Expert: Ronald Fern - 1/31/2010

Question
QUESTION: I have a large coin collection including Morgan sets, Franklin sets, proof sets from 70's on, silver eagles, as well as penny nickel dime sets to lesser value rolls of wheat pennies, silver niclels etc just to example some of the collection. I do not need  to sell for $$ but have been told by a dealer that it was a good time to sell as the market for collectable coins would diminish and now the prices are good. From that aspect and from an investment standpoint should I sell or hold onto the collection. Sell off the "junk" and keep the good stuff? Your view?

ANSWER: Hi Carol:

Thanks for your questions. It's difficult to answer without knowing your specific needs, age, whether you plan to leave all or part of your collection to relatives, etc. I personally don't believe any dealer has the ability to foresee the future relative to the market. I'd ask you if you knew homes were going to fall. Our home is worth a third less than it was several years ago. I never saw it coming, did you? Back in the early 1980's gold hit $1000 a troy ounce, and silver $50. The next 30 years have gone by and gold finally went above the $1000 mark, but silver has flirted with the $20 mark, and fails to go above it. Good collector coins, especially in higher grades, will always be in demand.

There are several ways to dispose of the collection. It depends on how much time you have to spend, and whether you know of or are close to a major coin dealer. Your first step would be to invest about $15 for a 2010 "Red Book" that lists most all US coins minted. Next, spend the time (file on computer is good for saving and modifying) to list all the coins by denomination, date and mintmark, noting the quantities of each. Look for the coins with the scarcer date and mintmarks. Then, try and generally grade the coins that are the scarcest by looking at the price guide. Most of the silver coins, especially the newer ones, unless high grade, would sell for about the melt value. The nickels are likely face value unless the war years (1942-45). Wheat cents in the 40's and 50's bring about $2.50 to $4.00 a roll, unless uncirculated. Try and get a general idea of the collection's value. Here's a link for establishing the melt value of the silver coins: http://www.coinflation.com/silver_coin_values.html

For a dealer to be able to give you the best opinion on the values of any of your coins, they need to be properly graded. You should review the link I provide to better grade your coins by comparing the examples to your pieces.
Link: http://coinauctionshelp.com/US_Coin_Grading_Guides.html

My recommendation would be to sell the proof sets, as they have seldom performed well in the after market, and the prices are basically tied to the silver value on sets struck prior to 1971. Early proof sets, 1958 and earlier, have greater value. There was no silver in any proof coin after that time, unless it was a special set and identified as silver. From 1965 to 1970 the halves were 40% silver. Prior to 1965 the dimes, quarters and halves were 90% silver. The low grade silver coins next, are worth basically melt. Next, your circulated rolls of cents. Lastly, your higher grade type coins.

The least amount of time, and the lowest return on their value would be to sell them (wholesale) to a dealer. Find at least two or three professional coin dealers and ask them to make an offer to purchase the entire collection. Compare the offers to your estimate. You'd likely get about 50% to 60% of retail. I'd suggest dealing only with ANA and PNG dealers. Here's the link for PNG. You can find dealers listed by state and city. http://www.pngdealers.com/dealersearch.php

The next way to sell your collection would be to have it consigned to a major numismatic auction. These are held in conjunction with major coin shows throughout larger cities in the US during the year. ANA, FUN, and California shows in Santa Clara, and Long Beach, are some of the major shows. You may not have the entire collection listed for sale here, rather only the scarcer to rarer coins that the dealer feels would be of interest to collectors and/or investors. There is usually a 15% to 20% commission taken from the sale or final bid of the items in the auction. You'd get 80% to 85% of the retail value of the items that sell. Some could go for more than retail on interested coins, less on others.

A third way to sell your collection would be sell directly to collectors by offering your items at a fixed price, plus shipping and handling, in a numismatic publication like "Coin World" or "Numismatic News". Place items for sale in their respective category in the classified ads. Pick prices between wholesale and retail. You'd get more than selling to a dealer, and collectors would acquire the coins for 10% to 25% less than a coin shop (you have no overhead, i.e., office space, rent, lights, gas, etc.) "Coin World" link: http://www.coinworld.com/
"Numismatic News" link: http://numismaticnews.net/GeneralMenu/

The fourth way would be to sell the items yourself via the Internet on eBay auctions. This way would likely take the most time, and potentially could return the higher value. Some items may have to be relisted or have a "make offer" option to sell. There may even be items that don't sell, and you still would pay for listing. If you use this option, photos should accompany the better listings to attract bidders and get top value. You'll need to read the instructions, because the fees paid are in part based on both the listing and selling price of the items. eBay Auction link: http://www.ebay.com   

You may want to check eBay listings in the different categories you have under US coins from time to time to see if coins like yours are listed and what they are going for. You may also want to check out this link on coin values: http://values.hobbizine.com

That should do it for you. Hope I've helped answer your questions.

Please remember to go to the experts site to rate this answer. And check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck in your collecting.

---------- FOLLOW-UP ----------

QUESTION: I do not plan to leave the collection to anyone. It, along with a lot of boullion, was meant to be used as an investment for retirement income as needed. My husband who is now passed put together 2 Morgan sets for my daughters, one of which wants to sell theirs for a downpayment on a house. I am trying to justify that. I feel the best option is to sell off the so called junk/proof sets etc. equal to the value of the Morgan set (which is worth a minimum of $15000)and keep the Morgan set hoping for future appreciation. Plus, there is a lot of coins, sets etc that can not fit into a safety deposit box and I wanted advise on consolidating by selling off the lesser value things and possibly invest in a better piece thus eliminating totes full of inventory. So, after reading your previous answer my thought is to sell off sall the rolls and minimal valued coins, proof sets, mint sets,halves and dollars not worth more than silver content? Do you agree? Should I put that money into higher grade pieces?
Also, do you advise holding onto gold & silver boullion?  What about paper money? silver certs, etc? Thank you so much for your hrlp....your previous answer was very helpful.
Carol

Answer
Carol:

Yes, I agree with your assessment. I'm not sure on the entire Morgan set. The higher or rarer value pieces stand to appreciate the most. The common ones trade at silver plus a few dollars. You can still buy common UNC Morgans for under $30 each. You may want to divest yourself of the commons.

I've never been a collector or investor in paper to any extent. I have a few pieces, but not as investment, so I don't feel I can advise you.

Both silver and gold stand to rise with the continued weakness of the dollar. How much, I'm not sure, but I'd advise you to have at least 5% to 10% of your collection's worth as small gold or silver to dispose of or trade easily if and when the banks go under or you can't get to an ATM for cash.

Please remember to go to the experts site to rate both my first reply and this folllow-up answer. And check the nomination box on the rating page below any comments you may have.

Thank You again, and Good Luck in your collecting.