Whether at a coin show, or in the dealer’s store, bargains can be found when dealing directly with a rare American coin dealer. Here are 5 tips you can use to your advantage when shopping for that bargain.
1. Coin dealers specialize in a few types of coins and only have a limited knowledge of the rest of the market. Most dealers carry inventory which is outside their area of expertise.
Oftentimes, they will overprice coins outside their specialty, because they’re afraid a buyer will take advantage of them. Be cautious about buying coins outside the dealer’s specialty.
Being cautious doesn’t mean you can’t find a great deal however. Often you can spot die varieties the dealer doesn’t recognize. Here’s where your knowledge can trump the dealer’s, and you can walk away with a lower priced coin than shopping with a dealer who knows the coin series well.
2. Many dealers aren’t proficient coin graders just because they buy and sell coins. If you take the time to hone your coin grading skills, you can spot instances where the dealer has graded too conservatively. You can pick up some great deals this way.
Refer to my other articles and videos on coin grading and learn all you can about the subject. Become the expert in your area of interest.
3. Dealers often borrow money to maintain their inventory. If the market suddenly drops, they can suddenly have cash flow problems. Cash for buying coins becomes tight, and they won’t offer you as much for your coins, so you don’t want to be selling your rare American coins right then. Wait a few weeks and try again.
4. You can find out what coins are ripe for a price increase in the near future, by calling several dealers with a list of rare coins you say you’re looking for. This list would contain a couple of coins you’re interested in selling when their price increases.
If you call a couple dozen dealers, and few can sell the coin at the current market value, it’s an indication these coins should increase in price pretty soon. The supply side isn’t keeping up with demand.
Another way to learn market trends is to look at major coin publications, for advertising by large dealers to buy a certain year/grade of coin. That dealer is probably preparing for a big promotion of the rare American coin. This gives you some insight into what to buy yourself, and then sell during the dealer campaign.
5. Establish a good relationship with one or more rare coin dealers and inquire about special deals they might have available in the “back room”. Most dealers have inventory which has sat for several months and they’d be happy to move it at a discount. This way you’re positioned to buy slow moving coins before they’re offered to other dealers.
As with the other points here, know what you’re buying. If you end up buying a coin you also can’t resell, the purchase wasn’t such a bargain after all.
Recognizing bargains is part of the reward for being an expert in your rare American coin specialty. Finding bargains can take a lot of time, but searching is part of the fun. Not tipping your hand during your search is also part of the game. Good luck in your venture.
https://youtu.be/50hjj6zl6z8