Newbie--How do you value a coin?

pupskweek

I have just started collecting coins. Started out with Morgans because they were the cheapest to get into and I think they are gorgeous. Got really burned on them because none of the ones I bought, both on e-bay and from dealers (and one from a friend) were graded and I paid way too much money for them. I think! I sent them all into ANACS and that's what it appears anyhow. Read Coin Collecting for Dummies and it said you have no business collecting coins if you don't know how to grade. It said take some raw coins and try grading them yourself, then send them in and see how you did. So I did that with some Liberty $20 gold coins that I bought from a dealer--sent them to PCGS--but it's been 2 months now and I haven't gotten them back yet. So I decided to only buy slabbed PCGS and NGC coins from now on, which from reading this forum seems like the right thing to do. I have been buying Saints, both on E-bay and from dealers. I have used the PCGS price guide and tried to buy them for $100-$200 less than the listed value. So my question is: am I finally doing the right thing or not? Thanks for your advice. (I love the Saints but I like the Libertys more, but I can't afford too many of the Libertys.) I have had better luck on e-bay than with dealers as far as reasonable prices go--is this true? I don't buy a lot and I'm not looking to sell any--not for a while, anyhow.

Thanks a lot! Pups

coinguy1

<< <i>I have been buying Saints, both on E-bay and from dealers. I have used the PCGS price guide and tried to buy them for $100-$200 less than the listed value. So my question is: am I finally doing the right thing or not?.....
I have had better luck on e-bay than with dealers as far as reasonable prices go--is this true? >>

Welcome Pupskweek. In answer to your two questions above: Not necessarily.

Re question #1: The PCGS price guide includes many inaccurate prices/values, as do ALL other pricing guides. I would recommend that you also consult auction prices realized, trends, the Coin Dealer Newsletter and, perhaps more importantly, consult with other collectors and dealers, in order to determine current fair prices. And, with the recent price volatility in gold and gold coins, this is even more imperative, since you are buying gold coins.

Re question #2: I think if you make the right dealer and/or collector connection(s) you can often do better price-wise and quality-wise than you will with Ebay. You can often arrange for better return privileges, sight-seen purchasing, approval service, consultations, helpful feedback, advice, etc. You can also avoid many of the risks associated with Ebay.