Last month I wrote an article about coin collecting in today’s economy. I thought I would follow that up with an update on buying coins safely on eBay and how I have seen eBay evolve. There has been a significant shift in the way many sellers are doing business.
First of all, and not that long ago, most coin sales on eBay were of the auction format. Coins started at a lower price, and bidders bid on them until time ran out and the high bidder won the coin. Many times, good, desirable coins sold for just about what the retail value was. What I have observed, though, is now most coins are listed in a “buy it now” format, with high to extremely high prices. The bargains are much fewer and much further between these days, but they are still there.
There are several ways to search for coins on eBay. For example, if you are searching for a good deal on whatever coin comes up, you would go to your category, let’s say all “U.S. Coins,” and you would select the “ending soonest” sorting function. If you needed one last key coin for your set of Mercury dimes,you might sort Mercury dimes by “newly listed” to get an early shot at any of the newest additions to the venue. Suppose you needed an item quickly for crazy Uncle Bill’s birthday. You might choose the “buy it now” format so that you won’t have to wait for several days of auction to run.
As with any coin, you need to do your homework. Recently I saw a certified 1972 doubled die Lincoln cent for a “Buy it Now” of $150. That particular date has about a dozen doubled dies, with two or three of them worth up to $500 each. The rest are worth from $5 to $50. Since I would love to have one of these better DDO’s, I pulled out my Cherrypicker’s Guide to Rare Die Varieties. I soon learned that this coin was one that was valued at $15 so I didn’t bother to bid on it.Another recent development, with the craze for gold and silver outweighing the demand for collectible coins, is that I’m seeing many, many auction listings for silver, gold, and copper in odd sizes and formats. I am seeing, for example, a one gram silver bar for $4.99 or some high number like this. With today’s silver prices, a gram of silver is worth about 77c, so don’t be fooled by these offerings! There are plenty of one ounce copper coins out there for $4 or $5. Keep in mind a POUND of copper is worth only $3.29 today! I would avoid vials of “gold flake,” too. It appears that many have scraped gold leaf off of something and put them in vials; there is no weight to these, so they are pretty worthless.
One other new problem I’ve seen involves math and the measurement of metals. Precious metals like gold and silver are measured in troy ounces, while copper is measured in avoirdupois ounces as are cans of green beans and yogurt cups. I am seeing lots of listings for “a half pound of 90% silver coins.” Are these troy ounces or not? Another issue with this listing is that a half pound of 90% silver coins is not a half pound of silver! With half a pound of silver coins, 10% of the weight is not silver! Be careful with these offerings!
That last time I wrote about eBay, they allowed “replica” coins to be sold. They have cleaned that problem up—no more cluttered listings of worthless replica and copy coins!
Coin shows are a great place to buy coins! Dealers are motivated to carry home less than they’ve brought with them, and to sell merchandise to help with their show expenses. I’m seeing many Morgan dollars, and other coins, with high starting prices on eBay. You can buy coins just like these for 20-30% less than many of the eBay auctions, and there are no shipping charges! Tapping a seller’s coin experience can be valuable, too.
The Abilene coin show is hosting a coin show at the Abilene Civic Center on June 7-8. This is a small show similar to Brownwood’s February show. The Texas Numismatic Association puts on its annual show at the Will Rogers complex in Ft. Worth from May 30 through June 2. This show is attended by 200 dealers from around the country and you can see just about anything there!
Below are some important lessons I’ve learned from 13 years of buying coins on eBay.
Use the same caution on eBay deals that you would anywhere else. “If it’s too good to be true, then it probably isn’t.”
Don’t buy anything from China! China is notorious for producing fake coins for the express purpose of cheating honest collectors.
Some sellers use stock photos. Make sure the photos are of the actual coin—both sides—you are bidding on.
I won’t bid if there’s a “no returns” policy. If it’s something you really, really want, another one will be along soon, with a fair return policy.
Don’t bid without knowing the shipping charges. Think of shipping charges as a part of the maximum you’re willing to bid.
From other articles, you’ve read where I’ve said, “don’t gamble more than you’re willing to lose on a raw (unslabbed) coin. “ That means PCGS and NGC coins are at the top of the heap, with ANACS and ICG somewhat behind them in stature. Avoid all the others!
Want to learn more about coin collecting? The Brown County Coin Club meets on the second Tuesday of each month, at 6:30 pm, at the Principally Coins and Metal Detectors, at 3002 Early Blvd, in Early. There’s probably at least one club member who shares an interest with you and would guide you in the basics. Get involved in coin collecting!
The Brown County Coin Club hopes to see you on May 14 for their next meeting. Call Robert Rollins at 325-201-6390 or Bob Turner at 325-217-4129 for more information.
