Where Do You Stand?

American Founding Father and first Secretary of Treasury Alexander Hamilton once said, “If you don’t stand for something, you’ll fall for anything.” The quote can apply to so many things in numismatics, and it’s certainly the case that you need foundational knowledge to build your collection on.

One of the biggest factors in a collector losing their desire to continue a collection often comes down to a futile search for one (or several coins) needed to complete their set. Both availability and price are the big factors leading to a collector hitting a wall toward improving or completing their set.

Dealers stock coins they hope to sell to cover their overhead and hopefully make a profit. Sure, many dealers are collectors, too, and many of us are a little of both. Dealers actively buy and sell coins with the hope their inventory doesn’t get stale. If a coin isn’t selling, the price probably needs to be lowered.

The big difference is a collector doesn’t depend on having fresh inventory and is more often able to hold on to a nicer coin for a better market.

Quality can’t be discounted either. Having been both a dealer and a picky collector, I can see both sides to the argument. As a dealer, you try to stock coins that collectors both need and want. As a collector, you are trying to find the nicest coin possible for your budget. If you are a hole filler, availability and price are it. If you are a collector looking for the nicest coin affordable for their set, the “it” becomes a lot more complicated.

Quality, or grade, is usually the biggest factor in the price of a coin after type, date, and mintmark are considered. In general terms, regardless of the series or particular coin, the higher the grade the more interest a given coin or set will garner. Remember the old real estate adage “location, location, location”? Coin values are all grade, grade, grade. Most often the higher the grade, the more attractive the coin. Most of us can point out the “dogs,” regardless of grade. The secret is finding the coin with the highest grade and corresponding eye appeal that works for your budget.

First – and this is true for all businesses – you must see where you stand. Frankly, having been on both sides of the dealer/collector quality debate over the decades, the only real measurement of the quality of the coins in your collection is to have them professionally graded by PCGS. You will know exactly where you stand in terms of quality and the ultimate value of your collection. Do you know where you stand?