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<p>[QUOTE=&quot;Hobo, post: 646230, member: 11521&quot;]Before you invest in coins you need to understand a few things about buying and selling coins. </p><p>&nbsp;</p><p>1 - Coins are not commodities. A share of stock in a company is identical to any other share of stock in that company and it is very easy to look up that stock&#039;s value. But all coins are different, even coins that have been graded the same by the same reputable TPG. That makes placing a value on a coin more difficult than for a stock.</p><p>&nbsp;</p><p>2 - To make a profit on your coin you must overcome the built-in costs of buying and selling coins. </p><p>&nbsp;</p><p>Suppose you buy a coin at auction and later sell it at auction. When you buy the coin you pay a 15% buyer&#039;s fee on top of the hammer price. Add to that S/H costs. When you sell the coin you pay a 20% seller&#039;s fee (and the S/H costs). </p><p>&nbsp;</p><p>Let&#039;s do a little math. Assume your winning bid was $1,000 for the coin. The juice (buyer&#039;s fee) is $150 so your actual cost is $1,150. Throw in $25 S/H and your total cost is $1,175. </p><p>&nbsp;</p><p>Later you decide to sell the coin. Assume it costs you $25 S/H to ship the coin to the auctioneer making your total cost to date $1,200. The winning bid would have to be $1,500 just for you to break even. That means the hammer price of the coin had to increase 50% - FIFTY PERCENT - just to cover your costs of buying and selling the coin. For you to make a profit (which is what investing is all about) the hammer price of the coin would have to increase greater than 50% and your profit would be 80% of anything above that amount. </p><p>&nbsp;</p><p>That doesn&#039;t sound very promising does it?</p><p>&nbsp;</p><p>It doesn&#039;t get much better doing business with a dealer. The dealer has overhead costs he has to cover and he does that by buying coins at wholesale and selling them at retail. The coin he sells you at $1,000 he may offer to buy back at $700 or $750. Again, your coin would have to go up quite a bit in value for its wholesale value to reach its former retail value.[/QUOTE]</p><p><br /></p>

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