When a collector sells a major collection to a dealer, is the price calculated per coin, or in total

Longacre

When a regular (non-dealer) sells a collection to a dealer, how is the transaction usually structured? Does the dealer purchase each coin individually at a specific price, or does the dealer purchase the entire collection for a single price? I ask this from the perspective of the allocation of the purchase price to the basis of the coins (from the seller's perspective), and the allocation of that same price for the dealer's (purchaser's) purposes. Obviously, the two allocations should not be materially different, but the collector and dealer probably have different interests on this issue. Also, from the collector's (the non-dealer's) perspective, are the installment sale rules taken into account when contemplating the sale?

dbldie55

My dealer does everything by the coin.

IGWT

As the collector, I'd certainly prefer that the price be for the whole collection and unallocated among the individual coins.

segoja

You have to add it up coin by coin.

You then make some decisions on the overall group.

I still track a collection coins by coin, as long as the values are voer a few hundred bucks per coin.

tradedollarnut

<< <i>As the collector, I'd certainly prefer that the price be for the whole collection and unallocated among the individual coins. >>



The collections that I've seen purchased/sold were done on a set basis. I assume each party then allocates it as they please [within reason].

ColonialCoinUnion

<< <i>The collections that I've seen purchased/sold were done on a set basis. I assume each party then allocates it as they please [within reason]. >>



I agree.

RYK

<< <i>

<< <i>The collections that I've seen purchased/sold were done on a set basis. I assume each party then allocates it as they please [within reason]. >>



I agree. >>



That sounds reasonable. No use dickering over each coin if the end result is about the same.

Longacre

<< <i>

<< <i>

<< <i>The collections that I've seen purchased/sold were done on a set basis. I assume each party then allocates it as they please [within reason]. >>



I agree. >>



That sounds reasonable. No use dickering over each coin if the end result is about the same. >>




I think you're a tax guy at heart.

BAJJERFAN

Why does it even matter? You have to figure/estimate the value of each coin to get an approximate worth/value for the set.

larrynj

the dealer and collector almost surely will value individual coins differently. when the price is quoted for the whole deal, these differences should even thermselves out.

jobiwan115

By coin or the collection as a whole, I'm fine with either.

But what should I expect relative to price guides? The only complete guides I have available are the 2008 Red Book and the PCGS Price Guide.

I'm about to do this as part of a major realignment of my collection. What should I reasonably expect, percentage-wise? 90%? 80%? 70%?

DaveG

jobiwan:

Unfortunately, there isn't a fixed percentage. (Although if you want a ballpark number, you can get a sample copy of the Greysheet.)

What you get offered will depend on who you offer it to. For example, a dealer who has a ready retail customer for a coin can offer more than a dealer who has to wholesale the coin to another dealer.

Your best bet is to offer coins to dealers who sell that type of coin. For example, don't offer "junk silver" to a dealer who specializes in high-end copper or offer recent proof sets to a dealer who specializes in 19th century gold coins.

You might also get more if you offer a coin to a dealer on consignment rather than selling it to him.

RedTiger

<< <i>By coin or the collection as a whole, I'm fine with either.

But what should I expect relative to price guides? The only complete guides I have available are the 2008 Red Book and the PCGS Price Guide.

I'm about to do this as part of a major realignment of my collection. What should I reasonably expect, percentage-wise? 90%? 80%? 70%? >>



Selling to a dealer, about 50% or so of PCGS Guide is ballpark for typical material. Depending on what a person has, that percentage will vary. Some will be higher, some will be lower. Most times you'll do better on the Buy/Sell/Trade section of the forum.

If you start a separate thread, and mention some specifics as to coins, grades, certified or raw, and folks can give you a better idea. If you check Ebay, Teletrade, and Heritage archives, that will give a realistic valuation. For raw coins, of course, how accurate the grading is, is going to be a huge factor.

/edit to add: if you want to take your time in selling them, price them about the same as they are selling for on other venues. If you want them to move quickly cut 5% or 10% off and they'll usually fly out. If it is bulk lots, a discount would help, because fewer people will want that exact mix of coins, unless it is something such as junk silver or bulk wheat cents, or similar.