Buying coins on the internet, or even from a coin shop, can be a very pleasant experience or a very scary experience. We wanted to put together some information for the new coin buyer to help to make the experience as pleasant as possible. Coin collecting is a wonderful hobby that should be enjoyed.

Ebay, in particular, can be a great resource for coins if a buyer takes the proper precautions. There are many honest, trustworthy sellers who truly love the hobby and have respect for collectors, but there are also many dishonest sellers who are just out to make a buck. Whether you are purchasing a coin for $1.00 or $100,000.00, the key to success in buying lies in educating yourself. There are a number of ways to do this. There are many, many books that have been written on the subject of numismatics. Some are available for under $10.00 while others can run over $100.00. It depends what you are interested in and how complete you want your research to be.

We have found that The Redbook Guide to U.S. Coins, Walter Breen's Complete Encyclopedia to U.S. and Colonial Coins, Photograde, PCGS Official Guide to Coin Grading and Counterfeit Detection, and the 3-volume Krause Catalog of World Coins to be an excellent start to building an informative numismatic library. There are also numerous books on specific series of coins, currency, medals, and tokens that may interest you.

Learning how to grade coins for yourself and learning how to differentiate genuine from counterfeit coins is a must if you are buying from the internet or any other "sight-unseen" venue where you have to be able to judge from pictures whether the coin is worth the price.Ask questions. If you are unsure about an eBay item, use the Ask Seller a Question link provided in the auction. Ask your questions as early into the auction as possible as this gives the seller time to respond. Obviously, if you ask your question with only a couple of hours left, the seller may not be able to respond in time for you to bid on the item. Remember that the only stupid questions are the ones that go unasked.

I strongly recommend membership in the ANA (American Numismatic Association). There are many benefits to membership including a lending library that can save you quite a bit of money on books and a subscription to the monthly Numismatist. The staff members at the ANA are always happy to assist any member. The ANA is also working in tandem with eBay to make eBay a safer trading place for collectors. There are also many internet coin forums and clubs that are filled with knowledgeable people who want to promote this hobby by helping fellow collectors. Here are examples of some that I have found to be the most informative and helpful. These are just a couple of examples; there are many out there to pick from.

Forums:
Coin Community
Forvm - Ancient Coins

Clubs:
WINS (World Internet Numismatic Society)
EAC (Early American Coppers)
CONECA (Combined Organizations of Numismatic Error Collectors of America)

As stated earlier, purchasing on eBay can be very rewarding if you take the proper precautions. There are warning signs to look for that let you know if you are taking unnecessary risks. Here are some of the things that should raise "red flags" when seen:

1) Low feedback rating or private feedback.

Ask yourself, "What is this seller trying to hide?" The feedback system is not the only way to judge a seller, but it is one of the first things that should be checked. It is also important to skim through the actual feedback comments left by buyers. Oftentimes, a buyer will leave negative comments in a positive feedback due to fear of retaliation from the seller. Neutral comments (which don't affect the overall rating) should also be looked at. Keep in mind that a seller may have accrued negatives as a buyer, while his seller feedback may be excellent. That is one of the reasons why it is important to read the individual comments left in the feedback profile.

2) Poor pictures.

How can you decide if a coin is worth buying if you can't see the image? I have seen many auctions with uncropped pictures (making the coin itself appear so small that you can't even tell what type of coin it is, let alone condition), unfocused pictures, dark or overly brightened pictures, etc. If you cannot see enough detail to be comfortable with bidding on the coin, email the seller for better pictures. If the seller does not send the pictures to you, then don't bid. Know what you are bidding on. If a deal looks too good to be true, it probably is.

3) No return policy or stated "AS IS".

If a seller is confident that he is selling a genuine item without hiding anything, why wouldn't he be willing to accept a return? A return policy shows the buyer that the seller is confident of the coin's worth and will stand behind his merchandise. I know that this goes a long way for me in laying a foundation for trust. Sometimes, there is no return policy stated in the auction, but the seller accepts returns. Email the seller and find out what his return policy is.

4) Purchasing Slabbed / Graded Coins.

This can be tricky. There are a number of things to consider before bidding on a TPG (Third Party Graded) coin. We have found the most reliable grading companies to be PCGS, NGC, ICG, and ANACS. Their grades seem to be the most consistent and reliable, but mistakes are still possible. Remember that grading is subjective and, as such, is not an exact science. The best way to approach it is, "Buy the coin, not the slab." By this, I mean to look closely at the coin's detail. I have personally seen many slabbed coins that I have disagreed with the assigned grade. Learn to grade for yourself so that you know what you are looking for. The books mentioned above will help you to learn. Also, the ANA has a coin-grading course that is invaluable in learning the grading points and being comfortable with your own assessments.

5) "I know nothing about coins".

If you see this in a listing there are a couple of things to think about. First, if someone that normally does not sell coins comes across a coin that is 75 or 100 years old they will be likely to call it in "fantastic" or "excellent" condition just because they can read it. Without knowledge of a coin's design, it is easy to miss wear points. Coin grading takes a lot of practice so, if someone says they don't know about coins, it's a safe bet that any grade stated will be incorrect. A "readable" coin could be in Good G4 or Extremely Fine EF40 condition or any grade in between. You need to be able to rely on your own judgement. So, if you cannot ascertain how much detail remains on the coin from the pictures, be sure to ask the seller for better pictures. Second, there are also a handful of sellers (not many) that have experience with coins but pretend they do not in an attempt to bait buyers into thinking they will get a great deal. In either case, asking the appropriate questions should solve the problem.

6) Unreasonably high or unstated shipping/handling charges.

Although it is against eBay rules, there are sellers who inflate their s/h charges to avoid paying the final fees on the sale price. This is an unscrupulous practice that should not be supported by a buyer. If the seller is going to "steal" fees from eBay, why wouldn't he be willing to steal from you too? There are also sellers who do not state their s/h charges in the auction. Many of these sellers will charge actual postage, while others will charge inflated prices that the buyer is not aware of until after the auction. If you are interested in an item that has no stated s/h charges, email the seller. Wait for the reply before you bid. If you bid without knowing the Terms of Service, eBay does not see that as an excuse. You will be held accountable to complete the transaction. Please also remember that a small handling fee is reasonable. There are many sellers who take the time to securely wrap your coins and ensure their protection during shipping. Also there are shipping materials to be paid for. Use common sense when deciding what a reasonable handling charge is.

The bottom line is, "Be an educated buyer."

An educated buyer is an honest seller's best customer. When you find a seller that you know you can trust, ask him any questions you may have. Keep in mind that most honest coin dealers either are or were coin collectors themselves and probably got into the business for the love of the hobby. When that's the case, he will want to help you as much as he can and contribute to your enjoyment of this great hobby.

Susan & Bobby