For What it is Worth – Take the Time

Recent news coverage has focused a great deal on the value of real estate. Valuations, it appears, were falling. Select areas, however, were still showing growth, while others still were selling “under the right circumstances”. This caused me to consider the similarities to our dear old coin market. I decided to attempt to determine the value of a typical American home, my own. A real estate agent was contacted. The question I posed was, “If I had to sell my house tomorrow, exactly what would it would sell for?” I found a hesitancy on the part of my realtor, to be certain with the answer. I should have been prepared. Who knows what might occur when selling a house on so short a time frame.

I sympathized with the agent’s dilemma. While we discussed the cliché, “something is only worth what you can sell it for”, it occurred to me the price achieved by such a “short sale” or “fire sale”, represented poor management on my part of this particular resource. There seems inherent in the cliché, a certain recognition of the responsibility imparted on the owner of the asset, i.e., to know how to sell it properly. To what degree is selling an asset properly, a part of its value? The difference in the case of my home, were I to list and sell it in the traditional fashion, was a substantial percentage more, than the attempt at short sale. This represented the only reasonable method of selling this particular asset. Were I to choose to short sell such an asset, without recognition of the nature of its value, am I to accept the notion that this determines its value? Furthermore, should I expect to be able to acquire another house exactly like mine for this same short sale price? We are frequently reminded of much of this while watching rare coins sell at auction.

Those who recognize the value of what they own, tend to avoid the temptation to overlook or attempt to sidestep that working knowledge when selling their assets, in an effort to satisfy short term interests. There is always a market, which provides liquidity, comprised of those who would readily buy undervalued assets, and to those who plan appropriately – the market is there as well. The only disparity is time. There is good reason it takes time to build a wellrounded portfolio of quality rare coins. Those who will share in the benefits, do their best to utilize any advantage available while investing. We encourage investors to consult with us on how to get the most out of their rare coin investments.

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