Coin prices seem high

Soldi

, but are dealers readIly buying?

I'm just thinking 🤔 about the last few deals of MINE try not to rip my head off if I'm wrong

PeakRarities

I bought about 250k in inventory at ANA and the subsequent auctions afterwards, and sold around 150k at ANA. Dealer purchases account for about half of the 150k, so to answer your question…yes.

PeakRarities

And that doesn't even include what I spent on my collection...

Manifest_Destiny

Me - Hopes coin prices aren't high.

MrEureka

@Soldi said:
, but are dealers readIly buying?

I'm just thinking 🤔 about the last few deals of MINE try not to rip my head off if I'm wrong

Dealers will always buy. It’s just a matter of price. Hope you didn’t pay too much.

jmlanzaf

Dealers have to buy or they can't sell. That can lead to bid/ask spreads increasing if the market is frothy. But the only alternative to buying is to close your business.

Smudge

Like everything else.

logger7

Summer doldrums; but the markets will all pick up substantially in the next few weeks. "The business of America is business".

MrEureka

@jmlanzaf said:
Dealers have to buy or they can't sell. That can lead to bid/ask spreads increasing if the market is frothy.

Interesting observation, but probably not completely accurate. On one hand, dealers might quote more aggressive sell prices in a frothy market, because a lost sale is not as costly when potential buyers are easier to find, so why not take some shots? On the other hand, rapid turnover in a frothy market should make lower margins a more viable option. So I’d guess - more based on logic than anything else - that if you see higher spreads in a frothy market, it’s because you’re looking more at quoted prices than at actual sales.

jmlanzaf

@MrEureka said:

@jmlanzaf said:
Dealers have to buy or they can't sell. That can lead to bid/ask spreads increasing if the market is frothy.

Interesting observation, but probably not completely accurate. On one hand, dealers might quote more aggressive sell prices in a frothy market, because a lost sale is not as costly when potential buyers are easier to find, so why not take some shots? On the other hand, rapid turnover in a frothy market should make lower margins a more viable option. So I’d guess - more based on logic than anything else - that if you see higher spreads in a frothy market, it’s because you’re looking more at quoted prices than at actual sales.

I said "can" not "must". However, your amendment is, I think, accurate. But it really depends on the material. If you're taking about something liquid like Morgans or pre-33, then the frothiness doesn't require the dealers to hedge as much. But for less liquid material, most dealers I know let their buy prices lag the froth to protect them against a possible rapid correction or continued decline.

In a stable market, I'm unconcerned about price movement and am fine at 10 to 20% back. If the price is moving in either direction rapidly, there is a need to hedge, especially on non-liquid material. Morgans or pre-33, again, can be immediately sold with a phone call so there is zero risk. But other material, raw type for example, can't do easily be flipped with a phone call and there is a need to hedge.

I know dealers who are doing it now even with gold because $50 daily moves are more common and there is usually only a $50 to $100 per ounce spread. And while you can flip gold with a phone call, you can't do easily flip a couple ounces profitably.

braddick

This helped me understand the above three posts and perhaps will be of some assistance for others:

---

"What does frothy mean in slang?"

-A frothy person, however, is bubbly in a different way, full of life and excitement. There's often an implication of "insubstantial," or even "silly" when a person or idea is described as frothy. Definitions of frothy. adjective. emitting or filled with bubbles as from carbonation or fermentation.

CoinRaritiesOnline

Coin prices seem high

Has there ever been a time when people thought prices were not high?

To be clear, I do not mean in retrospect, where we look back at 1983 and say, yes, prices were low back then. I mean contemporarily.

Heck, you can look through 20+ years of PCGS Forum comments and people (often the same guys, as a matter of fact) consistently posted that prices were too high through every one of them.

jmlanzaf

@braddick said:
This helped me understand the above three posts and perhaps will be of some assistance for others:

---

"What does frothy mean in slang?"

-A frothy person, however, is bubbly in a different way, full of life and excitement. There's often an implication of "insubstantial," or even "silly" when a person or idea is described as frothy. Definitions of frothy. adjective. emitting or filled with bubbles as from carbonation or fermentation.

Flawed search. Search in the context of markets.

TwoSides2aCoin

They don’t call it the hobby of paupers , cherrypickers, scrappers or treasure hunters….. but kings. The prices fluctuate and there are always bargains for the aforementioned ( even the kings and giants ) that can lead to enjoyment and possible gains , monetarily ; maybe. But either way…. these (coins) are time tested pieces.

braddick

You have your curated search, I have mine.
Mine fits the overall 'theme' of this thread better.

breakdown

I have seen a few comments that suggested some prices were soft for better gold in the ANA auctions. Was not my experience for the coins I targeted (for context, I collect half eagles).

I won one coin and that was at a price of around 150% of PCGS price guide (it admittedly was a tough coin to price because of no recent comparables). I was out-bid on two other coins and two or three others were out of range by the time the live auction began.

MrEureka

@CoinRaritiesOnline said:
Coin prices seem high

Has there ever been a time when people thought prices were not high?

To be clear, I do not mean in retrospect, where we look back at 1983 and say, yes, prices were low back then. I mean contemporarily.

Heck, you can look through 20+ years of PCGS Forum comments and people (often the same guys, as a matter of fact) consistently posted that prices were too high through every one of them.

Actually, yes, people typically think that coins are cheap after massive declines. And you don’t have to think all the way back to 1982 or 1992, when lots of coins seemed very cheap. Just listen to people talk about the classic commem market today.

And it’s not just commems that seem like bargains today. I can think of lots of coins that seem cheap right now.

Of course, there will always be some coins that seem pricey to some people. But there will also always be some coins that seem cheap to some people.

96grains

Frothy - Reminds me of Longacre - https://forums.collectors.com/discussion/666881/forget-about-halperin-which-pcgs-message-board-member-would-you-want-to-have-lunch-with-and-why#latest

ms71

Really nice quality stuff is definitely inc> @braddick said:

This helped me understand the above three posts and perhaps will be of some assistance for others:

---

"What does frothy mean in slang?"

-A frothy person, however, is bubbly in a different way, full of life and excitement. There's often an implication of "insubstantial," or even "silly" when a person or idea is described as frothy. Definitions of frothy. adjective. emitting or filled with bubbles as from carbonation or fermentation.

I suspect it's yet another iteration of a code word for the closely-held investment strategy: "It's crackers to slip a rozzer the dropsy in snide".

braddick

^
Agreed.
There's an alligator on the zipper.

willy

@96grains link to an old thread is depressing as can be. 28 out of 40 people who posted on the first page no longer post here. Some great and active poster from 2008.

coinkat

Coin Prices simply cannot be discussed in broad general terms as there are markets within markets and some have peaked and others are moving in different directions.