User:Contactsmc/US Coins Buying and Selling in the 2000's

US Coins Buying and Selling in the 2000's

Coin Values Defined
What determines the value of a coin is what the market is willing to offer. There are coin guides that are published to give the collector a guide for the potential value of a coin. Market prices are set by coin dealers who buy, sell, and trade coins to each other and from the general public. There is an organization that presents what is referred to as the "Grey Sheet" and the "Blue Sheet." The "Grey" sheet is used by dealers to purchase and trade coins between them. The "Grey" sheet should not be confused with the value of a coin by the general public since dealers are not likely to pay or sell to general public using the prices listed on this sheet. The "Blue" sheet is also used as a trading mechanism between dealers for encapsulated coins. Age The age of a coin or minted date does not have much to do with the value of a coin. This is evident in the number of Large cents dated in the 1800’s that carry low mintages but the market for these coins is low compared to Mercury dimes which are very popular. A 1947 Lincoln cent that has been well circulated is valued more for the copper content than the market value of the coin, even though the coin is over 60 years old. Mintage The quantity minted of a coin does not have much significance to setting the value of a coin by itself. The minted quantity is significant for coin values concerning the type and series of coins. For example: a 1917-D Mercury dime in very fine condition is valued around $21 with a population of 9.4 million verses an 1835 Large cent valued around $21 with a population of 3.8 million. Grade The grade of a coin is very significant for determining the value of a coin. The most popular grading system is the ANA grading system. The ANA (American Numismatic Association) was founded in 1891 and its charter is to educate people in the study and collecting of money and related items. Value The value of a coin is what the market is willing to offer for the item. Seller’s on eBay obtain the market value for their coins based upon their presentation. Dealers sell coins at value, plus a profit market up to make a specific margin. Where to Obtain the Market Value In the 2000’s, the best method of determining a coin value is to view the coin results on an internet auction site or at a live auction. Internet auction sites do include the high end auction houses that list coins with a minimum value in their live auctions or their live internet bidding site. The true value of a coin can be acquired by viewing recent past auctions for that coin on internet selling web sites or by obtaining a coin book that specializes in internet auction sales values. There are a number of popular books that collectors use as a guide to coin values. Of all the books available, the black book and the Internet Auction Guide listed below are the closest to what a collector can obtain for coins at auction. There are a number of popular books that collectors use as a guide to coin values. Of all the books available, there are very few that list market prices for coins or what a seller can obtain at auction. Below are some credible sources for seeking the value of your coins.

The “blue book” price provided by Yeoman as a dealer’s guide to buying

The “red book” price provided by Yeoman as a dealer’s guide to selling

The “black book” by Marc Hudgeons, Tom Hudgeons Sr. and Jr.

The “2013 US Coin Guide – History Grading and Coin Auction Values Based Upon Completed Auctions” by Stan McDonald

Research from Heritage Auctions or from Teletrade Auctions

Presentation and Grading
In order to sell a coin there must be demand for the coin by the general public. The coin must be presented in a manor that reveals the attributes of the coin clearly and concisely to the buyer. A potential internet buyer needs a well presented description of the coin and very detailed set of photographs that reveal the accepted grading requirements.

The grade of a coin can be accomplished by sending the coin to a reputable encapsulation service or by attaching a grade to the raw coin by using a well known coin grading guide such as the official ANA (American Numismatic Association) guide to grading found in most major coin price guides. There are some well presented pictorial coin grading books that represent coin grading that are worth the investment. Nothing is more widely accepted as the “coin grade” of a coin than from the top three encapsulation services.

It is strongly recommended to have all coins of substantial value encapsulated since it is these coins that will generally command the most value. The encapsulation of some coins can increase the value of some high end coins significantly. This is evidenced by coin sales by a major internet auction company that presents high end coins for sale on consignment. The wide range of realized sales amounts for coins shows that there are many coins that are graded by the encapsulation services to be in the same grade but have some distinct appeal to collectors that can command a wide range of sales prices. For example: High end V-nickels in the same grade can sell as shown below:

1866 Proof 67 $25,000-$30,000

1867 Proof 65 $65,000-$70,000

1867 Proof 64 $45,000-$50,000

1880 MS65 $55,000-$60,000

1880 MS64 $40,000-$45,000

It is not clear why there is such a range of realized sales dollars for the coins listed above but ranges like these can be found with many US coin types in particular grades. Perhaps it is eye appeal that draws the larger dollar bids, perhaps it is the live auction site and timing, but whatever the reason, a coin with the same date and MS grade can sell for thousands more than the same dated and graded coin.

Selling Your Coins
There are several methods to selling coins depending upon the need to sell quickly or the desire to obtain the most profit. Selling to a coin dealer will provide the quickest method to obtain cash but most likely the least amount of profit. The most profit would be to sell directly to the general public via a coin show or private collector. Profit realization somewhere between the dealer and the coin show would be to sell on the internet or hire an internet auction house. Selling on the internet and through internet auction houses is not free; therefore, the seller needs to understand the associated costs before using these methods.

Buying Coins
When buying coins the collector should understand the grading schemes and understand what constitutes a natural surface tone. Coins that are cleaned are generally down graded or in some cases rendered of no numismatic value. With no precise grading classifications some coins are under graded, others are over graded, and others fit directly into a specific grading category. A coin dealer that is a member of the American Numismatic Association and a PGN (The Professional Numismatists Guild) certified dealer will sell coins in the proper grades. Professionally encapsulated coins by the three major coin services will provide accurately graded coins. The purchase of coins via the internet must be exercised with care since there is no method of viewing the coin first hand. Purchase only those coins that are represented by clear photographs and from a seller that has a high rating. Purchasing coins from live auctions allow the buyer to view what is presented before making a bid. Buying coins from a live coin show also provides the buyer with the ability to scrutinize the coin before bidding. eBay is an excellent source for purchasing coins as long as there is a detailed description that notes any detractions, and there is a very clear photograph that can be used to grade the coin. Coins of significant value, those exceeding $1000 should be purchased only in encapsulated state by the major services that perform this task.

==Links== http://www.money.org/membership/about-the-ana.aspx http://www.ha.com/ http://news.whitman.com/special/something-just-clicked/?gclid=CPDjq7e21LQCFcuZ4AodmDIAlA http://www.amazon.com/2013-US-Coins-Lincoln-ebook/dp/B0096QI2OK/ref=sr_1_3?ie=UTF8&qid=1357499202&sr=8-3&keywords=2013+US+Coins