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Trading Up: Trap or Snare?
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<p>[QUOTE="susanlynn9, post: 23187, member: 1258"]Sometimes purchasing a lower grade with plans to upgrade is the only way for a collector to fill a hole in their collection. This is especially true when all that are left to complete a collection are the key and semi-key dates. It is fortunate that, with the advent of the internet, a wider market is available in which to sell the coin. Provided that the collector does not over-pay for the lower grade, it is very possible to recoup the money initially paid for the lower grade coin. The fact that key and semi-key date prices tend to stay relatively stable because of the lower supply helps to make this is a viable option for the collector with limited funds. I do not think this is a good practice with the more common coins, as it is harder to realize a good or a break-even return as there tends to be a much larger supply available of these coins. With some thought and planning, I believe buying and upgrading can work but the collector should research the market thoroughly and look through past price guides to see what the trend of the coin has been over the last five or ten years in order to have some idea of what to expect. Obviously a coin that has been slowly dropping over a 5-year period would not be a good candidate for this method. One that has been slowly increasing in value could be a wise investment. So, this method could work for the conscientous collector. Just my 2 cents.[/QUOTE]</p><p><br /></p>
[QUOTE="susanlynn9, post: 23187, member: 1258"]Sometimes purchasing a lower grade with plans to upgrade is the only way for a collector to fill a hole in their collection. This is especially true when all that are left to complete a collection are the key and semi-key dates. It is fortunate that, with the advent of the internet, a wider market is available in which to sell the coin. Provided that the collector does not over-pay for the lower grade, it is very possible to recoup the money initially paid for the lower grade coin. The fact that key and semi-key date prices tend to stay relatively stable because of the lower supply helps to make this is a viable option for the collector with limited funds. I do not think this is a good practice with the more common coins, as it is harder to realize a good or a break-even return as there tends to be a much larger supply available of these coins. With some thought and planning, I believe buying and upgrading can work but the collector should research the market thoroughly and look through past price guides to see what the trend of the coin has been over the last five or ten years in order to have some idea of what to expect. Obviously a coin that has been slowly dropping over a 5-year period would not be a good candidate for this method. One that has been slowly increasing in value could be a wise investment. So, this method could work for the conscientous collector. Just my 2 cents.[/QUOTE]
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