Collectors and Investors
Motivation
It is important to understand what motivates the collector
and what motivates the investor.
In general the
collector is confident, knows what he or she wants, and enjoys forming a
meaningful collection over a long period of time. To become a collector (or
connoisseur) you have to make an investment in the time needed to read a few
books about coins and to study the subject. Don't think of studying as a dry,
boring activity, because it isn't. Learning about coins can be a lot of fun. By
doing this a new world of enjoyment will open for you, and the entire spectrum
of numismatics will make sense. You will be able on your own to determine
whether a coin is worth owning, whether it offers good investment potential, and
whether it is a desirable specimen of its particular date and variety.
Illustrative of this, suppose that you were offered the
following coins. Which ones represent great rarities in the grades listed, and
which ones are easy to find? Which should you buy right away, even at a price
higher than current market if necessary, and which should you ignore unless the
price is right?
1859-S Liberty Seated silver dollar, MS-63. My opinion: The
1859-S Liberty Seated dollar is a great rarity in MS-63 grade and ranks among
the top several finest known specimens. Offered at auction, it would probably
sell for a record price as many numismatists competed to own it. Go for it!
1881-S Morgan silver dollar, MS-63. My opinion: The 1881-S
Morgan dollar in MS-63 grade is exceedingly common, and anyone caring to pay the
price could accumulate thousands of specimens in a short time. No need to hurry
on this one. If the price isn't right, there will be plenty around tomorrow,
next week, and next month.
1876-S $5 gold, MS-65. My opinion: The 1876-S $5 gold piece
in MS-65 grade is an extreme rarity, and it is believed that only one specimen
exists, the coin my firm sold at auction as part of the Garrett Collection. (In
circulated grades the 1876-S $5 is available, though it is still scarce.) Here
is a prime item for the numismatic connoisseur. The chance to buy this may truly
be a once in a lifetime opportunity, literally!
