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How To Price
Coins
Coin prices are a function of supply and demand. Market
prices decline when inventories cannot be moved at current levels and eventually rise when
insufficient quantities are available to meet current demand. Of course, if the buyer or
seller is unaware of current trends, a transaction may occur outside the normal range of
prices.
Demand is ultimately established by collectors and
investors but often more directly by dealers, who must sell coins for more than they pay
for them to cover expenses and make a profit. Consequently, there are multiple tiers of
prices for any particular collectible coin. Retail refers to prices dealers charge most
collectors and investors, while wholesale means prices they charge each other. Collectors
and investors with a substantial market presence (spending considerable amounts,
especially on a regular basis with the same dealer) may be able to buy at or near
wholesale levels. Published price guides list typical prices for retail and wholesale
transactions - actual prices may be somewhat higher or lower.
Dealers will usually pay less than wholesale when buying
coins from the public. Therefore, collectors and investors should be aware that it is
difficult to "get their money back," should the need arise to sell their
holdings. Of course, they may do better by bypassing a dealer altogether, but it is seldom
easy to find another collector or investor looking for the specific coins one wants to
sell, and even then the potential buyer will consider it an opportunity to acquire the
coins at a discount. In addition, there are some advantages to purchasing coins from a
dealer. A reputable dealer will guarantee the authenticity of the merchandise. He or she
will be knowledgeable enough to form reasonable opinions on grades, to detect problems
that may be missed by less experienced persons and will usually be willing to share
knowledge with the public, especially customers.
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