Buying Coins: “How’d I do?”

Posted on August 16, 2025 by Michael Bugeja

Increasingly on social media, coin buyers display their recent purchases and ask, “How did I do?” If you ask this question, you probably should not be buying expensive coins. Then again, you can learn how you did by reading this article, which takes you step by step in the buying and bidding process.

For starters, if the coin is in a top-tier slab (PCGS, NGC, ANACS, CAC, ICG), you don’t need to ask that question. Just go to the cert of the holdering company, and you will see retail, wholesale and auction prices. See this article for details.

In the past, new collectors used to learn about coin value from brick-and-mortar shop owners who also belonged to the Professional Numismatist Guild. Now the number of coin shops have declined steadily due to high overhead (rent, security, insurance, inventory) and risk of robbery. Meanwhile coin magazine subscriptions plummeted. For instance, Coin World‘s readership declined from 33.4 million in 2015 to 21.5 million in 2019. Now the magazine measures its audience digitally, with some 65,000 collectors on its social media platforms and 40,000 on its marketplace page.

As a result, collectors prefer the convenience of buying online but often are misinformed by clickbait social media.

In the past, people had buyer’s remorse when they were hoodwinked. Now many collectors do not even realize they have been scammed.

Given these risks, how should they go about buying coins?

Learn how to grade if buying raw or unholdered coins.
Buy from reputable third-party graders, especially if you don’t know how to grade.
Identify counterfeit coins masquerading in fake holders.
Know common flaws that buyers often miss.
Visit PCGS Photograde and compare your coin to grades listed there.
Before you bid on or purchase a coin, visit PCGS CoinFacts to see both retail, wholesale and auction values.
Only patronize online sellers who accept returns.

Let’s go through the above list with a coin being sold on eBay at this writing. Great Southern Coins is a reputable seller that also accepts returns:

This seller states that the coin is semi-prooflike and gem brilliant uncirculated. If you know how to grade, you might have a different opinion. It looks almost uncirculated or low mint state with flaws (scrapes, bag marks, rim dings and a pin scratch):

Now let’s go to Photograde and see what condition may match the raw coin above:

So we’re looking at an MS61 1879 Morgan. Now let’s consult PCGS CoinFacts for possible value:

Here we read about mintage and specifications:

Time to see retail and auction prices. An 1879 without flaws retails for $90 with 516 graded by PCGS at that level selling roughly at auction for about $70-100 with values seemingly rising over the years from about $50 in 2014.

But this 1879 from Great Southern Coins has flaws. What does one in a similar condition go for? CoinFacts again supplies the answer: $65.

Great Southern Coins ships inexpensively for $3.25 so I don’t have to worry about additional buyer’s fees and mailing. A good maximum bid for this coin would be $50.

If this coin were featured on HiBid or Live Auctioneers you would place a different maximum bid because sellers on those platforms often charge 15-25 percent buyer fees and $10-15 mailing. So if bidding here, your maximum would be $30 ($6 buyer fee at 20% and $14 mailing).

Here’s an example from a seller who already knows the value of the coin based on his starting $35 bid. But here you also pay $15 for shipping in addition to 15% buyer’s fee. So if you won the coin with a $35 bid, you would pay $5.25 plus $15 for a total: $55.25.

Now that you know the process, practice on eBay or HiBid/Live Auctioneers–not by bidding–but by following bidding and final sale and see if your estimate would have lost or won the coin. Do this repeatedly until you are confident in your purchasing skills.

If you like posts like this, you can read more articles on buying, selling and collecting at Proxiblog.org. Also, please subscribe so you can get our weekly newsletter and be informed whenever there is a new article or column.

You can find more information about errors and varieties as well as buying and bidding on coins in Coin News Updated: The Essential Guide to Online Bidding. Please consider purchasing the work for yourself or a friend, as it underwrites this hobbyist website. Thank you.

How to Sell Coins

Posted on December 2, 2024 by Michael Bugeja

No matter how you look at it, selling coins evokes feelings. Perhaps you are ending your interest in the hobby and will have to find other ways to spend your free time. Perhaps you inherited a collection and now must dispose of it for heirs. Or maybe because you just need the money.

Experienced hobbyists know the basics of how to sell coins. But newer or “never” hobbyists may have a difficult time because the process requires a modicum of numismatic knowledge, which this article provides. And, of course, money is at stake in the form of precious metals and intrinsic values.

Here are seven steps that I have used in selling my coins. They worked for me. You may experience different results.

Step 1: Read the Red Book and consult the Blue Book

The Red Book, otherwise known as A Guide Book of United States Coins, is required reading. You have to know what you actually have. Google, eBay, Etsy, YouTube and other online listings are unreliable and often erroneous.

The Red Book shares retail values and the Blue Book, wholesale, or what a coin dealer is apt to pay you–important later.

The Red Book has updated pricing and auction data with detailed expert commentary and photos–more than 2000 images, 7,600 listings and 32,500 coin values. You’ll learn about each denomination, type, mint error and varieties as well as read articles about investing, grading and holdering coins, and detecting counterfeits.

Click here or the photo below and scroll down to “HOW TO USE THE RED BOOK” to view a Proxiblog video on the book’s utility.

Step 2: Separate coins according to denomination

To view the various denominations, again consult your Red Book or PCGS CoinFacts, a free encyclopedia of U.S. Coins.

You will find at PCGS CoinFacts detailed photos and retail/auction values of coins from half cents to gold issues as well as commemorative coins, bullion, territorial issues and patterns.

But the utility now is using the Red Book or CoinFacts to separate your coins into categories.

Step 3: Divide collection again by precious metals

These will mostly be silver and gold coins but also platinum, palladium and rhodium.

Familiarize yourself with spot price values. A fine resource is provided by the coin company APMEX, which gives updated values of all precious metals. Click the photos below for gold and silver values to view what your coins are worth apart from collector premium.

Step 4: Create an inventory of your collection

Create your inventory by denomination. You can do this manually via pencil and paper but eventually you want to have this in digital format. You can use Word for this. It’s a hassle, but you also should photograph obverse and reverse of each coin and include that in your inventory. You can do this with any mobile phone with a decent camera. Photos also will help your appraiser later in the process.

You also have to remember what you paid for your coins. Note that in your inventory, along with the date of sale, if you can remember it. Bookkeeping is important, as you will learn in Step 7.

Once you have a draft of what you own, consider downloading an application for a formal inventory of your coins.

There are many low-cost and free coin collection applications. Coin Week has recommended the low-cost Coin Book Pro.

I prefer Coin World’s Portfolio Application, which is free; but you have more options with a subscription.

You will immediately have a sense of relief once you have completed your inventory. That sense comes from due diligence.

Step 5: Learn grading basics

Start with the Sheldon scale

The Sheldon Grading Scale describes the condition of a coin without damage or other flaws, earning a number between 1 (lowest) and 70 (highest). The scale is used by PCGS, NGC, ANACS and other grading companies. The grade is an indication of value.

Know key dates of the series

Here is a nifty chart that many coin shops use on their sites. It’s not comprehensive and doesn’t include what we call “condition rarities,” or coins that are common in lower grades on the Sheldon scale but rare in about uncirculated or uncirculated condition. But it will give you an idea about dates and rarities.

Compare your coin with images provided by PCGS PhotoGrade.

Do not use digital applications to identify your coin and grade it. Programs like CoinSnap powered by AI are notoriously inaccurate. Instead, train your eye by comparing your coin to the denomination and condition as found on PhotoGrade. You may have a tendency to overgrade and overlook flaws. That’s okay. You’re not expected to be an expert grader. But a little knowledge goes a long way.

You can find a list of numismatic terms on the Proxiblog site. Click here.

Step 6: Get an appraisal

Before you sell your coins, you need to have an expert give you a fair evaluation of their worth. The best way is to contact a friend, colleague or acquaintance who knows coins. There is trust there. Keep in mind it is not enough merely to send to your appraiser the denomination, date and mint mark of your coins. Condition is everything. If your hobbyist friend lives out of town and cannot eyeball your collection, you will have to send photos of obverse and reverse of each coin or set.

You can also go to a nearby coin shop. Make sure the owner is a PNG member as they are committed to honesty and professionalism. You can find a directory here.

There also are online appraisal sites. One of the most popular is Coinappraiser.com. Visit the site. It also has useful articles about selling, auctioning and grading coins.

Step 6: Sell or consign

The coin buying world is full of scammers. DO NOT sell on social media like Facebook, Etsy or YouTube or accept payment via Venmo or other non-traceable monetary venues. You will want payment by money order, bank wire or cash (if local).

Read this article about Venmo scams and how to avoid them.

If you have valuable coins, the best place to sell them is at Heritage and GreatCollections. The problem here is that major auction houses only accept coins holdered by PCGS, NGC, ANACS, ICG and CAC. It is beyond this article to explain the cost and procedures of getting coin graded. GreatCollections has a form to submit raw coins for you at discount prices. In other words, you won’t have to pay extra for grading and also can avoid membership, handling and postal fees.

You can consign your raw and holdered coins to an online auctioneer. This requires you to (a) contact the auction house, (b) ask if they will consign your coins and (c) request a contract and terms of service (usually a 10-20% selling fee).

You can find menu tabs of online sellers at Proxiblog’s home page. We are not endorsing these auctions as places to sell coins. Suffice to say that we have either bought or consigned coins to a few of these and find them reputable. Your experience may differ.

Step 7: Accept Reality

Unless you are a skilled hobbyist, chances are you bought or purchased coins with flaws or have dozens or even hundreds of raw coins that have little value, despite what the Blue and Red books state. Sellers have to earn a profit, too, and may not want to photograph, list and pay fees for your coins on their sites unless they are fairly confident that they will sell.

Even coin shops, loaded with junk coins and low value mint sets, typically will only be looking at the precious metal or rarity of your coins. You can sell part of your collection or hold out for a price for everything, even coins of little value or ones holdered by bottom-tier companies that exaggerate condition.

In other words, anticipate low-ball offers and seller’s remorse.

Sometimes it is worth taking a loss and focusing on what you can get for inexpensive coins or sets, just to dispense with them. A typical coin dealer will usually pay about 70-75% of current market value.

Now for the ultimate reality check: taxes. Refer back to your inventory. You will need to know what you paid and what you received for your coins. You should have these data in your inventory.

The Internal Revenue Service classifies gold and silver as collectibles. Capital gains are taxed at a maximum rate of 28% of any profit. Go to this IRS site for more information.

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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.

How to Grade Coins

Posted on November 5, 2024 by Michael Bugeja

The ability to grade is based on how many coins you have viewed as a hobbyist and how many numismatic books you have read and educational websites you have visited. In other words, it takes time and experience as well as equipment and resources. No single article, including this one, can train you to master the basics below.

But this article will get you started with the basics.

Learn the Sheldon 1-70 scale on which coins are graded, establishing value. Here are designations: Poor (Po 1), Fair (Fr 2), About Good (AG 3), Good (G 4), Very Good (VG 8-10), Fine (F 12, Very Fine (VF 20-35), Extra/Extremely Fine (EF or XF 40-45), Almost Uncirculated (AU 50-58), Uncirculated/Brilliant Uncirculated (UNC 60-70).

Know numismatic terms (see this glossary) so that you can identify flaws, cleaning, condition rarities, varieties, errors and more. If a coin is dipped, for instance, or has machine doubling, it is not worth grading with a reputable holdering company (more on that later).

Know the various coin designations (see this post) so that you can identify full steps in nickels, full bands in dimes, full head in standing quarters, full bell lines in Franklin halves, and so on. Otherwise you will err when it comes to strike and value.

Bone up on counterfeit coins because so many of these are polluting the hobby market. Read this post and visit Jack Young’s fun with fakes Facebook site.

Start by grading a large coin with generous fields and well-defined devices, such as the Morgan dollar. This is the best beginner grader coin because of the prominent cheek of Lady Liberty on the obverse and eagle breast feathers on the reverse.

PCGS uses the Morgan dollar to illustrate grades and conditions.

Purchase a coin scale and a loupe to detect counterfeits, polish lines, hairlines, bag marks and other conditions and defects. Coin microscopes are not very useful. You have to train your eyes, not compensate for them. After you have achieved some expertise in the hobby, consider a microscope for some varieties and errors.

Compare your coin with the various grades for each denomination as found on the PCGS Photograde website. The process of comparison sharpens your eye and deepens your knowledge.

Invest in a coin grading library, purchasing best-selling books like Official ANA Grading Standards for United States Coins Hardcover by Kenneth Bressett, The Official Guide to Coin Grading and Counterfeit Detection by John Dannreuther and Scott A. Travers, and Photograde: Official Photographic Grading Guide for United States Coins by James F. Ruddy.

Set up your own coin grading room where you can work undisturbed by humans, phones, pets and other distractions.

Invest in lighting. Fluorescent lights are useful if you are inspecting luster and high points of coins. This type of lighting is soft, but works well if you’re using a loupe. In general, many numismatists use a 100W bulb for uncirculated and circulated business strike coins and a 75W bulb for prooflike and proof coins. You can also purchase a LED desk with dimming and brightening levels. Some have USB charging ports and touch control features.

Wear gloves when you handle coins. If you don’t have any handy, grasp coins by the edges so that the oils of your fingers do not taint the fields and devices.

Grade from edges inward. Start the grading process by looking at the edges and rims to make sure there are no dents, bumps or defects. Then in a clockwise motion begin your inspection on the outer fields and gradually go inward toward the center of your coin. Do the same on both sides noting wear, hairlines, bag marks, cleaning, defects and other conditions that affect the value of a coin.

Learn what makes coins valuable (see this article). Join a local or online coin club. Visit Facebook coin groups where experts share their numismatic knowledge.

Choose a reputable holdering company, such as PCGS, NGC, CAC, ANACS and send a submission, realizing that you’re likely paying $40 or more for each coin, after fees, mailing and membership dues. Consult auction values (not retail ones) on PCGS CoinFacts and decide whether the cost is reasonable.

Do not buy AI-powered coin grading apps like CoinSnap. These are unreliable and often inflate prices for face value coins.

Anticipate grading miscalculations. This skill takes time. We all believe our coins are better than they actually are. That’s why third-party grading is important.