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All Posts Tagged With: "Buying Coins"

ANA Urges Members to Contact Congress to Repeal New 1099 Requirements

The American Numismatic Association urges its members to contact their members of Congress and ask to repeal a law that could significantly increase the paperwork burden on dealers and increase the risk of identity theft for all collectors who buy and sell numismatic material.

Under Section 9006 of the Patient Protection and Affordable Care Act, commonly known as health care reform legislation, businesses will be required to report all goods and services purchased in excess of $600 with an IRS 1099 form. As written, the law would, beginning in 2012, require all coin dealers to report on IRS form 1099 all goods and services (totaled across a taxable year) they purchase from other dealers and customers in excess of $600.

While the legislation applies to all types of businesses, an unusual burden would be placed on numismatic dealers who, unlike most businesses, buy goods and services from each other and their retail clients. In addition, dealers will be required to gather personal information on all clients who sell them goods or services in excess of $600, including name, address and social security number.

“All dealers will be disproportionately and unfairly impacted by this legislation,” said ANA Executive Director Larry Shepherd. “As a former dealer, I can see how a small-to-medium-sized dealer could easily be required to submit 1,000 or more 1099s in a typical year, at very significant cost. In addition, all collectors would be forced to give out personal information that could increase the possibility of identity theft. This section of the healthcare reform bill is a nightmare for everyone in this hobby. We need to make sure that our voices are heard.”

Shepherd cautioned that the numismatic community should understand that this is not a new tax, but rather a method by which the IRS can collect more information in hopes that more taxpayers will report taxable income. The assumption is that the new regulation would generate about $17 billion over 10 years, increasing tax revenue to cover some of the costs of health care reform.

Already, Rep. Dan Lungren (R-CA) has introduced HR 5141 to repeal this part of the health care reform act, and Sen. Mike Johanns (R-NE) has introduced a companion bill in the Senate, S. 3578. Both bills are titled “The Small Business Paperwork Mandate Elimination Act,” and will likely need more co-sponsors in the House of Representatives and Senate.

“The ANA urges everyone who loves this hobby to contact your representatives and urge them to sign on to HR 5141 and to contact both your senators and urge them to sign on to S. 3578,” Shepherd said.

The ANA has posted sample letters from dealers or collectors below and on its website at www.money.org.

For contact information on your members of Congress, go to www.house.gov or www.senate.gov. Anyone without a computer should contact the local office of your representative or senator, or call the U.S. Capitol at 202-224-3121. (more…)

To Ebay or Not to Ebay?

By Gary Tancer – Coin Gallery of Boca Raton

As a fellow E-bayer, I find the site a great place to buy and sell rare coins. However, caveat emptor is an important rule of thumb just like with any online coin or bullion auctions. Many of the top rare coin wholesalers list coins on Ebay and are willing to sell them for a small premium above wholesale prices. But beware of dealers who are auctioning their coins without any reserves set on them, for many times these items are subject to shill bidding. Shill bidding is the act of having someone run up the prices on auctions with the hope of causing the winning buyer to pay a higher price. Although Ebay has made great strides in policing this illegal practice, inevitably it still occurs.

Something else to keep in mind with Ebay is if a deal looks too good to be true, it probably is not legitimate. For example, in the past few months, I purchased several raw gold coins which turned out to be counterfeit on later inspection. Buying raw coins can be especially tricky and requires more scrutiny due to their not being graded and authenticated, which makes for a higher susceptibility to alteration. When buying uncertified coins, it would be wise to only purchase them from established and reputable dealers with a strong feedback history. However, for coins over $250, I recommend buying them slabbed.

For a general rule while buying on Ebay, I would recommend to shop from dealers who offer some sort of guaranteed return privilege. This way, the buyer knows there is nothing to hide on the dealer’s end and can rest assured if satisfaction is not met by the item in person.

What are some of the major advantages of Ebay buying?

1. All In One Convenience

o You can search one site instead of hundreds to instantly find what you want
o Compare prices of the items you want as soon as you find them to pay the best price possible

2. Best Prices

* Sellers pay lower fees than at traditional auction houses, allowing them to offer a lower price to the buyer

3. Updates From Your Favorites
* If you have had a pleasurable experience buying from someone, give them positive feedback, and you can also save them as a favorite seller and receive email updates on their latest listings

Disadvantages of Ebay?

Like any high volume website, there exists the ever-present possibility of fraud. There are watchdogs on Ebay constantly monitoring the site, but it is impossible to prevent all wrongful listings. Always check people’s feedbacks, organizations, how long they have been on the site, and their about me page to determine if who you are dealing with is legitimate and trustworthy. Furthermore, Ebay also has their guarantee.

Remember, of course going to coin shows or buying from major coin auctions are still great ways to obtain fresh coins; however, if one does not have the time to physically attend such an auction or show, then Ebay is a great alternative to purchase coins at your convenience.

Tricks of the Trade – Coin Buying

By Doug Winter – www.RareGoldCoins.com

As a dealer who has spent over $100 million on rare coins, what are some of the “tricks” that I have learned that can help you when you are buying coins? Read on to see some of the ones that I think you will benefit most from.

1820 Bust Quarter

When I buy a coin I am looking to sell it immediately for a profit. This makes my needs as a buyer slightly different than yours as a collector. But your ultimate goal, I would hope, is to sell your coins for a profit. What are a few of the most obvious but most important parameters to consider each and every time you buy a coin?

1. Buy Coins That Are Pretty

Numismatics has always been a highly visual hobby. But the advent of the Internet has made the visual aspects of numismatics more significant than ever before. When I look at coins now one of the first questions I ask myself is: will it image well on my website? Coins that are pretty are very easy to sell.

The term “pretty” is somewhat semantic. I tend to like gold coins that are dark and dirty and find these to be aesthetically appealing. Not everyone agrees me. Some people like gold coins that have bright, dazzling luster while others prefer coins that two-tone contrast between the devices and the fields. But I think most people can agree that a certain percentage of coins are, for lack of a better term, “special.” This does not necessarily mean “expensive.” I have seen circulated $100 Bust dimes that I thought were really pretty. The bottom line is that you should try and have as many pretty coins as possible in your collection.

2. Buy Coins That Are Popular

There are many coins that no matter how many examples I have purchased over the years, I have never lost money on them. As an example, I have probably owned twenty 1838-D half eagles in the past decade, ranging in grade from VF25 to MS62. Every time I’ve owned one, it has sold quickly to a happy collector and I’ve made a decent amount of money on each transaction. It’s obvious to me why this date sells quickly: it’s a first-year-of-issue, it’s a one-year type, it has a neat design, it’s a Dahlonega coin and it is relatively affordable.

In the last few years, key date coins in virtually every series have shown dramatic increases in value. There is a good reason for this: they are very popular and this creates a constant level of demand for these issues. In some cases (like 1901-S quarters or 1907 High Reliefs) prices are now probably too high and these key issues are currently overvalued. But I would personally rather have a collection (or inventory) that was full of popular coins than ones that were too esoteric and hard to sell. (more…)