Information on Coin Auctions

Types

• Coins are available through three types of auctions: online auctions, traditional auctions and bids through mail. A traditional auction is the most common. An auctioneer will start the bidding at a set price and those attending in person or by phone will place bids.

  An online auction may be the easiest way to collect rare and valuable coins. Auction sites such as eBay provide hundreds of auctions each day. Buyers can set a maximum price to bid up to without constantly checking the auction's progress.

  A mail bidding auction is less common. A seller will advertise the auction through mail to private lists and known dealers, allow bids to be sent in and choose the highest bid for the coin.

Buying

• Do plenty of research before attending a coin auction. Research the type of coins available; the estimated values provided by the Numismatic Guarantee Corp or Professional Coin Grading Service; and how many of a specific type of coin was manufactured. Some coins may sell at auction for a high price simply because the buyer did not do the research to know a specific coin was not rare.

Selling

• Coin sellers who choose to put their collections in an auction should look for the right auction house to work with. The right auction house will know how to connect with the numismatic community. This will ensure the top dealers and investors have a chance to buy what you have to offer. Sellers should also consider encapsulating rare coins for a better price.

Considerations

• Sellers at coin auctions need to understand what is most desirable in the numismatic community. Coins that have large silver or gold content sell well at auction. Complete sets of coins, including all mint marks and dates, also bring in a good price. Sellers also need to realize the potential of the coin. If many collectors want to add a particular coin to their collection, an auction is a better choice because it will often bring in more money than the coin may be worth.

Potential

• There is great potential in buying and selling rare and valuable coins at auction. Buyers can pick up the coins that they need to complete their collection and may also be lucky enough to purchase one under value.

  Sellers should understand what types of coins will sell best at auction. Many buyers look for coins that have a low mint or circulation, and complete sets of coins. Condition is also a major factor in what will sell at a coin auction. Buyers are looking for the best possible grades, which include brilliant uncirculated and proof.