How do you buy your coins?

Discussion in 'Coin Chat' started by John Skelton, Dec 2, 2020.

  1. John Skelton

    John Skelton Morgan man!

    I have been checking out online auctions, thinking I might try one. However, I'm stopped by the buyer's premium. I don't see why I should pay it when I can buy coins without it. But what do you do if you don't have a coin show or coin shop nearby? Is there any way to avoid the premium auction houses charge? What do you do if you aren't near a shop or coin club?
    MIGuy likes this.
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  3. arnoldoe

    arnoldoe Well-Known Member

    Yes, you can buy fixed price coins from dealers who get their coins at auctions :angelic:
    Beefer518 likes this.
  4. MIGuy

    MIGuy Supporter! Supporter

    I have the same question and I drafted a post - not seeing yours before I posted, my apologies!
  5. John Skelton

    John Skelton Morgan man!

    Yes, I understand that most dealers do get their coins from auctions or coin shows. But what if you don't have a dealer within a reasonable distance that you can visit? Or you don't have any coin clubs or shows nearby? How far are you willing to travel to take part in the hobby?
  6. baseball21

    baseball21 Well-Known Member

    You're paying it to some extent no matter what, just back your bid out to account for it. Just depends on what the coin is or how much you want it but no there is no way to avoid their fees sort of being ready and willing to throw millions of dollars around consistently on their site and then yes they would negotiate with you lol.

    There's always eBay too but their inventory is starting to get hurt a bit from the managed payment switches
  7. Blake Davis

    Blake Davis Well-Known Member

    I just wish there were more coins - it seems that there is less and less each year. And there does seem to be great demand, at least in European auctions - I thought that people were losing interest?
  8. Bambam8778

    Bambam8778 Well-Known Member

    Some coin auctions are a little salty on the buyers premium and I don't think people realize it when they're bidding. I do take it in to consideration. The auction house is a business and needs to make money and from the sale of some of these coins, they are raking in the money, for sure! Local auctions will sometimes forgo buyers premiums if you bid in person (hard to do right now) or they lower it for cash payment. There is a great big demand for coins @Blake Davis , especially seen in auctions and the hot bidding wars that go on! Good luck in your hunt!
  9. Collecting Nut

    Collecting Nut Borderline Hoarder

    Fine a good solid online coin dealer.
  10. Blake Davis

    Blake Davis Well-Known Member

    Thanks - I wish there was an ancient coin club in my area - I have always wondered how it could be that the New York metro area could not have a club dedicated to ancient coins!
  11. Publius2

    Publius2 Well-Known Member

    Well, I think you have answered your own question. When you don't have any options, you pay it. I know that sounds trite, but it's not intended to be so. Now, if you bid in an auction you must agree to their terms and conditions including paying the buyers premium so there is no way to "avoid the premium" if you are going to play in that arena. But, if you check out actual auction sales including the BP and compare them to actual sales of genuinely comparable coins from dealer's lists, you will often find the total cost to be comparable. So, what we all do when we are contemplating an auction bid is to research what we are willing to pay for the coin INCLUDING buyers premium and all other costs and then calculate what our maximum bid should be. If you can get the coin from a dealer for less than the total auction cost you are willing to pay then you should buy from the dealer.

    How do you find a good dealer doing business on the internet? Research (including internet search engines and {shudder} eBay) and ask questions of others who are collecting in the same areas of interest as you. Often a good way of networking for this is to join a specific interest club, of which there are many. Most clubs have dramatically increased their on-line activities in response to Covid-19 and often have Zoom meetings, Facebook and Twitter presences. Many clubs have prominent dealers among their members and officers. Magazines such as The Numismatist, the publication of the American Numismatic Association, are loaded with dealer advertisements.

    As an end note, there are some well-known dealers who also conduct auctions that charge no BP. But you have to realize that no matter how the deal is structured there is always a pound of flesh that must be paid.

    I am reminded of something that happened 40 years ago at my former employer. We had a manager who was tasked with negotiating lower costs from our electric utility supplier. He met with the utility many times over the weeks, each time asking the utility to structure a deal in different ways and to come up with an annual cost. No matter how he structured the deal, the annual cost was always the same. In frustration the manager asked the utility how this could be and was told "We have to get a specific amount of money from your account and no matter how the arrangements are structured, we will arrange matters to result in that number."
    Beefer518 and Mainebill like this.
  12. John Skelton

    John Skelton Morgan man!

    I have considered that. But the ads always seem a little too much full of themselves.

    Anyway, I have heard some people complain a little that they have no access to shows, clubs, or local dealers. I was wondering what options are there for those in that situation. I guess online auctions or dealers are the only options left.
  13. baseball21

    baseball21 Well-Known Member

    eBay, great collections, david lawrence, heritage, stacks, legend (if you're looking for high/higher end stuff), Instagram, Facebook, Twitter, Reddit, Collectors Corner
  14. john65999

    john65999 Well-Known Member

    ebay, or usa coin buyers premium
    serafino likes this.
  15. Mainebill

    Mainebill Wild Bill

    I just figure it in with my bid. As I’ve been buying at auction frequently for many years. Not just coins. The major auctions are a source for me especially for coins for myself not just for inventory. I buy at local auctions too if there’s anything there. And at shows and from a few dealers and not on eBay
  16. John Skelton

    John Skelton Morgan man!

    I've been watching the Legend auction site, and it is pricey. I don't like eBay, and I can't imagine Reddit having coins. I will check out Heritage and Stacks once I find a link for them. What about Gobrecht? They have ads in Coins magazine.
    Mainebill likes this.
  17. okbustchaser

    okbustchaser I may be old but I still appreciate a pretty bust Supporter
  18. serafino

    serafino Well-Known Member

    I collect mostly pre-1861 Italian states coins and I can tell you that prices have been going up and it's hard to find good deals like I used to find a few years ago on American eBay. But for me eBay is where I've been able to find what I'm looking for. I used to buy on Italian eBay but with shipping and the American dollar getting weaker it's slowed me down.
  19. Silverpop

    Silverpop Well-Known Member

    Amazon and a small online coin company is where i buy my coins from
  20. Vess1

    Vess1 CT SP VIP

    Some people are pursuing coins that are rarely available and will happily pay the buyers premium. Other coins may not be worth it but it’s usually factored into the price. Buying coins isn’t always like buying appliances. They tend to be unique thus, added expenses to acquire.
    On eBay you’re paying a buyers premium that’s just not advertised. If eBay and paypal didn’t take a cut, sellers could drop their prices 12% but nobody questions eBay because the buyer premium isn’t staring you in the face. The seller just loses it from the final sale price.
    Good Cents and serafino like this.
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