Over
the last two decades the internet has introduced a new craze; online
auctions. But, there are advantages to doing business the old
fashioned way with an established business.
At
first the internet auctions were a tough place to sell coins as there
were very few bidders. Then a tidal wave ensued and the number of
people buying and selling online flooded in. Just as a tidal wave is
indiscriminate, so was this new phenomenon. Not only did it sweep in
good buyers and sellers, but also an ever growing unethical element.
Online auctions have morphed into not only a new selling ground, but
also the devils playground for those looking to make a quick buck.
Counterfeits, over graded or over stated coins, stolen goods, and
people selling things that they will never deliver are some of the
pitfalls that have been spawned in this anonymous venue.
So
what does this mean for a seller today? A few years ago people were
selling anything and everything for good money online, but as buyers
have encountered bad deals they are now being cautious. Established
companies are doing fine online as the reputation they hold assures
buyers of good deals. For the individual it means that the person
bidding on your item has no idea who you are and whether or not you
are trustworthy. Hence, most buyers take the stance, “If I get it
for a good (safe) price I'll buy it. But if not, I'll let it go.”
Selling to a buyer with this mentality is usually selling at a deep
discount.
Also
an individual may not know how to describe an item they are selling
properly. Many of the expensive coins have special attributes that
set them apart from the rest of the coins around them. If a person
does not include these attributes in the description how will the
buyer know it is worth more? My favorite example happened a few years
ago. A smaller dealer bought a coin in an online auction for $1000
from an individual. The dealer's asking price was $1500, so I bought
it. I in turn sold the coin for $4500. If the individual had brought
the coin to me, I would have offered $3500-4000 outright. Selling
online was not that person's best move.
Online
auctions rarely bring extra money for coins. Transactions require a
seller and a buyer. Auctions require a seller and two willing buyers.
In rare cases where a coin is hard to locate this can be good for the
seller, but in most cases buyers will not increase their bid prices
but rather wait for another one to come along. Paying auction
commissions to sell a coin may end up being much less than outright
selling it.
Online
auctions have created an outlet for those willing to work hard and to
take the bad with the good. In some cases online auctions can be
beneficial. In many cases taking what people are willing to bid is
like watching your coin being swept away by a receding tide.
If you're looking to sell your coins or gold, do yourself a service and be sure to contact us at www.brokencc.com to learn how to maximize your money received.
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