Q. David Bowers
(S) AESTHETIC QUALITY: Determine if the coin is aesthetically pleasing. Is it attractive to behold? Use the "I will buy it only if I like it" principle. If you really like the coin and if you find it attractive, then at some future date chances are good that another buyer will feel the same way. However, if the coin is unattractive to you, then others will find it unattractive later, and it will sell slowly or for a lower price. Don't let anyone else influence your own good judgment on the question of aesthetics. This is very important.
(6) PRICE AND VALUE: Once you determine that a coin is pleasing to you, then be willing to pay a fair market price for it. Don't overpay, but don't expect to buy the cream of the crop for bargain basement prices either. Having viewed many collections of commemorative coins over the years, I can say without hesitation that anyone who bought with price in mind first, and quality second, ended up with a strictly second-rate collection. Unfortunately, much of what you read in print has to do with price, not quality. If one person offers a given commemorative for $600, and another advertises it for $500, the $ 500 seller is apt to get the business. However, it may be the case that the $500 coin is ugly and not worth buying. The only answer is to examine the coins in person to be sure that the coins you buy are of the quality you want. A trusted professional coin dealer can consulted for an opinion.
Ten Commandments For the Investor
More words have been written on the subject of investing in commemoratives than have ever been written about their history, rarity, availability, and other numismatic considerations. Ever since the 1930s, when commemoratives were responsible for the greatest boom the coin hobby had seen up to that time, commemorative coins have been a popular investment medium.
My "Ten Commandments" concerning investing in commemoratives are easy to apply and will put more money in your pocket when it comes time to sell your coins:
(1) GAIN KNOWLEDGE: Learn as much as you can about commemoratives first. This book is an excellent start. Don't buy any commemorative coin without gaining at least some general knowledge about it first. Considering that you will be spending a lot of money on your collection, buy every reference book in print on the subject.
(2) FORM A COLLECTION: Form a collection (not an accumulation) consisting of different coins, either as part of a type set or a variety set.
(3) BUY COINS OF QUALITY AND VALUE: Buy only coins of excellent quality and value for the price paid at the time of acquisition (see the guidelines just given under the "Profitable Rules For Commemorative Buyers" heading).
(4) DETERMINEAPLAN: Consider your grade objectives with forethought. Formulate a collecting plan and stick to it.
(5) BE VERY CAREFUL ABOUT HIGH PRICES: Be very careful about coins which are many multiples higher in price than the next lower grade or two. Remember that grading is an art, not a science. Many buyers become misled on this point and overlook the fact that lower grade coins often offer nearly comparable aesthetic, historical, and numismatic values for much lower prices.
(6) DEVELOP GRADING CONFIDENCE: Learn about grading commemoratives so that you can personally determine whether a coin is MS-63, MS-64, or some other grade. Equally important, be willing to question the grades assigned by others (including certification services), and, in any event, buy only coins which are aesthetically pleasing to you. After all, you will be their owner. If you have a problem learning about grading, seek the counsel of experienced professional numismatists you trust. Even so, still buy what you like, as noted.
(7) DON'T BE IN A HURRY: Take your time. Buy carefully and deliberately. There is not a commemorative issue in existence that you can't buy next month or next year if one you see today is not just right for you.
(8) KNOW THE SELLER: Buy only from reputable, well-established sources. There are many fine dealers who will appreciate your business. Find one or several, and establish a relationship. Always obtain a written receipt (no exceptions to this rule).
(9) INSIST ON A GUARANTEE: When buying from catalogues, price lists, and dealer quotations, always insist on a money back guarantee of satisfaction so that if the quality of the coin is not what you expect, you can send it back. If you are bidding at auction, either be familiar with the reputation the auction house and the accuracy of its descriptions, or examine the coins before bidding.
(10) INVEST FOR THE LONG TERM: Hold your coins for the long term, for a period of several years or more. Buying coins this year and selling them next year makes money only for the dealer, not for you.
Investment Success
The success of your investment will depend upon the following:
(1) YOUR COST: The price you paid for the coins will influence your investment success. Be sure you pay a reasonable price to begin with, for, if you overpay, a rise in the market still may not put money in your pocket.
(2) QUALITY OF YOUR COINS: The aesthetic quality of your coins and their appeal to a future buyer will play a part. The nicer your coins appear to your own eye, the more readily they will sell for a strong price in the future. Remember the "I will buy it only if I like it" principle mentioned earlier.
(3) MARKET PERFORMANCE: The performance of the commemorative market will playa part. The value of your collection will rise, fall, or stay the same depending upon the movement of the commemorative market as a whole and individual issues within it.
(4) PLEASURE OF OWNERSHIP: The pure joy of owning a nice collection of commemoratives is certainly a part of any measure of investment success, even if you don't make money. If you can spend your money on a hobby, enjoy it for many years, and then get your money back (never mind a financial profit) when you sell, you have realized the intangible profit of pleasure, which may be worth more than a few extra dollars in the bank. After all, we humans do many things for pleasure that return no financial profit at all. Consider, for example, vacation trips, owning a boat, having a private airplane, hunting or fishing, sketching or painting, reading, watching films or television, etc. In their own way coins can be just as pleasurable. All too often coin buyers think of their purchases in terms only of financial profit and overlook the rich pleasures of satisfaction they provide. However, most readers of this book will probably realize both a financial and an emotional profit if they buy commemorative coins with forethought and hold them for an appropriate length of time.
In summary, the financial facts are these: If you buy commemoratives with care, and if they are of excellent aesthetic quality, and if the market rises, you are set for a nice return on your money. If you overpay, or if you buy coins of poor quality, then even a market rise may not do you much good. Of course, if the market declines, then the value of the coins you hold will decline as well, at least for a while.