Help me buy coins!

OK. I live far away from any major city and have no local dealers or coin shows to go to. My goal is to find a good place to buy coins without getting ripped off. I've noticed that PCGS and most other auctions houses overinflate their price guides compared to the redbook. The problem is these prices are what these coins are usually going for at auctions houses. So either I risk getting ripped off or risk losing the coin because I'm not willing to pay the premium to win the auction.

So far I've been using Teletrade and Heritage. I watch items on Ebay a lot , but there are so many crooked sellers I try to stay away from buying too much there.

Any pointers on how you base the worth of a coin and the mindset you approach an auction with. I'm mostly interested in the higher grades between MS62-69. At those grades its extremely hard to gauge the value and a mistake can be costly.

Also if anyone is willing to give me an idea of where most of their coins are purchased and who they feel they get the best values from...Or fair values.

 

Log in or Sign up to hide this ad.

I have bought coins from eBay, Teletrade, Heritage and a number of online auction houses. First, I will only buy certified coins "sight-unseen" that are graded by the likes of PCGS, NGC, ICG and ANACS. I may take a look at a PCI or a SEGS graded coin in MS grades, but only after I mentally deduct 2 to 5 MS grades before I bid accordingly. I would really advise you NOT to buy raw coins on line (sight-unseen) as there are just too many fakes, dipped, whizzed, counterfeit, and OVERLY-self graded coins being sold. This can and will sour your interest in the hobby.

As for prices realized, all of the auction houses have "prices realized" for a given coin in a given grade slabbed by the likes of the top four. You can see what the market is bearing and pretty much gauge what you will have to pay for a given coin.

If you can save and wait for a major coin show like the F.U.N. in Orlando (every January, world's largest!), then do just that as there is nothing better than seeing and holding what you are buying than relying on good pictures...and somebody that says, "trust me".

 

Yeah. I've been thinking I should maybe take a vacation and go to one of the shows. So Orlando's is the largest? I guess coin shows would probably get you the best deals since there are no buyer's premiums and shipping fee's?

I've already decided to only buy coins from the major grading companies due to the sound advice on this forum. I won't buy any raw coins unless they are extremely cheap. Even then I'm not actively looking at them.

So far I've been just buying a wide variety of coins. Haven't quite decided what to focus on in building a set.

Thanks for your input

 

400 plus exhibitors, weather is great (not too hot) in January, check it out:

http://www.funtopics.org/coin_show.html

 

Just marked my calendar. Thanks. One other question. Is it considered bad form to carry a price guide to one of these events?

 

I don't think so-I'm just starting out and I try to bring a RedBook with me whenever I go to coin shop to double check mintages, dates, varieties, and sometimes prices. He knows I trust him and he takes no offense. But I don't know how others would react because I've only gone to one shop-
------Bill

 

price guides

I've been told not to carry a red book at the shows, but a copy of the greysheet would be good. The prices would be more up to date also. Note: at the small shows I see a lot of people looking at redbooks.

 

Hi jimij,

I have bought from Teletrade and Heritage both. I too like to buy only certified coins online. I've had great experiences with both. I base the price I'm willing to pay on many things. To summarize them, I usually look at previous prices realized at auction, the redbook prices, current coin magazine prices, etc. and try to come up with a number. I also take into account the census numbers from NGC and PCGS and also the mintage, though the mintage often times can be deceptive. I try to form a cummulative assessment given all of these sources about what I'm willing to pay for something. Also, I truly try to find coins with nice eye appeal to me. Sometimes, you will have to pay a bit more for coins with good eye appeal. You can have two coins graded exactly the same by the same company and one can still look a lot nicer than the other.

In mid to high MS grades, it's been my observation that for many coins, the prices at auction can do all kinds of crazy things. Often times, the price for one grade step, say from 62 to 63 can double or triple the price of a coin, so you have to take that into account too. This generally is not the case if you're bidding on coins and the difference is VF30 to VF35.

Funny things happen at auctions such as... If people see a coin graded MS62, but they think it should grade a 63...you could go into the auction expecting to win it for, let's say $400, but all of a sudden, the price is at $650. I've seen this happen any number of times.

Generally, with the auctions I've won, they usually end up about 1 bid increment above where I wanted to wind up at, but oh well. You'll be hard pressed to get any real steals at any of the major, well publicized auctions.

Also, as far as online auctions go and having to pay buyer's premiums and shipping, I just figure that into the cost of the coin. So, for each time I place a bid, I calculate what the total cost of the coin will be with all fees added and that's what I consider my bid to be at that time. I don't know that there's much of a difference in prices from online auctions to shows, but I haven't been to many shows so I'll let somebody else speak to that.

Anyway, that's just some thoughts I have. :hail:

 

You helped reaffirm how I've been doing it. I used the redbook and auction prices then I looked at the upper grade price and lower grade price and by looking at the picture decided in which avenue I thought the coin leans towards. Then adjusted it down by the buyers premium and shipping costs. I just need to study more on grading concepts. I've read a few books like the PCGS grading book and some other non descript coin books. I'd like to get a photograde book. I heard it was a good tool for learning? I feel I'm still struggling with the concepts since I find some coins graded higher to look worse then some coins graded lower. Not everytime , but just enough to make me question my judgement.

Any suggested reading material will be appreciated... Thanks

 

Nope, in fact it's smart to carry a price guide. Just whatever you do, DO NOT CARRY A RED BOOK to shows. Many (not all) dealers will see you're new and will treat you as such (read: higher prices, bad service).

 

One other question. Do the coins usually have prices on them? Is the buyer suppose to propose the price or the seller?

 

At shows, I usually say, "What's your best price on this?"

Also, I like the newest version of the ANA Grading Guide.

 

Remember...cash is king! It helps when "wheeling-and-dealing". Always keep your case/bag between your feet (if you are standing) and on your lap when sitting. Carry cash in the front pocket or a more secured location. Always watch your back at shows. There is just too much money on the table NOT to attract criminals. When going to your car, always keep an eye on your rear view mirror.

As for price guides...I go to the show with my Coin Prices, Coin Values and Grey Sheet price guide. Before that, I make a list of what I hope to acquire and the high/low pricing I may pay for the coin. I always ask the dealer, "What are you asking for this coin?" ...and that never stops me from askinig, "Will you take ____, ...cash?" Dealers are not stupid as they do have wiggle room built into their pricing.

Best part...finding steals! I found a 1909 VDB MS66RD (blazing) in a NGC holder I picked up for $100! Any 1909's in a true MS66RD are going up like crazy! Must be the 2009 anticipation year!

Study...walk the floor first...then come back and buy. Never buy the first coin you see or like. Hit and WORK the floor and have fun!!

 

Most coins don't have the prices on them. You should ask the dealer how much he's asking for a coin, and then you can either pay what he's asking, haggle, or pass on it.

I always take a greysheet to coin shops and shows. If you don't carry a price guide, you are more likely to overpay.

Charlie

 

Can't add much that hasn't been said....but I would also look at raw coins....you can find some gems that others have missed....I bid and won a 1926-S Buff Nickel....this was in a PCI slab so I treat them as raw as most people....it was graded F15 and worth about $100 in that grade...I thought it was graded wrong and won the coin....sent it to NGC and it came back VF20....worth about $400--so look for raw coins ....sometimes you can hit it big!

Speedy

 

Start with slabbed coins by the big 3 (ANACS, PCGS, NGC). Don't be suprised if you get one that you disagree with the grading on. Then learn to grade like Speedy and the others, then buy raw coins at cheaper prices. At least that is my strategy. And do plenty of research. Just a humbled newbies large cents worth!

Hey Speedy you should organize a big convention like that in the bluegrass state - I know I would attend.

 

jimij,

If you don't want to wait until January to attend a Coin Show, then you might want to attend the GEORGIA NUMISMATIC ASSOCIATION'S - 42ND ANNIVERSARY COIN SHOW in Dalton, Georgia in June! It is a fairly good sized Coin Show with lots of Coin Dealers, lots of Dealers of Coin Supplies, several Grading Services on hand and there is also quite a few Coin Experts always on hand. You can usually get a few words in with Bill Fivaz when his tall, lanky self is not sitting at a table CherryPicking Error coins.

If you plan on attending and make any sizable purchases, I would advise to stay in a Hotel or Motel a few miles away from Dalton such as Chattanooga, Tennessee and travel with friends or family. Many of the Hotels and Motels in the Dalton area will be packed because of the Coin Show and I heard that there were some Coin Dealers that got robbed at their Motels or Hotels. This was also a problem this last January at the Fun Show!

The date and times and address of the Coin Show is below:

FRIDAY JUNE 2nd 10am - 6pm
SATURDAY JUNE 3rd 10am - 6pm
SUNDAY JUNE 4th 10am - 3pm

NW GEORGIA TRADE & CONVENTION CENTER
2211 Dug Gap Battle Road
(I-75, exit 136)
Dalton, Georgia


Good luck...Frank

 

Don't try that...you will be in deep problems...I'm just in the first part of learning grading....

I wish I could pull some strings.....maybe I'll try to write some people and get the ideas turning.

Speedy

 

No idea where you live but that is a shame no shows in your area. If you do go to a coin show, it is a good idea not to run around with a Red Book as already noted. Also, to much weight to carry for me. I copy on my printer the pages in the Red Book of coins I'm interested in and use it as what it is intended for, a GUIDE.
If a coin is way over what is listed in there, I pass on that coin. As to other places to buy coins, I myself keep far away from ebay, heritage, etc. If I can't see the coin, I don't want to take a chance. To many people get messed up with fakes or just overpriced coins. To many lost in mail items. Just to much trouble.
One thing I always suggest to people is garage/yard sales and or estate sales. Not estate autions, just private people having a sale. Usually you have to ask if they have any coins to get rid of. I find numerous coins that way but you have to ask. No one wants to put coins out on display so you have to ask. Several times I was told they were just going to take this old jar or can of coins to a bank but let me sit there and count them out and I ended up paying either face or a fraction more for coins worth really lots and lots.
Another thing you may want to try to buy coins from somewhat honest people is to just ask on this web site or some of the other coin web sites like PCGS or NGC. Most have selling and buying forums. Good luck.