Collectors collect, and to collect, a collector must acquire. And to acquire, that collector must typically buy that next coin they need. Ah, but when do they buy that coin? Answering the “when” isn’t always easy, is it? Surely, many collectors have the luxury of readily available discretionary funds and can make such numismatic moves when they want to. Other collectors aren’t in that situation though. And for a certain cross-section of collectors, one eye is on where the price of their want-list item is going. What happens if the price of that coin increases tomorrow? Or, what if that coin were to drop in price by 25% next month or next year?
There’s no single right answer as to when the right time is to buy a coin. It all depends on your personal numismatic and financial circumstances. But there are some things to consider when planning that next purchase for your collection. They include:
- What’s the market currently like for the coin you wish to buy? Have you noticed big price swings for coins like the one you want to purchase? If so, maybe it’s best to make the move and buy now if prices seem to be going up. Or, perhaps it’s best to wait the market out some if prices for the coin you want appear to be softening.
- How badly do you need this coin? Is this the last coin you need to complete your set? Ah, yes… That last hole in your album or PCGS box of holders can be about as bothersome as a splinter in the thumb of your dominant hand. If not buying this coin is going to literally keep you up at night, then maybe it’s good for your psychological and emotional health to just make the move and finish that set.
- Is the coin extraordinarily rare or hard to find in the marketplace? Is this a once-in-a-blue-moon opportunity to buy? Many folks are pursuing coins like the 1916 Standing Liberty Quarter or 1893-S Morgan Dollar which, while rare and valuable, can be had at virtually any time for a price. Then you have collectors looking to buy an 1804 Draped Bust Dollar, which might make an occasional market appearance – perhaps once every year or three. If the coin you want is nearly elusive and now is the time you have a chance to buy it, then you might make the move to purchase it before you have to wait years for that opportunity again.
- Do you even have the money to make the purchase now? Are you really able to afford the coin you want? Just about every collector wants coins that are out of their financial reach. But if you have to break out the credit card to buy this coin and can’t afford to buy it outright (unless you plan to pay the credit card bill in full at the end of the month) then maybe you’ll want to think twice. Is it really worth going into debt – and paying interest and finance charges – for the coin?
Of course, the ultimate decision is yours and yours alone. Nobody else can help you make the decision on when it’s the right time to buy a coin. And the thoughts presented here are merely for information purposes only and to pose some questions to mull when making a decision. It’s neither investment advice nor guidance on when you should or shouldn’t buy a coin. After all, buying a coin is a highly personal decision, and that includes what factors should matter upon deciding when to buy that coin you want. Happy collecting!