Buy the best you can afford

[richtips86 24]

Hi guys, a little while since I last posted - we've recently go engaged so money is being diverted elsewhere for the time being!

With regard to the above mantra, could I ask your opinion on buying rare coins? I have a catch 22 situation going on because there's a part of me that quite likes knowing I have the / one of the rarest coin in a series (within my budget - I'm obviously not talking about the mega-bucks coins), so for instance, I recently bought a 1946 3d in AUNC however this obviously set me back a little compared to if I'd bought the same grade 1944 for instance which would then have enabled me to then buy more coins for the same outlay.

I know that ultimately it's my decision, but is this pursuit foolish, or is there any merit in buying these more rare coins when budget allows in comparison to their more copious cousins? I would however like to say that I am pragmatic - I bought a 1902 florin purely as it was less costly than others in that series.

Thanks for any opinions

[Mr T 169]

I personally don't follow that mantra (not strictly anyway) - I collect a lot of different things, am a completionist and have no intention of ever selling so settling with a middle of the road condition rarity makes more sense for me as it fills the gap. If it's a good deal and I have the money I will take the plunge on a pricey rarity though.

I suppose it depends on what you intend to do with the coins.

[Nicholas 51]

The rarer years (and therefore more expensive) require considerably more homework. You must know your market on the specific coin of your interest. I have seen some rare coins sell for ridiculous prices that may never be matched again in a lifetime. Just because they are rare does not automatically make them a blue chip investment.

[richtips86 24]

Thanks for both your insights. It's not that I'm doing it for investment reasons it's just where I can afford it, I like the knowledge of knowing it is rare. I just wonder if this is a bit of a folly now.

[Nicholas 51]

There are many rarities still off most people's radars... Trick is to work out which ones..

[TomGoodheart 373]

It depends what gives you pleasure Rich. But it seems to me that over the last 10+ years I've been collecting the market has shifted from rare coins in any condition to conditional rarity. I'm no exception in that I have stopped trying to fill all the gaps with coins in any grade and now look for those with 'eye appeal'. That's because I've realised those are the coins that give me pleasure to own.

I even now have some duplicates. Duplicates! I never imagined I would have any of those when I started because I always assumed I would keep the best I could find and sell the lesser examples to upgrade other coins. But when each coin is unique (and admittedly none perfect) two coins of the same variety can both have appealing but different features that I enjoy!

For all I know, commoner coins in better condition have always commanded better prices. Certainly the collector base for true rarities will generally be smaller because, as Nicholas says, it requires more in depth knowledge.

I have some very rare coins indeed. Such as this one:



But I suspect that when I tell you that it is only the second example I've ever seen (or heard of) and that the other (in rather better condition!) sold for over £1000 it still won't make it any more desirable! It was, and remains, the best I can afford because there just don't seem to be any others out there!

If knowing something is rare gives you pleasure then, go for it! But just remember that rarity doesn't always equate to valuable. You'd be best advised to research a bit before spending any decent amounts of money.

Of course, if you fancy rarity and would like a 'second only known' .. well, I'm sure we could agree a reasonable price for the above coin!

Edited October 5, 2014 by TomGoodheart

[Mr T 169]

Thanks for both your insights. It's not that I'm doing it for investment reasons it's just where I can afford it, I like the knowledge of knowing it is rare. I just wonder if this is a bit of a folly now.

I think buying it for the rarity is as good a reason as any - I know I like the feeling of having and holding a coin that has survived a long time relatively unscathed.

[Peckris 579]

I think it's down to individual decision and taste. I've become a type collector but I still have my date run of brass 3ds - I recently spent the most I've ever spent on a brass 3d (£39) on a BU 1948; my NEF 1949 cost far less ... in the 1990s, and my NBU 1951 cost me 20p, though that was an unusual circumstance!

But it's quite 'ok' to mix and match - for example I have one UNC Edward VII halfcrown (1910), but I also have a VF 1903 and a GVG 1905. I don't think there's any fixed rule about it. I'd like a high grade KN penny, but not both; and I suspect I'll never ever be able to justify buying a 1922-reverse-1927 penny.

On the whole though, I'd rather go for a BU common coin these days, than concentrate on a rarity. That's the 'type collector' in me.

[damian1986 142]

I spent most of this year figuring out my exact goals and what it's likely to cost -

When I put everything into perspective it makes sense to offset costs wherever possible as some wants are unavoidably expensive! So I suppose it depends on what your goals are overall.

Where I'm able to I'll have a rarer example of a type to keep things interesting. E.g. my George IV first issue farthing is an 1825 D/U and I have a nice 1895 young head farthing for that particular type. I just couldn't part with them and the commoner dates of the types went.

But then I have a 1910 shilling for Edward VII and wouldn't touch the 1905 at 20x the cost. Considering that some shillings such as Cromwell, Philip and Mary, Northumberland, James II, milled Charles I, ..., are going to cost an arm and a leg if I can ever justify buying them, then I'm inclined to take the cheapest option when it's available.

There is something to be said about value though. E.g. it may only cost a little more for an Anglo-Saxon penny from a scarce mint than it would for one from say London or Lincoln.

[ArthurD 1]

I always try to buy the best I can afford. I think quality not quantity is the way to go with any collection. Rarity need not be at a huge cost, increase your knowledge, find an area to specialise in and you would be surprised at some of the material available. Personally I enjoy English hammered especially early medieval and medieval.

There is a wealth of material available in the short cross penny type but it does need a specialised knowledge and lots or research, but that is the part I enjoy most and of course you learn a lot about history too!

Most of all enjoy it whatever you collect, buy something because you like it and and you will never be disappointed, well not often anyway :-)

[scott 129]

Depends on what you want from the Rarity, if you find one and know it is cheap, nothing to stop you buying it and selling on, there are plenty of Unlisted rarities, there are plenty of rares that sell for modest sums especially in lesser collected areas (have a look at halfpenny prices for example).

this is the most expensive coin I bought at £60

it is not the rarest, and not the most valuable coin I own, yet it is an easy rarity to identify and as such costs it. and given the price of similar grade Charles shillings, not that far above the going rate.

[richtips86 24]

Thanks everyone. Knowledge is definitely the key and I'm a long way from that point!

[TomGoodheart 373]

Bugger. Apparently we've all got it wrong!!

We should have been following Scott's example all along*:

http://www.pcgsblog.com/jaime/news/pcgs-low-ball-coins

"PCGS - Low Ball Coins

Can you believe that a coin graded PCGS Poor 1 will bring a higher premium than a coin that is graded PCGS MS63. Its unbelievable.

This 1897-S Morgan Dollar graded PCGS Poor 1 sold for $565 on November 2010. The same coin in Uncirculated PCGS MS63 grade sells for under $120. And there are many more PCGS Poor 1 examples in the market realizing even more.

Who would have ever thought that a coin that is almost completely worn and has the date and design just visible could be worth more than a coin in Uncircualted grades.

At PCGS, a coin assigned a grade of Poor 1 is a coin that has most of the design and date missing due to excessive wear from circulation. However, in most cases the coin has to be identifiable by its date, mint mark and type before PCGS assigns it a grade of Poor 1.

Not only do some coins in grades of Poor 1 command higher premiums than in most other grades. Numerous times collectors have sent in coins graded PCGS Fair 2 under a grade review, in hopes of getting their coin downgraded to a grade of Poor 1.

Perhaps coins in grades of Poor 1 are much more desirable because they circulated heavily, and therefore have much more historical significance. Or, it can be because this is the lowest grade possible and its really hard to find a coin in this one specific grade. Is it because it takes just a bit more wear before it becomes un-gradable. Or, is it because of the Set Registry and several collectors want to compete in Low Ball sets? Or it may be because collecting Low Ball coins is really fun.

Whatever the reason is, its fun to see Low Ball coins attract this much attention in the marketplace."

Who knew??

(what those crazy Americans would do next to ruin the hobby...)

*Oh, and apologies to Scott, who I realise is a serious numismatist and who has made some remarkable and fun finds, often for very modest outlay. Hopefully no offence was caused as none was intended.

Edited October 9, 2014 by TomGoodheart

[Paulus 1,942]

I bet that coin has been AW'd (Artificially Worn)

[Rob 3,000]

That's shi*e. However, I see a business opportunity, if it generates more than melt.

[PWA 1967 1,841]

Daftest thing i have seen .

[davidrj 194]

I see a business opportunity, if it generates more than melt.

I've got boxes full of worn crap beautiful coins awaiting slabbing , I still have nearly every bun penny I pulled from circulation - want to make me an offer Rob?

Edited October 9, 2014 by davidrj

[scott 129]

slab em as poor 1 and 50p each

[Peckris 579]

"I've got a worse coin than you, na na ni na na"

"Haven't. Mine's worse, so there!"

"Huh, soon make mine worse than yours. Spit in your eye."

"Your mom makes sh*t apple pie"

"Does not."

"Does so."

Edited October 10, 2014 by Peckris