Dealing with Dealers
Ways to Buy
There are a number of different methods to buy coins
advantageously, and I discuss the most important here. Most collectors acquire
their holdings in several different ways, buying some pieces outright, bidding
for others at auction, and acquiring still others at club meetings or
conventions. At one time, from the 1930s through the 1950s, the main way
millions of people became involved in numismatics was to build sets of Lincoln
cents, Jefferson nickels, Mercury dimes, Standing Liberty quarters, and other
specialties by looking through pocket change. Today in the 1990s few older
pieces are seen in everyday commerce, therefore this is no longer a viable
option except for relatively modern issues.
There are two main ways to buy and sell coins: at fixed
prices through dealers and at variable prices through mail bid sales and
auctions. I will introduce some caveats, not to dissuade you from buying coins,
for that is not my purpose (indeed, my professional career is that of a coin
dealer and auctioneer). My intent is to demonstrate the value of education and
knowledge. Knowledge is something to gain before you buy coins, not after you
do.
Direct Purchases
Let me discuss the dealer method first. Individual
professional numismatists and large companies acquire coins by buying private
collections, by transacting with other dealers on electronic trading circuits,
by bidding in auctions, and by attending conventions. Over a period of time an
inventory is built. Some dealers maintain comprehensive stocks containing
examples in all United States denominations from half cents to double eagles, as
well as commemoratives. Others are specialized and build inventories in a
particular area, such as United States large cents of the period 1793-1857,
Morgan and Peace silver dollars, Civil War tokens, or gold coins.
