The most desirable characteristics of a coin
The most desirable characteristics of a coin
Realtors tell you that three most desirable characteristics of a piece of real estate are location, location, and location. If you’re buying a coin with the hopes of making a profit, the three most desirable characteristics of a coin are, in our opinion, liquidity, liquidity, and liquidity (which means how fast they can be sold). Your coin can be the most beautiful thing in the world, the rarest coin ever known to humankind, and of the highest quality obtainable, but if you can’t sell it quickly to take advantage of market opportunities, it’s worthless.
Liquidity requires the following:
Access to the markets
Uniform pricing
Public acceptance of the product
Ease of transportation and storage
In general, U.S. coins meet all these requirements. In fact, one of the reasons for the success of third-party certification services (see Chapter 20) was their perceived ability to make coins more liquid. In the early days of its existence, the Professional Coin Grading Service (PCGS) went so far as to establish a sight-unseen trading market for PCGS-graded coins. Even today, some certified coins trade on a sight-unseen basis, but most require a visual examination and acceptance by the buyer.
How liquid are U.S. coins? The answer depends on the price level and how much time is available to complete the transaction. For example, many coin dealers use the Coin Dealer Newsletter (also known as the Greysheet) to set their buy and sell prices. If you need to sell today, most anyone will pay 30 percent below the Greysheet bid prices. If you can wait and do a little shopping around, you can find several dealers that will pay 10 percent below bid. If you have enough time, you can eventually find just the right person to pay full bid or even more.
Thus, as far as coins are concerned, liquidity may not mean the best price. Nevertheless, if any coins are liquid, U.S. coins are the most likely to meet this definition.
The Fun Hobby Of Coin Collecting Made Simple & Easy
Discover tremendous and useful information inside of this book. Information such as:- Becoming a Numismatic - the fancy word for a coin collectorWhere to find coins - some places are better than others- What you should look for in a coin - shiny isnt always better- What are mints and mint marks - master this before you get started- What affects the value of a coin - is it all about age? - Getting started - learn how to begin without a lot of hassles- Grading your coins - learn how or - Should y
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