Coin Auction Newbie? Tips for Buying and Selling High-Value Coins
With rare and valuable coins selling for thousands and even millions of dollars, buyers and sellers need to take every step they can to ensure they get the best deal. That’s especially true for those who are new to the process.
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Although coins can be bought and sold at a variety of places — including coin dealers, online sites and coin shows — you may actually get the best prices at auction houses.
Buying Valuable or Rare Coins at Auction
For buyers, auctions have at least one advantage over other places: You might make a winning bid at a price that is below what you would pay elsewhere. If you’re a newbie to the hobby, you might not have enough expertise to negotiate the right price with a professional dealer or experienced collector. You don’t have to worry about that at an auction house because the process involves bids instead of negotiations.
The best tip for buyers is to research the coin collector’s market to make sure you know how much a particular piece should sell for based on supply, demand and condition. A good place to start is to buy a copy of “The Guide Book of United States Coins,” also known as the Red Book. Learning about coin values will help you avoid bidding too high at auctions.
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Selling Your Coin Collection at Auction
Selling your coins at auction makes sense for numerous reasons. Auctions tend to attract “enthusiastic” buyers from all over, which helps guarantee that your sales price will be pretty close to the coin’s retail value, according to Warwick & Warwick, a collectibles auction company. Auction houses also take care of a lot of important (and paid) services, such as marketing, photography and social media promotion.
Most auctions these days have a combination of live, phone and online bidders, which also ensures the biggest potential customer base. Even better — you don’t have to be there when the auction happens, unless you want to be.
If you’re a newbie looking to sell, here are some tips to get the best prices:
Find a specialist auction house: Warwick & Warwick recommends finding an auction house that specializes in coins because they’ll have a “more detailed understanding” of the numismatic market and a customer base which is likely to pay a premium.
Weed out the “bad” coins: According to the Coin Appraiser website, coins that don’t usually do well at auction are gold bullion specimens such as Krugerrands and Maple Leafs. Instead, you should focus on selling coins that haven’t been sold at auction over the past five years or so, and coins in top condition with good eye appeal. Bullion coins can be sold to a reputable and established coin shop — be sure to do your research before heading in.
Hire an expert: This might be the most important step you can take — on both the buyer and seller side. The advice of a seasoned professional can be “invaluable,” according to Mid-American Rare Coin Galleries. Having an expert look at lots, figure bids and execute a bidding strategy is “well worth the investment of a few percentage points.”
Set a reserve: A “reserve” refers to the minimum amount you’re willing to accept for a coin sale. This is a good idea if you are a newbie because you are assured that the coin or coins you sell will not be sold for a price that’s below what you expected.
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This article originally appeared on GOBankingRates.com: Coin Auction Newbie? Tips for Buying and Selling High-Value Coins
