May
20Basic Coin Collecting Strategy
Tagged Under : acquisition, amount of money, collecting coins, dispositions, extra challenge, frustration, fulfillment, goal set, hobbies, mint state coins, patience, popularity, proof coins, pursuits of happiness, rapid completion, robert l taylor, sacagawea dollars, term goal, term goals
Basic coin collecting strategy involves building a set of
coins in gradual steps with certified and graded coins because it creates the
market for coins we need to upgrade and sell.
There are many benefits to the certified and graded coin, including a
better market when its time to sell or upgrade.
Hobbies: Coin
Collecting
Basic Coin Collecting
Strategy
By Robert L Taylor, JD
Collecting
coins is a longer term goal, however, the happiness of pursuit is always more
important than the rapid completion of a set of coins. The inherent enjoyment is always found in the
process of collecting, and fulfillment is found in its completion. Once fulfilled, a new goal, set quickly, will
begin a new road towards further pursuits of happiness.
A solid collection will always have
a solid value, at any level or grade.
Higher grades, of course, will generate higher returns and higher
appreciation. The higher grades will
require longer term goals, a greater amount of money, and higher levels of
frustration and more patience. For that
reason, it is best to collect at a gradual or graduating rate, acquiring graded
coins in steps, until your “goal coin? is finally acquired for your
collection. These gradual steps will
offer continuous levels of enjoyment, but with more positive progress and
happier dispositions.
If collecting a set of Sacagawea
dollars, one will experience difficulties in acquiring the Mint States more
frequently than in collecting Proof coins.
Sacagaweas are not unique in this respect; as this difficulty is shared by the majority
of coin collecting categories. Probably
for reasons of popularity, and greater ease of acquisition, modern proof coins
are easier and less time consuming to acquire.
For the serious collector, the extra challenge of collecting Mint State
coins, modern or rare, will be more invigorating, exciting and rewarding. Now that we have four top grading companies
that strictly follow the ANA guidelines (NGC, PCGS, ICG and ANACS),
acquiring quality coins with a reliable grade is consistently possible. Availability still depends upon the laws of
supply and demand; but this is always the challenge.
Despite the high level of your
personal abilities to grade a coin, the reason that we invest in coins that are
certified and graded by the “Top Four?, is that it creates a market for us when
we want to upgrade and sell. It is not
our opinion of the grade that matters, it is what will bring us the greatest
return on our investment of time and money.
The grade of a coin is
everything. Coin prices are based
on the grade. Buyers want the highest
grade, but more important to them is an accurate and reliable grade. Personal opinions on the grade of a coin are
never satisfying. Therefore, a professionally
certified and graded coin eliminates the biggest issue in buying and selling a
coin.
The Top Four give us stability,
reliability and reputation. They also
guarantee the grade and authenticity of the coin. This we need to market our coins, when we
upgrade and sell. Buying raw coins is
always an invitation to get cheated; someone usually loses, and the grade is always
in question. Investing in raw coins
should be avoided by the average collector, when possible. An alternative is to agree to pay for the
cost of grading and the coin, if the grade represented by the Seller (or
higher) is the result; if not, the
Seller pays for grading.
The added protection from a sealed
case ? a slab - will greatly inhibit deterioration of the coin from exposure
and damage. It will also enhance the
maintenance of the coin’s grade and its appreciation. Marketing coins we need to upgrade and sell
is enhanced with certified and graded coins, since: 1) there are larger pools
of buyers; 2) the issue of grade is eliminated;
and, 3) selling at book
solid coin, but do mind getting cheated for a misrepresented grade.
Don’t hesitate to buy a coin in a
grade lower than you hope for or strive to acquire. One must consider that the average
collectable coin is constantly appreciating;
although not always at a steady or consistent rate. The Laws of Supply and Demand always have a
hand in the value or worth of any coin.
Having an investment in a coin is preferable to no investment. A savings account earning 3% interest is no
investment, and yields no enjoyment.
Stepping up, or improving your
coin’s grade, in a graduated process, is far more pleasing because it adds more
activity, allows completion of sets (albeit temporary for the actual grade
desired), the cost is less or spread out, and makes for continuous progress.
The fewer numbers of coins available in the next higher grade, the costs of
each upgrade being higher, and putting a higher value on your time, makes the
approach of buying only the “goal coin? undesirable. Doing so will degrade your progress,
enjoyment and appreciation.
The challenge of graduated
acquisition will last longer, adding to the thrill of each new addition. With each higher step up, comes a higher investment
in time, your patience, and money.
Secondly, the coin you have will be appreciating, while the collector
striving for the “goal coin?, may be waiting months and years to find the right
coin ? with no benefits to him in the mean time. Thirdly, your collection will be growing, and
so will your appreciation of what you have.
How quickly you can complete your collection is not the goal; it’s the path you take to get there.
Finally, don’t be overly concerned
about either getting a bargain, or paying book value or more. The value and worth of your collection will
not be greatly affected by either. Time
spent getting a bargain price is the single most commonly wasted activity. Your time, not spent in the happiness of
pursuit, is wasted. Bidding on 20
different auctions with a goal of getting a bargain price is foolishly applying
one’s time.
“Teach
us to make the most of our time,
so
that we may grow in wisdom.”
B Psalm 90:12
Our time holds a far greater value
than each of us wants to admit. It
should not be wasted, but spent in positive thoughts and endeavors. It is better to pay book value, avoiding the
stress and waste of time, thereby investing your time on more rewarding
pursuits.
Enjoy collecting.
Robert L Taylor, JD
Copyright 2008, Robert L Taylor , JD
About the author
Robert Taylor is a retired Lawyer, from Denver, CO, who
spent most of his career representing people who could not afford an attorney,
and who has had a passion for collecting US coins, since the age of 6. Wanting
to share his Passion, he created http://www.ThePerfect-Coin.Com
which features US Rare and Modern Coins (from 1960) and http://www.PerfectDollarCoins.Com
featuring US Dollar Coins (from 1878), all Certified and Graded by NGC, PCGS,
ICG and ANACS.
Tags: acquisition, amount of money, collecting coins, dispositions, extra challenge, frustration, fulfillment, goal set, hobbies, mint state coins, patience, popularity, proof coins, pursuits of happiness, rapid completion, robert l taylor, sacagawea dollars, term goal, term goals
