Auctions are by no means a new innovation and this is also true with regards to the coin auction. They have been going on for many years and if you are an avid coin collector then you should be regularly getting yourself down to a local one; but it isn't always that easy to find one and when you do there is no guarantee that you will be able to find exactly what you are looking for or know what you are doing. A coin auction works exactly the same way as any other auction in so far as the highest bidder wins the lot, as long as that bid is above the reserve price.
The online coin auction
As with many things, the coin auction has been overtaken by the digital age and even a cursory glance on the biggest online auction house, Ebay, will show you that the coin auction is beginning to take off online. However, you should always be careful if you are considering buying an old or collectible coin from an Ebay auction as you should with any item. If pictures are hazy or too small ask the seller to post another. If there is no picture on an item worth hundreds of dollars I wouldn't even bother asking.
Check the description
Make sure that there are a couple of images and the description sounds realistic when compared to the price. If there is a buy it now price of $20 on a coin that would normally cost hundreds don't believe it. Don't forget you pay for an item on Ebay before you come close to receiving it. Look for power sellers or sellers with a greater number of positive feedbacks left against their profile and if there is the opportunity to view the item before the auction ends and you can make the trip to the seller's location then do so.
It is worth remembering as well that once you have won a bid there is no room for maneuver on the price you have paid unless the item itself is different to that described. In this case you can either barter or you can reasonably send the article back and request a refund. The key though is to check feedback. If the seller has sold similar items previously then there is a good chance these auctions will have been won by fellow coin enthusiasts who will rate accordingly. If there are negative ratings with valid reason then you should tread very carefully, if at all.
Going to an auction house
Your best bet really is to find a physical auction house and get down there for the next coin auction. Here you will be able to have a look at the coin in question before it goes under the hammer and usually has any certification with it (or at least a copy) so you can see exactly what you are bidding on. Without this personal touch you never know for definite what you are bidding on and an anxious wait will usually ensue until the day that your new coin arrives and you can add it to your collection.
Selling via a coin auction
If you are thinking of selling through a coin auction there are several things you need to make sure of. Firstly, pick a coin auction that is popular in order to make sure that your coin will get the exposure it needs before the auction starts. By selecting a specialist coin auction you can be sure that a few dealers and traders as well as fellow collectors will turn up; this should ensure that you get the best deal possible from your coin and make it worth selling. Make sure you set a reasonable reserve price that will encourage bidding but won't disappoint you if it sells. No bids or a lower price than you wanted can make a nasty feeling when leaving the coin auction.
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