First Coin Purchase

I went to my local coin shop for the first time a few weeks back just to browse around and maybe meet a good local point of contact. They had a pcgs graded 1952S Benji MS65. I used the pcgs app on my phone to check value which says $110. I asked what they wanted for it (it was the man who owns the stores wife, he was not there that day) and she checked the red book also at $110 but told me since it was graded she would sell it to me for $140. I did not barter with her since I am new to collecting and walked away with some paper coin flips.
Yesterday I went back to the store. I planned on offering $120 and see if they would take that. The benji was gone as it had sold at a coin show on May 3rd. Either way I browsed some more and came across a pcgs graded 1883 Morgan MS64+. The app says $108, he checked red book and told me he would sell it to me for $90. I have been just CRH so far as to learn more before I purchased any coins but in my mind, it was already graded and his wife tried to sell me the Benji $30 over the listed value to recoup some of the grading costs. I told him I would get it and continued to look at some of the other morgans they had.
There was a 1899-O in a paper flip with MS65 written on it that I liked because it was sharp and a New Orleans mint. I understand this is someones opinion on the grade but I looked at that coins value on the pcgs app and it stated $225. I asked him how much he wanted for this and he again checked the red book and told me it was listed for $120. I questioned him about the opinion of the MS65 grade and said I thought it looked to be lower grade than that. He came back and said $105. I told him I would give him $100 for it and he accepted. So I got the two morgans for $190.
I felt like I made a good buy and left happy since I now own 2 morgans. My question now is do I send the 1899-O in to get graded. I have never sent a coin in for grading and was curious to when others feel they should have a coin graded? I told myself that I wouldn't buy any ungraded coins simply because of my ignorance on coins and being new to the hobby but I felt like I needed to based on the value stated in the app if it does grade MS65.

 

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I think you did a pretty good job. You have great bargaining skills!

 

If you like them, that is all that matters.

 

On the first two images of the '99-O, I don't see any signs of cartwheel luster. That concerns me because it may have been improperly cleaned.

 

I was thinking the same thing. When you are starting OP there is a huge learning curve. Look at the coins in the slabs, how they look like, and then look at coins not slabbed. Why do you think this one was not in a slab? I am not a TPGS fan, (ask anyone), but for many US coins nowadays you have to be leery of non-slabbed coins and have enough knowledge to know they are fine.

It very well could be different in hand, but the surfaces look flat, like the coin was overdipped. Like I said, that is only from pictures, which can be very dangerous to judge such things from.

Edit: Btw OP, please understand Redbook or PCGS website is for HIGH RETAIL. Most collectors, unless its a superior coin, do not buy at those prices. Again, once you get more advanced, you will recognize superior coins for the grade. The wife made me laugh, wanting to charge you extra for the slab. I would have laughed in her face. Its a sunk cost, and the high PCGS price you looked up already assumed that.

Go to a bigger show. Local coin shops basically make money today buying coins. They keep just some stuff in the store to prove to relatives who bring in grandpas coins they are "serious dealers", but they make their living buying and then selling online. Anything they sell locally is usually high and they will sell if they get a high enough price. Shows have tons of dealers there who make their living SELLING coins, so they will usually have better prices and much wider selection. I am saying this sir not to denigrate your purchases, just in the interest of education to you and others reading this.

In the end, if you like the coins that is all that matters. Its your hobby. I am simply trying to give you some tips from someone who has been around the hobby since the 70's.

 

Hi Dirtyfingers,
Getting it graded is up to you, but I'd say ungraded they rarely exceed $70 unless pictures are nice or someone can judge it themselves in hand. I'd like the 1899-O at around $70 for this reason, and tried for it knowing he thought it was overgraded on the 2x2. I think you'd need to get the MS65 grade to make the cost of grading worth getting it graded to break even on it.

MS64 regularly sell on Ebay around $90-$100. You'd really need it to get the MS65 to push it into the $150+ category.

If it comes back cleaned/details. you've overpaid considerably and never going to recover the cost of the coin, or the grading fee on it. grading would just add more cost to it really in my opinion, it's got the one out of actually grading MS65, and two outs of coming back MS64 or lower, or possibly cleaned.

I'd of liked it cheaper unless you really can tell grade and if it's been cleaned prior, but It's not a horrible deal, I mean it would still look nice in an album just as it is. I'm not sure it's worth it to send it for grading unless you know it will straight grade and that it should make MS65.

 

The pictures are not good enough to grade from, but the unslabbed coin almost certainly does not look 65. The eagles breast actually looks like it could have wear, and the luster looks muted - possibly overdipped as someone else mentioned. This date usually comes with nice luster.
Anyway, I don't want to take the wind out of your sails, and welcome to the hobby. As in most collectibles, knowledge is power, and the guy who knows the most wins every time. Not to say there are not reputable sellers who will treat you right. But look at lots of coins, and don't spend too much too fast. JMHO.
Also, looking at ebay's completed sales is probably better than most of the price guides out there.

 

Not sure how long a shop like that would stay in business. Using Red Book to price their coins seem ridiculous, in my opinion.

 

I believe the 99 O was polished or cleaned. But it could be that it was taken through the 2x2

 

A lot of great feedback and I surely appreciate you sharing your knowledge! This is why I was uncertain about wanting to buy a coin that was not already graded. I will work on learning how to grade. Thanks a bunch!

 

@Dirtyfingers, welcome to collecting. First advice is take it slow and cheap while you’re learning. Speaking of learning, read books, subscribe to a magazine or two (I recommend Coin World and/or Numismatic News), and as you’re doing, use the internet. PCGS has the best coin value guide, but it’s not the “Price Guide”. It’s Auction Prices Realized. As others have pointed out, most price guides are for retail sales and tend to err on the high side. That’s a favor to dealers. Customers in a shop, online or at a show often refer to these, and it helps dealers if the listed prices are a bit high. Auction Prices Realized is the real deal for PCGS and NGC coins … it’s what collectors and some dealers actually paid for coins. It takes more work to use because sales are listed individually … it’s up to you to do proper averaging of selected coins. PCGS is just one company that has auction prices realized … NGC as well as some auction houses have these databases too.

Cal

 

Welcome. The old saying that patience is a virtue very much applies to collecting coins. Most coins are in good supply. Don't purchase if you have any doubts. When I started I was eager to fill holes in my books and as I got more knowledgeable upgraded many of them.

 

Exactly my thoughts. I’d return it if possible and only buy certified coins for now. It doesn’t matter if you pay $30 more or less, it’s more important that you buy the “right” coin.

 

My LCS uses it also and then marks up on top of it but as I've said many time I think the guy lives there in the back and it's his personal collection room and hangout so maybe his buddies get good deals or he's not interested in selling really and makes his money off coin shows and bullion buys and sells.

No idea really but these types of coin shops exist and as far as I can tell never going anywhere. He just puts up the closed sign when he goes to shows, no warning what his schedule will be.

 

Many, many shops are like this sir.

One thing, though, is you can get good deals by being of service to them. I have proved myself I can help a couple near me identify stuff, help them price ancients offered to them, be a cash on the spot buyer of items, etc. Its a mutually beneficial relationship.

 

My coin dealer/friend also uses the Red Book, but he also takes into consideration what he paid for the coin and realizes that the Red Book is high, and comes down on the price.

 

As a general tip this should be a massive red flag when looking at raw coins. Dealers aren't in the habit of giving great deals or selling things for half price whether they're raw or not. Such a steep discount generally indicates that they don't believe the grade they wrote on it or that they know there's an issue with it that would be a details grade. This is especially true if they're quick to drop the price even further.

 

Dirty Fingers, as soon as I saw they looked at a red book for pricing to me that's a red flag. Honestly, the Red Book is good for basic info but, when it comes to actually pricing it could be good or bad. If a dealer is pulling out a Red Book for pricing that would be concerning to me. And charging extra because it was graded is another red flag. Although price lists don't tell you if the prices listed are for graded or not graded coins. Most collectors assume the price list is based on graded coins. Raw coins generally sell for less. Even the prices on a price list aren't fixed. Some coins graded or not can sell for more or less than the prices listed. The 1899-O Morgan in the first pictures screams I've been polished. The second set of picture of the same 1899-O looks cleaned.

I'd recommend that you stay away from higher value coins and buy some cheaper coins to get a feel as to what you like. It sounds like you are interested in coins but, be a little careful when buying otherwise you will get burned and I would hate to have you loose interest coins. I don't think there is anyone on this site that hasn't regretted buying some coins. And yes even the very experienced collectors screw up.

 

hey @Dirtyfingers you did well and if your happy then that's all that counts.
@1865King posted "I'd recommend that you stay away from higher value coins and buy some cheaper coins to get a feel as to what you like. It sounds like you are interested in coins but, be a little careful when buying otherwise you will get burned and I would hate to have you loose interest coins."
thats real good advice. good luck to ya

 

My 2017 Red Book (a few years behind, but whatever) shows the 1926-S Buffalo Nickel in VF-20 at $375. PCGS/NGC VF-20s usually sell for between $100 and $150 at auction. Meanwhile, for certain semi-key and key date Seated coinage the Red Book values are too low for problem free coins. The Red Book is almost a must-have for collectors because of all the valuable information within it - but I wouldn’t trust the prices shown.

You can learn a ton about coins even if you’re collecting lower-value coins on a budget. Every collector makes mistakes, and it’s much better to learn from mistakes on inexpensive coins than expensive ones.