Nice Coins Always Cost More

Ignore the bells, whistles, and bright lights! Focus on rarity and quality with proven long-term value…

The coin market is strong despite recent bullion adjustments. Indeed, the biggest concern for rare coin dealers continues to be their ability to buy nice coins at supposed market levels. Nearly every dealer will tell you buying nice classic coins is hard – and you always have to pay too much. I believe there is a lesson there.

Ultimately, there will always be something new. Sometimes it’s the “next big thing!” I’m not above being caught up in the hype and jumping on a bandwagon. I guess my line so to speak on FOMO (fear of missing out) comes down to the cost.

If it’s a few bucks and doesn’t affect my bottom line, I might play. Who doesn’t enjoy some fun? But if we’re talking real money, and yes that is different for everybody, I’m much more likely to pass in the short term. This analogy is so true when talking about PCGS-graded coins, but let me explain why.

Recently I attended a small show in the Houston area. I was picking up a recent purchase for a personal collection. In addition, I always enjoy renewing dealer friendships as well as perusing their inventories for a coin or two. This was a 50-dealer show with a nice representation of coins and bullion items. I bought a coin.

Ultimately I’m a picky collector, but I always have several sets in progress. I’m not looking for condition-census, top-population coins, but I do want PCGS coins with nice eye appeal only.

Indeed great “classy” PCGS coins are never easy to find. If a coin is indeed scarce, locating a nice example shouldn’t be easy. In addition, once you find the “perfect” item, your hope that you can buy that coin at a bargain price is simply unrealistic.

For months, the most common denominator among dealers has been how tough it is to buy nice coins. Most of the successful dealers who continue to inventory classy, high-end PCGS coins all agree the common denominator in battling this difficulty is to simply pay more if the item warrants it. No, none of these dealers like this, but most who have stepped up and paid more for coins have been rewarded with quick sales despite premium prices.

One well-known dealer commented that, ‘I’ve been picky, but even the coins I thought I was buried in have sold within two shows or 30 days.” In other words, the dealers with fresh inventory are paying up.

While dealers must have an inventory, you as a collector buyer have choices. As a former dealer with more than 1,000 commercial shows under my belt, I actually relish my “collector” role today. I don’t have to travel extensively and frantically search for the nice coins my then customers desired on a constant basis. As a collector, I can focus on quality PCGS coins first and cost second.

The pitfall to avoid is settling on a lower-quality example you’re not really happy with. Having your rare coin or bullion items authenticated and graded by PCGS is crucial.

My advice: pay for the nicer PCGS coin. You’ll be much happier in the long term.