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alloway65

MS - 70 Nightmare?

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alloway65    10
alloway65

MS-70 nightmare?

 

An interesting article from THE BUZZ.

 

 

What’s one of the worst things that can happen to a coin collector?

One thing I would suggest is to see the value of coins lovingly purchased decrease in value.

If coins traditionally go up in value as attested to by record prices achieved at auction by the great rarities, why would collectors find the value of their coins going down?

Well, not all coins are rare. In fact, most coins are fairly common. Their value is dependent upon the number of collectors who are interested in them not shrinking.

So some purchases will prove to be unprofitable.

This is normal.

Another normal thing in the hobby is the presence of fads. These are coins that are fashionable to own for a time and then hobby tastes change.

A fad we seem to be going through now is that for coins with an MS-70 grade.

More and more current American Eagle coins, Buffalo gold and modern commemoratives are shipped to third-party grading services and come back in brand new plastic slabs with MS-70 grades.

This is a great testimony to the quality control at the Mint.

However, coin collectors who are conditioned to always want the best and who know that this condition in prior series can be both very scarce and very valuable seem to be buying modern MS-70 coins in quantities that will assure that their coins will always be common.

But they don’t realize it.

MS-70 shouts to them “rare and valuable.”

How can they possibly be making a mistake?

If the buyers are putting full sets together of one each of all American Eagles or modern commemoratives in the MS-70 grade, that is a true collector purpose. It is not a mistake.

If they are buying current MS-70 coins in quantity simply because they think they will rise in price, they might be throwing away good money on coins whose initial price includes a high premium built in when compared to say, unslabbed average MS-64 or MS-65 examples.

In looking at a fairly recent Numismatic Guaranty Corp. Census report, I see that for the 2002 silver American Eagle there are just 14 First Strike designation coins that make MS-70.

That number looks like the grade is fairly scarce.

Compare it to the 2010 Early Release silver American Eagle. Making the MS-70 grade are 44,177 pieces.

Will the 2010 coin ever be truly scarce?

Collectors who are buying them in large numbers might wake up and discover that one of the worst things that can happen to a collector, has happened to them. They have a quantity when they really only needed one.

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dstorm    10
dstorm

Hello David

 

[Collectors who are buying them in large numbers might wake up and discover that one of the worst things that can happen to a collector, has happened to them. They have a quantity when they really only needed one.

 

I hope I am not off topic, but the above rings a bell!

 

regards

 

Jacques

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mellowred    10
mellowred

As I have said before, I know nothing about coins. But from any collectors perspective, is it not sad that your sought after, drooled over scarce item is valued by a respected "valuation body" and becomes an item with a price? If you were purely an investor, the financial value would be your only criteria. As collectors there must be a sentimental and/or emotional claim to the majority of your items.

 

It must be rotten to read or hear that your collected pieces are less "valuable" and are being pushed aside by the more commercial "collectors" items.

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Guest Guest   
Guest Guest

From a personal perspective

 

One of the great delights of holding an old South African Union coin in VF condition is the simple realisation that that coin has been handled by a large number of people from around the time that it was minted. As an investment item it might not be valuable but as mellowred points out it has tangible history.. if only one could document its unique journey! Heck I have ZAR pieces that could well have been in Paul Kruger's pocket at one time!

 

It was thoughts like this when I was a young collector that led me to research the coins that I had a particular interest in.

 

Numismatics, the love of collecting coins and researching their history, is not to be confused with coin collecting - where collectors simply try to outdo each other by having better graded and "more valuable" coins.. the irony is the better graded coins have less direct historical involvement from those times - when they are compared with the same coin in a much poorer condition.

 

So, in many ways numismatists have a very different set of values to "coin collectors/investors" who like to show off their MS67s etc.. like trophies.

 

As Dr Frank Mitchell once said anyone can get into this hobby because it is the love of the history behind the coin that drives their passion.

 

Some of my most prized pieces like the ZAR trenchart coins with little collectable value are, to me, far more interesting than a UNC 1892 double shafted crown.

 

Just to clarify, I am not for one moment suggesting that one should not have "investment pieces" (I certainly do) but understanding the motivation behind someone's interest is often an excellent gauge of how expert they really are in their subject. ie a collector with a collection of the finest coins available has a bigger purse but not necessarily the expert knowledge of a collector with a much smaller budget but a far deeper interest in his hobby.

Kind regards

 

Scott Balson

Edited by ndoa18

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