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 Replies: 22 / Views: 1,443 |
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Valued Member
Italy
199 Posts |
Good evening  While reading the How To Not Collect The American Women Quarters? thread, my attention was caught by this message wrote by jbuck: Quote:
I know I have said something like this many times, but on my balance sheet, coin purchases are list with consumables, like food and electricity. I recently wondered about this myself after my first year of coin acquisitions.. How to consider our coins as part of your own assets? From the topic above: Quote:I'm curious about this. Do you draw the line at some point or do you apply this rule strictly? Say you buy a graded rare coin for multiple $k's, would you consider it as consumable?  I recently wondered about this myself and it feels a bit extreme. Obviously I completely agree that one should not consider coins in general as an investment or to recoup 100% of cost if sold but . . . .  And here's jbuck's come back: Quote:
I have never come close to paying more than $500 for a coin. That being said, a graded rare coin is way outside my area of interest. That kind of money goes into one of my investment accounts. I will be breaking that $500 barrier to fill the last three holes in my original sets, but those slabs will be cracked so the coin can rest in the appropriate Dansco album. So, what do all other members feel? Do you completely forget about your coins while accounting for your assets? Do you consider them as a form of liquidity (maybe at a lesser % of what you spent on them)? Do you religiously keep up with auction records to determine their current market value? I bet most might think about this when considering insurance but at the same time -- more generally -- it feels like under-reporting your own assets to completely forget about your coins. Despite being collectibles, which are often very volatile assets, they might end up being a considerable one. Thanks to all who will share their views and opinions!  |
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Moderator
 United States
157664 Posts |
This should be a good discussion. |
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Moderator
United States
32709 Posts |
I count my coins (and would count other collectibles, if I had any) as an illiquid asset.
"If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
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Valued Member
 Italy
199 Posts |
Quote:
I count my coins as an illiquid asset. Thanks Spence for sharing! So.. what dollar value do you consider for them? Price paid? Current market value? Estimate? By the way, this is the definition of illiquid assets (which I had to lookup  ): Quote:
Illiquid is a term commonly used to describe assets or investments that cannot be quickly and easily converted into cash at the current fair market price.
Edited by joe_77
12/06/2024 4:46 pm
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Moderator
United States
157664 Posts |
They are illiquid ... unless you spend them.  |
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Moderator
United States
32709 Posts |
Quote:
Price paid? Current market value? Estimate? Current market value, although it isn't something that I update more than every few years and even then, price guides aren't really a thing for most of my collecting area.
"If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
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Bedrock of the Community
United States
94367 Posts |
It all depends on what you have. Many auction houses will offer you an advance if you agree to consign a significant collection. If your holdings are large enough, most will waive a portion or even all of the seller's fees.
Most hobbyists, rightly so, ascribe little significant value to their collections. But those who invest seriously take great care to insure and safeguard their holdings, and certainly value them as meaningful assets on their balance sheets.
Edited by Coinfrog
12/06/2024 5:09 pm
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Pillar of the Community
 United States
1286 Posts |
I maintain spreadsheets for my collection by categories: Mint Sets, Proof Sets, Silver Proof Sets, etc. I track the date acquired; if applicable, the USM issue price; my purchase price; and a RedBook price. I update the RB price once a year. On higher value items, I'll occasionally look up the ebay completed sales prices. While I budget my coin & medal spending, I don't consider what I've accumulated a hard asset. I track total silver ounces in the collection for giggles. I don't consider any of it part of my investment portfolio. I hope my child / grandchildren enjoy it when I'm on the wrong side of the dirt. |
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Pillar of the Community
United Kingdom
2061 Posts |
I think it depends on the value of your collection compared with your total assets and whether you have dependents or need to liquidise assets.
My collection is worth a very small fraction of other more liquid assets, so I don't include them in my "balance sheet".
However, if my collection was worth a significant amount, I would include it.
Insurers usually require you to insure at replacement cost but this is much higher than realisable value.
In any case, I would suggest valuing only the 20 most valuable coins in your collection. This keeps effort to a minimum and will represent the most value.
I think you should value for your "balance sheet" at realistic sales value, which except for rare coins or those in exceptional condition, will be a fraction of catalogue value.
When I bought my house, I had no furnishings so I sold part of my collection to buy the essentials.
Somebody's mother had recently died, and I bought the second-hand furniture at the auctioneer's estimate of realisable value, which was a third more than she expected to get after paying buyer's premium, but cheaper than I would have paid in a shop.
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Bedrock of the Community
United States
94367 Posts |
If I have a substantial collection, why on earth would I only value the top 20?  |
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Moderator
United States
32709 Posts |
Quote:
why on earth would I only value the top 20? This actually makes a lot of sense. No need to pay to insure coins that are worth face value, for example. Best is to focus on your big-ticket coins, whether that is only one, 20, or 1000+ and don't bother to insure the dross.
"If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
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Pillar of the Community
United Kingdom
2061 Posts |
Quote:
Quote:
why on earth would I only value the top 20? Your top 20 coins will probably represent at least 95% of the total value unless they're all worth the same. If you're happier with choosing the top 30, 40, or 50; that's your choice.
Edited by Pertinax
12/06/2024 9:36 pm
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Bedrock of the Community
United States
94367 Posts |
With respect, and I mean that, I don't think either of you has shown a strong knowledge of how to handle a really large collection of valuable coins or notes. Edited by Coinfrog
12/06/2024 10:01 pm
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Pillar of the Community
United States
4375 Posts |
I keep records of all coins I have bought (and sold) in spreadsheets, noting numismatic descriptors as well as purchase price.
That said, I treat most coins as "hobby collectibles" that are not part of any investment or balance sheet.
I do however have a silver/gold bullion stack which I do keep track off as part of my overall investment strategy.
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Moderator
United States
64156 Posts |
I do the same as NumisEd.
all my coins are listed in my spreadsheets with estimated grade, date bought and purchase price.
I have an electronic copy of every coin purchase and a paper copy of each as well.
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Valued Member
Italy
199 Posts |
Very interesting takes gathered so far! Quote:
.... those who invest seriously take great care to insure and safeguard their holdings, and certainly value them as meaningful assets on their balance sheets. This by Coinfrog is probably my main sentiment while I still try to understand the how. Moreover, I kind of believe this statement can be true irrespective of the value of the collection if it's still a relevant portion of one's assets. If someone considers their collection relevant probably means that if sold, they would now add relevant (to them) liquidity to their assets. This can be true for $1k or $1M depending on the individual . . . .and in this case tracking it seems the right thing to do? |
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Replies: 22 / Views: 1,443 |
Posted 12/06/2024 4:23 pm
