PCGS The Standart for the Rare Coin Industry

Dealing with Dealers

Ways to Buy

There are a number of different methods to buy coins advantageously, and I discuss the most important here. Most collectors acquire their holdings in several different ways, buying some pieces outright, bidding for others at auction, and acquiring still others at club meetings or conventions. At one time, from the 1930s through the 1950s, the main way millions of people became involved in numismatics was to build sets of Lincoln cents, Jefferson nickels, Mercury dimes, Standing Liberty quarters, and other specialties by looking through pocket change. Today in the 1990s few older pieces are seen in everyday commerce, therefore this is no longer a viable option except for relatively modern issues.

There are two main ways to buy and sell coins: at fixed prices through dealers and at variable prices through mail bid sales and auctions. I will introduce some caveats, not to dissuade you from buying coins, for that is not my purpose (indeed, my professional career is that of a coin dealer and auctioneer). My intent is to demonstrate the value of education and knowledge. Knowledge is something to gain before you buy coins, not after you do.

Direct Purchases

Let me discuss the dealer method first. Individual professional numismatists and large companies acquire coins by buying private collections, by transacting with other dealers on electronic trading circuits, by bidding in auctions, and by attending conventions. Over a period of time an inventory is built. Some dealers maintain comprehensive stocks containing examples in all United States denominations from half cents to double eagles, as well as commemoratives. Others are specialized and build inventories in a particular area, such as United States large cents of the period 1793-1857, Morgan and Peace silver dollars, Civil War tokens, or gold coins.