Coin Collector

Coin Collector | 15 | www.allaboutcoins.co.uk WORLD VIEW For someone new to the hobby, walking into the lot viewing room is a bit scary. The room is huge and there are guards everywhere, making sure the room is secure. New collectors might not understand how the process of lot viewing works. The first order of business is to register online or in person as a buyer. You will need to provide the expected information: name, address, email, and how you are going to pay for your won lots. If you interested in credit, which many dealers and some collectors take advantage of, you will need several references. Credit is best taken care of well before the sale, as the staff is very busy at lot viewing and might not have time to check references in time for you to place bids. After registration, you will receive a bidder number, usually a large number printed on a piece of paper. This will be your tool for bidding in person. Contrary to what you see in the movies, auctioneers much prefer bidders to raise their bidder cards in the air and not try to figure out if your raise of an eyebrow means a bid. Floor bidding is important, but the internet has literally changed the landscape of coin auctions. The room might be mostly populated by dealers, but collectors around the country are able to compete from the comfort of their home or office. For years, dealers dominated the rare coin auctions, and probably purchased over 75% of the coins sold. This has changed dramatically in recent years. I now estimate that collectors purchase around 75% to 85% of the coins that cross the auction block. Before you enter this exciting competition however, you need to examine the lots. After you receive your bidder number, you can then examine the coins being offered for sale. Even though attending the sale is difficult at the moment, most auction house provide amazing photographs of the material being offered. Examining coins in person is an incredibly educational opportunity for collectors. You have the chance to hold and examine millions of dollars worth of rare coins in one room. You can study the individual coins that interest you with no pressure or rush. This is not always true on the bourse floor. You can also study coins closely to get a better understanding of how rare coin grading works. You may have always wanted to purchase a nice High Relief double eagle, but could not decide which grade to buy. Now you can do side by side comparison of an MS61, MS62, MS63, MS64 and probably several even better. That would be impossible anywhere else. Auctions are also a great place to be able to compare coins of the same grade, and then examine how the marketplace values them when they cross the auction block. This will give you a better understanding of how toning, strike and other factors affect the final price of coins that have been graded the same. This can be very enlightening, but somewhat confusing. You might see a coin sell for double or triple that of a similar grade coin. Remember there are professionals trying to buy coins for regrading, and even those guys get carried away sometimes! After you have examined lots, it will now be time to figure out how much to bid for the coins that are of interest. This is extremely important to do in advance. As mentioned above, it’s easy to get caught up in auction fever during a sale. That one last bidding increment can be painful. With most auctions now charging a 20% buyers charge, only an Einstein can do the math in his or her head as the sale is going off. After you have identified the lots of interest, now is the time to do some basic research. Try to figure out what similar grade coins have sold at auction for in recent months or years. Auction prices realized are now one of the most important research tools for dealers and serious collectors. Come up with a price you a willing to pay, and then do the math to account for the buyers charge. I would recommend targeting several lots to bid on. Otherwise, you will become frustrated when you are unsuccessful, and bid too much just to get in on the action. If you do not establish firm bidding limits before the sale, you run the risk of letting your emotions take over. I know this is fact because I have been guilty of the offense on many occasions! In light of the fact that it is now very difficult to examine lots in person, an idea that might helpful is to use the services of a seasoned professional to assist you in the bidding process. For a fee of only about 5%, many dealers will examine lots, help with pricing, and actually execute your bids. The small fee could save you lots of money by avoiding the mistakes inexperienced collectors sometimes make. Many professional and seasoned collectors now place their bids on the internet well in advance. Sitting in an auction room for hours can be a lot of work and requires tons of patience. A recent Baltimore auction of Colonial coins ran well past 3am. Years ago, most dealers would never have given an auction house the limit of what they would pay for a coin. They would have been concerned about the auction house making sure they paid there limit or close to it. That is no longer a concern for most buyers. The auction houses long ago figured out that running an honest and fully transparent sale was in their best interests. I bid on coins and currency on the internet quite often and I’m usually successful at levels below my limits. After the sale has concluded, you will then need to visit lot pick-up the next day to claim your coins. Make sure to bring your bidding information and double check the invoices. Auctions can be hectic, and mistakes do happen. As noted above, if you have been approved, you will be able to write a check or sign for your lots. Again, do this in advance to speed up the process and avoid embarrassment. Years ago, many auction houses just gave bidders the nod when it came to credit. Now, it is much more like dealing with a bank. A typical sale will see tens of millions of dollars trading hands, and the auction houses are much more careful. For those bidding online, you will be notified immediately on the success of your bids. You will need to arrange payments and most likely pay for shipping charges. Good luck in the next sale, and enjoy this incredible, educational opportunity. Maybe someday, you will be sitting in the auction room, watching your collection sell! “I would recommend targeting several lots to bid on. Otherwise, you will become frustrated when you are unsuccessful, and bid too much just to get in on the action”