By Michael Bugeja
Every now and then we need to monitor the major online coin portals and share bidding basics.
Some general rules:
- Never bid on raw coins unless you are an expert grader, trust the seller, can view excellent photos, and can return the coin if unsatisfied.
- Never bid on coins in bottom-tier slabs unless you spot a mistake like a rare error or variation that isn’t listed on the label.
- Do not bid on raw coins on Live Auctioneers, HiBid or Proxibid unless (a) you are an expert grader, (b) have read the terms of service, and (c) can afford the buyer’s fee and shipping.
- If bidding on eBay, consider not wasting time on “Buy It Now” offers unless you need the coin or currency for your collection. (Note: If you find yourself in this situation on eBay, you may want to simply “watch” the coin [hit the “watch” tab] until the seller relists it and finally comes to his or her senses, dropping the price or going to “Make Offer” status.) You can always contact the seller and ask for a lower buy price.
Let’s focus now on eBay. Here’s why: eBay is a global commerce leader with a vast user base and a massive overall gross merchandise volume (GMV), including a substantial market for coins and collectibles, which drives a much higher sales volume than other venues. Live Auctioneers, HiBid and Proxibid are small in comparison, especially when it comes to coin sales. eBay has 134 million active buyers worldwide. Coin and collectible buyers account for $10 billion in annual sales.
We’ll begin with an example of “Buy It Now” on eBay concerning a common Morgan Dollar, 1878, 7 Tail Feathers, Reverse of 78. By the look of the coin, I give it a generous MS-63 grade (assuming there are no hidden flaws the photo doesn’t reveal). That means the retail price should be around $145. Instead, the seller is asking for the ridiculous price of $1,995.
If you know how to grade (I mean, really know how to grade) and want a coin or currency note for your collection, always check auction values rather than retail values. You can do that online via PCGS CoinFacts or Paper Money Values, which are free. Find the low and high auction prices for the coin or note and bid the low first.
You can bid as you like, of course, but my general rule for “Buy It Now / Make Offer” is to bid only on slabbed coins by top holdering companies (PCGS, NGC, ANACS, CAC and ICG).
You can score good values on eBay “Make Offer” lots if you know how to negotiate. Go through the same process as above, knowing retail and auction prices, and start with a low auction bid if you really want the coin or note. I only do this with lots that I need for my collection. To pay for them, I retrieve coins from my bank box so that I can afford the pricier items as illustrated here. For instance, I sold most of my Lincoln Wheat cents slabbed by PCGS to afford these two desired lots.
The first was a 1901 Buffalo note that is becoming increasingly difficult to acquire at lower than retail rates. Just as in coins with top holdering companies, I bid only on PCGS and PMG notes. Here is the lot that caught my interest, because it had good color and came with a “Make Offer” designation:
You’ll note that eBay states this lot sold for $1,199. It did NOT. That was the asking price. I bid $890, slightly below retail of $900, and wrote that I could buy the note in question at the same grade from my hometown coin shop, Chester’s Coins and Gifts, for $950. (And I usually get a discount because, well, I know the shop owner!) I also noted that all those other PMG 25 Buffalos were not selling at $950 but were being relisted.
I won the lot:
I had been looking for three years for a “round” $1 California fractional gold PCGS coin in an old green PCGS holder, as the “round” rather than “octagonal” $1 coins are difficult to find. Finally one appeared. But the asking price was way above retail:
Here’s the $2,000 retail price from PCGS at the time of purchase, 2017, for the coin in question:
In my offer of $1,625, I told the seller that the latest auction price was around $1,600. “Seems fair enough,” the seller stated, and I won the coin.
Once again, eBay’s record states the coin sold for the initial asking price. As in the 1901 Buffalo note, it decidedly did not.
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You can find more information about types, varieties, errors, grading, bidding and buying in Coin News Updated: The Essential Guide to Online Bidding. Please consider buying or gifting the work for a friend, as it underwrites this hobbyist blog. Thank you.
