Exchanging/Trading coins with a dealer

airplanenut

I know that lots of people here actively trade with fellow board members and other people where your goals are to get a coin you each want/need without having to buy it... now...

Say you want a coin a dealer has. (here is a made up example)

You far prefer MS Indian cents over PR examples, but have a PR in hand. A dealer has the coin you have listed at the same price as a nice example of an MS Indian which you would much rather have. Do you:

a) expect to be able to swap the coins at no cost since the sale values are identical
b) expect to pay a small price since if he were to buy the coin, he would be able to mark it up

With no experience, I would guess that the answer would be 'a', but I want to know from you guys (who may have done this)

Thanks,

Jeremy

kranky

I've never tried it, but I'd have guessed "b". I think it's fair the guy make something on the deal, even if it's just a few bucks.

TomB

If the coins are essentially equal in eye appeal, relative rarity, value and demand I would assume that you would be able to pull off a straight trade with a dealer as long as the dealer believes he can move the new piece as easily as the old.

Nic

Typically you should expect to receive a high wholesale price for your coin and a low retail price on his coin. This assumes he wishes to own your coin. Kind of like buying a car. The dealer should make money/ have the spread...he's in business. If, for example, you meet a proof cent collector who wants your coin, and has an ms you want, then a straight trade is in order. If you don't want his coin then you would sell it to him for cash, want a good deal on his item, or not sell/trade at all. K

CharlieB

I think there will be situations for (b) to apply
at times and straight trades will apply at other times.

I always like my trades to be "fair", not good deals and
bad deals.

I know of only one place where I always heard the buyer
say they got a great deal - the car dealer.

- Charlie B -

stman

I have one local dealer that will trade straight. He will also give me what I paid for a coin from him. But that is unusual. If you know the dealer good I would still expect to pay something to help keep their lights on. If you don't know dealer probably expect to pay a fair amount.

stman

airplanenut

what about a major dealer who will buy any coin he is offered (based on the plastic, not necessarily the coin). Will he then go with A?

Dog97

b) expect to pay a small price since if he were to buy the coin, he would be able to mark it up
Trading equal don't pay the light bill.

matteproof

<< <i>I know that lots of people here actively trade with fellow board members and other people where your goals are to get a coin you each want/need without having to buy it... now...

Say you want a coin a dealer has. (here is a made up example)

You far prefer MS Indian cents over PR examples, but have a PR in hand. A dealer has the coin you have listed at the same price as a nice example of an MS Indian which you would much rather have. Do you:

a) expect to be able to swap the coins at no cost since the sale values are identical
b) expect to pay a small price since if he were to buy the coin, he would be able to mark it up

With no experience, I would guess that the answer would be 'a', but I want to know from you guys (who may have done this)

Thanks,

Jeremy >>





Hi Jeremy. My experience tells me that you will not get either choice "a" or "b." Choice "a" is the logical and reasonable expectation. Though, in the real world of dealing with "dealers" I have NEVER had the fair treatment of choice "a."

You are not likely to get choice "b" either, because most dealers that I have met, when I'm on the Sell side of a transaction, have the idea that a "small mark-up" is what most rational people would call a deep gouge!

I hope your experience proves to be better than my own when trying to SELL/Swap a coin with most so-called "coin dealers."

matteproof

toothpuller

It would be very unfair to expect a dealer to make a lateral trade without making at least a small profit. In fact I just recently traded the exact same year and grade PCGS coin with a specialist dealer because I liked his coin better than mine [which I had previously purchased from him]. He charged me a small fee and I was happy to pay it. If he didn't make something on his deals he couldn't stay in business and I would lose a great source.

BigD5

You should have a "value" set for any coin you plan to offer up to a dealer. If the coin you want, costs the same as what you expect to receive for the coin you have, than an offer for a trade is far from unreasonable. The key to the trade, is what Tom B. hinted at, and that being is the coin being offered in trade as liquid, or more liquid than the coin he will be exchanging. If the dealer thinks he/she can move the traded coin, then you shouldn't have a problem. If not, get a price for the coin you want, and buy it outright, and sell your coin to someone else for the price you expect to receive for it.

berylcoin

I recently had a similar situation to the one you described, involviong two raw seated half dimes. My dealer traded straight accross (which I wasn't necessarily expecting), but I was also purchasing several other coins at the time. That could make a difference, as could the fact that I'm a fairly regular customer. Regardless of his reasoning I was happy with the transaction. Some other dealers don't seem to like happy customers.

BC