PQ Coin premium?

nwcs

When you have a coin that's PQ for the grade, is there a general rule of thumb (when it comes to selling) for the premium you add to the price of a coin? I know it's worth what someone pays, but I want to hear from those who have sold PQ coins some things to keep in mind when selling PQ coins.

Neil

dragon

Good question. Assuming we are speaking of untoned pieces only, premiums can still be multiples of bid in some cases. Generally, the less inexpensive the coin, the higher the premium can go,,,for example, a coin that bids for $100.00 could much more easily realize a 200-300% premium as opposed to a coin that bids for $20000.00 IMO due to the dollar amount of the premium paid. It also depends on how large the spread between one grade and the next, if the next grade up is 1000% more expensive, a 100-200% premium can sometimes be a bargain.

In the past, I've had no problem paying 50-150% premiums for untoned coins if they were truly exceptional for the grade.

Now if you are speaking of beautifully toned coins, it appears that the sky is now the limit as far as premiums. At one time, paying 10X bid for a world class toned piece seemed to be about the limit, today, I've seen coins that bid at $65.00-$150.00 sell for $3000.00 and beyond if the coin is 'all there'.

dragon

FC57Coins

Illustration of Dragon's Point

The coin above is a perfect example of what Dragon is talking about. A run of the mill MS66FBL in technical grade might go for maybe $100 if you hunt for one. An untoned piece (most of these are brown toned) in this grade with excellent eye appeal will set you back $300-$500. And then, when you're talking gem toned pieces, well - the sky IS the limit.

Frank

nwcs

The ones I'm thinking of are not toned. But I've been wondering, after talking with a few local dealers that they wouldn't pay more than the bid price for a grade on a slab regardless of the quality of the coin. And it left me wondering, if I were to ever sell a pq coin, how would I get the best price? Would ebay be the only option? Would I have to set up show or try various dealers at a show? Is it all a big negotiation between buyer and seller?

FC57Coins

Personally I understand your dilema and in my opinion, you're always going to get a better deal through an auction or going to collectors who might be interested in the piece directly. If you have an MS65 piece, my experience has been that dealers will not give you much more than bid (if that) unless the piece is something out of this world that they can get more out of it. It's a business and I don't blame them for approaching it this way, but unfortunately, since there is no clear cut rule for pricing PQ pieces, you kinda have to play the market to the best of your ability and willingness.

Frank

merz2

nwcs
As I,and many others have said.There are coins that are PQ for the grade,that sell for multiples of bid,or ask for that matter.I purchased a 1967 PR66 Lincoln that was PQ for 4x's bid,with cameo contrast.When PCGS gave it the Cameo designation,it became a coin valued at 40x's bid.I have a 1937 PR67 RD Lincoln that I bought as a PR66 RD,that I had upgraded.It is now bid at $3,500.I paid $500.So the moral is a PQ coin might stand a chance of upgrade and be worth much more than you paid.That is why so many crackouts.The chance of an upgrade makes it worth it. If you were thinking of selling a PQ coin,you might try for an upgrade first.Then sell it at auction.

dragon

nwcs,

The dealers that made that statement to you:

"they wouldn't pay more than the bid price for a grade on a slab regardless of the quality of the coin"

That statement tells me a couple things......

1) They are telling you this hoping that you will offer them a few really nice premium pieces one day that they can 'rip' and then get a nice premium for.

2) They wouldn't know what a real premium coin is to begin with, so they wouldn't pay a premium for it.

3) They are simply small local dealers that do nearly zero business in high end certified coins and most of their business is selling modern proof sets, silver eagles in snaplock plastic holders to old ladies, Whitman state quarter albums to fathers walking in with their 10 yr. old sons, VG barber dimes in 2X2's, and their certified inventory consists of a 1923 Peace dollar in MS62 and a 1941 Lincoln cent in MS64.

Generally, the best place to sell your really high end PQ material is through large auctions in conjunction with major shows. Ebay is also a possibility if you can take very good pics of your coins, or also to offer them on consignment to dealers that specialize in high end, PQ certified coins.

dragon