This is something I hear often, but never the reason for it. My most valuable piece will definitely have to show the entire number; that's where the value is. I often use S/N databases (Beretta's, for example) to verify that a gun is set up the way it originally came from the factory and to verify period authenticity...I'm much less likely to be interested in a pistol with a hidden S/N if there are others with visible ones in the same condition. And I'm not going to the trouble to ask for the number if there are others around in the same shape and same price range.
What's the reason for hiding it?