You have a top-notch collection but it's time to sell...

291fifth · February 25, 2006 11:02PM

The collection was purchased from major dealers for premium money. Will you sell the coins back to those dealers or
will you put the collection in a major auction? Explain your thinking.

majorbigtime · February 25, 2006 11:06PM

Cut a deal to reduce comissions and auction 'em.

Why? More money.

goose3 · February 25, 2006 11:07PM

why on earth would you offer them back to someone that is going to only pay you enough so that they can mark them up and sell them?

RYK · February 25, 2006 11:09PM

Good question! I ask myself that question all the time re: my mid-notch collection, and I do not know the answer. I think what one must do is spend a lot of time researching recent auction results for similar coins (if possible), coming up with a number that we conservatively value our collection, deduct 10% because we are all too optimistic about our own coins

, deduct another 10% for a dealer cut for selling these coins, and then see how close the dealer can come to those numbers. If you have the luxury of time, consigning the coins to the dealer may be the best of both worlds as the dealer cut might be smaller (no risk transaction for the dealer) and a specialty or high-end dealer may have a stable of ready buyers. Perhaps putting a time limit on the consignment, say 45 days, and then sending what's left to auction may be a reasonable approach.

I would probably seek the advice of the dealers who sold me the coin and some specialty collectors (both inside and outside my specialty) before proceeding with a sale.

Hopefully, I will not have to deal with this decision in the foreseeable future.

LanLord · February 25, 2006 11:10PM

I have a top notch collection? Thanks!

MrEureka · February 25, 2006 11:40PM

It depends on the dealers and the types of coins you collected.

As a dealer, I would generally only recommend that a client sell me he collection outright if I have retail clients waiting for the coins, or if the coins are so pedestrian that they are unlikely to bring above wholesale levels at auction.

Shamika · February 26, 2006 12:15AM

If I were getting out of collecting alltogether, I'd sell in a major auction. If I were redirecting my collection, I might sell to the original dealer towards trade-in value if the dealer carried pieces of interest.

cladking · February 26, 2006 12:19AM

I owe some favors to some dealers so they'd get some of it but most would go to dealers
who can offer the highest price or to auction.

DennisH · February 26, 2006 12:23AM

The key phrase in your question is "top-notch". If it is average, ho-hum, 'widget' stuff there is no real point in taking it to an auction. But top-notch stuff begs that you give the marketplace a chance to have a feeding frenzy on things it doesn't get a chance to see very often.

Coxe · February 26, 2006 1:07AM

Depends on whether the premiums paid have been surpassed by the appreciation of coins. If not, I would be more inclined to offer them to individual collectors who, like you, might be more inclined to pay the premiums. You can sort of get that through a major public auction, but with risk of both upside and downside surprises. Selling to a dealer might get you immediate $$$, should that be an important consideration. But you know they'll only pay based on a profit expectation. If you can cut them out, you should unless you feel some obligations beyond the contracts of your original purchases.

I am approaching a similar situation. Most of my pieces were purchased through auctions. (There is some irrational sense of obligation to consign to one of them strangely.) Closing on sets completions in a hot market does bring up the consideration of selling. The harder thing is actually parting with the coins that were carefully assembled for many years much more than choosing the venue.

291fifth · February 26, 2006 1:16AM

Some very good thoughts in this thread.

By the way, this is hypothethical as I am not selling anything or planning to.

mrearlygold · February 26, 2006 1:16AM

<< <i>It depends on the dealers and the types of coins you collected.

ldhair · February 26, 2006 3:38AM

<< <i>It depends on the dealers and the types of coins you collected. >>

Good point.
One other factor would be how long I have held them.
If I paid premium money anytime lately, can't see a great offer coming from the same dealer.
I would probably go with auctions. After fees it might end up being about the same money.
There are some tough choices in this hobby.

mozin · February 26, 2006 7:23AM

Forget the dealers.

You will get the most money by consigning to a major auction house.

BAJJERFAN · February 26, 2006 7:30AM

I suppse it depends on your urgency to sell and whether or not you can take a small loss or you need a profit or you would be happy breaking even. Why don't you give us an example of a top-notch set.

ColonialCoinUnion · February 26, 2006 7:39AM

If you sell to a dealer, you most likely will receive the money sooner than you would if auctioned. I say most probably because each situation is different, and it may be possible to negotiate some up front money for a significant auction consignment.

For those who believe they will receive more by auctioning their coins, I'd say (as Andy did) that this too depends on what they are. A bunch of run of the mill coins are very likely to be bought at low levels by discount hunting dealers in an auction, in which case consigning these coins will result in 1) poor returns and 2) money received months after consigning.

Personally, if I had something exceptional to sell I'd sell it privately with the help of a dealer who knew the end users and was willing to work for a small % commission.

You have a top-notch collection but it's time to sell...

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