Would you sell a coin at a loss or hold on to it in the hopes of someday making a profit? Let's say in 1964 you bought a UNC 1950-D Jefferson Nickel for $25. You now want to sell it but the prices for the example are in the $50 range while your $25 buy price is now nearly $200. So, if you sell at today's price you lose $175 but if you hold out there's little likelihood of the price advancing beyond inflation. This is an extreme example and the only sensible thing to do is to dump it, take the loss and move on. There are however many other examples not so clear cut so the question remains, sell at a loss just to clear inventory, or hold out for possible future recovery. This also applies to the PM market. You may have bought silver at $30-40 per ounce in 1980 and you'll never recover that "investment". Not all coins advance, and even those that do don't always go beyond inflation rates, so $100 spent ten years ago is $121 today. So. what to do? rates from http://www.usinflationcalculator.com/
That completely depends on what I'm trying for and how long I have to get it. If I'm in financial straits, I'd probably take a loss. If I found a coin that I just have to have but can't afford and don't want to miss out, I'd probably take a loss. If I don't have any reason to sell the coin, I wouldn't sell it (that's usually my go-to since I hate selling my coins!)
I agree with the answers so far. Another thought, does the coin still have some sort of appeal to you? If so (and there are no financial difficulties), then I see no reason to sell. On the other hand, if every time you look at the coin all you see is a loss or there is no value of keeping the coin, then go ahead and sell (and pick up something you would enjoy more).
I think it's a two way street - sometimes I sell for a profit, some I sell at a loss. Some buyers may think they've got a deal. Overall, I may be breaking even. That said - I've bought a fair number of coins at a bargain. Selling some at a loss may let to good karma. That said, it really depends on one's financial situation. If I really need the money, I have to bite the bullet and get what I can.
For me I would have to consider why I bought the nickel in the first place. I would not have bought it hoping to make money on it but to collect it so I wouldn't sell.
I don't think people that sell coins for profit speculate on the value increasing. They simply buy it for less than they can sell it. If it was a coin I bought because I wanted it, especially if it was money I was given as a gift, I wouldn't sell it.
In 1964 I was 10, the only Jefferson nickel I needed to complete my album was a 50 D. They were like hens teeth, seldom did anyone find one in change. If you did the condition was F- XF. Next remember most YN'S as well as collectors in general searched their pocket change for coins needed for their Whitman albums. Also note in 1964 one would spend silver coins as well as buffalo,and silver war nickels daily just like you spend your pocket change today Next remember grading was simple G,F, VF,XF, BU, UNC. No MS grades at that time. At the LCS a UNC 50 D Jefferson would cost if they had one around $35 in UNC. Condition, around $265. In today money buying power. Unless graded in a slab in MS-64 &FS, a raw UNC. 50 D in today's money are around $15.00. As the 1950 D nickels were a low mintage and hoarded in rolls this is a bad example to use in this scenario as after the market flooded with unc. rolls the price of this early key coin dropped. Plus you cannot count on inflation as a factor in this scenario , as other factors discount that,such as nickels flooding the market making them less rare. If you buy and collect KEY ,high grades coins yes you could use them in this scenario . But for the most part the collector in this hobby is in a win ,loose or draw scenario. I would think that over 90% of the collectors here plan to pass on their collections,or have an exit plan in case of their passing. Yes you can make a profit in coins,but like PM's,stocks and other negotiable items you better know what to buy,when to buy, and when to sell. And the true test in buying or selling anything is what another is willing to pay ! Case in point how many people are under water in their homes in this country? How many people took a 40-60% loss on paper in their 401 K 's and IRA's? Profit and loss all depends on what the market will bear!
You win some, you lose some. Hopefully you average out higher than lower though. Average net cost<Total purchase price.
Why did you buy this coin or any coin for that matter. Did it appeal to you? Did you need it to build, add to, or complete a collection? Profit? Not all coins increase in value. Supply and demand rules. While this is a key date it was also heavily horded. You must determine why you bought the coin and why you want to sell it. Is having the extra money enough for your needs? Is it worth selling at today's prices?
They were indeed horded, one of the Hunt Bro's bought half the production right out of the banks. I was selling Unc.'s at that time for $50 a pop, ('39 D's for $35,) and then they dumped. I don't know what the Hunts sold for, but for a 5 cent investment, it was a killing. Those Hunt boys sure knew how to make a buck.
Collectibles in general are way down. I had some Hummels for instance that I sold at a true auction on ebay and I was only able to get maybe on average $50 for pieces that I paid well over $200 for even though they had the original box and paperwork. I ended up selling these since they were all in storage and not even being displayed. I ended up selling over $8000.00 in collectibles all $200 and under and even gave away some, which gave me the money to buy some coins that give me just so much more pleasure. Did I lose money? Absolutely, but I am happier with what I currently have. What I collected in my 20's and 30's is way different from what I collect now since my tastes have changed. I was always told to collect what you love, that way you will always be happy. I agree with the others above, sell what you no longer love and buy what makes you smile. Life is too short.
Everything you have in life - possessions, relationships, jobs, etc., could either be an ASSET or an ASS. If it's an ASSET - it means that it is worth at least what you paid for it, or more (or what you put in it - including a job, a relationship, etc.). An ASS is something that lost its value, regardless of the reason it lost its value, such as depreciation, market changes, an overbearing job/spouse that requires more of you than what you can bear or more than what you can "get out of it" - when anything turns from an ASSET and becomes an ASS, it is time to get rid of it and find something else that has the potential to become an ASSET again. So, if you bought a coin for $100 and now it's only valued at $80, and it sits in your inventory, you can either continue to try and sell it for $110 and make a profit (although the chances of this are minimal), try and sell it at your cost of $100 (again, too high for the market to bear) or just sell it for the $80 it's worth today, take the $80 and buy another coin that you CAN sell for $100, sell that $100 coin and buy another coin that could sell for $120, and by then you have already recovered the loss on that first coin, and now you're turning inventory, your customers see new and fresh material that is priced according to the market, and your business will grow and blossom. Same for an ASS job or spouse - stop being miserable! Make the change, and find something/someone else that will make you happy, fulfilled and then, happy people make happy decisions and move on happily! So, anything and everything in your life needs to be assessed - is it an ASSET or an ASS? ASSETS need to be kept. ASSES simply stink, and therefore need to be gotten rid of. Makes sense?
The reason I brought this up is that I have been to shows where dealers have several coins in holders that you can tell are old. They're well handled, dirty, and don't look anything like their newer offerings. Granted, they may have obtained them from someone else in that condition but I'm confident they're old inventory. Yet they refuse to bargain on the current retail price for those, while they will bargain on newer inventory. This tells me they're trying to recoup their investment rather than accept a loss. Does this make sense? Every day they don't sell is more money lost, regardless of profiting or not.
NO, David, it is not logical and does not make any sense. nevertheless, I have seen and worked with many people, old and young (mostly old) that are stuck in their ways and do not have an open mind and open thinking, like I demonstrated above. What can I say? You can't fix stupid!!!
Are you a collector or a dealer? Because whether you will sell for profit or loss wholly depends on that designation. I'm a collector and I quit selling coins altogether. When I was somewhat inexperienced, I tried to grow my collection by buying large lots, taking the ones I wanted, and selling the rest. I was trying to break even while growing my collection, but I found it didn't quite work out, especially when I started selling on eBay and their sellers fees went up. So now I just collect, and search for the coins I want rather than picking through a pile of coins I don't want. It was a rookie move, but I learned.
All depends on your own situation. Do you need to sell it? If not, don't. I have a few gold coins that I'd break even with at best, a few I'd lose about 10% or so right now. One 1/4 eagle I got burned - came back as AU when I paid MS money for it raw (my mistake I guess). But I don't have a reason to sell them. I bought with the intention of holding for at least 10 years, hopefully more. Some times you can get a little leverage on a trade by having that "right" coin at the right time to sweeten the pot. If you don't have to take the loss, why would you? Unless you are speculating that long term prices will go down - and they may, but then coins probably aren't the right investment for you.
Yea one did, can't recall witch one now. To have acted on a tip that Denver would not run nick.s again that year could have cause a problem, but no one pressed it. When they cornered the silver market, then they got up set. Changed the laws 3 time to get them. Dallas was fun back then if you knew them. And it was right at half of them. Not much cash to purchase, but a power play to get them.
