Interview with Q. David Bowers on Internet Coin Buying
As a numismatist, I have come to rely more on the views of top authorities who love coins more than the holders containing them, and no one tops Q. David Bowers on coins.
He has been author or co-author of dozens of books since his first in 1962, United States Half Cents, 1793-1857, with several titles in 2008-09, including Grading Coins by Photographs, A Guide Book on Lincoln Cents, A Guide Book of United States Type Coins, and the newly released hardcover Whitman Encyclopedia of Colonial and Early American Coins, edited by Lawrence R. Stack.
I wanted Bowers’ perspective on both raw and graded coins sold over the Internet, as condition and attributions of coins are easily (and sometimes intentionally) misrepresented online, especially in auctions on eBay or Proxibid.
Bowers sees online auctions as an extension of currently available outlets such as catalogs and convention sales. While the Internet is a new mode to showcase coins, he advises all prospective bidders “to know the person with whom you are doing business.”
“In fact,” he adds, “one must be even more careful on the Internet.”
Usually I am skeptical of designations by third-party graders such as NGC, PCGS, ANACS and IGC, remembering we should be purchasing coins rather than the plastic designating their grades. Recently, Bowers wrote about that topic in his Coin World column.
Like me, however, Bowers is cautious about all the online bidding of raw coins on Internet portals.
When I purchase coins in this manner, I try to apply two tenets to my purchases—“buy the coin, not the holder” and “buy coins in holders rather than raw.”
In a word, I am leery of altered or poorly shot photographs in Internet auctions.
Bowers says the best online sellers should be recognized professional numismatists whose membership might be verified through such organizations as the Professional Numismatists Guild or the Professional Currency Dealers Association.
“In that way,” he says, “there is an indication of integrity and a mechanism whereby a transaction, if it goes wrong—and this happens all the time on the Internet—can be addressed and possibly taken care of.”
Bowers also advises against purchasing coins from unknown international dealers unless they belong to the International Association of Professional Numismatists.
“My advice boils down to this,” he says: “Be a smart buyer, know what you are buying, and deal only with people who are recognized professionals. There are very few true bargains on the Internet. If something costs less than a bidder thinks it is worth, it probably really is worth less.”
Bowers suggests bidders go slowly even with recognized dealers, studying offerings carefully, reading terms of sale, and learning what recourse, if any, is available to return unsatisfactory coins. “There will always be coins, tokens, medals, and paper money to buy, and it is far better to be cautious than to buy something and then try to straighten it out through complaints, attorneys, and the like.”
Keep in mind that the Internet is instantaneous and so adds a false sense of urgency to anything it touches, even e-mail. Auctions have their own urgency because buyers bid against the clock. These factors combine online and often result in overbidding.
You don’t have to do that on coins slabbed by respectable companies. They’re plentiful, and it’s a buyer’s market. Look up the retail price in your favorite price guide, and bid no higher than 60% of retail to cover any buyer’s fees, shipping and handling.
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Although Bower’s advice to “bid no higher than 60% of retail to cover any buyer’s fees, shipping and handling” sounds good on paper, in real life, it has been my experience that if you want to win an auction (on eBay, for example) for a coin that’s PQ for the grade, original-skinned, etc., you will almost always have to bid substantially ABOVE retail, notwithstanding the S&H fees.
Thanks for your comment.
The final two paragraphs are mine. Bowers is not quoted in the advice on bidding 60% retail. That’s my advice.I seldom bid higher than that level, and I win repeatedly on eBay and Proxibid. The trick is bidding on dozens of coins at that level, and if you win more than your budget allows, you can sell the coins for a profit.
The advise regarding a 60% bid sounds reasonable but I tend to agree more with James Donovan. I am a fairly new collector (less than one year) and I was bidding on items at the Red Book prices and then the Blue Book prices and now the Greysheet prices. I am not sure what retail is exactly but if it is Red Book prices I found that I was clearly overpaying for items. (A learning experience.) The same with Blue Book. When I discoverd the Greysheet I began bidding no more than 90% of the asked price and have gotten items from ebay sellers at even less. I consider them bargins since my local dealer sells at Greysheet ask prices and purchases coins from sellers at about 15-20% of Greysheet. Proxibid is another matter. I can never find any items less than retail there and I was going there often for a while. I gave up after everything that I bid on ended being sold for more than retail. I would love to be informed which auctions on Proibid I can purchase items on a bargain prices.
You have invested in a learning experience, and alas sometimes that costs money, Eric. I did the same thing through the same processes as you when just starting out with online bidding. I think the key to winning on Proxibid is to stake out the auctioneers you can trust, bid at Greysheet, bid only on items you need for your collection or want for investment, and rest assured that those items will come up again somewhere someplace. I bid usually no higher than $130 for a common GSA Carson City dollar (1882-84) and lose 99 times out of 100. But when I win on Proxibid, it is an occasion, and my investment well spent.
trying to locate a copy of Rare Coin Review #126, November/December 1998, “Christian Gobrecht: American coin die engraver extraordinaire,” by Q. David Bowers
any suggestions?
have a rare doorknob with sulfide inclusion identified with c. gobrecht f., looking to do background
thank you.
Hi, Rhett–
I don’t have that in my library. If you live near a large public or a university library, or have access to one, the issue might be digitized and you may be able to procure it online.
If I come across one in my travels, I’ll let you know via Coin Update.
Kind regards,
Michael