How  to  Sell  Coins  at  an  Auction  By  Andrew  Brunhart  December  5,  2013    Eric  P.  Newman,  a  102-­‐year-­‐old  retired  lawyer  from  St.  Louis,  recently  auctioned  off  his  unparalleled  1,800-­‐piece  coin  collection  in  New  York  City.  Newman  began  the  collection  in  the  1930s  and,  all  told,  spent  about  $7,500  on  it.  The  sale,  hosted  by  Heritage  Auctions,  took  two  days,  and  in  the  end  earned  Newman  a  grand  total  of  $23  million.    That’s  all  well  and  good  for  a  rockstar  collector  like  Eric  Newman,  but  what  about  the  rest  of  us?  Many  collectors  have  only  been  amassing  their  collections  for  five  to  ten  years,  and  many  need  to  sell  their  coins  in  a  pinch.  Consigning  coins  to  auction  can  be  a  very  complex  process  with  numerous  factors  to  consider:    

1. Have  you  had  trouble  selling  these  particular  coins  through  other  channels?  If  so,  there’s  a  very  good  chance  they’ll  have  trouble  at  auction  too.  Avoid  selling  your  best  pieces  elsewhere  and  saving  your  least  popular  for  the  auction  block.  Instead,  sell  the  low  quality  coins  as  soon  as  possible,  at  a  discount,  and  save  your  best  ones  for  auction.  It  seems  intuitive,  but  a  lot  of  people  make  this  mistake.  

2. Is  your  collection  too  large/expensive  to  be  sold  together  as  one  unit?  If  so,  many  potential  buyers  won’t  be  able  to  afford  your  collection,  or  they  might  be  uninterested  because  they’ll  already  have  some  of  the  pieces.  Generally  speaking,  it’s  usually  better  to  break  up  your  collection  into  individual  coins  to  yield  yourself  the  most  profit.  Of  course  there  are  exceptions,  for  example  in  cases  where  buyers  would  prefer  an  original,  matched  set.  

3. To  place  reserves  or  not  to  place  reserves?  While  not  placing  a  reserve  can  be  frightening,  coins  consigned  without  reserve  are  usually  given  the  best  commission  rates,  and  bidders  are  often  more  excited  by  unreserved  coins.  At  the  same  time,  if  your  piece  is  part  of  a  specialty  field  or  an  otherwise  thinly  traded  market  with  a  low  number  of  buyers,  you  would  do  well  to  place  a  reasonable  reserve  to  prevent  the  first  bidder  from  snatching  it  up  for  an  unreasonably  low  price.  Of  all  the  factors  on  this  list,  reserves  are  

probably  the  most  complicated,  so  I  recommend  seeking  help  from  a  specialist  who  knows  your  case.  

4. What  type  of  sale  should  you  choose?  If  your  collection  is  small,  you  could  get  easily  lost  or  outperformed  in  a  huge  convention  auction.  At  the  same  time,  if  your  collection  is  very  valuable,  commission  rates  can  be  higher  at  these  types  of  auctions.  Internet  auctions  are  also  a  possibility,  but  these  don’t  always  have  the  excitement  of  an  old  fashioned  floor  auction.  When  it  comes  right  down  to  it,  the  most  important  thing  is  to  find  an  auction  that  fits  your  collection.  

 Coin  collections  are  very  precious  things.  Oftentimes,  you’ve  spent  a  great  deal  of  time,  money,  and  energy  amassing  one,  and  you  don’t  want  it  to  be  all  for  naught.  Always  know  all  your  options  and  always  get  advice  from  an  expert  before  making  any  big  decisions.      Andrew  Brunhart  is  currently  leading  the  start-­‐up  of  new  functions  for  the  Bureau  of  Engraving  and  Printing  focusing  on  strategic  change,  portfolio  and  project  management,  order  management  and  delivery  systems,  and  quality  assurance.  Previously,  Andrew  Brunhart  was  Chief  Operating  Officer  of  the  United  States  Mint  charged  with  leading  a  turnaround  to  become  a  learning,  accountable,  results-­‐oriented  organization.  Prior  to  this  service,  he  was  Chief  Executive  Officer  of  the  Washington  Suburban  Sanitary  Commission  (WSSC)  in  Laurel,  Maryland,  the  nation’s  eighth  largest  combined  water  and  wastewater  utility  serving  2M  citizens  of  two  counties.  In  that  capacity,  Andrew  Brunhart  led  utility-­‐wide  turnaround  efforts  and  guided  revitalization  of  Engineering  and  Capital  Programs  ($1.5B)  proactively  addressing  WSSC’s  aging  infrastructure  via  1,500  employees.  During  his  tenure,  WSSC  received  recognition  as  one  of  the  “Best  Places  to  Work”  in  Maryland  for  three  consecutive  years.