Grey Sheet Coin Buying

[Proudtoown]

As a new coin collector I am looking to build a nice set of coins over the next 30+ years to give to my daughter when I leave this world. So being able to wait for the right time to buy a coin is ok for me. What I would like to know though is if the grey sheet has a dealers buy price listed and I can buy a coin for less than the listed buy price, is that a good deal? If it isnt then how much below that should i concentrate on?

[Regis44]

It is likely a good deal "only" if you are sure the grade is the same as shown in greysheet. As has been stated many times here, learn to grade. You can not rely only on TPGs. And, many of the companies that slab coin really don't accurately grade them. If for example you thought you were getting a good deal on an MS-63 1921-S WLH and it was really only an MS-60,,,,,,,well 30 years may not be long enough.

[Proudtoown]

What if you stuck with just PCGS or NGC? Companies that certify the coins? Would you think that those would be good deals if they are below buy prices?

[TomB]

PCGS and NGC are the best certification companies by far in terms of market acceptance, prices realized and reputation. However, coins are graded by people and as such there are coins that are not accurately graded in each service's holders.

 

The Greysheet is the nominal dealer-to-dealer wholesale price guide, but it is only a guide. Some issues trade at prices much higher than listed on the Greysheet while others trade at lower values.

 

What areas of the coin market are you interested in? I ask because each area can have its own dynamics and quirks.

[Proudtoown]

I am interested in Lincoln Wheat cents and $5 Indian gold.

[TomB]

Mint state, circulated or proof Lincoln Wheat cents? Also, every issue back to 1909 or just the later issues? For the $5 Indian gold are you looking at mint state or circulated coinage? I only ask because your answers might help get you better information.

[Proudtoown]

Mint state in both, and all lincoln wheats.

[TomB]

Thanks for the details. You will find that the more common, or generic, the issue is the more likely you will be able to obtain it at or below Greysheet. Conversely, the more difficult the issue is to obtain the less likely you will be able to obtain it at or near Greysheet. Additionally, coins that are overgraded can be "blown out" by dealers at lower prices while those pieces that are extraordinary for the grade will routinely trade at much higher levels. Sometimes these extraordinary pieces will trade for multiples of their published bid prices.

 

You have set out to build two very impressive sets that are quite popular and that will take you years of serious study and expense. I wish you well and suggest that you stick with PCGS or NGC certified coins until the time comes that you are a true expert in your area. Good luck.

[James_OldeTowne]

To my understanding, the greysheet is wholesale for coins that are average for the grade - in dealer to dealer transactions only. If you can buy average coins retail for sheet, you're doing well, and generally, you will not be able to buy choice coins for sheet.

 

James

[rexcat]

To my understanding, the greysheet is wholesale for coins that are average for the grade - in dealer to dealer transactions only. If you can buy average coins retail for sheet, you're doing well, and generally, you will not be able to buy choice coins for sheet.

 

James

I really agree here with you James.

Plus the trend that I have seen at shows and coin stores that’s been steadily growing larger these last few years has been the gap between greysheet bid and what you’ll need to pay for good for the grade eye appealing coins that you want to buy .

 

I have been working on my present type set for ten years and would love to go back just five years when you could find nice coins at or near bid like my 1883 PF63 Morgan Dollar, the dealer was asking $25 over a $1270 bid price,(but I was able to bring it home for less than bid. ) In the last few years though I have found it harder and harder to get the coins for my collections any where near grey sheet, coins with good eye appeal that pop out at you have prices that pop out at you too.

[EZ_E]

I would strongly encourage you to only buy PCGS/NGC/ANACS gold since there are so many couterfeits out there. Be very careful with this market.

 

I would encourage you to collect Lincoln cents in an album since many of the later, uncirculated dates are fairly inexpensive and you would be paying a large premium for the slab.

 

However, the key dates such as the 1909 S, 1909 S VDB, 1914 d and the 1922 plain should only be bought certified since there are so many altered/counterfeits out there. I would also consider AU 58 for many of the dates. Some of the coins are common in circulated grades but their prices jump astronomically in mint state, especially MS65.