January 16th, 2013
Points to consider before parting with a coin
Parting with a coin can be painful. But almost every collector faces the situation at some point, whether they need to sell a piece to pay for their next purchase or to meet a financial hardship. Whatever the reason, there are a few things to keep in mind any time you venture to sell a coin.
Seller beware – While that standard caution typically comes on the buy side, sellers need to exercise an equal amount of caution before they enter into a transaction. For starters, make sure you’re dealing with someone reputable. And to ensure the safety of the deal, demand that they pay in cash; no reason to risk issues with bad checks. Perhaps most importantly, though, make sure you’re committed to the sale. If you have second thoughts – don’t be surprised if sentiment strikes when its time to say good-bye to your beloved Morgan dollars – take pause, because once the transaction is complete, the coin is gone forever.
Ensure the price is right – Though we all assign an intrinsic value to the coins we own, make sure you’re getting a reasonable, fair market value before you commit to a sale. While it may be difficult to determine the exact going rate, there are some tools, such as the Greysheet, that will provide a decent valuation of your coin before you enter negotiations. One word of warning: when it comes to third-party graded coins, don’t put much faith into the value assigned by that grader. Just because a legitimate grader, such as NGC or PCGS, assigns your graded coin an estimated dollar value doesn’t mean the market will support that price. Better to get a firm idea of what others are buying and selling similar coins for rather than trusting a potentially out-of-date estimate.
Meet in a safe place – Sounds like common sense, right? But you’d be surprised how many sellers I’ve encountered who initiated a transaction online and sought to complete the sale at their private residence. While that may work for some people, I’d recommend finding a safe, secure and public place to wrap up your business. The last thing you want to do is put yourself in peril. Not only do you run the risk that an ill-minded person may try to rob you during the transaction – and it has happened – but they also know where you live, and more importantly, where your collection likely resides. No reason to turn yourself into a target.