There are times that while we are having fun collecting coins, currency, exonumia, and the like, there is a real world out there with real issues. For some, this hobby can be an escape from that reality.
On Wednesday, the Bank of England announced that they were looking into the issue where their new polymer notes contain traces of tallow. According to the supplier of the pellets that are used to make the polymer substrate, tallow is used in the resin it sources from a supplier to make those polymer pellets. It was a low-key response to an issue that was made bigger by the British vegan community.
While writing a snarky response, my Twitter feed blew up with the news of the attack on the Westminster Bridge and near Parliament Square in London. I stopped writing and turned on the news. Having once walked on that bridge there was a sinking feeling I could not shake.
We know that five people have died, including a police officer and the attacker. One was a man from Utah on the last leg of a 25th Anniversary trip with his wife. She was amongst the reported 50 people injured and one of the 31 requiring hospital treatment. One woman was so scared she jumped off the bridge and into the Thames River
MI5, the United Kingdom’s internal security force, arrested seven men and four women on terrorism charges. One of the women posted bail, the other 10 are still in custody. They have collected over 2,700 pieces of evidence that they will be studying.
Although I am not a “run-and-hide” type, I find it difficult to be snarky given the recent events, even if the story deserves that type of treatment. I am sure that the heartbreak of tallow will return to the news and will give me a chance to have fun at their expense. But for now, let’s wish the best for the people who were injured and the families of those who are mourning.
Over the last few years, Whitman has been adding more information to the Red Book to entice people to buy a new edition each year. This year, they are adding new information to the MEGA RED Book to the book whose page count continues at 1,504 pages. It is physically a large book with a lot of information.
The key feature of the Red Books are the prices. Prices are set by industry insiders who report what they have seen as prices for coins. Because of the publishing lead times, the prices may not be accurate to market conditions. Some say that the prices are not in line with current prices because the market moves quickly. In fact, a comparison with online resources like the Numismedia Fair Market Value prices and PCGS Price Guide shows that the Red Book may need updating for the most common coins. The disparity is that great.
Even so, the Red Book in all its forms probably is the bestselling book on U.S. coins of all time. Whenever someone wants to know more about U.S. coins and what they are worth, the persistent recommendation is to tell them to buy a copy of the Red Book.
This brings us to the latest poll question:
Select as many as you want. If you have another opinion, add your comments to this post.
Some of you might have noticed that many of the links to the blog stopped working properly. I know that the indexing robots (e.g., Google, MSN, Yahoo) have been filling my error log with messages.
Over the weekend I made some behind the scenes adjustments so that I can add new features. Apparently, most of my work went without a problem except I selected the wrong options. I think it is fixed now.
Don’t worry about telling me that something went wrong, I will be watching the logs to make sure everything is correct. The logs will give me more information about what is happening behind the scenes to identify the problems.
This is my fault and I apologize for the issues.
Estate Sales and Auctions
In my current business, I am able to buy inventory from estate sales and estate auctions. Most estate sales are either the lifetime accumulation of a deceased loved one or a forced sell-off of assets mainly as part of a court-ordered restructuring. An estate sale company will come into a home, stage it for a sale, add prices to everything and open the house for the public to buy what they want.
Adding prices mean tagging the items with a price that the company running the estate sale thinks is a fair price for the item. This tagging also has these sales also called Tag Sales. When it comes to tagging, some companies are better than others. After they pick the better items, the rest of the house is tagged either at prices too low or prices too high because most of the estate sales company do not know about the items they sell. They might use an average price of similar items they sold in the past or they just pull prices out of the air.
Estate sale companies have little to know expertise with coins and currency which is reflected in their prices. I cannot tell you how many times that I have walked into an estate sale and seen common date Morgan and Peace dollars priced at over market value.Unfortunately, many of these companies are not interested in learning about how to price coins. During a recent estate sale, I found quite a number of Walking Liberty half dollars. Most were in the VG-XF range. Some were better dates but none were the 1921 key date coins. Using the Numismedia Fair Market Value pricing guide I came up with a bulk price that I feel was fair for the entire lot. Unfortunately for the company, it was less than 50-percent below their price and about 20-percent lower than the fair market value. I am a reseller and I need to be able to make a profit. The manager on site acted as if I told him his baby was ugly.
When I presented my offer, I told him that I understood the coin market and would explain how I came up with the price. I showed him the Numismedia Fair Market Value pricing guide and explaining that it is a retail price guide. Confused by the differences in grade pricing he questioned how to grade coins, I show him the condition of the coins compared to the images in the PCGS Photograde app. After being confused by everything he said that he would take a chance on his price and turned down my offer.
I returned to the estate sale on Sunday afternoon about a half-hour before closing and noticed that none of the coins sold. I lowered my offer to a small percentage above its melt value. The offer was declined. A week later I found out that the coins were brought to a local coin shop. Imagine their surprise when they were offered a price between my two prices.
If you go estate sale shopping for coins, be prepared to be patient. Even though it is not their merchandise, they act as if it is their personal property. Most will be reasonable if you are reasonable with them. I would recommend reviewing the “Negotiating” section in my post “How Are Coins Priced (Part II).”Estate auctions are very different than what most people are used to if their only experience has either been at coin shows or eBay. If you attend a live estate auction, there is a possibility to purchase bargains. But like any auction, two people can also drive the price of the coin higher than fair market value. Most auctioneers understand how coins are priced and how bullion-based coins should not sell below their current melt value.
In my experience, gold and U.S. Mint packaged items usually sell at prices greater than fair market value. I cannot tell you why a 1977 Proof Set would sell for $15 when it is valued at $8, but it happens at these auctions.
If you are not involved in this market, there is a world of online estate auctions that hides in the open. Online estate auctions are hosted on sites that are not quite well known outside of those of us who work and shop in this world. These auctions are simply a company imaging and posting the inventory online, managing the auction, collecting money, and making sure everyone is paid. Most companies will hold absolute auctions that run for 7-10 days with all items starting at $1.00.
For those who do not know, an absolute auction is one where the lots sell at whatever the price is when bidding ends, also known as the hammer price in reference to a hammer that is used during live auctions. Winners will also pay a buyer’s fee which average 15-percent of the hammer price.
Although it is possible to find bargains in these estate auctions, many times I have seen numismatic items sell for more than fair market value. This is not good if you are a re-seller but sellers are doing well.
Antique Shows and Flea Markets
I go to a lot of antique shows and flea markets. I will set up a table at a few flea markets in a month and do a big show at least every month. One big I regularly participate is D.C. Big Flea, the mid-Atlantic’s largest antiques show and flea market. The show attracts 400-700 vendors, depending if they can use the entire center, with a variety of antique, vintage, and collectible items.Although I will buy and sell some numismatics, I do not bring numismatics to these shows mainly because they do not sell as well as other items. But when I have a chance to walk around the tables, I can find a number of cases with numismatic items.
Buying numismatic items at these large shows can be problematic. One of the biggest problems is that the vendor might have bought the item at full price and has overpriced it to gain a profit. There was also the time that a vendor had bought a roll of American Silver Eagles, placed them into AirTite holders and was selling them at a premium similar to the collectible Eagles struck at West Point with the “W” mintmark. When I questioned his prices and showed him that he was charging a 100-percent markup based on the per-roll price at a known distributor, he bluntly told me how unhappy he was with my questioning.
Most dealers will not try to swindle you based on a false narrative of value. In fact, many appreciate the education including the pointer to online resources. They will negotiate, and if you are fair with them, they will be fair with you. Sometimes, you can find items that you might not see on a bourse floor. During the last show I attended, one dealer had a case with a lot of German Notgeld, most in Extra Fine and Uncirculated condition.
During a previous show, I found a dealer who emptied boxes of tokens, trinkets, buttons, and medals on a large table. It was a treasure hunter’s dream! Although I did not have time to do an extensive search, I did find a few small New York-related items that I had never seen before including a merchant token for a business I know existed into the 1970s.
Although estates sales and auctions, antiques shows, and flea markets could present problems because most of the dealers are not as knowledgeable, if you come armed with knowledge, patience, and be on your best behavior, you can find some good bargains.
Looking for a job in numismatics? The the American Numismatic Association maybe can help. Earlier this month, the ANA launched an online job service. You can find the service at https://www.money.org/job-board.
The Job Board is open to everyone regardless of membership status. Although it would be nice if you were a member, non-members can visit the Job Board and look at the listings.
Employers looking to post a job can post jobs for free until June 30, 2017. After, listing created by members will cost $50.00 and non-members must pay $100.00.
Now that this resource exists, I would love to see jobs that do not require physical presence. For example, one of the job listings is for a Research Assistant. Does this person have to be located onsite? Can this person do research remotely? What about potential catalogers for auction catalogs, websites, and other documentation? Given the information, someone could do this writing remotely.
It is time that the numismatic industry tries to look for ways to expand its ways of doing business and think about how work can be done by hiring someone who can do the work but is not sitting in your office? Even the federal government utilizes telework when it can.
I know that some jobs cannot be done remotely like someone who can take pictures of the items for a catalog or website. But once the inventory is imaged, does the person posting them to the website have to be sitting on your proverbial lap?
I can tell you from experience that telework can make the employee more productive. With the exception of the times I was involved in classified work, I would work from home 90-percent of the time. This included the ability to teleconference. There is a reason why online teleconference services like WebEx and GoToMeeting are popular with business. It is very effective and you do not have to be in the same location.
Sometimes, it is not possible to do everything remotely. That is why there are local employees. But face it, you can hire a part-time employee to take pictures and email the pictures along with the price to someone that will post them on your website and social media.
Now that we have this resource, it is time for the numismatic industry to consider how they can better engage the broader community.
BTW: Has any dealer thought about contracting someone in another area of the country to bring your inventory to a show you would not normally attend? Maybe, if two-or-three dealers want to try this, I may be talked into setting up a booth at the Whitman Show in Baltimore. It is another outlet to market your inventory. Send me a note if you think that this could work and we can discuss details.