Dealer question: High end coins that never sell, what happens to them?

Max

Maybe some of the dealers can answer this...

What happens when you buy that "monsta" MS/PR 68+ PQ Rainbow Pop 1 Pedigree in a PCGS slab at a once per decade auction for a record price and then....no one is interested in buying it from you? You are into it for say $40,000. What do you do? How long do you wait? What happens if no one wants it at even $30,000.

jonesy

billiardmaster

Just like the stock market. There is of course a price for everything. Most dealers are nearly broke all the time, thus even the best of
coins keep coming back on the market. You can't worry about cost if you are a real dealer. You have got to do business in the current
market. I've known dealers that would never sell a coin at a loss, never. They most always took the biggest losses. Just like gold, the dealer
has to work on the current spot price, not what he or she paid.
Rusty

wayneherndon

After it sits awhile and I'm out of ideas to retail it, it gets wholesaled to another dealer or goes back to auction. Keeping my money working is more important (and tends to be more successful) than waiting to make a profit on a coin that I overpaid for.

WH

STEWARTBLAYNUMIS

Max

Are you talking about the 1963 Proof 70 D Cameo Lincoln cent?
I didn't know it was for sale

There are certain dealers that go fishing ..........and don't catch any fish.Sad but true

Stewart

Max

not talking about any coin in particular.

Just wondering how some coins just disappear when i know they were not purchased.

I can't imagine any dealer wants too much tied up in inventory that's not moving.

Inventory turns, for all you CPAs, is a key to making money in any business. however, some coins may be like a proverbial musical chairs. ou dont want to get caught w/o a seat/buyer.

Coulport

Oh, sorry.
I thought you were talking about 'real' coins not slabs with a high #.

njcoincrank

Believe it or not, but coin dealers are also the biggest coin collectors.
Sometimes when a special coin shows up at auction the winning bidder isn't representing a client, but merely buying it for themselves.

I know MANY full-time dealers that have specialized collections, and even in times of bad cash flow, they are not for sale.

njcoincrank

braddick

Fast moving dimes are better than slow moving dollars.

michael

i guess eventually every coin finds its buyer

some will lost their ass on a coin and move on some will make money others break even

great questions i do not have specific answers to

but the coin market can change on a weekly basis once young fresh and tasty wanted by all

now cold hard leathery and rejected illliquid

well everything is liquid but you might have to take a loss to move it so you keep it or take the loss and move on

sincerely michael

jcping

This reminds me the King of Siam set. Did you remember the first time auction price and the second time auction price? It was in more than 3 mil and it was out less than 2 mil.

Is the King of Siam set a high end set? Definitely, yes. What if you cannot sell at your cost, then it is 1+ (may be 2) million dollar lesson.

griffin6

Dealers, like collectors, come in all shapes, sizes and attitudes. If you have a large availability of funds, you have the latitude to hold on to a coin if you like it or if the market drops. For most of us, the best rule of thumb is never to forget you're a broker... buy a X and sell at X Plus, hopefully in the shortest amount of time. A mistake is a mistake and cash tied up on a loser doesn't turn over... it's almost always better to take the "hickey" and get the cash back into something with immediate profit potential.

A good friend of mine was sitting with $375K in inventory and $125K in cash sometime circa 1990. He decided to hold the inventory and live off the cash while "weathering" the market downturn, which he optimistically believe would turn around. Six months later he had no cash and inventory worth $100K, and was on his way out of business.

High end coins will amost always find the highest current level at a major auction. Sometimes you've just got to bite the bullet!

NumisEd

I think that most dealers only buy big ticket coins at auction IF they already have a buyer. But, if they have a coin that is not selling, they will ultimately sell the coin at another major auction. That's my guess.....sounds logical. Any dealers care to agree with me?

griffin6

Generally so, but you forget purchasing based on the possibility of upgrade. That is a major factor in major auctions where many professionals are on the look out for fresh material coming into the marketplace and certified coins which have been off the market for awhile.

cosmicdebris

You guys should just bring 'em here and have giveaways with them.

NumisEd

Wait! Did you guys just read what I did? Did Legend just agree with me? Laura, I take back all of the mean things I have ever said to you on the forum. From now on, Legend is my favorite coin dealer! Legend rules! Do you have any cheap coins for someone like me?

Trime

So what did you expect?
Inventory management is the rule of all business.
Inventory is built up when markets are strong and inflation is the rule and pared when markets are weak.

topstuf

Coin dealers with any brains do not buy HUGE dollar coins that are not also POPULAR!

I always kept a $10,000 coin and a $1,000 bill in my case. OCCASIONALLY, I would sell the bills around Xmas time to high roller gold chain types or stockbrokers (before 2000)

The coin.............NEVER ONCE. Why have it? A conversation starter. "Legitimacy" factor. People see a big coin and figure the dealer is solvent. They will then either buy or sell where they won't in a shop full of proof sets. Also people will go home and tell 30 people (including 6 burglars) that they just saw a THOUSAND DOLLAR BILL!

If you get tired of it, it is INSTANTLY saleable to other dealers. But 9 out of 10 times, high dollar items are bought for a customer order. And if you select your biggie with any discrimination, it will be one that is ALWAYS in demand and will fill that other dealer's customer want list.

High relief Saint................good

Rare date $10 gold piece............bad