Selling your collection privately vs.selling at auction

STEWARTBLAYNUMIS

For the last few years most 20th century collections have been sold at auction.Prices realized have amazed just about everyone.

In the past month I have heard of two finest known collections being sold through dealers and the prices realized have amazed people.The GBW (Green Bay Wisconsin) collection of Walking Liberty Half Dollars has/is being sold by Pinnacle Rareties and the finest collection of half dimes has/is being sold by Rareassets.com/Joe O'Conner.

This can be a new trend as auctions have become INSANE,EGOTISTICAL and MANIPULATIVE games of chicken.Who has the biggest (Private part).

What do you think?

Placid

To me selling privately means the owner sells direct to the buyer without a 3rd party.

Using a dealer vs. a auction for selling seems to have more to do with exposure and the amount of buyers that might be aware your collection is for sale.

I think either way if you want a minimum of $ for your collection and you get it then you will be happy.

Jamericon

Selling by auction is usually the better option if you want to realize more for your collection. Of course you have to sell at the right time and to the right people. You also have a lot of prep time before the actual sale occurs.

Selling to dealers has the advantage of being quicker but probably gets less money overall. Then again, some people are ok with that, literally viewing time as money. And it may be that certain dealers have connections or know something that could warrant a larger sale in private. The dealer then could wait for the right time, while the collector goes home happy.

DrPete

Stewart,

This is the age-old question of: How does one best sell a collection? It is constantly in the back of my mind regarding my mint state barber half collection, and other coins I own. I strongly suspect you think about it regarding your coins as well.

My way of thinking of it is that many or most sellers want to maximize how much their collection will sell for, that is, get the most money back from their hobby and investment. It has been my observation that the very best of the best coins may well sell for the most at auction. The key coins in the highest grades are most likely to attract the highest bids and lead to excitement and sometimes record prices. This is particularly true for coins where demand is strong. Coins that are less than these top ones often don't do terribly well at auction and may bring the seller more money if sold by private treaty. Many dealers will be eager to take a collection on consignment and ask a lower percentage than the auction house. If the collection is a mixture of rarer issues and more common coins, it may be difficult to be certain which route would yield the better overall results. Most collections fall into this category of a mixture of rarity.

Part of the decision revolves around other issues. If you want a keepsake auction catalog with beautiful images of the coins, high quality descriptions with lots of colorful and expensive-sounding adjectives, then the major auction houses are terrific at putting together such a project. Ego plays a factor here and some collectors choose the more anonymous path while others seek more of the limelight. How much of an impact you want your collection to have on the numismatic world will help drive which pathway you take.

Time also plays a factor. Selling at auction chooses a finite date for the sale of all of the coins, although setting reserve prices is wise and may result in having some coins not sell initially. Selling coins on consignment generally means a protracted amount of time before the coins will be sold.

I honestly don't know at this point which way I would proceed if I chose to sell my collection. Using an auction house is inviting and setting reserve prices is absolutely critical. That pathway would allow one to reap the best of the auction venue, and then to take the coins that didn't make reserve and sell them a different way.

I'd love to hear other collector's thoughts on this.

STEWARTBLAYNUMIS

Dr.Pete - Most of the old time collectors use to die or be close to it before they sold their collections.Of course what they paid for their coins was nowhere near the present reality.My reason for posting this thread is because MOST collectors never ever think about it.Coins are and will continue to be BIG BUSINESS.Putting together a finest known Lincoln or Indian cent set or a mercury dime set is a MILLION DOLLAR PROPOSITION.These coins use to be common as dirt.Buying a major rarety can cost a MILLION BUCKS on average.ex.1797 Half Dollar,1894 s dime.1913 nickel etc

The time one owns a collection today or a significant coin has shortened considerably.Most collectors today will have to sell their coins before they die.

Stewart

DrPete

Stewart,

I see your point about distinct differences in the time-frame modern day collectors have versus the old-time collections. As you point out, great rarities are not cheap and can eat up considerable sums of money.

Although it is still possible to hold an expensive collection for some time, many of us do not have offspring that know anything about coins or care about them. Thus, as you point out, selling a collection before you die makes perfect sense to me.

roadrunner

Having a 3rd party dealer market the coins on consignment at a modest 3-10% fee is also a viable method. A high price can be asked for the coins (similar to what they might bring at auction) with minimal risk to either the dealer or consignor. The only "risk" is having coins go unsold for long periods that make them appear stale (less fresh) to the market.

Auction is often the best route when the coins either are of great importance, where it is very difficult to figure out a price from current price guides, or where the coins are of such quality for the grade that large premiums could be received above what the holder states.

My only concern about auctions is the collusion that sometimes occurs or when the house may be looking to acquire the coin for their own inventory via unseen middlemen. The net result is less money than what your coins should bring otherwise.

roadrunner

tradedollarnut

If a tree falls in the woods and nobody is around to hear, does it make a sound? If a super set exists but it's not shared with the numismatic community, is it truly the finest?

Auction results are like playing the lottery - everyone remembers the spectacular winners and quickly forgets the normal result. Selling a great collection privately is often just as good - if not better.

tradedollarnut

To answer my own question.... yes, I suppose the tree makes a noise - but nobody is there to appreciate it, so does it matter? And the set is still the finest - but it seems like it's diminished somewhat. All the lost chances for collectors to appreciate the coins.... all the future great numismatists they could have inspired. A loss to the hobby in my mind!

EVillageProwler