As a coin collector, your search for new acquisitions will almost inevitably lead you to buying coins from a coin dealer. A coin dealer buys and sells coins, and is about the only source for old and rare coins. Most coin dealers are friendly, knowledgeable, and easy to work with. Though coin dealers primarily sell and purchase coins, they are usually just as apt to answer a question or two, share information about certain types of coins, or tell stories about their experiences in the numismatic realm.
Coin Dealers are a Diverse Sort
Coin dealers work in a variety of echelons. They vary from the part-time dealer who sells modern coins through a mail-order advertisement in a magazine or on the internet, to the large firms consisting of several seasoned coin professionals who routinely sell coins worth thousands of dollars apiece. Just as well, different dealers work with different types of coins. Some dealers primarily buy or sell ancient coins. Others focus on silver and gold coins purchased and sold by investors. There are many other dealers who handle low- to-moderately priced, “common” United States and foreign coins. There are even some dealers who tailor their business strictly to error coins.
You should be able to easily locate a coin dealer near you (your phone book or online telephone directory generally lists coin dealers under the heading of “coins” or “coin dealers”). Furthermore, there are also many reputable coin dealers who offer their services over the internet as well as through the mail. If you are to shop at a coin dealer’s physical store, realize that some dealers work on an appointment-only schedule. Before visiting a coin dealer, it would be wise to call the store to find out if they accept walk-ins (most do). While on the phone, be sure to verify that the dealer indeed sells and buys the kinds of coins you would like to purchase or sell.
Coin Buyer’s Etiquette
If this is your first trip to a coin dealer, there are some basic etiquette rules of which you should be aware. First, when inspecting coins to purchase, be sure that you handle the coins properly. Most dealers’ coins are protected in small, clear envelopes or mounted inside of two-inch-square cardboard sandwiches (these cardboard sandwich holders have a small, circular, cellophane window through which prospective buyers can view the contained coin). Be sure to hold the prospective purchase over a small pad, if provided one by the dealer. This way, if the coin should drop, it will gently land onto the soft mat. Even with the protection a soft pad may guarantee though, it is important to never drop a coin. This is an important rule for any coin that you handle because, if a coin is dropped, it can certainly suffer some degree of damage (as well as a potential hit against its collector value).
If coins you are inspecting are not protected inside holders, be sure to exercise safe coin-handling techniques. The proper way to hold a coin is to grasp it by its edge, with the coin being held between the tips of your thumb and forefinger. When holding the coin, do not touch its obverse (the coin’s “heads” side) or reverse (commonly referred to as “tails”), and do not allow a sharp or hard object to come into contact with the coin. When handling the naked coin, do not breath on or talk near it, for droplets of saliva that may be expelled when exhaling or speaking can drop on the coin’s surface, potentially damaging it through adverse chemical interactions with the coin’s metal.
When looking at coins, be very cautious of the many glass display cases normally found in a coin dealer’s store. Do not lean very heavily upon these cases, for they can become marred, scratched, or even broken. Take a seat on one of the many stools dealers often provide for their customers, and be careful as to how much you rely upon a nearby display case for physical support. Always move carefully around coins, and be sure that you move slowly when picking up, putting down, or holding a coin. Whatever you do, be sure that you never drop a coin.
Be an Informed Coin Buyer
Before you use the services of a coin dealer, be sure to purchase a copy of the latest edition ofa coin price guide. These guides will display the average price of certain coins. There are price guides designed to inform you as to how much you may need to pay or could expect to receive for coins. However, beware that these guides are merelyan implication as to a conventional, average price for coins—these guides do not necessarily reflect the exact amount you can expect to pay or be offered when buying or selling coins. Realize that, for the most part, the price of a coin is usually based either on bullion value (the value of the coin’s metal), or the collector value of a coin (in basic terms, a matter of supply versus demand, as well as the physical condition of the coin). Furthermore, these prices usually are relevant only for coins which are free from detractions and bear no evidence of physical damage (such as harsh cleanings, dents, scratches, nicks, etc.)
When collector value is involved, one of the most significant determinants for price are based on the grade of a coin. A “grade” generally refers to the coin’s state of preservation (most often based on the amount of wear the coin may possess), and a coin’s price often directly correlates to its grade. While a coin’s price may be significantly dictated by a wear-based grade, realize that issues regarding overall quality of the coin also affect both a dealer’s asking price and a dealer’s offer price for your coins. There are plenty of ugly, nicked, and discolored uncirculated coins that do not and should not be sold or bought for the “typical” uncirculated price, and there are many worn pieces that, because they stand out as exceptional for their grade (perhaps because of a particularly strong strike or attractive toning, for instance), deserve to sell for a higher-than-usual price. Any piece that has been cleaned, damaged, or otherwise possesses “problems” should virtually always be sold at reduced prices and, likewise, will cause you to receive lower-than-book-value offers should you decide to sell such coins. If you generally deem yourself unknowledgeable about the topic of coin grading, it is advisable to acquaint yourself with the subject so that you can be a more astute coin buyer and coin seller, as coin prices are indeed often based on grade.
