Buy Low Sell High

17 Apr

 

I know this may sound like common sense but what comes across as common sense is not always common practice.  It is very important to have the most up-to-date pricing references (some special items make this preparation very difficult) on whatever coin, token or other sweet collectible/antique you are negotiating to buy.

It is up to you to decide how much money you want to make on a deal.  It is also up to you to decide how much money you can lose on a deal.  Once your upside and downside risks and rewards have been calculated, it is time to negotiate. 

The person across from you is not your friend but they are a business acquaintance and should be treated respectfully.  They may or may not be your friends personally outside of business but when you are in the moment of doing business with them, keep it that way.  Make sure that they understand that haggling and negotiation tactics are only business, they are not personal jabs in an attempt to make them upset. 

You want to pay the least possible price for your item; one of many strategies is to offer the least amount that you think that they will consider without getting upset with you.  If the price is too low, you can always move up with another offer.  If your price was accepted right away, you will always wonder if you could have paid less.

There are other buying strategies that you can use for maintaining certain suppliers or volume discount approaches. However, for now we are buying low and selling high; selling high will come later and involve asking the most for your items because if you never ask for a lot, it will never be offered to you and you will never get it.

I am not a negotiation and strategic genius or even a seasoned veteran but I have bought and sold coins and collectibles before I have seen what works and what does not. Every person is different too, never forget that.

I would love to hear about some of your negotiation experiences in buying low and selling high; send me an email or leave me a comment at the bottom of this post!

He who Hesitates Loses

15 Apr

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When I was much younger, my dad told me that a person who hesitates is lost; in certain life-personal respects I disagree with this; a person who hesitates is simply weighing his options, the upside and the downside.  In regard to making a purchasing decision within the business that you should be very familiar with, I agree with this statement now more than before!

A little over a month ago there was a very early year in the series, rare date Seated Liberty Quarter up for sale in a private sale.  The coin was raw but would have likely graded VF30 at PCGS or NGC without a problem.  The only easily attainable auction results yielded a similar quality coin valued near $3750 two years prior with the finest known being XF45.

In this case, my dad’s words of wisdom proved to be right.  Unfortunately, I bid super conservatively on the coin thinking that is was raw and that not too many people at this little auction were going to pay more than $3000 for a raw seated silver quarter; boy was I wrong, the piece brought $3450.  I missed out on an opportunity to buy a very cool and super eye appealing, rare date coin that could have been a very nice addition to the business inventory because I hesitated to bid aggressively enough.

Don’t let a good coin slip away; don’t be afraid to pay a little too much for a rare coin with great eye appeal!  Write to me, I know this has happened to you, maybe more than once L

Never Care for a Coin in these Manners…

14 Apr

Never clean your coins.  Cleaning coins can diminish or take away all original age and patina decreasing the appeal and likely value of your coin.

Never store your coins in a damp or wet place.  Moisture can leave coins with environmental damage.

Never pick up a coin holding it with your fingers in direct contact with the obverse and reverse of the coin; always hold the coin by the third side, the edge or rim.

Never store your coins in a plastic that is susceptible to sweating.  Polyvinyl Chloride PVC plastic flips are not recommended for long-term storage. 

Never keep your higher grade coins under direct sunlight.  The coins, especially silver, can tarnish in unwanted ways.

Above are some of my recommendations to you for best practice measures for taking care of your coins to ensure a longer lasting preservation of your rare coins. More in regard to cleaning, some people clean their coins lightly to remove dirt or grease, among other things, because they think that they are making their coins look nicer; most of those people also don’t know what they’re doing and they know even less about coin preservation so I recommend to you to just refrain from cleaning your gems.

Keep your historical treasures looking their best and feel free to leave a comment or question for me about your coin care.

Canada and United States Cents, Exhausting

9 Apr

I am tired of hearing about the future of the Canada and United States cents.  This has been nonstop talk for the past month and I’m sorry, it is just not important enough to get the attention that it is getting in the numismatic news, yet… here I am writing about it.Image

We know that the coins cost more to produce than the coins are worth face value.  We know that people fear the removal of the denomination may imply monetary instability.  We know that, to some, this news is followed by the end of the world.

Other currencies around the world have “one” as a denomination within their realm of production.  Is this news?  Does anybody truly care?  For our next extremely exciting blog post I will be talking about currently circulating Canadian and American quarters and their discontinuation’s potential effect on life as we know it!

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My recommendation to authors in regard to the future of the cent is to let this surface again as news once some final decisions are made in either country or in both; until then, please give the topic a rest and I will follow suit.

I do apologize for my extreme hyperbole within this post; this will be the last time I write about the topic until some final decisions have actually been made about the future of the one cent piece in both Canadian and US dollars.

Please comment or question if you wish, but this time I would actually rather not hear what you had to say.  Thank you so much for reading 🙂

Best Deals from where you LEAST Expect Them

8 Apr

I have found some of the coolest coins and collectibles from dealers who did not specialize in the items that I bought from them.  Most established dealers of collectibles can only specialize in so many things before they either lose track of what they have or they just don’t care about all of the secondary items that fall outside of their primary focus or concern. 

I recommend that you buy your rare date twenty dollar gold coin from a twenty dollar gold coin dealer who knows what they are doing; however, if you are sure of how to authenticate and tell level of preservation of such a coin then you will probably get a better deal from a rare book dealer who happens to have a couple of rare date twenty dollar gold pieces.  If you are comfortable enough to tell that your collectible license plate has original paint or is repainted then I recommend that you buy your rare Nevada license plate from the dealer in antique farm equipment; he/she will probably be happy to get rid of it!

Examples of some potential cross-over markets and hobbies: Old dairy glass milk bottles from an antique furniture dealer; coins from a token dealer; real photo postcards from a coin dealer; diamonds from a pawn shop, the list goes on…

My suggestions here are definitely not making me any money, but you will probably come across better deals in the long run than buying from specialists.  These deals are harder to find and usually require some diverse networking but can very rewarding.  You have to be extra alert with what you are doing in these situations though. Guarantees on products usually don’t come from those who do not specialize in what they are selling; if you don’t know with 100% certainty what you are looking at then this is when dealing with an expert would be better.

I want to know what deals you have already come across within these overlap industries.

4 Reasons Why Enthusiasts Buy Coins

7 Apr
  1. They buy because they like the history of coins.

                If this is you, I recommend to you to continue buying what fancies you historically.  There is so much to enlighten yourself about.   History buffs are the types of people who become rabid coin collectors and put together the high quality, great eye appeal collections after years of studying what they love.  Their long term returns on investment usually have pretty good yields too!

  1. They buy because they like the rarity of coins.

                If this is you, I recommend to you to continue to buy rare coins.  Rare coins should always be in demand and almost always have a buyer; this does not mean that prices always go up though. Rare coin markets fluctuate in cycles just like any other market that the world has to offer.

  1. They buy because of the potential future value and investment in coins.

                If you are a market big boy market analyst and you make and trust your own judgment, by all means continue to buy coins for investment purposes; you are an asset to the numismatic world and you know more about the market than many full-time dealers.

  1. They buy because somebody told them it was a good idea and they know nothing or next to nothing about what they are buying or why they are buying it.

                If this is you, I recommend to you to stop what you are doing, invest in numismatic literature and teach yourself something.  Often times, a first time coin buyer has never read anything before about the coins they are buying; they only know what they saw pictures of on the home shopping network or saw in a magazine.  These people are uneducated with what they are doing and they do a great disservice to the numismatic community.  

I know that you have an opinion on this, please share with me your thoughts and personal experiences!

A Little Less Soap Opera, A Little More Periodical

2 Apr

Numis enthusiasts trust, I am not knocking day time TV and reality TV shows, in fact I like some of them in doses but it is also very important to be up-to-date with local, state, regional, national and international news.  How closely you want to follow is up to however much time you can set aside for it while still maintaining your balanced life-style.  The news that you hear, read, watch and even make can all have effects in one way or another on the decisions you make in your business and personal lives.

News Example 1:  It is possible that during a given day, if world currencies are trading significantly higher against the United States dollar, then maybe the price of gold would increase or decrease in value (USD) accordingly due to the news and hint of consumer uncertainty that the news creates.

News Example 2:  It is also possible that the world’s leading supplier of energy source “A” is temporarily postponing it’s supply to the world and will start supplying again when it feels that the price is high enough because right now it is too low. There are international agreements among nations that are supposed to help avoid an incident like this but that does not mean that it cannot happen.

News Example 3:  Within seven trading days, the price of silver rises very quickly from below $40/ounce to just about $50/ounce. Morgan and Peace silver dollars rise up to $36-$38 for almost any condition while silver is trading for about $50/ounce. The price of silver then falls rapidly to down around $32. What do you think the price of Morgan and Peace type silver dollars will trend to consequently? Up or down? Does this sound familiar?

Staying informed, whether it helps your business or hobby to make smart decisions or not, is a continuing education of your mind that nobody can take away from you.  It is important to take news with a grain of salt and realize that bad reporting happens all the time and the news is an industry too (news channels have to make money to stay around) so stories can be spiced up sometimes in order to make help them sell.

Some good news sources that I like to keep up with are The Wall Street Journal, CNN News, CNBC and the BBC.  Please write me with your thoughts about keeping up to date with the news and how it effects decisions that you make.