Thoughts about trading

Recently I was approached by a friend about trading a rare coin I have for a rare coin he has. I decided not to do it, but not because the dollar value was unfair. Here is a summary of my thoughts about trading.

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Trading coins. When is trading a good idea?

A key point of this discussion is that to the collector who owns a coin it can be worth more than its dollar value.


Consider a trade of two coins, one for the other. I stipulate that each is special enough that it would be very difficult to simply buy an equivalent coin.

For this discussion I distinguish two types of coins you have—coin those you want to own and coins you care little about and would be happy to not have.

Case 1: Suppose you are approached about a trade for a coin you still want and you are offered a different desirable coin for it. Should you make the trade?

If the dollar values of the two coins are equal, what is the motivation for trading? Maybe you would like to do the other party a favor, since he proposed the trade and wants to make it. On the other hand, although you would get a coin of equal dollar value you would lose the mental associations you had from acquiring and owning your coin. A coin bought 20 years ago, each year for 20 years, accumulates good memories and is of member of the collection—it belongs to your family. No one else attributes THAT value to the coin. To you, a coin you want in your own collection is worth more than its dollar value.

So, if you didn’t already want to trade away the coin, an exchange with equal dollar value actually lowers the total value of your collection to you. Don’t make the trade.

Case 2: Suppose you are approached about a trade for a coin you don’t care about. To you, it is essentially only its dollar value because it does does not fit your goals for your collection.

If you sell it at auction or with a dealer you are unlikely to get more than 70% of its cost to the buyer. If you could, instead, trade it for a coin that you would prefer to the coin you have, the trade would be good. If you really want to get rid of the coin, you could accept a trade for coin worth only 80% of its dollar value and both of you would come out ahead.


However, it is rare that two collectors each have coins that the other would prefer to the coin they already have. A major function of money is to facilitate trade. It is more common that someone who wants to trade away a coin will need to convert it into money and then buy what he wants with the money.

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Have you ever traded coins? Did it turn out to be a good idea? Let us know what you think about trading.

 

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I’ve done 20+ successful swaps on Numista and here on CT.

The way I see it, I have a bunch of random foreign coins that I don’t need. I list them on my swaplist and someone happens to need certain dates or something. He happens to have a coin or some coins that I need for my albums and we swap.

Sometimes I will get foreign coins for really cheap or even free. When I list those on my swaplist and someone selects them to trade, I am more willing to trade those because I have little to nothing into them and I can get a coin that I would rather have anyways.

I love swapping coins most of the time because I can get coins to fill my albums and I can help others with their collections. It’s also pretty cool to get mail from all over the world

 

Huh, like swinging for coins. Never done it and sounds like it would end badly. Unless, like you mentioned, neither of the people trading like the wives...I mean coins that they are trading. Then why have either?
I did trade baseball cards and such as a kid. And somebody always gets a better end of the deal. Good way to end a friendship.
So, I suppose I'm against trading and swinging. Man, 15 year old me would be so disappointed. If they're good enough friends then give them the coin or sell it.

 

I would rather just buy a coin outright from a friend than to take on the emotional baggage of a trade. It's not like "Philadelphia resident will trade state quarters with a Denver resident" when it comes to ancients. Each is unique and has a unique place in one's collection.

 

I've only done a very small number of trades, but I think they're a good idea in general. I'll like the idea even better once a current trade-in-progress hopefully emerges out of the bowels of the USPS !

To me where a trade makes sense is where another collector has a rarity you want that isn't appearing on the marketplace, and they are not willing to sell. Having cash won't always get you the coin you want, but a desirable trade may do the trick! Obviously the opportunity for mutually beneficial trades doesn't often come along.

I don't think dollar/market value is of that much importance when trading, although obviously a factor. What makes a trade work is that both parties want the coin they receive more than the one they gave up !

Value is very much in the eye of the beholder. Here's a trade I made last year. I received the top coin (Adventvs Avgg as caesar), in return for the bottom one which went to a specialist in the Eros mintmark.





For what it's worth, I'd bought the Eros coin for $166, so this is effectively what I "paid" for the historic Adventus, although no doubt I could have sold the Eros for quite a bit more at auction.

I hadn't really wanted to give up the Eros coin, but it's what it took to get the coin I wanted, and I knew another would eventually turn up. As dumb luck would have it, a couple of weeks later I was able to acquire this replacement coin for even less!

 

Traded once with a friend. I remember he badly wanted some modern coins I had. I gave it to him in exchange for some banknotes I wanted but not as much. I made this because he is my friend, otherwise the trade was not in my advantage. On other occasions, he did the same. The coins and banknotes in these situations were not expensive.

Another time I happened to acquire a banknote that was not crucial for me. For him, it was and he didn't have it. He had a coin exactly the other way around - I needed that, he could have lived without it. Both were expensive and the market values were similar. He refused the trade. I didn't mind - in the end, the trade is something mutual.

I would trade ancient coins in 2 cases -
1. I have a duplicate and I could trade the example I like less (not mandatory the worse one) for a coin I don't have. But I don't have too many duplicates (in fact, 3 pairs) and because ancients are usually different, which one would I choose? So, just in theory, let's say I would give the one on top because on the bottom one you can see the branch and the legend is more complete. And then regret, because the top one has a different wear pattern, that leaves more details present.


For me this scenario with trading a duplicate would work only if I upgrade a coin (and I haven't done this yet) and, very important, the coin doesn't have any emotional importance.

2. I happen to have a coin that has little importance to me. No emotional link to it, not in my area. Perhaps I have it from a lot I bought or something similar. I know what it is, I know the market value, in that case I would trade it for a similar value coin from my area of interest. And because I am a lousy business man, I would probably accept a $80 coin for my $100 one, as long as the $80 coin is a coin I need.

But the situation with me, and I am sure I'm not the only one, is that I tend to attach to my coins. Even the impulse buys in auctions mean that after winning them, I spent some time in learning something about them and found interesting things. And if I have them from friends, I tend to link the actual coin with the friendship.
What's this worth?

Probably less than $10 and I'm tempted to say $5. It's not in my main area as I'm not into 4th century. But it was from a friend and it was the first ancient coin I have ever seen. I remember how nice it was when I was studying it for the first time and I was told by a collector who is the emperor, what does the reverse means (I had no chance to find this alone at that time)

 

I am not a big fan of trades, but I have a coin club friend who likes to buy, sell & trade. At the last meeting he showed me one he wanted to trade. It is one I have and is not a significant upgrade. I said no.

 

I have done numerous swaps at Numista (swap rather than trade, for what the difference is worth) but they were for low value coins (world coins for the most part) with not a lot of sentimental value added to them for me

However I remember a trade I've done a trade with @arizonarobin many years ago. I desperately wanted a Diana Lucifera Plautilla denarius she had, and she was in love with a Vesta Julia Domna middle bronze of mine. We traded, without taking in account the exact financial value of the two coins, and, as far as I can tell, we've both always been happy with the trade. I really think it's been a win-win trade





Q

 

I traded a Frank Thomas rookie card for a "signed" Jose Canseco card that my friend had. I'm 99.9% his brother signed it in his room right before because he really wanted my Frank Thomas card. Well, they pressured my into it and I did the trade. Never forgave myself. That was almost 30 years ago.
Still regret it.
Couldn't see doing that with my coins.
I've done "swaps" with people here. Usually modern stuff. A new quarter P for a D kind of thing. I've also gifted coins. Just trying to pass on the generosity that has been shown to me and my kids.
Still...a trade...Don't think I could do it haha.

 

I have traded and sold coins from my collection, but rarely. I regret two of those trades in particular, although I received a coin in return I could not otherwise have afforded at the time, and I am still happy to own. The other trades I do not regret at all.
I think it is difficult for a collector to capture retail prices for his coins. Selling a coin to buy another at retail or auction is inefficient.

 

The reality is I've never had a situation where I considered trading with a friend or fellow collector. I know of many coins in other's collections that I would love to have in my own collection, but I have very few coins in my own collection that could be considered duplicates to trade, and those that are duplicates are not of the value or quality that would be reasonable to offer in trade for the coins that I want.

 

I prefer not to trade. In additions to the reasons outlined by Valentinian and RomanCollector, there'd be a niggling little doubt that I've missed something interesting or important about the coin in question.

If I happen to have a coin I'm not emotionally attached to and it's not an expensive coin, if a friend really really really wanted it I'd probably just give it away rather than sell or trade. That would cause less angst for me, although it might cause awkward feelings for the other person, in which case I might accept whatever they thought was appropriate and pretend to be happy with the trade.

Hmm. Perhaps I should see a shrink.

 

Sure, but on the other hand there's nothing wrong with being happy for the other person, should they find out something you don't care about being not aware of its existence

Q

 

We all should I guess

Q

 

Isn't that what Cointalk is for?

 

I've never traded coins. It seems to me a bit of a potential psychological tangle. Unless one has a cool, dispassionate approach to the transaction, things could get messy for both parties.

I have gifted coins, mostly US silver dollars and half dollars, nothing scarce or rare, in the hope that the two kids of my adoptive family would develop an interest in history. Instead, the daughter apparently spent some of the coins I gave her at a local farmer's market when she was quite young, not realizing their true value. Such it is with growing up.....

 

Trading in person, fine. On line? No thanks.

 

Guess I’m not the norm but on three occasions I’ve done ancient trades online and have been very happy with all of them. In each case I was able to trade with someone I trusted to get rid of a coin that doesn’t fit in my collection and in return get slightly greater or equal value in coins I did like.

 

I cannot say that I have ever conducted a successful trade. I believe that I have offered a coin in trade once or twice but the deal fell through. The problem was that we could not agree on the relative values of the two coins though I suspect that the coin I wanted from him was one he was unwilling to part with. However I have done a great deal of upgrading. In this scenario I offer a dealer what I perceive to be an inferior coin ( and a certain amount of cash) and I get what I see to be a better coin. This I have done many times.
A recent example
Bolskan Ar Denarius150-100 BC Obv Bearded head right, Rv. Horseman charging right BM SNG Spain 695 4.08 grms 19 mm Photo by W. Hansen
I cannot say that I would have a real problem with trying to do a trade with another collector however I suspect that I would find the process somewhat more challenging than I might have before.

 

I've traded coins with some VC dealers. Of course, they get the better end of the deal but I have been OK with it and honestly, I haven't missed any of them over the years.

Same with comic books, some action figures on Toy Forums, and autographs. I guess I am in the minority since sometimes it's something I would really prefer to own & the lack of $ is the brick wall.

Needless to say, I do have my stuff I refuse to part with no matter what. But for the most part I am pretty open.