My unsolicited list of 20 tips for coin collectors...

Mark,
Thanks for the post! I enjoyed reading it! I'll try to put some of my thoughts into words when I get some time....

Speedy

 

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I think the advice about selling a few coins is excellent. I believe many new collectors view coin collecting and coin investing as interchangeable terms.
Most do not understand that when you buy a coin at market price, say $100, that the market price needs to head north of $130 before you can easily get your $100 back (and, yes, there are many factors that can move that $130 up or down some).
I recall a recent post here on cointalk where a guy seemed to feel a dealer offering $140 for something the dealer sold at $180 was not very good (the $ figures may not be exact). Well, if he does do ebay or some other such thing, there are a lot of costs he will learn about and that $40 spread wont seem quite so large then.

Concerning market trends: While I think most people who spend $20k on a boat are not especially surprised if they sell it after five years and only get $12k for it; I suspect most new collectors would be shocked to learn the same thing can happen with coins.

"As to the length of time a typical collector stays involved with the hobby... three years was about average" - Q. David Bowers, The Experts Guide to Collecting & Investing in Rare Coins. This would suggest to me, that learning what is involved in selling your coins is not simply good advice, but essential advice.

 

Buy your coins carefully so when you sell you are in a better position to recoup most of your original purchase price or turn a profit. Kind of like in real estate, you make your profit when you buy. Paying too much up front makes it hard to break even or make a profit later.

There are many ways to pay too much for a coin. You can pay more than book value. You can buy an overgraded coin. You can buy a problem coin (e.g., cleaned, overdipped, whizzed, thumbed, artificially toned, etc.). You may buy a counterfeit or altered coin thinking it is genuine. You might buy coins from an infomercial at grossly inflated prices. Etc., etc., etc.

(By the way, I have done all of the above EXCEPT the infomercial one. Live and learn.)

 

One thing in the hobby has changed over the last few years. Collectors are much more able to sell coins at or near retail these days. The lines between wholesale and retail have blurred a bit.

With Ebay, and many other coin sites, the edge has softened, as dealers, collectors and investors are all exposed to the same coins in the same marketplace at the same time. This tends to smooth out the difference in buy/sell price one would expect in a B&M shop, or traveling show dealers.

Many online coinsites/websites are, except for the " majors", ran out of homes or in some cases, in the office you already pay rent on for a different purpose. Overheads are non existant in many cases. Margins can be much slimmer.

If bought properly, PROPERLY, you can sometimes resell at a profit in a weeks time, as fast as you can list the coin, and you don't even have to lie and cheat to do it. Properly bought, in-demand no problem coins can do this. With enough material, you can even pay for your hobby by doing this.

If you buy " wrong", well, your stuck untill someone else comes along and buys wrong from you. BUT, you have to knowingly sell " wrong" to do that, or, you can wait for the market to move up enough. On "wrong" coins, that may never happen in a lifetime.


My humble opinion editorial for Sunday night.

 

I call that The Greater Fool Theory. If you foolishly paid too much for something you need to find a bigger fool than yourself to sell it to. If you are an ANA member you must abide by their COE (Code of Ethics) which prohibit you from making false claims about a coin you sell. So if you make a mistake when you buy you have to bite the bullet.

 

Without quoting his whole post, I agree with Arizona Jack. Much has been blurred with the Internet and especially e-bay. That is just a fact.

I'll be honest - I don't know what I would do if I were a "bricks and mortar" coin dealer. Gotta be tough. I'm guessing the make their profits from the people who come in and are pressed to sell - kind of like a pawn shop.

However, I will defend the OP as far as trying to sell something back especially if you buy a LOT of stuff from a particular dealer. If the shoe is other foot, is he willing to give you a decent price? Fair enough. Even if you are a collector, everything could fall out from under you and you need to sell your collection to pay bills. It would be nice if your dealer was willing to give you a fair price.

Just a thought.

 

Most items are or should be common knowledge or just common CENTS. Pun there.
4. For instance. I just can't see what selling has to do with buying if your into coin collecting as a hobby. I've been collecting for over 60 years and never sold a coin yet.
8. What is wrong with looking for a bargain. I go to about 2 to 4 coin shows a month. I ALWAYS try for bargains. I always haggle prices. I wouldn't buy a coin for the price asked regardless of anything. Bargaining for items anywhere is part of the flea market mentality of today.
14. Now that is important. No one should spend to much time doing just one thing. Life is really to short for that. Being a Cancer survivor I know that all to well.

 

I ALWAYS try for bargains. I always haggle prices. I wouldn't buy a coin for the price asked regardless of anything.

Carl, While at a Mesa coin show this summer, I ran across a dealer with the looseleaf albums full of pages of 2x2's. Lincoln Cents of course.

This dealer obviously had not been to shows or updated his prices in several years. I was able to buy all the good ones, 10-s, 11,-s, etc....for 5-6 year old prices. Just make my selections and pay with a smile. If I were to use your method, seller might have said , " Hey, these prices are only 50% of bid, I have to raise them" Why haggle on a better than fair price?

 

Remember this, those who use thirrd parrty grrading always look down on those who prrefer not to. A differrent class.

FF

 

Stop embarressing yourrself young man. Think, make decisions based upon what you know or have access to learrn frrom. edited - Anyone can sell a bunch of coins, but it takes a smarrter and brraver man to disagrree with the self anointed leader of the mindless flock.

FF

 

Whaaaaa????????? edited This board a better board with the like of a Mark Feld, who's experience trumps many of ours put together. I do not think it is Speedy who is embarrasing themselves.

 

''I ALWAYS try for bargains. I always haggle prices. I wouldn't buy a coin for the price asked regardless of anything.''

this philosophy only works for most if it is for pieces you plan on holding for a lifetime or are willing to give in to hagglers and are willing to sell the same item for less than what at a discount...basically if ''you always try for bargains'' you will always end up with sub par ''bargain'' coins and have remember that when it comes time to sell [if the time ever comes].

bargain coins are not a bad thing...all depends on the collector/investor and what factors weigh in the most when deciding on a piece...ie..originality, eye appeal, grade etc.

i like usually only work with 3-5 dealers but, if at a show or working with someone new i will ''test'' dealers by haggling a bit without insulting with a low ball offer. if a seller is willing to lower his price substantially, it tells me two things;
1, the seller is a cheat looking for an ignorant mark or 2, the seller has zero confidence in the piece/his inventory and wants to move it at a ''loss.''

 

I heard it best stated at a gun show when a man started off asking for 50% off a $300.00 box of 100 year old .45 acp.. The box was worth $400.00...

The dealer asked the guy if he would give his boss at work a 50% break on his next paycheck... The guy shut up and walked away...

He returned an hour later and bought the box...

I only haggle with dealers that I have an established reputation with or on a specimen that I know to be way out price tagged...

 

Thanks Jack and that's OK. I'm flattered that someone, even a coward hiding behind his anonymity, would apparently go to the trouble to sign up in order to disparage me. I'm perfectly fine with people making up their own minds regarding my motives and reputation.

 

GDJMSP, thanks for adding that. I agree with your assessment of the importance of patience.

 

http://en.wikipedia.org/wiki/Internet_troll