Coin Community (Appraisals)

A lady stopped in the shop yesturday. She was interested in buying some costume jewelry we had. Anyhow we got to talking coins and she mentioned that her uncles friend was looking for an appraisal for his deceased fathers coin collection. She actually asked if I would be able to do it, and how much would it cost. I told her that I did not have a precious metals license, and could give her a rough estimate on U.S. coins, but did not have the authority or position to be able to certify anything. She took down my number. The only thing I can think of is to give her number to a local long time trusted dealer. Should I ask to be present during the appraisal if it happens? I think it would be very exciting, but have no clue as to how much to charge or what the general procedures are. I explained that I'd separte the coins into series, and then use current current greysheet/realized prices+ ebay completed listings to do the pricing. The only coin she could point out in the shop that she recognized was the morgan dollar. No clue how big the collection is. Any advice is greatly appreciated.

~Jason

 

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Are you planning on giving her an estimated value, or what you might purchase it for? You might offer to wave your service fee for estimating it's value if she ends up selling all or part of the collection. As for what to charge, you'd almost have to go by the amount of time you have in it. But, I have also seen "free appraisals" signs on coin shops. Whether that is for complete collections, or just an individual coin, I have no idea.

 

This is a good reason to have a go-to guy (or woman) for things like this. You'll spend a lot of time, being new to this, examining the coins and your time should have some value.

When I do appraisals, I look for key dates, known varieties, and valuable errors. I have a general knowledge of silver coins, gold coins (but I've yet to appraise one), currency and what's crap (low or no value coins). Then I work out an overall value. I don't accept any stories as fact unless there is documentation pertaining to the provenence of the coins eg. "The King of Siam gave these to my great grandfather and said they extremely rare!"- That doesn't sway my appraisal at all unless there are photos, documents etc. that proves it.

The coins are considered merchandise and the appraisal is what they are worth. However, what you pay for them won't be the appraisal price because you or your boss has to make a profit and now you have to take into account how desirable the coins are. Will they move immediately or will they sit in the vault for a few years.

It'll be best to find someone with experience to do this for you.

Good luck.

 

I agree you time is worth money, but so is access to buying coins. I know many dealers who give free appraisals in the situation you describe. There are two situations:

1. An appraisal for heirs who wish to sell. These are bread and butter for dealers, and where they get a lot of their stock. Many dealers do these free since they are "first in line" to offer to purchase it.

2. An appraisal for insurance purposes. This is usually done for an existing collector and just needed to insure the collection. You charge for these, since you likely will not be buying anything.

This is how I understand it. Look at it this way, you get to look at a lot of cool coins, and get a chance to buy possibly. That in my book is worth your time. Btw, if it takes you very long to do it, you need to get better. Most dealers can go through a lot of US coins in a few minutes unless there is some distinctly better stuff in there. Most of the values of common material they know off the top of their head, and the little better stuff they quickly look up on the greysheet.

I would let them know before you even begin the appraisal will be retail value, not what a dealer can afford to pay you for it. This way the number you give them doesn't get stuck in their head as its "worth". If you tell them its worth $3000, but later on offer them $1400 for it, they immediately think you are ripping them off of $1600. Tell them, "I will give you a retail value for these in a shop, but stores have a lot of expenses, so I will also give you an estimate value a dealer should be able to pay you for them". I find saying this up front tempers their expectations, and they concentrate on the "dealer value" more, and therefor do not think you are ripping them off with your offer.

Just an opinion.

Chris

 

I've done a few appraisals. I simply ask to keep a few coins of my choice out of the collection that we agree upon. I do tell them the value of the coins I wish to keep, as well, so they know roughly how much they are paying me. I also offer to allow them to consign the collection for sale to me, and have sold one collection via ebay and the classifieds on another forum. My total cut of the collection I sold (Valued around $5k) was somewhere around $350-$400 for what amounted to around 5-6 hours of work.

 

Yeah, but you are just an old softie.

If I were like Doug, and not interested in buying coins but just appraising I would charge unless it was a friend. Your situation though is different Jason. You are trying to get into dealing, and one of the best ways is word of mouth. Do a good job for one person, trust me they will tell someone else who may have inherited some old coins as well. Word of mouth is extremely important, especially in smaller communities. If you know how to grade G-AU, have a decent handle on 60-65, (at least enough to eyeball between a 61, a 63, and a 65 possibly), and a greysheet I think you can handle most collections. If you get into some wierd thing, or a special coin, take a pic of it and research it afterwards.

Btw, dang Doug. 3 Months? Must have either been a huge collection, or some scarce pieces in there.

 

Nah....At his age everything takes longer.

 

How do you think the other dealer's going to feel when the competition brings in a client to appraise those items? I'm just curious, you think it might be a little weird. I'm not familiar with the whole "ethical" scenario when it pertains to using the competition. I know you want to be there and learn a thing or two, but do you think the other dealer will see eye to eye? In the industry, everybody is out to make money in every way possible.

 

And we wonder why so much of the general public considers coin collecting to be just a group of thieves. Part of it is because we are unfortunately. I have had similar situations, and have gotten screamed at for calling out a dealer in such times. I hope you let the person know how big of thieves those two dealers are, and I sincerely hope they told 1000 people they know.

Listen, I know its hard to be a dealer, and you have bills, need to eat, etc. I think I have posted in the past my support for dealers. They are an integral part of this hobby and really are the mechanism that allows us to be collectors. Stories like this though simply makes my stomach turn, as I think it does respectable dealers. It gives all coin dealers, as well as coin collectors, a very bad name.

 

The estate that I bought just recently was valued buy a couple of dealers at 1/3 of what I bought it for and I stand to make a nice profit on it when it comes time to sell. At their offer, they would have made a killing! I know who the dealers are and it didn't surprise me.

Because I was fair, I've been referred by my client to several other people who have collections to sell.

 

If you are planning on buying the collection from her I'm not sure why you would send her to somebody else for appraisal. You might think you are trying to be nice to her and all but that gives her the chance to sell her coins to the other dealer and that means you losing out on a chance to buy the collection off her if she decides to sell. And though you say you're not qualified too, I would say that as long as you know how to grade the coins, the value and the market price of the coins you ARE qualified.
If your boss doesn't want to be bothered with it, explain to them that this may be chance to make a profit.

 

At MY age some things are dang near impossible!

 

Geezer I would like to call a truce. I had no idea about your age. I feel really dumb now. (Foot in Mouth). In real life I do not say anything negative about anyone over 60 regardless of what they do.

 

are you going to wear it ???

 

This is our policy in at our shop. If we are doing an aprasial in house for insurance we charge $50 an hour. If we have to travel we charge for travel time/mileage and $65 an hour once we begin the aprasial. If in either circumstance we purchase the collection or the majority of the collection then the apprasial fees are waived. That's just our personal policy....

 

It happens easily on the internet. No way to see people's body language, way to easy to get misunderstood, then po'ed, then words start flying. It has happened to me a few times as well. CoinGeezer, I hope you consider Jason's offer of just burying the hatchet. I have had people mad at me, and vice versa here on this board, and we just drop it, talk about coins, and move on. I seriously doubt anyone is here to make enemies intentionally, (though I imagine on some of my posts people may accuse me of trying that, lol).

Its a hobby, lets have fun talking about little metal objects that drive us crazy.

Chris

 

Thanks LD. That sounds fair. I just had no clue about it. I actually called a lady who I went metal detecting with and she contacted the local coin dealer (He's been doing this for 30+ years). I am going to meet him tonight in person and talk to him about it. I'm hoping he can take care of it, and maybe I can be a witness.

~Jason