The Risks, and Potential Benefits of Purchasing a Coin “Sight Unseen”

Have you ever made a sight unseen purchase? When it comes to making any purchase, we are often advised to review the product before committing to the sale. In some instances, a person has the option to purchase a product “sight unseen.” In this case the client/purchaser agrees to the sale without reviewing the product first. While it isn’t advised to purchase a car under these circumstances, in the world of Numismatics it could prove to be in your favor. In the case of a Numismatic, or Bullion coin purchase, GMRgold would advise you to pay quick-sale price if given the option of a “sight unseen purchase”. This would mean the price is significantly lower than the “sigh seen” price.

Verify Certification of Sight Unseen Coins

If purchasing a “sight unseen” coin or coins, always ask for the company who graded the coin and the grade of the coin. We prefer PCGS or NGC as other coin grading companies may not offer a guarantee. When purchasing a graded coin from PCGS or NGC you can verify the certification. You can also gain access to the price guide for coins in that condition or for that specific coin. GMRgold would not advise you to purchase a ungraded if you have not actually seen the coin and its condition. In this case you risk paying a higher price for a coin that may not be deemed a quality coin.

Sight Seen Vs. Sight Unseen

There are pros to purchasing a coin through “sight unseen” and “sight seen,” but there are also cons to each:

“Sight Seen” “Sight Unseen”
Pro:

  • You can verify the condition of the coin for yourself.
  • There is no risk that you would be paying for a “dud” or a bad quality coin.
Pro:

  • You can stumble upon a deal. End up making an unbelievable profit depending on the coin in question.
  • Builds trust between client/purchaser and company/seller.
Con:

  • You could get caught up in the auction setting, or other aspects of the sale. Typically if you are able to handle the coin or verify the condition, the seller will present the price guide for the coin and create an atmosphere that encourages competition.
Con:

  • You can’t verify the condition of the coin so you could be receiving coin/s that have noticeable markings that could be detrimental to the overall value.

 

Case in Point

Normally we would not advise our clients to make purchases without consulting one of our experts. There is a recent instance where we can say that the “sight unseen” purchasing method did work out in our client’s favor. One of our client specialists made a fantastic “sight unseen” purchase: the coins in questions were graded American Eagle bullion coins. Our specialist knew of a client who was in the market to invest in these coins. When our expert stumbled upon a group of them in MS-70 condition graded by PCGS he jumped at the opportunity and purchased them.

What was not known at the time was that these coins were First Strike designated. PCGS received these coins within 30 days of their release. This increased the value of the coins by 35%!

In this instance it worked out for the benefit of our client. If you’d like to learn more about the coin buying process, or how GMRgold can help you add value to your coin collection or investment contact our experts at 877-795-9585 today for a free consultation.