I’m an avid cyclist. I recently upgraded to a newer, nicer bicycle. After my fourth ride on it, I realized that not only was I thrilled with my new bike, but I also had virtually no regrets about buying it. As you’d imagine, buyer’s remorse is a critical factor in essentially all transactions. It can crop up when you’re buying a new set of wheels (two or four), and I know for a fact it’s a concern when buying collectible coins.
Buyer’s remorse can be both price and quality related. Buying PCGS-graded products removes virtually all quality issues. After all, the grade (the “quality”) is emblazoned right on the holder.
Let me present you with a hypothetical. You buy a scarce coin or bullion item, and while you aren’t upset with the purchase, you’re not enthusiastic about it either. Although buyer’s remorse is largely an outcropping of perception, I’ve experienced buyer’s remorse as both a dealer and a collector. The issue with rare coins and bullion is that the “value” factor often sways buyer’s remorse in a negative direction.
What happens if you buy an item and almost immediately the “value” falls? Regardless of the reason, your reaction is almost always going to be negative. While the seller might have performed their duties flawlessly, you as a customer have a negative opinion about the transaction because the “value” didn’t cooperate. The potential repeat business is seriously affected.
Buyer’s remorse is real. That being said, how do we as collectors both educate and protect our clients and potential consumers with information and tools to avoid problems? I will always emphasize that no one, but no one, has any control over markets. However, if you’re going to participate in any market, the responsibility for that decision “to participate” is yours alone.
So you’re not happy with your purchase… Is your reason because it didn’t go up in value? Did you “guess” wrong?
The old coin dealer saying is, “If you haven’t lost money on coins, you’re not buying enough coins.” No kidding! We’re going to make mistakes. I’ve bought coins for my collection knowing they would eventually be sold or upgraded. They weren’t keepers, so to speak, but I had a hold in my set to fill.
What about the product quality considerations? Did you get what you wanted? Rare coins and bullion items are high-value assets. Like I mentioned earlier, purchase of PCGS-graded rare coins and bullion items removes essentially all buyer’s remorse concerns as they may relate to quality issues. That being said, the market is out of your control, but you have the quality aspect covered!
How do you avoid buyers' remorse on the value side of the equation? You might not be able to control markets, but you can follow market trends and tailor your purchases accordingly.
I often talk about collectors having the advantage of time, but patience is also of huge importance when buying coins that you’ll be happy with. This is especially so when pursuing coins that are widely available. Be patient and wait for the PCGS-graded coin you really like at a price you can live with.
While the decision to buy or sell bullion items is often related to the market levels themselves, waiting – patience – when buying rare coin transactions is crucial.
Unless it is a condition-census coin, you will most likely be able to locate a nice PCGS-graded example of the coin you want in a reasonable period of time. Your best course of action to avoid buyer’s remorse when buying rare coins is to do your homework and be patient.