Selling Ungraded Coins – All You Need To Know

As unpopular as it is, selling ungraded coins comes with certain raw benefits. For one, you’re most likely to get it cheaper than the certified rates; you can get a rare date less exorbitantly, and just having the opportunity to hold your coin as opposed to a slab is ecstatic.

Nonetheless, the risks abound. Ungraded coins could be damaged, have restorative work done, or even worse be counterfeits. This could significantly drive down their actual value.

With the comprehensive information gathered on this topic, this article seeks to inform you of all you need to know about selling ungraded coins. 

And if you’d like to find out whether it’s worth it to grade your coins, check out this article Is it worth it to get coins graded.

Best place to sell ungraded coins

This would be a place specialized in your coin collection, with the proven experience to value it and manage the transaction. It’s the type of place that would have a broad market reach, guarantee safe, secure exchanges, and make it possible for you to get the best possible price

Where exactly can you find this place? Read on to find out.

A simple guide to selling ungraded coins.

Before you start selling, here’s what you must do: First, get the guide book of US coins, also known as the ‘red book’ to get an idea of what your coins are likely to fetch and second, subscribe to Coin World and Numismatic News for current information on the state of the industry and exposure to potential buyers.

You must learn how to value your coins. Research widely on sites like eBay for clues on the current market prices. Take each coin and write down the date and then compare the values given. The condition of the coin will impact its value. Get a range if you don’t know how to estimate the state of the coin.

Just in case you need further verification, look for a dealer who is an accredited member of reputable numismatic associations like ANA, ANS, AVA, amongst others. These associations have systems in place if you ever have issues or concerns.

If you can’t find such an accredited dealer, look for the nearest dealer and inform them that you need an estimate for insurance purposes. They’re likely to give you an accurate valuation if they believe you’re not trying to sell it.

Next, review your tax obligations because coin buying and selling are investments where you stand to make substantial gains.

Uncle Sam classifies it under collectibles and is subject to a 28% capital gains rate that can either be short term or long term depending on how long you’ve had the particular asset. Keep proper records of each sale and contact a collectibles tax expert to understand the intricacies involved.

1. Build your profile

Whether you’re clearing off an inheritance and moving on or this is a long-term business plan, no-one’s going to immediately purchase from you, especially when it’s ungraded coins. However, the way you present yourself and your collection will make all the difference.

Create a personable profile, be engaging, helpful, and build meaningful connections, positive feedback, and reviews to attract potential buyers.

For instance, on a reputable site like eBay, the rating feedback includes the accuracy of the item’s description, how good the communication was, how quickly the item was received, and how reasonable the cost was.

2. Photography 

Every platform has different requirements but what’s a constant is that they all require an accurate presentation of the coin’s actual state. 

For this, invest in good photography and lighting and watch some YouTube videos for excellent pointers.

• Take very clear and high-resolution shots of each coin’s obverse (heads) and reverse (tails). The image should be so clear as to capture the details on the coin’s surface like features that make it remarkable.

• Manage expectations by not glossing over the flaws, damages, or evidence of restorative works. Present each coin as it is and let the buyer have a complete idea of what they’re interested in purchasing.

3. Description

Tell a distinct story about each coin. Start out with the name the coin is known by, then mention when and where it was minted. Describe the appearance of the coin as well as any damage you spot. Be as accurate and honest as possible.

Besides those driven by profit, some collectors get drawn to the romanticism behind these items, which may be of intrinsic sentimental value. So go for all angles to try and make a sale.

And further to attract buyers, select some of the outstanding shots and then list by inviting them to make an offer.

This demonstrates that you’re not rushing to set a price, especially since they’re ungraded but instead are willing to let them review and select their preferred price.

If you’re not too sure about this strategy, use a reputable coin grading guide to set a price.

4. Return period

This is a bit tricky because even professional graders have been known to get it wrong on counterfeits.

If you want to increase your sales chances, you can issue a 5 -7 days return period. But, this could expose you to potential scammers. Insurance is an option, but what’s your profit margin?

If you’re 100% confident about authenticity, then work with a no returns policy. It might be slower and take time to sell, but it’ll come with fewer hassles. By not accepting returns, you prevent unscrupulous buyers from sending back damaged or counterfeit coins.

5. Shipping costs

For low-value coins, consider offering a free shipping option. You’ll have to pay for the shipping yourself, but it’s an excellent way to draw attention to your listings. You could also charge a little extra for your coins to cover the shipping fee.

For mid-range coins, try selecting a standard economy shipping with the post office or other carrier. Look for an insured registered mail option for more valuable coins.

Regrettably, international shipping charges can be a big problem if you choose free or flat rate shipping. Fortunately, some sites allow you to choose which areas you are willing to ship to.

Where to sell ungraded coins?

Where to sell is primarily determined by what you have and what it’s worth.

1. Public auctions

For a high-value coin collection in the range of $5000+, the best place to sell is an auction house. Public auctions play a vital role in selling rare and valuable collectible coins, especially those assembled as parts of first-rate collections.

As a seller, you’ll greatly benefit from the publicity surrounding essential auctions. The duration before the sale is 45 – 60 days, and the visually appealing catalogs distributed combine to build interest, attract potential buyers, and stimulate the bidding process.

Be sure to review their terms and conditions, taking note of all commissions, which may very well be in the range of 15% – 20% not inclusive of shipping and taxes.

Here’s a list of reputable numismatic auction houses for your consideration.

• Heritage Auction is the world’s largest numismatic auction house and has auctioned 10 out of 20 most expensive coins in history. It specializes in high quality American and world coins. They have an impressive client list, and there is no amateur or professional coin dealer who does not know about them.

• Stack’s Bower specializes in American coins and high-quality world coins. It has a record of selling the three coins that fetched the highest price, a combined sum of $20 million.

• Daniel Frank Sedwick is your best choice if a coin collection is based on colonial Spanish currency or treasures recovered from shipwrecks. This house specializes in those series, and they are probably among the most excellent experts in the world.

• Bonhams was founded in 1793 and is another of the world’s oldest and largest auctioneers of rare coins.

• Sotheby’s was established in 1744 and is one of the world’s reputable coin auction houses with 90 locations in 40 countries.

• Germany’s Kuenker is probably the largest auction house in Europe and the one that puts the best Central European coins up for auction.

• Áureo & Calicó of Spain offers the best option to sell a collection of a Spanish peninsula coin. Thanks to its colonial past, the Spanish coin is the second most collected globally, since many countries, including the United States, used it before having their own national currency.

• Varesi in Italy has the same level as the previous houses, but more specialized in its local currency. It’s the most viable for auctioning Italian coins or Italian coin collections of some importance.

2. Online auction sites

Several online auctions sites would be ideal if you can’t afford or aren’t eligible for a public auction. eBay seems to be the one with the most recommendations. 

• eBay is popular because it’s open to anyone with something to sell –business or individual. Selling coins is also not tricky here, as long as you create an accurate and quality listing for your coins. This will prove useful in building a good reputation and realization of the highest possible prices. The potential here could prove more successful than if you had opted for a coin store or show.

To sell on this site, you’ll need to set up an account if you don’t already have one, and you’ll get to list at least 50 items per month for free.

Afterward, you’ll be required to pay a listing fee of $0.35, which is dependent on how much your coins sell for. The site takes a 10% commission off whatever sales you make, and PayPal, the payment solution, charges 2.9% plus $0.30 on the final selling price. Where sales tax applies, it’s collected automatically when a buyer makes a payment.

• Sheepbuy is an upcoming online marketplace that is perfect for startup and professional sellers alike. Unlike eBay or other marketplaces, Sheepbuy doesn’t charge a commission on sales, and there are no premium store fees. And on the basic tier, you can have up to three active listings at any given time, free of charge. For more information on Sheepbuy’s tiers, click here.   

Other auction sites to consider are:

• Proxibid: This is recommended for its excellent customer service department and Unified User Agreement that holds buyers and sellers alike accountable.

• Property room: The honesty, reliability, straightforwardness, and reputability in their dealings with their professional members have made Property Room a force to reckoned with when it comes to online auctions in the US.

• iCollector is one of the powerhouses of online auctions. Since its inception, having run over 10,000 auctions, they are currently among the top coin auction marketplaces globally.

• WeBidz offers a unique online auction site in that it provides many auction categories that are not available other online auction sites.

• Invaluable is one of the largest premier live online auction sites. You can bid in real time from any part of the world.

• Pristine auction offers celebrity items, jewels, and coins for sale. With more than 1,300 daily lots, Pristine Auction provides a great place to find unusual gifts.

3. Online estate auctions

Besides eBay, there are resellers in working contact with estate sales companies that can provide viable ways to sell your coins, e.g., through online estate auctions.

Some estate sales are held over one or two weekends. Rather than holding the sale, auction items are either staged in a home or warehouse, and people bid online.

Most of these estate and liquidation auction services set their lots up with a low starting price. Usually, the opening price is $1.00 and sells with no reserve. Some have other rules that they use to protect sellers of higher-priced items.

Examples of online estate auction sites are:

• NorCal Online Auctions is an Estate Sales & Liquidation Service company specializing in estate sales, senior downsizing sales & business liquidation through online auctions in Northern California.

• US Auction Online merged with Seized Acquisitions. This is an organization contracted by agencies to liquidate things that are gotten by bankruptcy, loan default, clearance, estate sales, and other related events.

• EstateSales.net lets you know who some of the local auction companies are. You can either watch for their sales on EstateSales.net or go to their website and sign up for their mailing list. Some of these auction companies continue to have live, in-person auctions, and it may be something you would like.

• HiBid is a great site for finding many auctions in many places and supports a few different auction formats, including online only, live webcast auctions, absentee bidding, or just catalogs for auctions that will be live or even on another platform.

• LiveAuctioneers.com is a similar service but serving a more upscale audience. Their service has stricter requirements as to who can list auctions. They also have a consignment service that helps connect you with an auctioneer to sell your items. If you have something that you want to sell at auction but do not know who to speak with, this is a good service to help get you started.

4. Dealers

They’re often the first point of contact for most sellers dealing in low and medium value coins. When selling to a dealer, don’t be in a hurry. If they sense desperation, they’re likely to take advantage, and you could lose up to 20% -30% of the value of your coins. 

To find one that you can work with, research coin dealers to find those with positive reviews and accreditation from well-known numismatics organizations. Out of this, find those who regularly deal with coins of similar material and value to the one you have. Review their stock, and if they have coins with the same material and quality as yours, there are chances you’ll get a fair price. 

But before you settle, shop around and gauge the best deal from all the research you’ve been doing. Always handle your ungraded coins with care to maximize the return on your investment. 

5. Coin shows

These events are not really for selling. Instead, there is an excellent opportunity to start building your profile, even if it’s short term. You’ll meet ardent collectors, reputable dealers, resellers, and auctioneers who will prove valuable in this journey.

Look for people dealing in coins of similar quality to the ones you’re selling. Discuss fair pricing but not necessarily to sell but gather information and guidance on valuing current and future collections.

6. Coin websites and communities

If you plan to be in this for the long term, you’ll be better off joining a community of ardent coin enthusiasts. These associations will expose you to everything you need to know about selling ungraded coins. Some good examples include: Coin community, Omni coin, and snupps.

For more, here’s a selection of some of the top coin-related websites.

Which coins are wanted by collectors

The most wanted coins are obviously the ones likely to fetch the highest price, meaning they’re rare and valuable.

What’s more, they should have an intriguing history, romance, and pure human interest because not everyone is drawn to profits alone.

Conclusion

Selling ungraded coins shouldn’t be difficult once you’ve identified buyers looking for the exact coins like yours.

You must enjoy the thrill of the hunt for the priceless coin, the search for buyers, the haggling, and that perfect moment when you land the right buyer.

We hope this guide helps you, for the most part and that you’ll enjoy selling ungraded coins. Good luck!

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