Should You Buy Coins At Auctions?
Rare coins and those that have a high grade are often difficult to locate and buy. Auction sales whether they are online or at an actual physical auction house can provide collectors with the coins they are seeking.
No matter how popular auction sales have become to many coin collectors, it is still important to know the advantages and disadvantages to buying coins at an auction. Here are some tips on buying coins at an auction whether it is online or an auction house auction:
1. Auction sales provide simpler negotiations. Auction sales are one of the simplest ways to buy coins. Due to reserve prices, it is easier to weigh the options and estimate the price of the coin.
2. Auction sales include a bidding process. Buyers only need to bid for the price they are willing to spend on a specific coin. The coin can be acquired within the budget of the buyer. The buyer is free to bid higher if he so desires.
3. There is a higher chance of getting the coin especially if the bidder who won the auction was not accepted for some reason.
4. Contracts are involved in the bidding process. Once a buyer has won the auction, contracts will be exchanged immediately between the successful bidder and the seller. This ensures that the negotiation was completed and the bid price will be issued on the coin.
1. With online auctions, there is a greater risk of fraud. This is because the negotiation is done online. The buyer rarely sees the seller or the other bidders in the online auction. Thus who don’t if any of the other bidders are sincere bidders.
2. There are times that the coin displayed on the website before the bidding is not the same coin that is delivered to the successful bidder. You should use due diligence to determine that the coin you bidded on is the coin that gets delivered to you.
3. The reserved price of the coin may also cause some disadvantages. There are times that the reserve price is much higher than what prospective bidders had expected. This forces buyers to bid higher and exceed what they originally wanted to spend on the coin in question.
4. Online auctions cannot ensure that the coins that the buyers bid on are the genuine item they were claimed to be. The successful bidder can only inspect the coin once he has physically received it. This typically leads to outright fraud with the buyers regretting why they ever even considered bidding on the coin.
While coin auction sales are very popular, it is still strongly recommended that buyers be aware of the pros and cons of this option for buying coins. You really have to be familiar with your rights as a consumer and buyer. Other options should be considered before using this method to acquire coins.
Coin collectors should consider buying from friends and dealers they know and trust. If you decide to buy coins from an online auction, make sure the website does not have a history of illegal and fraudulent activities. And make sure you are dealing with credible people in the process.
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