Coin Auctions: The Ins and Outs
Buying coins at auction is a risky business for the uninitiated. Auctions online are particularly challenging; many online sellers take liberties when describing both the condition and value of coins presented for sale. Live auctions may also not be as honest as they could be on self-evaluated items, but at least you can view the coins in person.
No matter how clear the image, and imaging technology has improved over the last decade, for rare and special coins it is still best to see things up close and personal. The best advice you can get on buying coins at auction is to get an agent.
What Does an Agent Do for You?
An agent represents you at auction to get you the best possible price. There are only a few experts world wide on some specialized coins. Instead of bidding against the professionals it makes a whole lot more sense to hire them to work for you. Buying online is a crapshoot. You can’t see the coins in person and they may or may not be as described.
Not everyone can afford to take three days off from work, pay travel expenses and then purchase that special coin. The expense of hiring an agent is often less than what you would pay to travel. Another good reason to use an agent is anonymity. Anonymity works for you in several different ways.
- Known Collectors Pay Premium. If dealers start to recognize you from multiple auctions they may start upping the price on items you are interested in.
- Limited Supply Makes for Fierce Competition. There are usually more collectors than there are specialty coins. If the competition knows who you are they may have an idea about your budget from prior purchasing habits. This affords them the opportunity to force you out of the bidding.
- Dedicated Collectors Bring Out the Frauds. Unfortunately, as with any collectable industry there are scams and frauds perpetrated in the coin industry. A professional expert is more likely to be able to detect a scam and save you the money.
What to Look for in an Agent
Finding a good agent is not as simple as going to your local coin shop. You need to find someone who is a regular auction attendee. All the expertise in the world is no substitute for first hand auction experience. Look for a specialist in the type of coins you collect.
No matter how experienced the agent is with buffalo nickels; that will not help you with Roman silver. Make sure the dealer is not conflicted on the purchase. You need to be sure that they are not bidding for multiple people. It is also a good idea to ask around to ensure the agent’s reputation is above reproach.
An agent can be invaluable when you are buying coins at auction. The added expense may seem a bit much at first, but the benefits more than outweigh the negligible expense. Auction buying is often the only way to obtain certain rare coins.
Be prepared with an expert in your corner.