Durham Collection

Member
  • Content Count

    26
  • Joined

  • Last visited

About Durham Collection

  • Boards Title
    Learning the Ropes

Personal Information

  • Hobbies
    Tracking, Porsche Club of America, Ferrari Club of America, Climbing & US Coins
  1. I got out of bullion for this very reason. When I first started collecting my coin of choice was US Silver Eagles. I competed in the years and varieties category and it just got to be too much. Struck at West Point (no mint mark) vs. West Point with mint mark. 4 or 5 coins per year just to stay current and not to mention the MS70 vs. more affordable 69's. I then had a top ranked Proof Gold Buffalo set (all PF70). Buying one gold coin per year not so bad. Buying two (reverse proofs, etc.) starts pushing you. Then you ask, when the hell is this series going to end. Will I be buying proof Buffalos forever??? All of that got sold! and rather than spend say $2,500 or $3,000 on a gold coin, I would rather buy a beautiful lower grade Draped Bust Dollar. Now that (in my opinion) is numismatic treasure. All of this colorized, themed, added signature on the slab with special label, minted at XYZ limited production "stuff"...I don't buy. Go test the waters with your coin. Go try and sell it after 3 years and see if you get what you got for it? You will be surprised. Dealers ignore the grade on that label when you are trying to wheel and deal. They call it bullion and give you spot pricing for it. To each his/her own. I acknowledge the joy in collecting Modern. It's just not for me.
  2. I can value all the responses and understand your concern. I would just say that the registry is free and my experience with NGC and specifically Ali has been excellent to date. Trust and believe that no one was out to specifically devalue your efforts, etc. I do see various types of collectors on the registry. Some folks want to have as many 1st place sets as possible. Others want to have that one high caliber set that is well written, photographed, etc. Others want as many points as possible regardless of how their sets place. To each their own I guess! On my end, I am one of those registry guys that goes for symmetry. I only build a set that I can 100% finish with my resources and I want it to be nice coins and have all the commentary and photos populated. As for the actual symmetry, I only have NGC 4-point holders. I even went as far as to ensure all my Morgan Dollars were MS63 in that specific set (except for one coin!). I will spend money just to send in an old holder so that it returns in a 4-point like the rest of my sets. Silly, but that's me. Sounds like you are points guy and saw an opportunity a long time back to rack up some serious points with coins that don't cost a fortune. The question then becomes, what does that high point count earn you and us as registry members? Stature on the forums? Bragging rights? A suggestion as to one's net worth? The questions could go on-and-on. Self reflect and ask why those points were so important to you specifically. Collecting is a sport in my opinion and I think NGC was wise to create this forum to let our inner competitive personas come out. It was a good business model for both them and us. We all play the game differently. Regardless, don't let a drop in points spoil your actual hobby of coins.
  3. Captain Brian, Good read. Also, thank you for your service to our country. I found the journal interesting as I just did a bit of coin divesting myself which yielded a loss. After consulting with my accountant, he puts me in the "investor" category of this hobby and I plan on writing the loss off. I guess behind the scenes there are three unique collector types (Hobbyist, Investors & Dealers). After reading your journal, you actually may qualify as a "dealer." The way it was explained to me was that a true "hobbyist" would never have a cost basis that was well into say the thousands (example: $50K). That type of purchasing would qualify more of an "investor" where one's coins are a capital asset as per the IRS. If you were to sell those same coins purchased for $50K at a loss of $10K, I believe the rules (if you qualify as an "investor") suggest that you can write that $10K off on your annual taxes. It's a true capital loss. As with stocks you can only write off $3K per year and the remaining carries forward. The qualification of "dealer" in the world of numismatics works a bit different as profits are not viewed in same fashion as say gambling wins. They are viewed as business income, so those individuals can write off all their expenses regardless of actual profit or income. Some years may show a gain or likewise a loss. It depends on your income. If you are audited in this scenario, you really want to be able to defend your business in same fashion of other businesses. It's a very tricky interpretation of the code from what I have learned. As you alluded to, it is all about defending your position in the event you are audited. They key is determining who you are? (Hobbyist? or Investor? or Dealer?). I would argue that you are probably all three and I do believe most fall into more than one category. You can be a hobbyist while being an investor or a dealer. In my case I sold a bunch of high grade bullion that was well documented along with a US Type Set that was not complete. Based on a review of the capital loss I incurred (well into the thousands) and the type of purchasing I was doing, my accountant was confident that I could deduct my total aggregate loss over time given my qualification of "investor." The irony is I think of myself as a hobbyist, but do acknowledge that I have invested quite a bit into this "hobby." Those capital assets (coins) are then viewed in same fashion as other capital assets (home, stock, etc.). I think where most need to caution themselves is the fine line between hobbyist and the investor/dealer qualification. Based on your journal, I would suggest that you are not your average "hobbyist!" Best of luck in turning those profits and thanks again for the post!