Posted on April 3, 2017 at 5:06 pm.
We get this question all of the time: Why should I put my coins in a Coin Auction? Well, to start, it depends on what coins you have. In some cases it might not make sense to do a coin auction. Most coins under $100 in value would be better to sell outright to an auction house rather than sending it through the auction process. I will give you a list of why it is best to auction higher value coins.
- When you put your valuable coin into a coin auction, there are a large number of collectors that will see your lot. Sure eBay has millions of members, but who goes on eBay to get top dollar for something that is meaningful to them? Not many people. So when you are looking to sell your coin, go to the place where collectors will fight over what you have, not to the place where everyone will try to low-ball you.
- An auction is run by specialized professionals. eBay is run by professionals web managers. Craigslist is run by the people. When you are selling your valuable inheritance or your grandfather’s coin collection, don’t you want it in the hands of the most capable people? Coin auctioneers are going to have much more experience with the type of coin you have as opposed to an eBay employee or User janedoe99 from eBay.
- A local coin shop is not going to pay nearly the amount that a collector will pay. Keep in mind that local coin shops want your coin at the cheapest price so that they can have the largest margins. A collectors wants your coin because it will complete their collection. A person who is looking to complete a collection will be much more willing to dish out the extra money.
- On the topic of coin shops and coin dealers, dealers will look to give you as little as possible for your coins. They have bills to pay. They need to keep their doors open and their lights on. So, if you come in with a $200 coin, expect to be offered $75 so that they can make a large profit on the coin. That isn’t how an auction house works. Coin auctions houses will charge the buyer, and sometimes the seller, as premium or commission. But, since this commission is normally paid by the buyer, the seller has relatively low cost which will maximize their profit.
So, next time you are looking to sell your coin, remember to not take it to a local coin shop unless you need fast cash now. However, give an auction consideration. You never known what you might be able to get out of your rare coin. We highly recommend Stack’s Bowers Auctions out of California because of their low costs, friendly service, and ease of use.
Tags: auctions, coin auction, why auction