Market 101: Exploring Practical Possibilities for Collecting

Collectors often recognize the appeal of an item before anyone else “gets it.” If you follow any financial reporting, the next big thing, so to speak, is often touted as an “emerging market.” Much of that new market might be influenced by physical factors like population gains or political implications, but much of the appeal of an item is visceral.

Do you like something because it is currently popular, or does that item speak to you?

Recently, I had the pleasure of visiting Crystal Bridges Museum in Bentonville, Arkansas. The museum is largely concentrated on honoring U.S. art, ranging from that of the early indigenous peoples to contemporary artists. One of the neatest sites on the museum’s grounds is a home designed by famous American architect Frank Lloyd Wright and originally built in New Jersey. The historic edifice was relocated and rebuilt, brick by brick, at the museum. That home, beautifully integrated among its Ozark surroundings, certainly spoke to me. Of course, I couldn’t take it home with me, but I did imbibe on some elaborate guidebooks at the museum – something far more practical (and budget-conscious) for me to enjoy.

The flip-side to practicality, in addition to budget and affordability, is simply supply. Most items in a gallery or museum, like Crystal Bridges, are unique works of art. On a practical basis, most of these treasures are not collectible in terms of their availability. Even if one comes on the market, I couldn’t afford it anyway.

Similar perspective can be applied to numismatic collecting and building sets of coins that entail higher-priced rarities. While I am a coin collector with several projects, I never pigeonhole myself into passing on a great deal because “I don’t collect, or even like, those.” If the deal is lucrative, I’ll probably buy it, then sell it, and proceed to use the profits on coins I really want.

However, it’s important to narrow down what those “really want” items are. You might have, say, three to five sets of U.S. coins you want to assemble, winnowing down your search with price and availability factors addressed first. The PCGS Price Guide will give you totals for what it costs to build a variety of U.S. coin sets at a said PCGS-awarded grade.

For example, a PCGS-graded Peace Dollar set in MS63 will cost you around $16,700 (as of this writing), depending on the coin and availability too. The same Peace Dollar set for all dates and mintmarks in a grade of PCGS MS64 will cost you $26,165, depending on the same factors. This is practical information you can use to determine whether to pursue the project and in what grade you could accomplish it. Just be sure you don’t hamstring your efforts by pursuing an unrealistic goal. Remember you can always upgrade what you have later.

While my numismatic and collectible studies have not always led to profitable outcomes, I have gained an incredible amount of knowledge and expertise – two practical things that never diminish in value. As for getting ahead of that next emerging market? Well, if it involves buying and selling houses designed by Frank Lloyd Wright, I’m going to need a little more disposable income and a lot more space in my vault.