Confessions of a Whitman Bingo Addict

[exbingoaddict]

Greetings all. A friend turned me onto realcent forum awhile ago. I finally joined and glad I did. This is my own story of coin collecting. I posted it to cointalk.com back in early August (you can find me there under the same nickname). It was interesting to see 'The Numismatist' ANA mag did a story of collectors vs accumulators vs investors a few months after that post. Anyway, for your reading enjoyment, I present:

Confession of a Whitman Bingo Addict

The following is a short story on my ventures into coin collecting.

I was building big sets. Walking Liberty’s, Franklin Halves, Mercury Dimes, and Peace Dollars adorned my collection. Too bad, they were mostly junk and often cleaned. I am a recovering Whitman bingo addict otherwise known as a hole filler. Yes, it is what your mother warned you about. Those people that rush out and fill every hole with the first inexpensive coin they can get their hands on. It is a story of the mistakes that many of us have made or perhaps a cautionary tale for those who have not made the same mistakes yet. Overall, it is mostly part of my therapy as a recovering addict.

My venture into coin collecting began not unlike many others. It started with the realization that coins are a store of wealth and have value. If you are dealing in ones that are made of precious metal, they have at least their intrinsic value. I have spent years investing in the usual suspects, mostly equities and a few private businesses. However, the only experience with precious metal I had was a few profitable trades I had short selling gold via the (GLD) ETF.

Then the realization occurred that maybe metals and coins do have a place in my holdings. Not so much as an investment, but as a preservation of wealth and another way to diversity overall assets. That is when the lighting struck. There were old coins right under my feet. The coins my grandmother left me.

No, there wasn’t a roll of 1916-D Mercury Dimes. However, they were some nice half dollars, smaller change, and even a peace dollar. They would not catch the attention of an astute collector, however, it was enough to spark further interest in coin collecting.

‘Buy the book before the coin’ is advice that is often said and but not always followed. Fortunately, for me, I did just that. My reading stack soon overran with coin books. These tomes contained information on coin series, key dates, and grading.

I started on the right foot. Coins are like any other item, prudent and wise buyers do not overpay. The advice that I did not follow was buying the highest grade of coins you can afford. My goal was to build half dollar sets and worry about high grades coins later.

Having a few Walking Liberty Halves and Franklins in hand, and appreciating the design, I was off to a start. I started to visit shops, shows, and flea markets buying up half dollars. No, not TPG high grade mint state coins. Not those high priced coins in display areas. I was going through binders flipping plastic pages of coins in 2x2 flips. That is where dealers often put their higher priced junk coins, right?

Well that is what I was doing, buying junk. I was on a quest to build sets and to do it quickly. I became a Whitman bingo addict. Filling those spots was like a drug to me. Every coin added to a hole brought a small joy to me. (Note: I never used a Whitman album. My preferred storage was 2x2s put into plastic pages in a binder.)

My collection was growing quickly and I was proud that I had amassed so many coins. The Franklin Halves were complete and the Walking Liberties were on their way there. I was picking up half dollars for not much over melt value. I then moved into silver dimes, doing the same.
After awhile, I started to look into and learn a little more about grading. It was time to start putting grades to the coin collection I had amassed. Looking at them, I then decided, I should upgrade my precious sets slowly over time. Little did I realize that instead of a prized collection, I had a hoard of junk silver coins filling holes.

To my credit, it was not all mishaps. Fortunately, reading books before buying coins did teach me some lessons. I had a copy of the gray sheet long before I ever looked at a redbook. I did not buy expensive coins that were over graded and the few rarer or key dates I gleaned, I did not overpay on. I kept doing reading and research on coins and learning more. However, that did not stop my junk binge and set building addiction. I was hooked.

A metal industry veteran and part time coin dealer would spur my recovery though. We met through a mutual friend and he mentioned seeing me at coin auction once. He said he was in the metal business and had an interest in coins. His quiet and unassuming manner would leave one thinking he was a mere hobbyist but, time would reveal otherwise. He was far from a hobbyist or your average collector. He was akin to a Jedi Master when it came to coins. If he was a Sith, he’d be Darth Melter.

Calling him Darth Melter is not meant as a negative connotation. In fact, it is a term of endearment. He is one of the most reliable and honest people you could find in the coin world. In a business where some people try to swindle for a quick buck, the Melter has become a trusted dealer to many long time clients.

He spent years learning and perfecting his coin grading skills. He has a well trained eye for Morgan Dollars and specializes in VAM’s. He is well versed in other coins, but the Morgan remains his passion. His collection is most impressive but he is always happy to part with a coin, only for the right price of course.

Reading books was good, however the education I received from listening to Darth Melter far exceeded what any book could teach. What he provided was practical experience in collecting and dealing coins. He enlightened me and helped me avoid the pitfalls he had and ones I would have hit on my own. I took up the lessons he provided with eagerness.

He stressed the importance of goals in collecting. What are you trying to achieve? What coins or series are you passionate about? Talking with him, the realizations started to set in. Junk will always be junk. Simply put, low-grade common coins values will only rise and fall with the price of the base metals they are made from. There is no numismatic value to them and therefore they will not carry a premium over their metal value.
Building a set is a noble goal but what I was doing was making sets of junk. (Playing Whitman bingo as Darth Metler referred to it.) They were sets but no reasonable person would expect them to appreciate further then their basal value. In short, I became a junk collector.

I never intended to be a junk collector. (No offense to anybody who’s goal is to be a junk collector or hoarder.) I discovered that it was not my cup of tea. It is easy to understand why some people seek to amass junk metal though. If you can obtain it well below the melt value, it’s hard to go wrong. Junk, be it bonds or metal, can be a very lucrative business.

After looking through my collection, Darth Melter said he used to be a Whitman bingo player too. That is until he learned the lessons that I was now picking up. Junk will always be junk, period. If something is common today, it will be common tomorrow. If it is uncommon today, it may be rare in the future. If it is rare now, it may become scarce. If it is scarce today, good luck finding it in the future. Rare and scarce products tend to leave the open market as they enter tight hands.

Over a couple of weeks, I sold most of my low-grade coins to him. He paid excellent prices too, far better than anywhere else did. Given the rise in silver, I made money on some coins and lost on others, overall a small net loss. However, my lessons were far less expensive than if I had kept my bingo addiction up.

My addiction to Whitman bingo has been broken, with the gentle prodding from Darth Melter and coming to the realization on my own. No more junk for me. I still have not discovered what coins I am most passionate about. However, I am only interested in higher quality coins that are the right price.

As for Grandmother’s coins, you wonder. They were not sold, nor are they for sale anytime soon. In fact, they are filling holes now. They formed the start of a Dansco US Type Set album. The 7070 gave me an opportunity to research and collect different historic coins. Grandma’s coins will stay there and are always near at hand for viewing pleasure. Moreover it helps fulfills the urges of a now recovering bingo addict.

[PennyPauper]

Thanks for sharing your experiences with us.I enjoyed reading your story.I have several books I keep meaning to fill,probably a good thing I'm too busy sorting coppers Welcome aboard.

[dakota1955]

Most of us have started that way and grew into gettting the finer ones later.

[AGCoinHunter]

Good read. I fully believe the 7070 is the way to go for new collecters. You can take the time to research each type but dont feel the pressure to fill every hole right away. Atleast this has been my experience. I have enjoyed working on mine and I do have some junk in there but I have had the experience of researching and looking for coins that catch my eye. I dont have to worry about finding every date of every coin.

[AGgressive Metal]

Good read. "Whitman bingo", haha, what a great term.

[Market Harmony]

Good read. "Whitman bingo", haha, what a great term.

I believe HCBTT "coined" that phrase. But if it is originally his or not is something that he will have to disclose.

[aloneibreak]

nice post.

im about 3/4's of the way through my 7070 album.

im trying to get coins that would grade at least a solid Fine.

that may still be "junk" to some, but thats still a pretty steep price for me in some types !

with patience i'll finish it in time.

this also reminds me ive got a new 7070 album i was always gonna try and sell on here... have to see if i can find it...

[TXBullion]

I liked the title alot, great post too

[exbingoaddict]

Thanks for the kind remarks. I've been encouraged to write more often about numismatics. Perhaps in time, as I learn more and gain more experince. And just find the time in general.

The 7070 is a great project. Putting together a Fine grade coins in up is not an inexpense task. Many early type coins will cost you, no doubts there. Mine bears a couple of AGs that will get upgraded someday. Again, though, it's just a cool cornerstone to any collection in my own opinion. And it's a great starting point for any collector. Which coins speak to you? What do they say to you? What catchs your eye and makes you keep coming back to look at them. Then you'll start to find your passion.

[jasmatk]

great story thanks for sharing love the "witman bingo" great phrase.I thought the story was going to end a little different i thought you were going to say i amast all this junk silver at a low price now i sit on a fortune.

[SilverFossil64]

nice thread!