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Will coin shows create new inventory for dealers

GazesGazes Posts: 2,315 ✭✭✭✭✭

I have read consistently from different dealers how there are very few coins available and most need new inventory. The wisdom is the lack of shows has created this shortage.

Now that shows are going to start back up, will dealers find new coins for their inventory? My reaction is if most the dealers dont have full inventories and are looking to buy----well then there still won't be much to buy.

Comments

  • Cougar1978Cougar1978 Posts: 7,207 ✭✭✭✭✭
    edited May 23, 2021 5:28AM

    Yes absolutely

    Setting up at local show about a month ago I went over to the table of a wholesaler (owns shop in another city) looked thru boxes of slabbed coins selected about a dozen took them back to my table and recorded on show recap, marked up, then sticker with cost and sell code. During show then put in online store too. A few sold. Items sold at show immediately removed from online store.

    It’s like a food chain - material walks in shop, wholesaled on bourse at show, then retailed online or at show. I setup early so get as early as possible look around bourse, wholesaler before public admitted at 10 am.

    During height of pandemic online did really well but hardly anything to buy (online) at sane price that felt could really do anything with it selling.

    Coins & Currency both US and World
  • jmlanzafjmlanzaf Posts: 30,372 ✭✭✭✭✭

    It depends on which dealers you are talking about. Other than the US Mint, no one who sets up a table can create their own inventory. For dealers who rely on other dealers to supply them (see Cougar), then yes. But those dealers need to get material themselves either from B&M shops or from national market makers. A lot of the normal coin business channels have been open this whole time. Coin shows will not create new collections going to auction or to B&M dealers.

    Personally, I think the role of coin shows in the entire coin market has been shrinking over the last 30 years and will continue to shrink.

  • ZoinsZoins Posts: 33,735 ✭✭✭✭✭

    @Catbert said:
    I think dealers with typically high quality inventory will continue to be challenged to replenish.

    People will be drawn to sell two ways, by high prices and eventually to free up funds for non-coin activities.

  • bigjpstbigjpst Posts: 2,974 ✭✭✭✭✭

    There are still a lot of B&M dealers that attend shows with little or no online presence. More shows opens up these dealers inventory to the broader market. Not just the people in their town.

  • BillJonesBillJones Posts: 33,038 ✭✭✭✭✭

    I was looking on-line at the inventory one of the London dealers has, and I was surprised to see how depleted his stock was. Before the pandemic he had just about every coin I needed to finish my British kings set. Now he has none.

    Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
  • Cougar1978Cougar1978 Posts: 7,207 ✭✭✭✭✭
    edited May 23, 2021 8:48AM

    Online sources like eBay and GC also have worked for me. YMMV.

    Currently on tear get higher value raw banknotes graded while not inventory acquisition an upgrade.

    Each dealer has their own preferred sources which fit in with their own business goals, marketing strategy, pricing structure, and inventory management.

    Coins & Currency both US and World
  • MFeldMFeld Posts: 11,081 ✭✭✭✭✭

    How could coin shows not create new inventory for (at least some) dealers?

    Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.

  • hchcoinhchcoin Posts: 4,821 ✭✭✭✭✭

    I am going to my first coin show since before Covid in June. I am bringing a lot of stuff to sell/trade while walking the floor. I am guessing there are a lot more people like me especially with the price of silver and gold. I actually am very excited. I love coin shows and I hope they continue. The social and human side of collecting is one of the things I like most about the hobby.

  • skier07skier07 Posts: 3,536 ✭✭✭✭✭

    I expect dealer inventories to increase. There are some collectors who won’t consign their coins with an auction house and who will only sell in a live setting. People, as life returns back to normal, will start selling more coins to create cash to spend on non-coin related stuff.

  • ZoinsZoins Posts: 33,735 ✭✭✭✭✭

    @Gazes said:
    Will coin shows create new inventory for dealers

    Here's one way it could :)

  • ZoinsZoins Posts: 33,735 ✭✭✭✭✭
    edited May 23, 2021 8:58AM

    @MFeld said:
    How could coin shows not create new inventory for (at least some) dealers?

    I think some people are interpreting "create new" literally, like coins being literally struck at the shows, are newly struck items being offered at shows.

    I don't think this is what the OP meant, but it's an interpretation of what was written.

    Here's Ron Landis in action:

  • ZoinsZoins Posts: 33,735 ✭✭✭✭✭
    edited May 23, 2021 8:57AM

    @jmlanzaf said:
    It depends on which dealers you are talking about. Other than the US Mint, no one who sets up a table can create their own inventory.

    You may be forgetting Dan @dcarr and Ron Landis.

    A few of us actively look forward to whenever Dan sets up a table at a show!

    Here's a type Dan only offered at a show:

  • goldengolden Posts: 8,807 ✭✭✭✭✭

    It should. It sure is dry out there.

  • 291fifth291fifth Posts: 23,725 ✭✭✭✭✭

    When dealers raise their buying prices material will start being offered.

    All glory is fleeting.
  • HydrantHydrant Posts: 7,773 ✭✭✭✭✭

    How could it not?

  • 291fifth291fifth Posts: 23,725 ✭✭✭✭✭

    @keyman64 said:

    @291fifth said:
    When dealers raise their buying prices material will start being offered.

    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    This is now the case with many collectibles, not just coins. The Covid19 shutdowns have opened the eyes of sellers and revealed they don't have to accept lowball offers from dealers anymore. They now have other alternatives for selling.

    All glory is fleeting.
  • rickoricko Posts: 98,724 ✭✭✭✭✭

    I would think that a convergence of dealers, at a large show (think FUN), would definitely bring some fresh material to different areas of the country.... Reading show reports over the years, I recall posts that often referred to such transactions. Bring on the shows.... Cheers, RickO

  • jmlanzafjmlanzaf Posts: 30,372 ✭✭✭✭✭

    @Zoins said:

    @MFeld said:
    How could coin shows not create new inventory for (at least some) dealers?

    I think some people are interpreting "create new" literally, like coins being literally struck at the shows, are newly struck items being offered at shows.

    I don't think this is what the OP meant, but it's an interpretation of what was written.

    Here's Ron Landis in action:

    That is certainly not what I meant. The coin market has been hotter than it has been in a decade or more. There has been no shortage of activity in the absence of coin shows. What is the source of these hidden gems that have been locked up for a year waiting for the return of coin shows?

  • skier07skier07 Posts: 3,536 ✭✭✭✭✭

    @keyman64 said:

    @291fifth said:
    When dealers raise their buying prices material will start being offered.

    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    I agree with you but there are some collectors who are reluctant to consign with an auction house. They are afraid that their coin will slip through the cracks and with a dealer they know exactly how much they will get plus they can shop it around.

  • ShaunBC5ShaunBC5 Posts: 1,551 ✭✭✭✭✭

    I’m a lot more likely to go to a show with coins/bullion looking to trade than to send stuff in to an auction house. My stuff isn’t the inventory most people are talking about/looking for, because it’s already common an available...but I’m sure there are other like me with better stuff.

  • MasonGMasonG Posts: 6,268 ✭✭✭✭✭

    @keyman64 said:
    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    Many dealers get inventory from auction houses. Like GC. I'll leave it to the class to figure out how beneficial this is to collectors whose coins sell in this fashion.

  • jmlanzafjmlanzaf Posts: 30,372 ✭✭✭✭✭

    @MasonG said:

    @keyman64 said:
    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    Many dealers get inventory from auction houses. Like GC. I'll leave it to the class to figure out how beneficial this is to collectors whose coins sell in this fashion.

    Lol.

    There's a lot of urban legend out there. There's actually 2 conflicting urban legends about auctions. Some people believe they are full retail. And, paradoxically, some people think they are wholesale.

  • MasonGMasonG Posts: 6,268 ✭✭✭✭✭
    edited May 23, 2021 2:54PM

    @jmlanzaf said:

    There's a lot of urban legend out there. There's actually 2 conflicting urban legends about auctions. Some people believe they are full retail. And, paradoxically, some people think they are wholesale.

    They can be both (not the same coin at the same time, of course). Or neither. Which of the two (retail vs. wholesale) are your consignments going to end up being in? ;)

  • ctf_error_coinsctf_error_coins Posts: 15,264 ✭✭✭✭✭

    @jmlanzaf said:

    @MasonG said:

    @keyman64 said:
    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    Many dealers get inventory from auction houses. Like GC. I'll leave it to the class to figure out how beneficial this is to collectors whose coins sell in this fashion.

    Lol.

    There's a lot of urban legend out there. There's actually 2 conflicting urban legends about auctions. Some people believe they are full retail. And, paradoxically, some people think they are wholesale.

    Depends on who buys the coin ;)

  • jmlanzafjmlanzaf Posts: 30,372 ✭✭✭✭✭

    @ErrorsOnCoins said:

    @jmlanzaf said:

    @MasonG said:

    @keyman64 said:
    When it is so fast and easy to sell via Great Collections I don’t understand why some people are so quick to accept 50-75% of what they could get by selling to dealers. It’s pretty safe to say that if you sell to dealers you leave money on the table...most of the time.

    Many dealers get inventory from auction houses. Like GC. I'll leave it to the class to figure out how beneficial this is to collectors whose coins sell in this fashion.

    Lol.

    There's a lot of urban legend out there. There's actually 2 conflicting urban legends about auctions. Some people believe they are full retail. And, paradoxically, some people think they are wholesale.

    Depends on who buys the coin ;)

    I agree. But that's why both urban legends are actually legends.

  • 1madman1madman Posts: 1,123 ✭✭✭✭✭

    I’m wondering if coin prices will start to cool once the shows return? Seems like lack of inventory has driven up prices over the last year, and if that inventory returns, the demand will be fulfilled enough to stabilize and/or decrease prices. Also, will people start to ignore their collecting hobbies as they go back to school & work, causing lower prices across the board?

  • GazesGazes Posts: 2,315 ✭✭✭✭✭

    @Hydrant said:
    How could it not?

    Well it may increase inventory or it may not. You ask how could it not---here is one thought. A majority of dealers need fresh coins and they all go to buy. All buyers and no sellers. That is how. The legend market report kind of spoke to it when they state this week that they dont think there will be many coins for sale at the pcgs inv. Of course there will always be coins for sale but possibly not for the niche of certain dealers. The answer to all this may be that certain areas of collecting will see new coins surface and other areas will remain dry. We shall see.

  • oldabeintxoldabeintx Posts: 1,463 ✭✭✭✭✭

    @BillJones said:
    I was looking on-line at the inventory one of the London dealers has, and I was surprised to see how depleted his stock was. Before the pandemic he had just about every coin I needed to finish my British kings set. Now he has none.

    I've had the identical experience with foreign medals, which I get almost exclusively from European dealers. Have made very little progress over the last year or so. Guessing that Europe has been worse for dealers, which the news/data suggests.

  • jmlanzafjmlanzaf Posts: 30,372 ✭✭✭✭✭

    @Gazes said:

    @Hydrant said:
    How could it not?

    Well it may increase inventory or it may not. You ask how could it not---here is one thought. A majority of dealers need fresh coins and they all go to buy. All buyers and no sellers. That is how. The legend market report kind of spoke to it when they state this week that they dont think there will be many coins for sale at the pcgs inv. Of course there will always be coins for sale but possibly not for the niche of certain dealers. The answer to all this may be that certain areas of collecting will see new coins surface and other areas will remain dry. We shall see.

    I think the biggest argument against coin shows creating "fresh coins" is that coin shows don't generally create fresh coins. They move them around, but how many coins get dragged into circulation by the existence of a coin show? I think mostly low level stuff where a local brings grandpa's collection to the show or a B&M dealer with no online presence shows up with an estate that walked in to the store.

    A major auction tied to a coin show can drag coins into the market when consignors see it as an opportunity for exposure. But auctions haven't stopped occurring, including some major collections sold during the coin show lull.

    A lot of the other material has continued to circulate through market makers, auctions, and online channels.

    Of course, coin shows may represent a somewhat different canary in this particular coal mine. The return of coin shows may be more symptom than cause as it is indicative of people leaving their basements. That may shake loose a collection or two if someone was hunkered down for the last year.

  • 2ndCharter2ndCharter Posts: 1,628 ✭✭✭✭✭

    I think mostly low level stuff where a local brings grandpa's collection to the show or a B&M dealer with no online presence shows up with an estate that walked in to the store.

    Very good point - yes, I can see new inventory of low-end stuff starting to appear in dealers' cases but the majority of the good material will still end up in the auctions.

    Member ANA, SPMC, SCNA, FUN, CONECA

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