November 5, 2013
Selling at Auction
Advantages: Auction firms usually promote their upcoming auctions and have a large coin collector/dealer audience, who usually show up and bid at these auctions. Additionally, someone else does most of the work for you such as imaging, describing and selling the coin, the auction firm also collects funds and ship the coin to the new buyer. In reality, all you do is collect the money if it sells. Some auction firms also offer cash advances in case the consignor needs the money.
Disadvantages: Auction firms usually charge a percentage (usually 17%). Payout can take several weeks to months. If the coin does not sell it may be recognized as a coin that recently failed to sell giving the new potential buyer a reason to haggle. Additionally, you still have to pay the auction house a consignment fee, even if it fails to sell.
Sell to the Right Person
Benefits- This is much easier said than done. However, selling to the right person directly means you can cut out the middle man, which in the ends means more money in your pocket. Selling to the right person can also mean that the potential buyer really wants the coin and they are willing to pay a premium which sometimes can be more than what coins are selling at auction. Selling through this method usually means that you don't have to wait weeks or months for payment either.
Disadvantages: It requires a lot of time and work to find the right person and it is necessary to provide good images and usually a well written description of the coin. This method can also be risky because many buyers will request for you to ship the coin before they send you payment.
Have Your Coin(s) Graded
Benefits- Having your coin graded allows you to maximize the value of your coins. Makes the coin more appealing to collectors, dealers, and investors since it has a guarantee of authenticity and condition. There is much more information available at your disposal such as population data, auction prices, and much more.
Disadvantages: Choosing the wrong grading company.
Having Great Images
Advantages: They say a picture is worth a thousand words. The same applies with coin images. There are coins that have sold for twice or more than the same coin in the same grade because of having a great image. Remember, many buyers are looking for coins that appeal to them and the best way to make them appealing is by taking some great images of your coins when selling in case you decide to sell it yourself.
Disadvantages: Learning how to take great images takes time and talent. Having the right camera can be very expensive which can run anywhere from hundreds of dollars to thousands of dollars You also have to have the right tools like camera accessories, lighting, programs, lens, etc.
Sell at the Right Time
Advantages: Timing is one of the most important factors when selling a coin, which is really underestimated. I do not know how many times I have heard individuals saying they realized very little for their coin because they had to sell their coin at the moment. When you buy a coin you need to be able to hold on to it until the timing is right in order to realize a significant profit. Patience is very important. Example if you bought a generic or bullion gold coin and gold has gone down 20% or so since you bought it, more than likely it is not the right time to sell your coin if you can hold on to it.
Disadvantages: Most of the time we don't know when the time is right and many collectors sometimes end up selling at the wrong time. If you wanted to sell a coin for a profit right when you bought it, then time is against you.
Promote your coin
Advantages: Promoting your coin means you're getting the word about your coin(s). This can be by posting it yourself in an online auction such as eBay or even if you have consigned it to someone else. Get the word out about your coin, maybe you can go on some messages boards and let them know you have coins upcoming for sale, you can write an article for a numismatic website or newsletter and ask them if you can link to your coin(s) that are for sale. Take your coins to a coin show and let some dealers look at your coins see if someone makes you the right offer.
Say Very Little or Say Nothing at All
Advantages: Sometimes saying very little or nothing at all when making a deal on a coin can work on your side. Several times in my experience I have sold coins for much more than what I was asking for by allowing the buyer to make an offer before I said anything. One time I couldn't sell a coin for $200 to anyone so I mailed it to a dealer along with several other coins and he offered me $1,200 without asking me what I wanted for it.
Disadvantages: Sometimes if you say nothing or very little the potential buyer can do all the talking and if they're good at dealing, they can convince you that your coin is worth much less than what you're asking for. This has also happened to me as there are some smart negotiators out there.
Pick the right coin
Advantages: This one is probably one of the most important factors. First of all, buy what you like but if you are thinking of investing in coins it is important to choose the right coin and paying the right price for it. If you buy a coin that you don't like the odds are others won't like it either.
Disadvantages: You don't want to buy the wrong coins, example, ten thousand Lincoln Cents in MS64 condition when there are possibly millions out there in MS65 condition or higher. Also, some series have not moved up in price for many years such as some common year Mint Sets or Proof Sets. So, do your research.
Play Hard to Get
Advantages: An example of playing hard to get is when you indicate to someone who is interested in a coin or coins that you have, that you are thinking of selling and you might also add that you don't know what you will be asking for the coin(s). You then let the person or company come to you and let them make you some good offers on your coin(s). I have done this before where some auction companies have pursued me to consign coins to them and also some collectors have pursued me on some coins which I indicated I was thinking of selling. In my mind, I had already decided I was going to sell them but by the fact that I mentioned I was thinking of selling they came to me and made me some really great offers of some which I couldn't resist.
Disadvantages: Some dealers, auction companies, or collectors may not like to haggle. They want a quick and straight answer whether you are selling or not and if so, they want you to name your price where they can either pass or play. If not, they won't even entertain making any deal with you at all.
So here you have it, these are just some of the ideas I can come up when writing this article if you have any others that have worked for you feel free to let us know and we can mention them in an upcoming article. Maybe next time we can discuss, "How to Get a Great Deal When Buying Coins."