Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By BARRACUDA (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Insider's Tips For Buying And Selling Coins

% of readers think this story is Fact. Add your two cents.


From Susan Headley,

About.com

 

Whether you are buying or selling coins, you can increase your advantage when dealing with coin dealers by understanding how things work behind the scenes. One of the biggest problems I see, as an observer of the coin collecting marketplace, is the wide gulf between what the average consumer expects from a coin dealer, and what the average coin dealer believes he should provide to the consumer. The majority of these differences boil down to trust. The average consumer thinks he can trust the coin dealer to give him an honest appraisal and pay a fair price for the coins he is selling. The average dealer feels it is right to pay the lowest price he can for the coins, to maximize his profit, and that it is up to the consumer to do his homework. Fortunately, by finding this article, you will be on a much better footing when dealing with coin dealers.

The Coin Dealing Business – A Brief Overview

There are two major categories of coin dealers – the wholesaler and the retailer. The wholesaler aggressively seeks to bring new material into the marketplace, and often attends coin shows, local auctions, and runs advertising offering to buy coins. Most of this material is then sold in bulk lots to retail-based dealers.

The retail coin dealer gets most of his stock from the wholesalers. Although he, too, may attend coin shows and buy locally, most of his business income is from servicing a clientele of single-coin buyers. A dealer of this type is more likely to pay you higher prices for your coins, since they don’t have to pass through two sets of hands before being sold, but local dealers are also often the worst of the cheats! This is because the larger dealers are more likely to belong to organizations that require them to subscribe to a Code of Ethics, such as the American Numismatic Association or the Professional Numismatists Guild. The number one consideration that anybody who buys or sells coins must consider is recourse. What kind of recourse do you have if things go bad?

Wholesale Coin Prices

One of the best ways to arm yourself against the savvy coin dealer is knowing the wholesale prices he pays for his coins. A very widely-used standard in U.S. coins is the “Grey Sheet,” sometimes referred to as the “CDN.” This is the Coin Dealer Newsletter, which is printed on grey paper stock, and comes out weekly. Most serious coin dealers subscribe to this publication, which lists the “bid” and “ask” values for every major type of U.S. coin, plus mint sets, slabbed coins, and banknotes (called the “green sheet.”) “Bid” prices are the prices that dealers are paying if another dealer brings the coins to them. “Ask” prices are the prices for coins a dealers asks to buy. For example, if I call and ask to buy 100 common date Silver Eagles, I’ll be quoted the “ask,” or selling price. But if I want to sell the 100 Silver Eagles, I’ll be quoted the “bid” or buying price. The difference between the two prices is the profit margin. It is quite thin for most coins.

An important concept to remember when discussing Grey Sheet prices is that we are talking about the wholesale market. Two things characterize this market: (1) Deals are usually done in bulk numbers, so the prices don’t refer to single coins, in general, and (2) Deals are minimal service transactions. You can’t go up to a coin dealer who has to appraise and grade your collection for you, and expect him to pay Grey Sheet “bid” prices. However, the Grey Sheet should give you a good idea of what your coins are worth in a general sense, so you don’t sell a $1,000 coin for $200.

Read More Here



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.