GN
I am a collector, not an investor and do not buy coins with the idea of reselling them for a profit. However, I've always wanted to maintain a financially balanced coin collection. When I started collecting coins seriously, I knew I was being smart by staying with certified coins only. I was told to stay in the MS -63 range or better to assure myself of long-term value. So, for the most part, that's exactly what I did. I spent about three years putting together an virtually complete US Type set that I was really proud of. One of my goals was to pass this collection down to my grand children first as my legacy and only secondarily as a long term family investment. The only problem with this grand plan was that I was a total Bozo and just didn't know it.
Boy, did I ever learn an expensive lesson. I thought I knew what I was doing and that this 100% certified collection was as solid as the Rock of Gibralter. Unfortunately, my check book moved faster than my brain. I should have acquired the right knowledge before acquiring the wrong coins!
I have written in Curry's Chronicle and on this web site on numerous occasions about my emergence into the light. I've called it my "PQ Epiphany". Over the last several years, with Rusty Goe's help and councel, I have slowly sold off and traded out of the "plastic holder phase" of my coin collecting career. I won't tell you how much I lost on these coins, but I will tell you this... are you sitting down? When we finally completed the coin by coin analysis of my entire US Type collection, approximately 75% to 80% turned out to be below average or worse for the grade. Today, I still have much to learn about knowledge based coin collecting. However, given the foundation that I have acquired (the hard way), I would only have purchased one or two out of every ten coins in that original US Type Collection.
Unless market values are increasing due to strong inflation, the coins that can be counted on to lead the markets and consistantly attract the top buyers, are the coins in the top 10% to 20% of each grade range.
Why is this an important lesson to other collectors? Because in the world of coin trading, except for the very occasional lucky strike, there is no such thing as buying quality coins for bargain prices. True QUALITY does not reside in the same place as BARGAINS. The only people who will pay market prices for an average coin are collectors of the sort that I used to be. So, listen up friends. If you are buying coins based purely on getting the best prices you can find for certified coins, then you are getting EXACTLY what you are paying for... bargain priced coins from the bottom of the grade range. When you go to sell your bargain priced acquisitions, guess who will buy them? That's right, only bargain hunters.
As members of the C4OA we have fabulous resources and mountains of knowledge at our fingertips. Just look at the membership roster if you doubt that statement. With patience and a desire to learn, "Bozo" can be left behind forever.
In THEORY, this is what PCGS is talking about when touting its Secure Plus program. In PRACTICE, it may only be about generating more grading fees and taking back market share from CAC. Only time will tell.
If anyone is interested in pursuing the topic of knowledge based coin selection, I would be happy to bring some examples of grade-quality-value variability to the August 27 meeting in Carson City.
Like I said two postings ago ... Don't get me started!
Belay Off
C4OA Lifer!
