What is the bath tub analogy and how does it apply to coins?

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  • What is the bath tub analogy and how does it apply to coins?   by bear on 22 May, 2011 18:57
  • If one can imagine a bath tub filled with coins instead of water,

    with the finest coins on the top and progressively lower quality

    trending towards the bottom of the tub. When the plug is pulled,

    the prices and saleability of the lower grade coins goes down the drain f

    first, with the highest quality coins sinking slower and to a lesser degree.

    When the tub is then refilled, the highest quality coins rise first and in the

    fastest manner, while the lower quality coins rise later and slower, if at all.


    You will notice that I refer to highest quality rather highest grade. By highest
    quality, I refer to coins that are just superior in appearance even to coins graded
    a point or two higher that are just average in looks or even fugly, while technically,
    they are graded correctly.
  • Reply #1   by bear on 25 May, 2011 17:05
  • This analogy explains in simple terms, what our complex hobby

    does in the real world. I do realize that the issue of a split hobby

    can occur, between the ultra rare coins, expensive coins , average

    coins and sub average dregs. Some of these areas may suddenly

    collapse while other areas seem to hold firm.
  • Reply #2   by coinsarefun on 25 May, 2011 20:13
  • I think, and I may be wrong but you are talking about purging your collection once in a while.
    If that is what you are describing then this is what I do every year. Over the past 5-6 years, that's
    how long I have been collecting. I have bought lower quality coins, learning and selling for better and better
    quality, eye appeal and overall look.

    Now that I have been at it for several years I still sell the lower ones to afford better ones or may go in a different
    collection.

    I currently have Russian, Hungarian and US coins with an added delight of US Hard Times tokens and mostly
    Merchant Store Cards. I also have a British Conder Token collection.

    I used to have literally albums upon albums of all these types. Over the years I have studied them and sold  most
    and have a box of maybe 20 very high end of each collection except for US. I started a type set album, but decided to sell
    that and start with a graded type set. But that will happen later as I do not have the time to devote t that collection.

    bear.......have you seen my World coins and tokens(US & British)?

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