Purchase Offer vs. Appraisal: Understanding the Difference in Numismatic Collections
When dealing with rare coins and currency, two terms often come up that sound similar but mean very different things: purchase offer and appraisal. For collectors and investors, understanding the difference between the two can make the difference between a fair transaction and leaving money on the table.
What Is a Purchase Offer?
A purchase offer is simply what a dealer, auction house, or private buyer is willing to pay you for your collection at a given moment.
Market-driven: It reflects current market demand, recent auction results, and the dealer’s own need for inventory.
Negotiable: Like any transaction, the offer may be open to negotiation depending on the rarity, condition, and desirability of your coins.
Immediate transaction: A purchase offer is typically tied to an immediate sale. If you accept it, you part with your coins and receive the agreed-upon payment.
In short, a purchase offer answers the question: “What can I sell this collection for right now?”
What Is an Appraisal?
An appraisal, on the other hand, is a professional evaluation of the collection’s market value—without the pressure of a sale.
Objective assessment: An appraisal should be based on recognized grading standards, recent sales data, and industry knowledge.
Multiple purposes: Appraisals are often needed for insurance coverage, estate planning, tax reporting, or simply understanding the value of your collection.
Not a bid: Unlike a purchase offer, an appraisal is not an offer to buy. It’s an expert’s opinion of fair market value, often presented in writing.
An appraisal answers the question: “What is this collection worth on the open market?”
Why the Difference Matters
Many collectors confuse the two, sometimes to their detriment.
Purchase offers can be lower than appraisals. A dealer must leave room for resale profit, which means offers are typically below full retail value.
Appraisals provide leverage. Knowing the appraised value of your collection helps you make informed decisions when selling, consigning, or insuring your coins.
Purpose matters. If you’re selling immediately, a purchase offer is relevant. If you’re safeguarding or planning for the future, an appraisal is essential.
Practical Example
Imagine you inherit a collection of Morgan Silver Dollars.
A dealer might make a purchase offer of $8,500, considering their ability to resell the coins in today’s market.
An appraiser, using market comparables and grading assessments, may value the collection at $12,000 fair market value.
Neither figure is “wrong”—they simply serve different purposes. The purchase offer represents instant liquidity, while the appraisal represents estimated market worth.
Conclusion
In numismatics, clarity is key. A purchase offer is about selling today, while an appraisal is about understanding value. Both have their place, but knowing the distinction ensures that you, as a collector or heir, can make the best financial decisions for your collection.