What do dealers do with the Modern Commems and Proof Sets they buy?

zuchini

Over the past year I have sold almost all of my Modern Commemoratives
and Proof Sets. At times I have been surprised at how eager dealers
are to buy whatever I have to offer at 10% below GreySheet bid.

Is there one particular major wholesaler that dealers can
quickly resell to at GreySheet bid thereby locking in a 10% gain.

I sold the most recent lot to a dealer almost by accident. I gave his table
a quick look and started to walk by because his inventory was mostly
raw lower end coins and no modern material at all.

It never occured to me that he would be interested in what I had but he noticed the large bag
I was carrying and asked me if I had anything I wanted to sell.
I told him it was all modern stuff and much to my surprise he asked me
to sit down so he could make an offer.

He bought everything including
the Uncirculated Library of Congress Bi-metallic for $750,
all 4 of my Buffalo Dollar Commem's (approx $480) in addition to
all of my silver proof sets.

The only thing he did pass on was a $10 1992 proof set because
it was missing the certificate. He said that "they" are really picky
about stuff like that so I assumed he had a reliable buyer for a quick resell.

It doesn't make sense for a small dealer to tie up a few thousand
dollars of his capital in hope of making a 10% profit. When the risk of losing
a lot of money if/when the price of these things come back down to earth.

I'm not complaining. I'm happy for the guy if he can lock in a quick profit.
It's definately a win-win situation for both of us because I didn't think
anyone would want to pay market price for high mintage coins that had
recently gone up so much.

Has anyone else had the same experience selling
modern stuff recently?


Greg

merz2

Greg
As you have probably read on other posts,the market for the "Silver Proof Sets" has increased because the mint melted so many that were stored badly.This will make the market increase.Wayne Herndon also says he's heard about some dealers trying to corner the market,thus driveing the prices up.Look on Ebay and you'll see the results.

cladking

Modern mint and proof sets are not to difficult to wholesale at 10% over bid.
Increasingly large percentages of them are retailing before they can even get
to the wholesalers. Retail typically is only 35% over bid or so, but this is a tidy
little profit on an easy sell. Some dealers search these sets for gems and varieties
which can also be quite profitable.

It is largely the ease with which they sell that motivates the deaers to purchase
them.

It appears that the wholesalers are having some difficulty maitaining stocks of these
sets and dramatically increasing retail prices are resulting.

Flash

"the market for the "Silver Proof Sets" has increased because the mint melted so many that were stored badly.This will make the market increase"

I really don't see how this act by the mint would make a bit of difference in the market for these sets. These were sets that the mint held back from distribution and were not previously recorded as being issued, so the destruction of these sets that supposedly didn't even "exist" in the first place should, in my opinion, have no effect on the market whatsoever.

09sVDB

I have been a collector for over thirty years. Last August, I got rid of all my moderns too. Recieved a nice chunk of change for it and bought some really nice classic coins.

pbyco

Where are all of these great dealers? I've been trying to unload all of my moderns (2001 CVC PF and UNC, 2002 Olympic PF and UNC (2), and West Point PF and UNC, as well as 2-2001 PF SAE's and 2000 SAE), but no one seems to be interested. Anybody here know of anyone?

keets

i can only speak for the things i see going on in my area, but figure it's much the same elsewhere.

if the dealer offers you 10% back of bid and sells to another dealer at 5% back, well, you get the picture. the thing is, the mint/proof sets and all the mint issues with packaging and COA will move between dealers as a commodity with a set value. raw coins are different because they require the parties involved agree on a grade and hence a price. but the mint stuff is pretty much set and agreed to according to grey sheet pricing.

then when a dealer sells to a "consumer" he just charges the ask price from the grey sheet and the game is over on that commodity. it's not unusual for my local dealer to purchase large lots of sets at 10% back of bid and move them downline to a larger dealer about 50 miles away at 5% back, making his money after a day or two. little risk involved. i've even gone with him on one of his trips. my perk is that i usually get to pick through whatever he gets, i just have to pay the bid price. i'm sure this scenario unfolds around the country daily. the sets just go round and round.

al h.

Conder101

<< <i>the market for the "Silver Proof Sets" has increased because the mint melted so many that were stored badly.This will make the market increase"

I really don't see how this act by the mint would make a bit of difference in the market for these sets. These were sets that the mint held back from distribution and were not previously recorded as being issued, so the destruction of these sets that supposedly didn't even "exist" in the first place should, in my opinion, have no effect on the market whatsoever. >>



I don't see how it would affect the market for the silver proof sets either since the sets the mint destroyed were clad sets.

kranky

zuchini, I was going to send you a message about the Pittsburgh show but if I remember right you haven't been around here in months! I guess from reading your post that you were there?