Should I sell my coins now or wait?
 

I realize many people consider coins a bad investment, and that many
of you here are into the hobby of coin collecting more than the
business of it.

I was told 2 years ago, "Don't invest in coins, they are not a good
investment". But I read some books and did some research and decided
that it made more sense to buy coins than it did to invest in stocks
or bonds.

So anyway, I bought about $4k worth of coins from ebay, mostly Morgan
dollars, a couple gold coins, mostly PCGS or NGC graded coins, a few
graded by other certification co's.

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

Now, my questions to you kind folks are these:
1) Have most people made good money on their coins the past year or
so(i.e.; did the market generally rise in silver and gold collectible
coins)? Did I just buy at the right time, or do I have some talent for
buying coins, or did I just get lucky?
2) If the idea is that I want to make money on my coins, should I sell
them now (since the price is up on them) or is it likely to go up even
more, so I should wait?

I made the investment because I am trying to get money together to buy
some property. We are still a ways away from having enough money, so I
could wait if I thought the value of graded MS64 and 65 silver and
gold coins is generally going up. Or I could sell now and put the
money in stocks or an IRA or ???

Please advise. I realize no one has a crystal ball and so no one can
give a definitive answer. But I am just asking for an "educated guess"
from you people who have been around awhile in the coin game and
probably have some insight into the current and future market of
collectible Morgan dollars and St. Gaudens. For me, making $2k is a
great deal, not a small amount of money, and I just want to keep my
$6k in the place where it is most likely to grow, with not too much
risk. If it goes back down to $4k, that wouldn't be so bad... My
instinct is to cash out the $2k I made by selling some of the coins I
think are least likely to have good increases, and put that $2k into
the coins I think are more likely to increase.

On 22 Feb 2004 21:36:01 -0800, (P.Nichols) wrote:

I realize many people consider coins a bad investment, and that many
of you here are into the hobby of coin collecting more than the
business of it.

I was told 2 years ago, "Don't invest in coins, they are not a good
investment". But I read some books and did some research and decided
that it made more sense to buy coins than it did to invest in stocks
or bonds.

So anyway, I bought about $4k worth of coins from ebay, mostly Morgan
dollars, a couple gold coins, mostly PCGS or NGC graded coins, a few
graded by other certification co's.

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

Now, my questions to you kind folks are these:
1) Have most people made good money on their coins the past year or
so(i.e.; did the market generally rise in silver and gold collectible
coins)? Did I just buy at the right time, or do I have some talent for
buying coins, or did I just get lucky?
2) If the idea is that I want to make money on my coins, should I sell
them now (since the price is up on them) or is it likely to go up even
more, so I should wait?

I made the investment because I am trying to get money together to buy
some property. We are still a ways away from having enough money, so I
could wait if I thought the value of graded MS64 and 65 silver and
gold coins is generally going up. Or I could sell now and put the
money in stocks or an IRA or ???

Please advise. I realize no one has a crystal ball and so no one can
give a definitive answer. But I am just asking for an "educated guess"
from you people who have been around awhile in the coin game and
probably have some insight into the current and future market of
collectible Morgan dollars and St. Gaudens. For me, making $2k is a
great deal, not a small amount of money, and I just want to keep my
$6k in the place where it is most likely to grow, with not too much
risk. If it goes back down to $4k, that wouldn't be so bad... My
instinct is to cash out the $2k I made by selling some of the coins I
think are least likely to have good increases, and put that $2k into
the coins I think are more likely to increase.

This all depends on the grades of the coins, and if they are slabbed
or not, and by who. Morgan Dollars have exploded in the last couple
of years, especially better dates graded by PCGS, NGC, and ANACS.
If your coins are raw, or in holders not mentioned above, you will have
a tough time recouping your investment.
--
K6AZ WEB PAGES

http://www.k6az.com/web_pages.htm

From: (P.Nichols)

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

How did you arrive at the $6k figure? And now does that method compare with
the $4k investment? I.E., is $4k what you paid *and* what they were retailing
for? Is $6k the retail or the wholesale (e.g., graysheet or blue book) price?
Did you buy from the same one or two sellers on ebay, or from a variety? Are
they slabbed or raw? And either way, have you had anyone else assess the
grading and concur with the grades, and hence the valuations?



--
mark

"Alan & Erin Williams" wrote in message
...
James McCown wrote:

You made an excellent decision to buy the coins off of ebay rather
than buying them from one of the ripoff dealers who advertise coins as
"investments".

But it remains to be seen whether or not you can really sell your
coins for the values stated on these price lists that you refer to.

Why don't you try listing one or two of your coins on ebay, with an
appropriate reserve or minimum, to see if you can really get what you
think they are worth?

Without knowing more about the specific coins you bought, and the
prices you paid for them, I don't know know whether got a good deal or
not. It is possible that you have made some money.

It is also possible that, after trying to sell a few of your coins,
you will wish that you had never bought these "investments".

Amen to that, James. People tend to forget that on each purchase made
from EbaY, they were the high bidder. In Other Words, no one at that
time was willing to pay *more* for that coin than they were, making
them, by definition, the high water mark for that coin that day.

Their are many purchases, but not many investments, that depreciate the
instant you acquire them, and coins bought at auction certainly qualify.
At a minumim, the loss is the step increment between your winning bid
and the highest underbidder.


That's an important point. The given day you purchased a coin on Ebay, you
created the market for that coin by paying more than anyone else "in the
world" was willing to pay for it. Now if you were fortunate to have
purchased a gold coin or "CC" dollar a couple years ago, you should benefit
from the rise in the gold prices since then and the increased demand for
nice "CC" dollars. It's so tempting for those of us with a little coin
knowledge but minimal experience in the "coin industry" to take the price
guide figures as indications of a coins worth. When caught up in bidding on
coins on Ebay, it's easy to forgive a few marks, dings, blemishes, etc. when
you see the chance to get a MS63 SG $20 for $550 when the guides say $700.
But when you go to sell it with visions of $700 in mind, you must realize
that the buyer will be looking critically at all the same things you
forgave. He realizes what collectors are paying for coins like the one you
bought for $550 and will adjust his offer for it downward so he can make a
profit reselling it.

As has been mentioned, try exposing a couple of your purchases on Ebay to
give you a good indication as to how collectors value them today. If they
don't bring what you expect, you'll have to accept that as reality. Short
term investments in coins seldom reap generous profits, especially for a low
budget novice. Many of us would like to have the resources and contacts of
the big dealers who are able to place big ads after major shows offering to
sell choice purchases they just made at a price higher than they just paid.

Bruce

On 23 Feb 2004 06:31:55 GMT, ustion (mark) wrote:

From: (P.Nichols)

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

How did you arrive at the $6k figure?

PCGS web site.
And now does that method compare with
the $4k investment? I.E., is $4k what you paid *and* what they were retailing
for?

It's a rough estimate, but basically the $4k is what I paid, the $6k
is what PCGS says they are worth. The PCGS prices were a little higher
- at the time I bought them - than what I paid on ebay.

Is $6k the retail or the wholesale (e.g., graysheet or blue book) price?

PCGS web site prices, whatever those are.

Did you buy from the same one or two sellers on ebay, or from a variety?

A variety, though the 3 MS64 and MS65 slabbed Morgans that went up the
highest were from one seller.

Are they slabbed or raw?

All slabbed, mostly PCGS and NGC. I realize the non-NGC/PCGS coins
will be worth a little less or harder to sell.

And either way, have you had anyone else assess the
grading and concur with the grades, and hence the valuations?
No, I thought if it was slabbed PCGS and PCGS says it is worth X, then
a coin dealer will generally pay X. No? What's the point of buying
slabbed coins by PCGS if you have to have someone else grade and
assess them?

Just asking. I am no expert on this stuff.

You made an excellent decision to buy the coins off of ebay rather
than buying them from one of the ripoff dealers who advertise coins as
"investments".

But it remains to be seen whether or not you can really sell your
coins for the values stated on these price lists that you refer to.

Why don't you try listing one or two of your coins on ebay, with an
appropriate reserve or minimum, to see if you can really get what you
think they are worth?

Without knowing more about the specific coins you bought, and the
prices you paid for them, I don't know know whether got a good deal or
not. It is possible that you have made some money.

It is also possible that, after trying to sell a few of your coins,
you will wish that you had never bought these "investments".

(P.Nichols) wrote in message . com...
I realize many people consider coins a bad investment, and that many
of you here are into the hobby of coin collecting more than the
business of it.

I was told 2 years ago, "Don't invest in coins, they are not a good
investment". But I read some books and did some research and decided
that it made more sense to buy coins than it did to invest in stocks
or bonds.

So anyway, I bought about $4k worth of coins from ebay, mostly Morgan
dollars, a couple gold coins, mostly PCGS or NGC graded coins, a few
graded by other certification co's.

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

Now, my questions to you kind folks are these:
1) Have most people made good money on their coins the past year or
so(i.e.; did the market generally rise in silver and gold collectible
coins)? Did I just buy at the right time, or do I have some talent for
buying coins, or did I just get lucky?
2) If the idea is that I want to make money on my coins, should I sell
them now (since the price is up on them) or is it likely to go up even
more, so I should wait?

I made the investment because I am trying to get money together to buy
some property. We are still a ways away from having enough money, so I
could wait if I thought the value of graded MS64 and 65 silver and
gold coins is generally going up. Or I could sell now and put the
money in stocks or an IRA or ???

Please advise. I realize no one has a crystal ball and so no one can
give a definitive answer. But I am just asking for an "educated guess"
from you people who have been around awhile in the coin game and
probably have some insight into the current and future market of
collectible Morgan dollars and St. Gaudens. For me, making $2k is a
great deal, not a small amount of money, and I just want to keep my
$6k in the place where it is most likely to grow, with not too much
risk. If it goes back down to $4k, that wouldn't be so bad... My
instinct is to cash out the $2k I made by selling some of the coins I
think are least likely to have good increases, and put that $2k into
the coins I think are more likely to increase.

James McCown wrote:

You made an excellent decision to buy the coins off of ebay rather
than buying them from one of the ripoff dealers who advertise coins as
"investments".

But it remains to be seen whether or not you can really sell your
coins for the values stated on these price lists that you refer to.

Why don't you try listing one or two of your coins on ebay, with an
appropriate reserve or minimum, to see if you can really get what you
think they are worth?

Without knowing more about the specific coins you bought, and the
prices you paid for them, I don't know know whether got a good deal or
not. It is possible that you have made some money.

It is also possible that, after trying to sell a few of your coins,
you will wish that you had never bought these "investments".

Amen to that, James. People tend to forget that on each purchase made
from EbaY, they were the high bidder. In Other Words, no one at that
time was willing to pay *more* for that coin than they were, making
them, by definition, the high water mark for that coin that day.

Their are many purchases, but not many investments, that depreciate the
instant you acquire them, and coins bought at auction certainly qualify.
At a minumim, the loss is the step increment between your winning bid
and the highest underbidder.

Alan
'sees this'



(P.Nichols) wrote in message . com...
I realize many people consider coins a bad investment, and that many
of you here are into the hobby of coin collecting more than the
business of it.

I was told 2 years ago, "Don't invest in coins, they are not a good
investment". But I read some books and did some research and decided
that it made more sense to buy coins than it did to invest in stocks
or bonds.

So anyway, I bought about $4k worth of coins from ebay, mostly Morgan
dollars, a couple gold coins, mostly PCGS or NGC graded coins, a few
graded by other certification co's.

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

Now, my questions to you kind folks are these:
1) Have most people made good money on their coins the past year or
so(i.e.; did the market generally rise in silver and gold collectible
coins)? Did I just buy at the right time, or do I have some talent for
buying coins, or did I just get lucky?
2) If the idea is that I want to make money on my coins, should I sell
them now (since the price is up on them) or is it likely to go up even
more, so I should wait?

I made the investment because I am trying to get money together to buy
some property. We are still a ways away from having enough money, so I
could wait if I thought the value of graded MS64 and 65 silver and
gold coins is generally going up. Or I could sell now and put the
money in stocks or an IRA or ???

Please advise. I realize no one has a crystal ball and so no one can
give a definitive answer. But I am just asking for an "educated guess"
from you people who have been around awhile in the coin game and
probably have some insight into the current and future market of
collectible Morgan dollars and St. Gaudens. For me, making $2k is a
great deal, not a small amount of money, and I just want to keep my
$6k in the place where it is most likely to grow, with not too much
risk. If it goes back down to $4k, that wouldn't be so bad... My
instinct is to cash out the $2k I made by selling some of the coins I
think are least likely to have good increases, and put that $2k into
the coins I think are more likely to increase.

Coin Values have increased over the years, like anything. However, I don't
think I would use the coin market, esp buying at retail or through e-bay, as
a short term investment. Far too volatile. Coin investments for a 20 - 30
YO looking to a retirement fund investment is not a bad idea. Again,you
have to compare to other options and compare performance. Are you buying
coins for bullion or for numismatic value.

--
*
/?\
/___\
-O=O-
^
AS & His Magic Hat

A conclusion is simply the place
where you decided to stop thinking.

This is easy--you should sell. All of your coins, as soon as practicable.

You're considering this sell/hold decision purely from an investment
perspective, meaning that only the future prospects are importan. (Whether
you have actually experienced appreciation, or whether you were clever or
lucky are irrelevant.) You evidently are attracted to an alternative
investment (which means you may need liquid funds soon). You have no thesis
as to why your coins should beat the general coin market in the future (and
seem to realize that marketable securities and real estate are the
short-odds bets compared to coins). You show no special expertise that
suggests you can outguess either the coin market or any other market. You
give no evidence that the coins you hold have hedge value to you.

In short, your coins flunk all the "hold" tests. When you sell, put the
portion of the proceeds you need for your real estate play in cash-like
instruments. Put the rest into instruments consistent with your other
financial plans. Be happy if you sell for a profit, and happier that you
have re-allocated your investments more appropriately to your situation. And
good luck!

--Chris

"P.Nichols" wrote:
I realize many people consider coins a bad investment, and that many
of you here are into the hobby of coin collecting more than the
business of it.

I was told 2 years ago, "Don't invest in coins, they are not a good
investment". But I read some books and did some research and decided
that it made more sense to buy coins than it did to invest in stocks
or bonds.

So anyway, I bought about $4k worth of coins from ebay, mostly Morgan
dollars, a couple gold coins, mostly PCGS or NGC graded coins, a few
graded by other certification co's.

But here's the rub: according to recent price lists, my coins have
almost all gone up in value and are now worth about $6k as opposed to
the $4k I paid for them a year and a half ago.

Now, my questions to you kind folks are these:
1) Have most people made good money on their coins the past year or
so(i.e.; did the market generally rise in silver and gold collectible
coins)? Did I just buy at the right time, or do I have some talent for
buying coins, or did I just get lucky?
2) If the idea is that I want to make money on my coins, should I sell
them now (since the price is up on them) or is it likely to go up even
more, so I should wait?

I made the investment because I am trying to get money together to buy
some property. We are still a ways away from having enough money, so I
could wait if I thought the value of graded MS64 and 65 silver and
gold coins is generally going up. Or I could sell now and put the
money in stocks or an IRA or ???

Please advise. I realize no one has a crystal ball and so no one can
give a definitive answer. But I am just asking for an "educated guess"
from you people who have been around awhile in the coin game and
probably have some insight into the current and future market of
collectible Morgan dollars and St. Gaudens. For me, making $2k is a
great deal, not a small amount of money, and I just want to keep my
$6k in the place where it is most likely to grow, with not too much
risk. If it goes back down to $4k, that wouldn't be so bad... My
instinct is to cash out the $2k I made by selling some of the coins I
think are least likely to have good increases, and put that $2k into
the coins I think are more likely to increase.

From: prgrmr

From: pdsnickles
my coins have almost all gone up in value and are now worth about $6k as
opposed to the $4k I paid for them a year and a half ago.

How did you arrive at the $6k figure? And now does that method compare with
the $4k investment?

Sounds to me like an estimate on silver coins.

8-]


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