- Posted in: Numismatics (Rare Coins)
If you are looking to buy and sell rare coins, you have probably considered attending a rare coin auction. After all, many other precious goods are sold this way, and involving a third party adds a guarantee to your items missing from private sales.
However, you should know that while auction companies offer a way to buy and sell rare coins, there are many downsides to participating in an auction. For example, when selling your rare coins at auction:
- Auction companies charge commission. Sellers will often pay between 10 percent and 20 percent of their selling price directly to the auction house in fees.
- You have no control over prices. If nobody bids higher than your asking price, you may lose money on your investment after auction fees.
- It takes several months. It can take up to six months from the time you consign your coins until you receive your adjusted check.
- You have a small audience. Only those attending the auction will know what you have for sale.
On the flip side, some downsides of buying rare coins at auction include:
- Paying top dollar. All coins at auction have gone through a rigorous grading process, and the sellers have paid a lot of money to know exactly what they are worth.
- Inexperience. Auctions are no place for novices, as many dealers will “bid up” their own items to drive up the price.
While auctions are always profitable for auction houses, there are always financial risks for buyers and sellers. It is faster and more efficient to sell your rare coins with a reputable coin dealer. To get started, call Global Monetary Reserve at (877) 795-9585 or fill out the quick contact form on this page to get a FREE coin appraisal.