Large coin collection - Need Advice

[Deft Tones]

A good friend's father passed away two weeks back. He was a coin collector over his 74 years and apparently had amassed quite a collection - double wide closet packed with boxesof coins. My friend says there are old coins, proof sets, books, silver and gold coins. Apparently his father purchased these coins and all of them are protected in some manner. He estimates thousands of coins, but he's only peeked in a few boxes so far. He needs to split the value of the collection with his brother.

His question to me, and mine to you coin enthusiasts: how to appraise and sell these things?

Please offer advice how to handle this situation.

He was thinking just selling at the local coin shop his father liked to deal with. I advised him to photograph everything before taking them anywhere or letting anyone handle them. Get a count at least.

What to do?

 

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[DeepseekerADS]

First and foremost = inventory.

You gotta know what you've got.

Second would be grading, and grading depends on YOUR assessment, and a coin merchant's assessment. You know danged well he's going to lowball.

Grading is very, very subjective. a "pro" coin purchaser is going to grade it lower than you will.

But that's just a fact of life. Maybe he has the "eye". It's given yours won't be time proven and hopeful.

I made my share of mistakes along through my collecting years. I always graded higher than the buyer. That's just the way it is, looking at books to assess value.

To have any idea you do need an inventory first, and that'll likely take some effort based on your question.

And then it is going to come down to what you are willing to accept.

Good luck with this, and please for your sake, take your time.

 

[BobTheDigger]

As another poster stated, #1 - get a detailed inventory and know whats there.

#2 - get an attorney and coin expert involved. Its important to know the value of the assets (coin expert) and to be properly protected (attorney).

A collection of that size is going to have significant value.

Sorry to hear about your friends father.

 

[Deft Tones]

He's not going to be happy about spending the time to inventory. He acted like it was to much work when I suggested just photographing them in sets. Maybe there is a larger collection than I realize, I haven't seen it. I'll get some sense talked into him to slow down and spend the time needed for the problem.

Perhaps he'll need my help when he goes to get them Sunday. He tells me there are gold coins worth (80's/90's value) $2500 each. I want to hold one.

His dad was a detectorist too. I'm going to have to see about his equipment and if it's for sale.

 

[Terry Soloman]

REALLY SIMPLE! You work with a legitimate auction house, that at least two dealers have suggested. Honest appraisals from legitimate coin dealers in your state are not expensive. Don't be fooling around. Deal with serious professionals.

 

[PaddyB]

This is always a tricky situation to deal with and a lot depends on how much effort your friend is prepared to put in. I am a part time dealer in the UK, so I often see this from another side!

The least effort route is to take the whole lot to a reputable coin auction house. They will then do all the work of identifying, listing and selling, but of course they will make their money back in commission. The final money your friend gets back will be very considerably less than the full market value. Most buyers at coin auctions are dealers not private collectors!

Example (all figures approximate): Coin has full market value of 100.
Dealer wants minimum 20% margin, so will pay max around 80.
Auction house charges 20% buyers commission, so dealer's top bid is 64. (So he pays auction house around 80)
Auction house charges 20% sellers commission, so seller receives about 51 - half the "full market value"!

Yes you can tinker with the figures - the sellers commission may well be negotiated well down if, as in this case, there is a large collection to sell. But the buyers commission may well be higher - the best coin auction houses in the UK usually charge 25%. Also, 20% profit margin for a dealer is tight - it would be fine if the coin sells immediately but typically it will be months if not years before a good coin sells, which means dealers want a bigger safety margin.
Of course the very best coins may attract private bidders, and then the seller will do a lot better, though not as well as if he sells direct to the buyer.

If you sell to a dealer, there are different challenges - the most important of which is how honest and fair the dealer is! Your best protection is to get a number of quotes from different recommended dealers, making sure they do NOT know who else is quoting, nor what values the others have bid. Base your final decision both on the final bid AND on how trustworthy you felt the dealer was in evaluating the collection. Avoid splitting the lot - many dealers will want to "cherry pick" the most desirable/saleable coins leaving you with the slow moving/lower value stuff.

Assuming our 20% dealer above and him being really honest and fair, your 100 coin is now going to nett you around 80 - a lot closer! Of course if you get a bad dealer or do not get several quotes, he will try to get away with as little as possible and you may only get 20 for it.

Another route would be to advertise the collection as a whole for sale to "private" collectors. The hazard is, without the effort of creating an inventory, you will have little idea what is a fair offer, nor will be certain your "private" collector is not actually a dealer anyway!

The only way to get close to full market value is to break and sell the collection himself - effectively to become a dealer. This requires a great deal of effort identifying and listing the coins - by the sounds of it years of work - but he should get close to market value for most coins in the end.

By the way - the worst option is to hand it to the lawyers to deal with it for him! They will take their cut on top of all the auction house fees above and you will end up closer to 30% of market value!

 

[Deft Tones]

Thank you for the very informative reply. I'm going to put this thread in front of his eyes.

He's going to be upset his dad left him such a PITA to deal with.

 

[PaddyB]

Just one more thought: If your friend and his brother are not in a hurry for the cash value, they could agree to split the physical collection 50/50 and then individually decide when/how/if to sell later. This often happens in the UK - toss a coin to see who starts and then take it in turns to take coins or boxes until it has all been divided. OK - it may not be an exactly fair split but without an inventory no one will know any better and they can then get on with their lives in their own way!

 

[Nitric]

From your posts kind of sounds like they just don't want to deal with it? In that case? I agree with Terry.

Send them all to a reputable Auction house.. The end result is a check...

There are potential problems or risks to whatever they decide to do.

Another option...If you are going to take it to a dealer? Break it up into smaller groups and have each group done by it's self......There are reasons for this but basically, there are usually less "sliders" this way. Because most collections aren't all premium coins.

If him and his brother have no interest, want the money, and don't want to mess around? Auction....

Usually the problem with family is they are fighting over the same items, values,who cheated who....Auction settles it. If they are civil with each other no attorney needed(I wouldn't imagine).....

There are more routes and no wrong one really, just depends what the final goal is.


It may be worth millions, or it may be a few hundred. I have a small closet here packed, proof sets and everything else..It's all just common stuff. So that closet is worth ...Not much.... I've also seen small boxes of coins that ran into hundreds of thousands....So quantity, is sometimes a sign of someone like me that just collects, the guys into huge money quality or sitting on small boxes.....This isn't always true, but seems to be what I've run into a lot of in the past.

 

[Diver_Down]

With regards to auction houses, it is fairly standard that a flat 10% seller's commission is charged. Auctioneers realize that with coins that it puts bodies in the seats of the gallery. They are an easy sell and they'll make their money on the buyer's premium and perhaps, the attendees will bid on other items driving up the final selling price for those items. A win for them. They want your coins. Also, with online auctions (eBay), it is easy for the owner to sell the coins themselves and eliminate the auctioneer. They know this so they want to undercut eBay and get your business. Now, with an extensive collection, you have the position of negotiating a lower seller's commission if you ensure the auctioneer is the only seller.

 

[Deft Tones]

I'm going to try to get pictures on Sunday if/when he brings them to his house.

I'm sure some items will be more common. He was financially secure, so we'll see what he bought. I'm told he died with $980.00 in his wallet. Who knows why a 74yr old man is packing just under a grand in his pocket when he rarely left the house the last few years.

My buddy will appreciate the kind advice. I appreciate ot on his behalf.

Thank you.

 

[Deft Tones]

From your posts kind of sounds like they just don't want to deal with it? In that case? I agree with Terry.

Send them all to a reputable Auction house.. The end result is a check...

There are potential problems or risks to whatever they decide to do.

Another option...If you are going to take it to a dealer? Break it up into smaller groups and have each group done by it's self......There are reasons for this but basically, there are usually less "sliders" this way. Because most collections aren't all premium coins.

If him and his brother have no interest, want the money, and don't want to mess around? Auction....

Usually the problem with family is they are fighting over the same items, values,who cheated who....Auction settles it. If they are civil with each other no attorney needed(I wouldn't imagine).....

There are more routes and no wrong one really, just depends what the final goal is.


It may be worth millions, or it may be a few hundred. I have a small closet here packed, proof sets and everything else..It's all just common stuff. So that closet is worth ...Not much.... I've also seen small boxes of coins that ran into hundreds of thousands....So quantity, is sometimes a sign of someone like me that just collects, the guys into huge money quality or sitting on small boxes.....This isn't always true, but seems to be what I've run into a lot of in the past.

His brother doesn't want to deal with it. My buddy reluctantly will deal with it, but he's conflicted how he would rather deal with it. I don't think he's in a rush to dump them (my opinion), I'm sensing that he feels overwhelmed with it all. He looked at me like I was crazy when I suggested he record them the other night. Then I was like, "At least photograph them. Not even individually....do it in sets".

I'll get pictures when he brings them home.

 

[Nitric]

His brother doesn't want to deal with it. My buddy reluctantly will deal with it, but he's conflicted how he would rather deal with it. I don't think he's in a rush to dump them (my opinion), I'm sensing that he feels overwhelmed with it all. He looked at me like I was crazy when I suggested he record them the other night. Then I was like, "At least photograph them. Not even individually....do it in sets".

I'll get pictures when he brings them home.

It can get overwhelming!!!!
One of my "highlight reel" moments.....I was trusted with a couple very large collections....The one took me over a year to liquidate, because I had to learn real fast along the way.....Even though I had a little background in it, I'm positive I overlooked some good stuff not knowing enough, The owner wanted me to get the experience and trusted basically no one, It was an awesome experience....But I got to see and hold stuff, that I'll probably never get that chance again...It can be a fun adventure too!!! But I understand what your saying about overwhelming...

The worst move I've ever made, and today is funny! To cut it short...A friend called and told me about someone he knew that wanted me to look at their coins. At the time I really wasn't into the whole coin thing anymore, and there are so many times you drive out to someones house, and it's not worth much. It was a state away, and I put it off, after a few more calls from him I told him who she should take it to, that I trusted......Well, I heard later.....It was worth over 3 mil in the end.......I was sick for blowing that one off!!! He said(friend)..."I told you to go look at her coins!"

 

[cudamark]

Thank you for the very informative reply. I'm going to put this thread in front of his eyes.

He's going to be upset his dad left him such a PITA to deal with.

Really? I would love to have that "PITA to deal with"!

 

[Deft Tones]

Update pictures for those interested.

 

[Deft Tones]

Sorry 4 the bad pictures. It's what it is and I'm no photographer.

These represent only a sample. Two boxes in closet were filled with new silver from the US Mint. I never photographed the contents, only a quick peek inside.

Looks to me like a precious metal investment more than anything.

Apparently some years ago there were some gold and other coins stolen. We found the empty boxes.

It's a cool thing for me to see, this collection, but it's not quite what I was expecting or hoping for. I did get to hold the gold coins in their cases... close enough for now.

 

[cudamark]

If they're looking to blow them out, that should be fairly easy since most of them are already slabbed/cased. If they want top dollar, you're going to have to check each coin for year, grade, and varieties to determine their true worth. Then the decision to decide on an acceptable offer and go for it. You can check e-bay completed sales for comparables, so you can get a reasonable idea.

 

[Tuberale]

Definitely take them to a reputable auction house, like Terry suggested. There is more value there than you think, I'll bet.

 

[Diver_Down]

The Mint products and slabs should be easy to sell. I'd bypass the auction house. On eBay, you'll realize their full value. Forget the Dealers as you'll only get a fraction of the value. One set I would set aside and take a closer look is the Ikes. You can educate yourself on them by visiting The Ike Group There are numerous collectible die varieties and not just the famous King of Ikes. King of Ikes is a bit old. There are some such as Tiger Claw, Talon Head, numerous Peg Leg's, many doubled die, etc. One of the newer discoveries is an Armageddon Ike where the Earth looks like a apocalyptic disaster. Difference in a 15 Ike or a $1500 Ike. It doesn't take much effort to educate yourself and you very well might have some unrealized treasure.

 

[FC-Treasure]

Agreed, bypass the auction houses. This type of collection is best sold directly to retail customers via eBay. By looking at completed auction listings you can get a really good idea of what to charge.

Was the silver in the other two boxes slabbed? MS-70 Silver Bullion coins tend to sell for 2x or greater their value in bullion. Buying graded bullion isn't my thing, but it does appear to be popular on eBay and they do go for a premium. I've always thought of this as a very artificial market, but that's just my opinion...