S in MS63-MS65. This means to me that there could be another matrix to use to determine whether one coin could have more potential than just using Benefit Factor.

So this leads me to wonder whether collecting a series of coins in one grade is good approach considering one really doesn't know which coins will appreciate at what rate, except by using past information. The Grade at which one selects could be crucial. Like I pointed out, the MS65 might actually be the best to collect but in terms of selling, maybe there's only a handful of folks out there that really willing and able to purchase when one needs to sell. On the other hand, lower graded coins do appreciate....but do AU or XF coins appreciate at the same rate as MS65? Certainly, lower graded coins are more affordable and therefore more easily sold I would assume. But are they a good 'investment'?

 

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Welcome to the neighborhood, David!

There are many collectors who feel as you and would prefer to collect coins that have actually circulated. The great thing about this hobby is that you can set up your collection any way you want. Don't let a dealer try to talk you into buying higher grades (just so he can make a better sale) if that isn't what you want.

If you're interested in Morgan dollars, you might want to consider getting a copy of Q. David Bowers' Red Book of Morgan Silver Dollars. You would note that an "Optimal Collecting Grade" is specified for each date/mm, but you should know that this is suggested with availability and affordability in mind. It is not a hard and fast rule.

As you continue to learn, you'll find that key dates and semi-key dates for most any series will be very expensive, sometimes, even for circulated specimens. For the average collector with limited funds, this is not the best approach. There are thousands of coins in common dates or just slightly scarce that can give you much more bang for your buck.

The main thing is that you should have fun and since this is a hobby, first and foremost, if you're considering it as an investment, you'd be better off buying real estate.

Chris

 

Collect what you like, not what someone says you should collect. Hobby's are for personal enjoyment and everyone finds beauty in what they collect. If XF coins are your thing then dive into it with all your heart and enjoy it. Forget about the investment side of collecting, no great collections were ever put together with the idea of what they would be worth in the future. Great collections were put together by a true passion for the object of their collection. And you'll know your collection is a good one and that you made the right choices if it makes you happy!

 

Welcome to the forums.

If you really must satisfy the urge to buy something, I would suggest that you stick to coins that you can get at or near spot silver price until you get your feet under you collecting-wise, so to speak.

Once you have some skill/experience with grading (and the coin game), you can wade into nicer/more expensive coins, and getting out of your old collection will not be too difficult as long as you stick to the "near spot" price point. Look at as many coins as you can in-hand, read this forum (and PCGS) religiously including older posts (which are a treasure trove of info), don't be afraid to ask questions, and post your first few purchases here BEFORE you buy them for the more experienced collectors to weigh in. Lastly, try and find a mentor.

Or you could do as most collectors should (and rarely do), which is study really hard for a year or more before buying something -- but that's boring!

Again, welcome!