CoinClinic: Where to Sell Your Coins
This edition of CoinClinic tackles auction consignments, overseas coin purchases, dealer sales, and the persistent problem of milk spots on silver coins.
How difficult is it to receive coins in the United States that were purchased from coin dealers in Switzerland and elsewhere in Europe?
It is challenging to import coins, regardless of whether they are U.S. or foreign, from Europe due to tariffs and Memoranda of Understanding. A Swiss auction house recently advised that the country of origin, the specific category of the coin, and the required documentation by law must all be considered. It has been suggested that buyers purchasing coins from overseas may want to arrange for the coins to be stored, or for them to be shipped to an alternate address outside the United States.
How can I decide if I want to consign my coins to an auction?
The potential resale value and possible audience that will be interested in a coin must be considered when consigning to an auction. The exposure the auction house has to the appropriate market must also be considered. So must the location of the auction. Timing can be important; however, the market may change by the time of the auction. Unfortunately, no one has control over that.
I feel the auction consignment fee quoted to me is high. Can I consider auction fees to be competitive and shop my coins around?
There may be an auction house that will offer a lower consignment fee in order to compete for a consignment; however, in general, most auction houses charge the same fees. Instances where the fee is either lower or waived entirely are usually reserved for significantly high-profile rarities whose appearance in an auction is likely to benefit the auction house’s reputation.
How can I decide if I want to sell my coins to a coin retailer?
Selling your coins gives you three options. You can sell them yourself, you can consign them to an auction, or you can sell them over-the-counter to a retailer. Selling your coins to a retailer is the fastest way to liquidate. You are paid on the spot. Depending on what you have to sell, you may be able to bargain for a better price. Remember that retailers only purchase when they can make a profit. An auction house will charge a consignment fee. A retailer will discount what he will pay based on the price at which he anticipates he can resell.
Can I consign rather than sell my coins outright to a dealer?
Some dealers may be willing to accept your coins as a consignment, but this entails more paperwork for the merchant. The advantage to the dealer is that he doesn’t have to put any money up front. You both have to agree on the bottom price you are willing to accept and how much the dealer will earn for his trouble. A date by which the coins must sell or be returned to you needs to be established. Ask about insurance coverage on your consignment. Above all, have the entire agreement and inventory in writing.
What causes the haze appearing on some Uncirculated Silver American Eagles?
The haze to which you refer is commonly called ‘milk spots.’ There have been several reasons suggested why this occurs. The most likely culprit is detergent residue used when the planchets are washed, then annealed at the U.S. Mint. Any detergent residue on these planchets would be scorched onto the coinage surface since the annealing exceeds 1,000 degrees Fahrenheit. The bad news is that the chemical reaction may not become visible immediately but may appear at some later date.
Just how much does a milk spot on a Silver American Eagle impact the value of the coin?
It depends on the buyer. Bullion investors are interested in purchasing cheap government-issued bullion coins. They buy them as silver and expect to sell them as silver. A coin collector, however, may want to own SAE coins free of milk spots, anticipating that the coin will have value exceeding bullion value when the coin is resold at a later date.
Is there a safe way to remove milk spots from Silver American Eagle coins?
The internet is plagued with nightmarish suggestions on how to remove milk spots from silver coins. None of these has proved to be reliable. Most will damage the surface of the coin in question.
Do milk spots appear on silver coins other than Silver American Eagles?
Milk spots don’t draw a lot of attention on other silver coins, but they appear regularly. Milk spots appear on U.S. and foreign commemorative and bullion coins. This includes popular issues in Australia, Canada, and China. The Royal Canadian Mint takes the position that its bullion coins are just that—bullion, and for that reason, spotting shouldn’t be a concern.
How do third-party certification services treat Uncirculated and Proof silver coins on which milk spots appear?
Some numismatists suggest sonically encapsulating a silver coin might hasten the appearance of milk spots. In 2007, Professional Coin Grading Service announced it was “reluctant to grade any Silver Eagles MS-70 because of the significant possibility of future milk-spotting on the surface of the metal, which often seems to appear after the coins are minted and even after they have been graded.” PCGS then began grading 2006 to 2007 SAE coins based on the condition of the coins at the moment the coin was assigned a grade, disregarding the possibility of spotting appearing on these coins later.
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