On the evening of November 6, 1985 I met my first “great” Mexican Coin Dealer. At the time I didn’t know there were any “great” Mexican Coin Dealers, and I was shocked by his audacity.
This gentleman came up to me during a break in the Christie’s Norweb Sale and asked, “Who the hell are you? You have been buying all of my *?&@*% coins. Are you a dealer or a collector?”
Over the next few years we became friends, confidants and I became a good (I hope) customer of his. This gentleman, among others, became one of my many mentors who taught me a lot about collecting Mexican coins. One evening while visiting his home in San Diego he passed on a tidbit of information I have used over and over again through the years:
“Look you idiot, always remember one thing; some Mexican coins are extremely rare! When these coins come on the market … always buy them because common coins are that and you can always expect to find them. But really rare coins are more than difficult to find.”
This bit of advice has been my guideline for over 20 years. However, some other collectors don’t always agree, some believe the key to building a world-class collection is buying only high-grade coins. In order to help you determine what is correct for you, you must select a collecting strategy! Hopefully this article will help make this less painful for you.
My foremost quest for knowledge over the last 20 years has been trying to learn which Mexican coins are “Truly Rare”, thus more difficult to find, and what grades one can expect to find these coins in during one’s collecting lifetime. This is the reason I started a “population survey” in early 1986 because there were no books available at that time that gave me the warm fuzzes when it came to individual rarity and which grades most Mexican coins could be found.
While there were a few catalogs listing the majority of the DAMs (Date/Assayer/Mintmarks) I was interested in, very few listed many, if any varieties. Furthermore these catalogs made one think that all of these coins, both common and Truly Rare ones, were available in all grades from Fine to Mint State, all of the time. I soon discovered this concept wasn’t reality; it was only wishful thinking on the part of the cataloger, because some coins were lucky to be found in grades of Fine to Very Fine, if at all.
This pretty well sums up my collecting theories and strategy; now let me introduce you to several other collectors whose collecting strategies don’t always agree with mine. Thus I posed my two questions to these collectors, both new and advanced:
Our first collector is Kirk Menczer: Kirk is an advanced collector and the consummate Mexican Republic Coin Collector! At one time Kirk collected all series of Mexican Republic coins; coppers, silver and gold. Beyond any doubt Kirk built a “world class” collection in all of the Republican series and his views on buying coins differ somewhat with mine. So take it away Kirk…
“The Big Question Is: Buy Mexican Coins by Grade or Rarity?
Surprisingly, this question could be answered totally and completely in one sentence!! BUY THE BEST CONDITION YOU CAN AFFORD.
Remember, we are talking about coin collecting, not coin investing. A collector is trying to acquire a group of coins that have some common theme. A type set, a date set, the coinage of a certain King, etc. An investor buys coins, which he believes has the greatest potential to increase in value. If you want to invest in Mexican coins my advice would be different.
All collectors, even the wealthiest, must live within some kind of budget for their collecting habit. The famous Col. Green or King Farouk of Egypt may have been exceptions, but I doubt it. If we had unlimited resources we would never loose a coin at auction or pass on a coin offered by our favorite dealer based on price. But we do. So what’s the reason? It’s allocation of resources. We have only so much to spend and we want to get as much as we can for our money. It stands to reason the more coins we want to buy the less we have to spend on each coin. If we allocate $5,000 to complete a collection of Mexican Republican 10 Centavos we won’t be able to buy many Brilliant Uncirculated (BU) common coins or Very Fine (VF) and Extra Fine (XF) rare coins, but we might actually complete the set in about Good (AG) to Very Good (VG).
Allocate $20,000 to the same set and you won’t want any AG or Good coins. Some VG coins may still be the best you can find. You’ll also want all the common coins in BU etc.
Once I collected U.S. and all Mexico by just buying nice collectible coins. As I determined over time which areas I was most serious about and wanted to collect by date I eliminated other areas so I could buy “better” grade coins in a more limited area. I liked 8 Reales, but as most of you know that is a “bottomless pit” in which to put money if you want to collect all dates, assayers and mints. Therefore, I decided to collect only Uncirculated coins!!!! Why?? Many great rarities don’t come in Uncirculated. So they were effectively off my list. On the other hand the Mexican Republic 10 Centavos I wanted and believed I might actually complete the collection. So I collect them in all grades, but I try to get the best grade in which the coin is available. In other words I won’t buy a Fine if an Extra Fine turns up occasionally.
So without belaboring the point I believe your budget and the scope of your collecting area dictate the grade you should try to acquire. However, it is also my belief that you are better served as a collector to limit your collecting area so that your budget allows you buy nice collectible grade coins. My reasoning is mostly economic. Attractive coins sell better and easier than ugly coins. You can get a nice BU Mo 1885 M 25 Centavos (a coin available even in choice BU) much easier than you can get an Ho 1888 50 Centavos (a very rare coin) in AG. This is an actual example. A collector has offered the above-mentioned Hermosillo 50 Centavo in one auction twice and one fixed price list over the last two years without success to my knowledge. The reserve was reasonable, as far as I was concerned for a coin that rare, but the one or two other examples of this coin are XF-AU so the advanced collectors don’t want an AG coin in a collection that is other wise VF or better even if the coin is very rare. If the coin were in AG and the finest of 8 known were VG, it would be a different story.
Eight reales are a series where many coins are readily available and cheap in XF and rare in BU. The catalogs don’t necessarily reflect this. So it’s one series where you can build an attractive collection with a huge saving if you’re willing to downgrade a couple of grades. But once again the problem is selling them one day. Not the common coins because they’re cheap and not the super rare coins because they’re so rare buyers will always fight over them. It’s the mid range rarities where you pay rare coin prices, but the grade isn’t good enough for the elite collectors to fight over when you go to sell them and that can cause you big financial trouble.
How do you as a collector find that other collector looking for rare dates, but not in top condition? Dealers don’t tend to pay much for coins, even rare ones, which are not easily saleable. Historically, the Mexican coin collectors from Mexico tended to be more “hole fillers” and less quality conscious. That was the best market for better date, lower grade coins. Over the last few years this has tended to change. The Mexican collectors are becoming more sophisticated and also tend to want high-grade coins. In short, today the market for high-grade coins is always firmer than for lower grade coins of the same date.
I believe we’ve come full circle and we’re back where we started. Buy the best grade coin you can afford considering the scope of your collection.”
Our second collector is Dave Busse: Dave has collected Mexican coins for most of his adult life after serving with the armed forces in the Far East as a translator of Chinese for a secret group operating in Vietnam. Dave is an advanced Type Collector, first the Mexican Colonial Era and now his interests have shifted to the Republican Period. Okay, give forth Dave…
“This is being written as a response to Ralph Poucher’s request to several collectors, including me, specializing in Mexican coins to answer two basic questions.
Buy Mexican Coins By Grade or Rarity?
The answer is YES.
However, it does require some explanation. Most experienced collectors and dealers will encourage beginners to either:
Buy the best you can find
Buy the best you can afford
While similar, the above statements bring up a point that collectors of US coins do usually have to address. The bulk of all US coins, 1793 to date, can be obtained in higher grades including mint state assuming you have the funds to purchase them. On the other hand, if collecting Mexican coins it is all but impossible to assemble even one series – let alone a broad spectrum of all the coins minted by the various Mexican Mints – in high grade. Let me expand on that:
I have had the good fortune to examine several large collections – including the Eras of Carlos y Juana, Cobs (the reigns of Felipe III, Felipe IV, Carlos II, Felipe V and Luis I) – Pillar (reigns of Felipe V, Fernando VI and Carlos III), Portrait (reigns of Carlos III, Carlos IV, and Fernando VII), the War of Independence, the Empire of Iturbide, the Republic of Mexico Real and Escudo coinage, the Empire of Maximiliano, the Republic of Mexico (Decimal coinage), Revolutionary, and 20th Century Mexico. Some collections I examined “in the flesh” and others I viewed photographically or by written description. One constant they all had was a significant number – in every denomination – of low-grade specimens. Since those collectors were advance and had or have enough disposable income to afford just about any Mexican coin, it is obvious that they didn’t purchase those well-worn coins because they were simply trying to fill holes. The reason they have them is that they were the best those collectors could find while they were in a collecting mode (a time span that covered in excess of fifty years for some). Therefore, those individuals bought some of their coins on the basis of the first of those two criteria.
One of the positives of collecting Mexican coins is that even those with fairly modest means can still afford to purchase some fairly elusive issues in very high grades, e.g., “CH UNC, Proof-like Surfaces, Full Strike.” (Due to the subject matter we are discussing I will not go into why I consider BU to not be a grade other than to say I believe the term “Brilliant” to be a descriptor rather a specific grade.) This is due in part to the fact that at least some issues have a large number of high grade examples available due to the existence of hoards or because some issues were produced in such prolific numbers that a fair percentage of them did not enter into circulation. Therefore, if one takes the time to study the availability Mexican coins and be diligent in the effort, he or she can find such pieces at reasonable prices. For example, Choice Republica Mexicana Ocho reales (8R) can often be obtained for no more than $150 when a similar US silver dollar would be at least four times that amount. I could give many examples, but will limit it to just one for the purpose of illustration. Compare an 8R HO 1884 F. M. to any US silver dollar of any mint of a similar grade and struck in the same period. Therefore, buying the best one can afford is usually a much easier process than buying the best one can find.
Do you have an overall collecting strategy?
Yes.
My strategy is to look for as good a coin as I can find for a specific issue. At the current time, I am concentrating on the Republic period. While I am considered a Type Collector that does not infer that I am less sophisticated than a Variety Collector. It simply means that I look for as good an example of a specific issue as I can find. Therefore, I even look for Varieties within a give Type. I have also come to understand that the catalogs confuse Style and Type. An example would be the popular El Aguila de Perfil of Hookneck Eagle coins. Most catalogs list them as a different Type than the Facing Eagle Style. However, the legend on both sides is the same and the devices on both sides are the same except for Style differences (profile eagle instead of facing eagle). Thus, they are both actually the same Type, if we use R. Scott Carlton’s, THE INTERNATIONAL ENCYCLOPÆDIC DICTIONARY OF NUMISMATICS definition Varieties are another matter. Varieties are minor differences within a given Type or Style, such as over-dates, over-assayers, or variances such as the O above the H instead of the HO for the Hermosillo mintmark. I consider Error Varieties to be a class by themselves and I collect all of the above even though I am considered a “Type Collector.”
My strategy is to scour the world looking for coins that would fit into my Type Collection and to buy the best I can find and afford.”
Our third collector is Dr. Ray Souza: Ray collects in several areas, however he specializes in the silver 10 Centavos. Ray is a teacher’s teacher who has worked in Mexico, where the Mexican coin-collecting bug bit him, and he must also be considered an advanced collector. Okay Ray it is now your turn at the lectern …
“There are probably as many ways to collect coins as there are collectors and what suits one individual will not necessarily work for another. But all collectors, to one degree or other, labor under the constraints of time, energy, money, and knowledge. How much time and energy to dedicate to collecting on yearly and lifetime bases are very much individual matters dictated largely by personal circumstances, although it is undoubtedly true that the longer a coin is held, the more likely it is to increase in value.
As far as finances are concerned, it is important to distinguish between collecting as a hobby or as an investment. Merriam Webster’s Collegiate Dictionary defines hobby as “a pursuit outside one’s regular occupation engaged in esp. for relaxation.” An investment, on the other hand, is “an outlay of money used for income or profit.” This difference can have a major effect on your collecting goals and on other issues such as condition and rarity. Many collectors confuse this distinction and are often disappointed when it comes time to sell. If investing is important to you, I suggest selling a few items now and then to keep in touch with how the market is functioning. This will also help you gage how much demand there is for your holdings. It can be a rude awakening, for example, to discover that some of the sources that have been selling you coins have no interest in purchasing them again at reasonable prices, or at all. Acquiring a collection is one matter, selling it is something else altogether.
Another way to think of finances is on the basis of net worth. That is, what percentage of your net worth are you willing to dedicate to collecting? Or if you are already heavily into coins, what percentage of your net worth is involved? And are you comfortable with that figure?
Condition and rarity are both important factors in determining value. Most dealers and experienced collectors stress rarity over condition, but keep in mind that the distinction between condition and rarity can be misleading if demand is not taken into account.
A series can be so difficult to acquire that few collectors will attempt it, and, therefore, demand will be weak and prices depressed. On the other hand, the current mania in the U. S. market for high-end, common coins seems ill-advised and financially risky to me. An economic downturn could produce a glut of such coins on the market.
I personally prefer coins that are scarce, undervalued, and in the best condition I can afford. When I have stuck to this strategy, I have made fewer mistakes. A reasonable strategy can also protect you from impulsive purchases and dampen the struggle between reason and emotion that simmers in the breast of most collectors.
John Jay Pittman was a very astute collector whose holdings included Mexican coins. I own a few of his former pieces and you can occasionally see his pedigree listed on certified coins. Jeff Garrett and Ron Guth in their 100 Greatest U. S. Coins point out that “rather than focus on major rarities, Pittman acquired coins that were esoteric, rare, and undervalued. Some of his areas included scarce proof material and early American coinage . . . Even though Pittman spent less than $100,000 on his entire collection; his holdings were sold for over $25,000,000 in 1997 and 1998” (p. 111). For many in the coin industry, all Mexican coins are esoteric.
Pittman arranged for his holdings to be sold at auction after his death so his family could reap the rewards of his lifelong commitment to collecting. I met him at the ANA Summer Seminars in Colorado Springs in 1972. I recall informing him that I had seen a scarce “resplandor” in a Denver coin shop that day. He checked his master list of coins to see if he needed the item. (He didn’t).
Knowledge or reliable information is the most challenging aspect of Mexican coins and we owe a debt of gratitude to the authors of the books and studies we have at hand and to new sources of valuable information such as Mexican Coin Magic and the Journal of Mexican Numismatics.
Compared to the U. S. coin industry, the Mexican market is in its infancy, more or less where U. S. coins were in the 1950s, the decade in which Pittman became a major player. Basic and reliable information is much harder to come by in Mexican numismatics. U. S. collectors have a wealth of easily accessible sources of information including the population reports of the commercial grading services. To its credit, NGC is listing the Mexican coins they grade on their web site and eventually that will be a good source of data.
The Internet is transforming collecting and is breaking down the hierarchies that have traditionally controlled access to information and rarities. Collecting is becoming a horizontal rather than a vertical realm. Anyone on a computer has access to an international market and many sources of information. The Internet fosters connection and collaboration, and Mexican Coin Magic is an innovative example of that trend.
The flood of information available to U. S. collectors has helped fuel a boom in that market and I believe the same thing will occur in the Mexican field.
The current state of affairs in the Mexican market offers many challenges as well as opportunities for enjoyment, research, and profit.”
The fourth collector is another Ph.D., and my friend and writing teacher Dr. Alex Siegel: Alex loves all pretty coins from Latin America-- Mexico, the Central American Republic, Peru, etc. Alex is also an advanced collector, but unlike the others he has interests other than just Mexico. Alex tell these folks what you perceive as your collecting strategy…
I’m with Kirk Menczer on this one: Buy the best condition you can afford. All collectors (except for the stupid-rich) operate within a budget, and thus have to make decisions about how they will allocate their limited funds.
But, the question is clearly a complex one, and any simple answer is destined to be wrong. Remember that we’re considering Mexican coins. Fortunately, these are largely bought, sold, and traded “Raw”. Even extreme rarities are usually not “slabbed”, nor is this trend yet “mainstream” Mexican numismatics. In contrast, today, the vast majority of U.S. coins that are rarities (and even those that cost more than a hundred dollars) are slabbed, some with lofty numbers such as MS-66, MS-667, MS-68, etc. In such cases, I’d modify my opening statement to read: Buy the best condition you can understand! I’ve been a collector and dealer in World and U.S. coins for over 20 years. While I have a fairly good “eye”, for many series of U.S. I cannot “understand” the difference between an eye-appealing 1881-S Morgan dollar in MS-65 priced at $120, an MS-66 priced at $400 and another in MS-68 priced at $12,000. Since I don’t “Understand” the difference in quality, and the MS-65 specimen is a very attractive coin (if you like Morgan dollars), I’d much rather have it and spend the $11,880 on other coins.
Here’s a case study in condition vs. rarity. A friend and fellow local coin dealer had an extensive collection of Cap & Ray 8 Reales. Of the 768 possible DAMs in the Republic Cap & Ray 8 Reales, my friend had examples of all but 8!! Most of the rarities were in lower grades (VG-F), most of the scarce-rare dates were in VF-XF, and most of the “common dates” were in AU and average Unc condition. He had collected these coins over a period of 20 years, had enjoyed the process thoroughly and had spent well into six figures. When he sold the collection over a period of 2-4 years, he received an aggregate less than six figures. He was not happy. The major dealers did not want to buy the major rarities back for anywhere near the price he had paid. And few of the “common dates” would make any dealer say, “Wow.” My friend lost not only money, but also the time value thereof.
I was more fortunate. I met Mike Dunigan in 1986 and started buying Choice BU 20th Century silver coins with the goal of making a “date set” in silver. I was already “hooked” on Choice Uncirculated coins. As I was completing the date set I bought 3 or 4 Choice BU common-date Cap & Ray 8 Reales from him. At the next show, Mike asked whether I wanted to get serious about the series. I replied that I loved the coins and was willing to get serious. We mutually agreed on the goals of the collection: To collect by DAM only in Uncirculated condition, and preferably in Choice or Gem Uncirculated. Up front, I knew that I would not be able to collect every DAM in the series. Some DAMs simply don’t exist in Unc; (2) for some DAMs that do come in Unc, the cost was way beyond my means; and (3) I was willing to put up with “holes’, i.e., consistency was more important to me than completeness.
From 1987 through 1998 Mike (and several other dealers including Jed Crump, Rick Ponterio, and Richard Long) helped me build my collection. We always looked for sharp strikes, relatively few bagmarks, and originality. Over the years, I purchased 517 different DAMS, ALL in Uncirculated, most being Choice or Gem condition. When I sold the collection, I made a very tidy profit...
Simply put, I have had much more financial success with Choice Uncirculated Mexican coins…. whatever the issue. I have no trouble selling these coins to either dealers or collectors at a profit. In contrast, rarities in lower grades are a much tougher “sell”. Thus, given a fixed sum of money, say $600-$900, I would personally much rather have half-a-dozen Choice Unc, originally toned, well-struck, relatively bagmark-free Cap & Ray 8 Reales, than either one Rare date in VF or 40-50 different common dates in XF-AU.
Of course, the ideal (given sufficient funds) would be to collect Rarities only in the highest condition in which they can be found. Few of us have that kind of money.
While it is an enormous ego trip to own a coin that is “unique”, unless that coin is in very high grade it may be very difficult to sell.
Writing this article is an interesting experience, because it forced me to articulate the principles governing my collecting behavior. I’d never really thought about it so concretely before. Thanks, Ralph, for making me go through this ”exercise”.
While I didn’t set out into coins with an articulated collecting strategy, when I reflect on the nature of the coins in my collection, I can see that the strategy can be described or categorized in terms of a few general principles:
Go with your passion. I collect crowns. I have collected, bought, and sold crowns and minor coins of the Republic and 20th Century in Choice Unc/BU condition for a while. Over time, my collecting tastes have gravitated towards crowns. I simply like those big coins, and thus I prefer selling them. While minor coins are frequently scarcer than their crown-sized counterparts, as a vest-pocket dealer, they are not as easy to sell. In short, I love crowns…so that’s what I collect.
Quality is more important to me than completeness. I collect crowns in choice condition…preferably in Choice Uncirculated condition. I collect Cap & Ray 8 Reales, Balance Scale Pesos, Liberty Cap Pesos, and Caballito Pesos. The Liberty Cap Pesos are nearly complete in Choice Unc; The Caballitos are all in Gem Unc, but I have not yet found a Choice BU 1914. I have around 100 “Monster” Gem Unc 8 Reales...”killers”. But none of them are “absolute” rarities. They are, however, rare in another sense. Which leads me to the next point.
I collect “Condition Rarities”. None of my Cap & Ray 8 Reales are what are traditionally considered “Rarities”. However, “rarity” can only be determined in the context of other coins in the same series. While the As 1879 ML, Ho 1872, and the O. 1868 AE can hardly be considered as “Rare” DAMs, my specimens of these DAMs are, according to several knowledgeable folks, “…. probably the finest I’ve ever seen”. In other words, my specimens of these DAMs are “condition rarities”. Within the context of this series (and any others in which I’m interested), I collect “monsters”.
Similarly, three of my Balance Scale Pesos are not Unc. My specimens of the Do 1872 Pt, Ga 1870 C, and Pi 1870 S/A are Choice AU-Unc, all with exceptional lustre, strike, and original toning. Dealers and serious collectors who have seen these coins have called the “monsters”. I have reason to believe that they’re probably among the finest known.
In short, my “strategy” for collecting could be summarized in two phrases: (1) Buy Monsters. (2) Never just Fill Holes.”
The fifth collector is Bill Sigl: Bill doesn’t fit the pattern of most collectors so far, he is an annalist for a large insurance company who has recently discovered (in the last two years) Mexican coins, and so we must consider him to be a new collector of Mexican coins, even though he has collected U.S. coins for many years. Bill is still in the formative years of setting his strategy for Mexican coins, but he has many areas of interest. Tell us your strategy Bill…
“Ours is an
expensive hobby, and it draws people to it that have lots of
disposable income. If you did a demographic on Mexican Republic collectors,
looking at age, income, net worth, etc, it would probably be something like
this:
Average Age 58
Annual Income $150,000
% with net worth over $1 million 50% or more
It takes plenty of cash to compete in this market place for the high grade
and rare coins when they come available. Ours is a small market place,
where almost everyone knows everyone else. When rare and high-grade
material becomes available it doesn't stay a secret for long, and everyone
knows about it. This makes the playing field VERY lopsided in favor of the
people with the cash, because they WILL get what they want.
I can rarely compete successfully for the recognized
rarities. Being of
limited means, I have been forced to rely more on hard work than on a fat
pocket book in order to get at least some choice coins.
The best analogy is: An auction of Mexican Republic coins is
like a
Feast attended by many
heavy eaters, and I am the dog at the feast. The
heavy eaters will feast well on all they want, but there will be many tasty
morsels that will fall on the floor and be ignored by the gluttons. The dog
will rarely leave the feast hungry, and will get to lick the plates when the
heavy eaters have left.
I am an analyst by profession, and I have used my skills with statistics and
analysis to help me level the playing field. Quickly after becoming a
collector of Mexican Republic coins 2 and a half years ago, I recognized
very reasonably priced. The trouble was that very little info was available
to help a new collector identify the overpriced rarities, and the hidden
rarities. I recognized that with online auctions, there were many Mexican
Republic coins selling daily, with a record of the sales price. I started
to track the daily sales, and have continued to this day.
At first the data that I gathered was almost useless, but gradually it
started to help me recognize the coins that were quite common. After a year
and a half it started to identify condition rarities. Now after 2 and a
half years of data gathering I am able to identify coins that have a high
probability of being hidden rarities, and others that are thought to be rare
that have a high probability of being over priced. I still do not have
20/20 vision in terms of spotting true rarity, but with each passing month I
am getting better at it.
My strategy of data gathering and knowledge acquisition has allowed me to
really start to get some VERY VERY impressive coins, at prices that I can
afford. I get these coins because I have the data that tells me that these
coins are probably a lot more rare than the prices indicate. My data is now
giving me the confidence to bid as much as 10 times catalog prices on some
coins that I suspect are condition rarities. A year ago I lacked this
confidence, because I lacked enough data to give me that confidence.
Another of my strategies is to take advantage of market fads. I believe
that we are currently near the tail end of a collecting fad where condition
is king. Today everyone wants the highest grade coins, while low grade rare
gold coins often sell for only 2 times their melt value. If the coin has
damage, you can often get it for 10% to 20% over melt. My view is that
rarity will ultimately (in my life time) speak for itself. High-grade coins
should always sell for more because relative to other coins for that DAM,
they are scarcer. Rare coins, even if low grade or damaged, should sell for
more than they do today because they are harder to get than common coins in
the series. In my lifetime I believe that low-grade rare coins will be far
more sought after than the highest-grade coins available for a DAM
that is
only Scarce. This will hold true if the number of DAM or variety
collectors
increases over time, and I believe that it will.
I am not a slave to condition; I am a connoisseur of rarity.
In the end it is all about having fun. I repeat this to myself almost every
day. Having fun is my true strategy, whether it is the thrill of the hunt,
or the satisfaction of owning something that few others could own. To tell
you the truth, I can have as much fun from a $5 1831 Go 1 real than I can
from an 1840 Do 8 escudo.
Lately I have gotten into collecting certain common dates by die and die
marriage. The fun of this is that NOBODY knows if any of these are rare,
and they can all be gotten for $10 or less each. This is SO MUCH FUN, but
that is the stuff from which other articles are made.”
Our sixth collector is Max Keech: Max is another fairly new collector, but one that is determined to create a “world class” collection of Mexican coins from more than one epoch. Max has many interesting ideas…
“I’m a convert from US Collecting. About 7 years ago I began collecting Mexican Republic type coins and Early Republic Latin American Crowns. Since that time I’ve added Mexican Republic gold and copper by DAM determined to create a “world class” collection. Here are my thoughts on a collecting strategy:
1st) Collect what you find interesting and can develop a passion around. This leads most of us to start with type coins where there is the greatest amount of variety. This may also lead to collecting certain series that particularly interest you; such as I do with early copper and gold. But be careful of getting interested in everything Mexican! It is impossible to collect it all!
2nd) Collect what you find attractive. For me this means only high-grade coins for Republican gold and copper – generally nice XF or better. Obviously, this strategy needs to consider your collecting budget but I chose to limit the series I collect (rather than the grade) to meet this objective. Ralph may disagree with me here, but I believe most (all?) Republican coins come nice. The wait may be long but since I’m never going to complete a DAM series, I’d rather have 1 more “hole” than an ugly VF gold coin.
Now, in spite of what I’ve said above, I do collect state coppers, and I find I can be attracted to a nicked Fine. For me, it doesn’t distract from these low denomination coins, which circulated heavily among the working people, like it does with gold and silver. Perhaps you’ll feel the same way about varieties (as Ralph does).
3rd) If Long Term value is important to you, then you should definitely focus on quality, type rarity and coins with a story. These trademarks have proven time and again to be the best numismatic investments. Personally, I think coins are a poor investment (compared with say, stocks or real estate), due to the high transaction costs. For this reason I consider hobby costs separate from my “retirement” planning even though I hope to recoup most of my hobby expenses (which is more than I can say for my golf!).
4th) Less is More! This is a strategy I’ve only come around to lately. For many years I’ve tried to collect too much and consequently spent my time chasing and cataloging my coins without really studying and enjoying them. By focusing on fewer series in higher grade, I’m enjoying my collecting time more… and isn’t that what this is really about?”
As you can see there is some commonality between all six collectors, but there are also some extreme and important differences, but one thing rings true, each and every collector of Mexican coins needs to have some type of strategy for collecting coins.
As another tool to aid you-- I have taken a few items from my new book about the gold pesos. Maybe, just maybe, you should consider these questions before settling on a final strategy.
“Why are you collecting coins?
What are your coin collecting goals?
How long is your collecting life going to last?
Do you intend to be only a casual coin collector?
Do you simply want to fill holes in your collection?
Or do you want to become a serious or even an advanced collector?
Or will you become a Mexican Numismatist?
Why are you interested in Mexican coins?
Which Republican coins interest you the most?
How important are “Truly Rare” coins to your collecting goals?
Which coins should you buy first?
Should you purchase only high-grade coins?
Or should you buy low-grade coins too?
Does finding a new, uncataloged and unpublished coin get you cranked up?
Are you interested in the history of your coins?
Would you like to know the stories about the intrigue and people behind your coins?
Is coin collecting a social activity for you or are you a loner?
Are you willing to share your collecting knowledge with other collectors?
Or do want to keep your coins’ secrets to yourself?
How are you going to dispose of your collection when you are finished?
Do you hope to recoup the money you spend on your collection?”
Each of these questions is important to you as a coin collector. But your answers to these questions are even more important because they will become your collecting “guiding light” in the future.
The simplest way to collect Mexican coins is to form one of several type collections. There are many categories of Type Collections, let’s begin with the simplest and progress to the more complicated:
· The Single Coin Type Collection: This Type Collector needs only one coin from each denomination he or she has elected to collect, and should most should easily find a Choice Mint State specimen for the more common DAMs in each series.
· The One Coin per Mint Type Collection: This Type Collector wants one coin from each denomination produced in all 14 mints. One word of caution here, be sure to choose grades that are similar for your collection. You want to avoid having a few nice Mint State coins mixed with a couple of “dogs” from the rarer mints because you won’t or can’t afford to spend the money to buy the higher grade coins. In other words, a collector might find it more rewarding to put together a collection of nice Extra Fines or even Very Fines and complete your collection in a couple of years, rather than spending many years and beau coupe money to complete Mint State set, or form a collection of mismatched coins.
Some Other Popular Methods for Collecting Mexican Coins
Some people will consider our next collection to be a Type Collection, but I feel it goes well beyond the realm of normal Type Collector.
The All Mint & Style Collection: This method of collecting is the first that allows the individual collector a lot of leeway to determine what and how many coins fit into his or her collection. There are proponents for collecting only “Major” style differences such as the Hookneck, Mexican Facing Eagle, Paris, Soho, and Sonora styles for the early Escudos and Reales while others say go for all the different styles. My recommendations are choose what you want to collect and don’t let anyone influence your selection.
The Single Mint Collection: You may select one of several ways to collect an individual mint’s coins.
· Style Collection: The easiest is method; you will need to find one coin for each different style of dies used for that mint for your selected series.
· Assayer Collection: Next in difficulty, here you need one coin from each assayer for your selected mint. This can be a difficult selection for some mints where we find “One Year Assayer & Denomination Type Coins” that can be excessively rare such as the Chihuahua Assayer BA, found only on the Ca 1858 BA 8 Escudos and 8 Reales.
· Date Collection: The third category can be difficult because there are some extremely rare dates in some mints in almost all denominations.
· DAM Collection: The fourth category is where you are looking for all of the coins with different Dates, Assayers, and Mintmarks. In some mints, like Culiacan for the 8 Escudos and 8 Reales, this a rather simple task, but in other mints such as Alamos, Durango, Hermosillo, Mexico City, and Oaxaca the task seems almost insurmountable in some series.
· Variety Collection: The final category is the most difficult and fulfilling for the serous collector because you are trying to find all of the varieties for your selected mint and denominations.
The All Mint Date & Assayer Collection: This collector is looking for one coin from each mint by assayer and date for his or her selected denomination. A serious collector in this category has a wonderful opportunity to be “The First Person” to ever complete this collection in several different denominations or series. A collector in this category probably needs to ignore grade, because some coins he needs can only be found in Fine or even less in some series. This is a lifetime task, and if selected it could be the single most rewarding collection to form, because it has such a small possibility of being completed.
The All Mint DAM Collection: Any DAM (Date/Assayer/Mintmark) collector of Mexican Republic coins has to be a little crazy or a masochist, because this is collection that has never been, nor is likely to ever be, completed for many series of Republican coins such as the 8 Escudos or 8 Reales! There are not only some hideously rare DAMs, but also several coins that are unique today in most series, so this is a collection for that person who knows it will never be completed, but will find enjoyment in just trying!
The All Mint Variety Collection: Finally we find the most difficult collecting category and one that can consume your entire collecting life and still be incomplete when you pass on.
It is our sincere desire, the collectors who took their time to answer my questions and tell you how they determined their strategy for collecting and my own, that you, now armed with this information will find a method and strategy that let’s you fully enjoy collecting more. Now that you know some of the many ways to collect Mexican coins and a few different collectors’ strategies, why don’t you select one and get started? You can always expand the scope of your collection after you have completed one collection. But if you never start, you will miss all of the fun and excitement of collecting these wonderful coins.