Many retail dealers, myself included, welcome consignments from collectors. It’s a great way to increase the size of a dealer’s inventory without laying out cash and it is often an excellent source for dealers to place useful, fresh attractive coins to new or existing clients. As a potential consignor, what are some of the questions you should be asking a dealer and what are some of the expectations you should have?

1. What rate should you be paying a dealer?

I can’t speak for every dealer, so I’ll share this from a DWN perspective. I generally charge between 5 and 10% to sell a coin on consignment. I’ve heard of dealers charging more than 10% and that seems a bit on the gouge-y side. On the other hand, to expect a dealer to sell your coins for less than 5% is unreasonable unless you are talking about a very low spread item like bullion or generics (which probably shouldn’t be consigned to dealers in the first place).

2. What should my expectations be as a consignor?

Obviously, your first expectation is for the coin to sell. But there should be other expectations as well. You should expect a dealer to work hard at selling your coins. This means listing them promptly on his website, imaging them, giving them good descriptions and offering them directly (via phone or email) to existing clients. You should expect clear, concise paperwork from the dealer including a receipt stating the terms and conditions of the consignment. You should expect prompt payment with good funds. And you should expect honesty and integrity. No games, no “funny stuff.”

3. What sort of payment terms should I expect?

There is no set answer to this so, once again, I’ll share with you how I take care of payment. First of all, I am very careful to sell consigned coins to collectors or dealers who I know will pay me. There are certain dealers, for instance, whose check I absolutely will not take. I wouldn’t sell these guys any of my own coins so why would I subject a collector to the risk of “will I or won’t I get paid?” I generally pay clients for coins within a few days of being paid myself; a few days usually meaning two or three. In the case of having multiple coins on consignment from one collector, I pay them as they sell. I never wait until the end of a deal to pay the consignor and I don’t think that’s fair, unless that’s what the consignor requests.

4. How long should the consigning process take?

This depends on the coins that your are consigning. If you have very esoteric coins, the consignment process is going to take a while (in this case maybe three months or so). If you have very liquid coins, the process should be short (in this case just a few weeks). I would suggest that you ask the dealer how long that you think it will take him to sell each coin in the consignment. You don’t want to let the consignment process go on forever. If your coins are appearing on a dealer’s website they will be “stale” after a few months and will be very hard to sell in the near future should you decide to put them in auction or with another dealer.

5. How should I price the coins I am consigning?

It is important to price your coins realistically or they are not likely to sell. Some dealers will take any coin that you offer them at any price. Other dealers, myself included, will probably pass on coins that are not priced in line with the current market. I would suggest you price your coins the same way that I do: look to see if there are recent comparables at auction and use these as a base line. There are, of course, exceptions to this rule. An extremely rare coin, a coin in an old green label PCGS holder or something that is currently very “hot” might deserve premium pricing. As a seller, you need to ask yourself, how badly do you want to move your coin(s)? If you price a $5,000 coin at $8,000 it is likely to taint it and potential buyers may be skeptical when the price is suddenly–and dramatically–reduced.

6. What about consigning special collections?

Over the years I have had a number of in-depth specialized collections consigned to me for sale. For these collections, I’ve created special “websites within my website” that feature these coins and they are not intermixed with my regular inventory. I would suggest that you request this when selling. It is smart marketing, it should help to sell your coins and it’s a nice, lasting memorial for your collection that you can keep record of. If the dealer you are using to sell your coins is web-oriented and he is incapable of providing this service, I’d suggest you question whether he is the right person to sell the coins. If the dealer is just going to sell them wholesale, then this process is, of course, not needed.

7. What should you not expect?

Just as you should have expectations of what to expect from the dealer you select, there are a few things you should not expect. One of these is for the dealer to have an obligation to tell you who your coins were sold to. You certainly have every right to tell the dealer not to sell your crusty original coins to an “upgrader” who is likely to strip and ruin them. You probably shouldn’t expect daily updates on how your consignment is doing but it isn’t asking too much of your dealer to hear, from time to time, how the consignment is faring.

8. How should I choose the dealer I consign to?

If you’ve made it this far, you are probably waiting for the answers to this important question. I’d say the two most important things to consider are the relationship you already have with the dealer and his ability to understand (and get good prices) for your coins. If you have been dealing exclusively or semi-exclusively with a dealer for a few years and you like/trust this person it seems obvious to select him to sell your coins. The second point seems obvious but is worth reiterating. I think my firm is a great choice to sell branch mint gold or early gold but I’d be a poor person to sell a high grade set of Buffalo Nickels. I could probably do a decent job of presenting Buffalo Nickels but I don’t know the series well and have zero clients for these coins. In this increasingly specialized market, it makes sense to choose someone who is a specialist himself, providing that you have a collection with a reasonably specific focus.

I think dealer consignments are a good way to sell your high quality, rare United States coins. Hopefully this short blog answered a few questions. If you have more, please feel free to contact me via email at dwn@ont.com

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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.

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Russell said, “Coin collecting is one of the most popular hobbies in the United States, and also one of the most conducive to online trading. I think there is the void in the market that GreatCollections can fill. It’s about technology, products and service.”

Until recently, Russell was COO of Collectibles at Spectrum Group International, the parent company of Teletrade and Bowers and Merena, among other auction houses, and continues to consult with them. Russell left the company with the full support and backing of Spectrum, whose CEO Greg Roberts, commented, “We are delighted that Ian is starting his own venture. With Ian’s talent and industry knowledge, GreatCollections.com should be hugely successful. We are glad that we were able to work out a mutually beneficial arrangement to work together during the near-term and possibly beyond.”

On a limited time basis, collectors and dealers can now register and become Foundation Members of GreatCollections. Available only to the first 1,000 members who register prior to GreatCollections.com’s formal launch, this group of special members will receive lifelong benefits such as discounts and exclusive services. To register, visit www.greatcollections.com/register or telephone 949-510-5310.

“If you collect coins, own coins or trade coins, I recommend you register and become a Foundation Member of GreatCollections,” said Russell. “It’s free and will ensure you are notified about the company’s progress over the next few months.”

In addition to creating its own marketplace, GreatCollections will immediately begin offering confidential bidding services at all major live auctions within the United States.

For more information about GreatCollections, its marketplace and confidential bidding services, please contact Ian Russell at 949-510-5310 or e-mail ian@greatcollections.com.

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Whether or not you need to sell, these five basic steps can help focus your collecting so you can receive maximum enjoyment and profit. Start by getting organized. Next, cull some of the lesser coins from your portfolio. Finally, focus on those areas which are the most meaningful to you.

1. Make A List
The vast majority of our clients keep their coins in safe deposit boxes, and rarely do have an opportunity to look at everything together. Since they were likely acquired over many years, accompanying records and notes tend to get scattered. A comprehensive list of the necessary information is very useful. It will allow you to see exactly which coins you’re missing, which coins you have too many of, and give you a starting point to review your collecting goals. It helps not just to list the date, grade, and denomination, but the certification service, amount paid, purchase date, and source as well.

Having all of this information at your fingertips will prevent mistakes such as purchasing duplicates or passing on coins that you need.

The best charts are sorted first by denomination, then by date, and third by grade. This will make it very easy for you to find coins. The certification number on the holder is useful to keep track of duplicates, and can be important in locating your coins if they are lost or stolen. Knowing whom you bought your coins from is also surprisingly useful. We will always make a stronger offer on coins we’ve sold, since we are picky buyers and we are, therefore, confident the coins will be nice for their respective grades.

2. Cull Your Duplicates
At this point, you may find that you have some extra coins. You may have purchased an MS66 to replace an MS64, without trading the lower grade example, or you may have mistakenly bought two coins of the same date and grade. We recommend that you eliminate those items that are not essential to your collection or portfolio. These coins can either be sold outright, or can be used as trades to reduce the amount of cash necessary for future acquisitions.

3. Consider Your Goals
Make sure your money is really where you want it to be. There is nothing wrong with buying all you can of a date you feel is undervalued. However, if your goal is to obtain the finest collection of a particular series, chances are you don’t want or need duplicates. Or possibly you started several collections, only to get discouraged or change directions. If you own bits and pieces of different collections, it may be a good idea to figure out a direction. Maybe you decided that you didn’t really like the Barber design after embarking on a proof Barber dime collection. Maybe you started a Morgan Dollar collection, but at some point abandoned the idea because it was just too daunting.

4. Don’t Worry What You Paid
Some collectors refuse to sell a coin at a loss, or make the mistake of selling a cornerstone in their collection because they can make a great profit. These are not the reasons to sell. Consider what the item’s long-term potential may be. And remember, everyone makes mistakes. Holding on to an inferior coin just because you will take a loss on it, is not the right decision. Coins that are overgraded and/or display poor eye-appeal can negatively impact your entire collection.

5. Take Advantage Of A Dealer’s Expertise
It may not be the easiest task to decide which coins to sell and which to keep. One of the best ways to help make those decisions is to speak with a dealer you trust who can help you make the right choices.

Selling coins is not difficult, and if you follow the five rules above you will avoid the most common mistakes. This may be a topic that you’d like to discuss with one of us, and we would certainly love to hear from you. The bottom line is that each collection is as individual as the collector. Our job is simply to help you build the collections that will bring you the ultimate enjoyment. Providing a bit of focus can make all the difference and can also allow you to walk away with some cash in the process.

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2. Ian Russell to launch GreatCollections.com – a “new” way to buy and sell coins.
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