How dangerous is it to not be current with pricing?
kranky
Posts: 8,709 ✭✭✭
Hypothetically, just for discussion purposes.
A reasonably new collector with deep pockets and some knowledge of coins decides to pursue a high-end collection. The collector reads lots of threads on the board and decides to deal with one of the larger, well-established dealers who gets predominantly good reviews here. The collector only wants slabbed coins from the top three services.
The collector has very little knowledge of coin prices, is dealing with one of the well-known and generally well-respected coin firms and knows what coins he/she wants. The collector may return coins he/she doesn't like, but never questions the price.
How likely do you think it is that the collector, while getting quality coins in top slabs, will overpay for them? Would it get worse or better over time?
A reasonably new collector with deep pockets and some knowledge of coins decides to pursue a high-end collection. The collector reads lots of threads on the board and decides to deal with one of the larger, well-established dealers who gets predominantly good reviews here. The collector only wants slabbed coins from the top three services.
The collector has very little knowledge of coin prices, is dealing with one of the well-known and generally well-respected coin firms and knows what coins he/she wants. The collector may return coins he/she doesn't like, but never questions the price.
How likely do you think it is that the collector, while getting quality coins in top slabs, will overpay for them? Would it get worse or better over time?
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
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Comments
<< <i>How likely do you think it is that the collector, while getting quality coins in top slabs, will overpay for them >>
more often than you think. But consider if this person has a good amount of disposible income the extra 10-20% they might pay would not be a big deal.
Jeremy
I have seen lots of posts on these boards, by some pretty bright people, that read something like, "I paid strong money for it, probably XX grade money, when it's only YY grade, but I really wanted it".
So the thing that I get out of so many of these kind of posts, and pretty much the way I have collected, is, if I like the coin(s) and they are relatively within my means, get them. Now this doesn't mean throw your money away. I assume a bit of looking around is done, but still, the price sheet sometimes doesn't really mean doodly-squat.
Russ, NCNE
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
Rainbow Stars
<< <i>Jb because someone has money are you saying its OK to price the coin higher >>
absolutely not. What I mean is there are certain retailers that charge more than others.
For the record I price my coins the same to whoever is buying them.
AAAAAHHHHHHHhaaaaaaaaaahaaaaaaaahaaaaaaaaaaaaa!!!
I'm sorry Jeremy, but PUUUHHHHLLLEEEEAAAAASSSSEEEEEee!
Try this, send any friend of yours into any coin shop that you have not purchased from before and have your friend act as though he does not know anything about coins while looking to purchase, lets say a certain slabbed or raw Ef to AU Barber half.
Then you go in the next day in search of the same coin armed with your knowledge. Now, the two of you compare the asking price from the dealer.
Or, go the other route and both of yu offer to sell the dealer a specific slabbed or raw coin over one weeks time and see who comes put with the better offer.
Jim
I'm sorry Jeremy, but PUUUHHHHLLLEEEEAAAAASSSSEEEEEee!
Try this, send any friend of yours into any coin shop that you have not purchased from before and have your friend act as though he does not know anything about coins while looking to purchase, lets say a certain slabbed or raw Ef to AU Barber half.
Then you go in the next day in search of the same coin armed with your knowledge. Now, the two of you compare the asking price from the dealer.
Or, go the other route and both of yu offer to sell the dealer a specific slabbed or raw coin over one weeks time and see who comes put with the better offer.
Jim
>>
He's not talking about "some dealer." He's talking about the Laura Sperbers, or Mark Pinnacles, or <insert name here--sorry I don't know more of your names!> other big dealers on our forums whose integrity is unquestionable.
I think you would overpay, because your dealer would overpay. Now if you want to wait 10 years to assemble the collection, you can afford to be choosey. On the other hand, if your intermediary (the dealer) sees a coin they know they won't see again for several years, they may well "overpay" in order to get it.
But that's not really the situation Jeremy is addressing. I agree with your scenario, but think that Jeremy is talking about a well-to-do relatively newer collector dealing with one of the leading dealers. He is saying that the initial quote on high end coins is not likely to differ much from the first offer made to the more experienced collector.
<< <i>Text >>
I think it quite likely that the end result will be a reasonably "fair" price, but a low to average end piece.
There are 10 types of people in the world, those who understand binary and those who do not.
<< <i>I think it quite likely that the end result will be a reasonably "fair" price, but a low to average end piece. >>
I agree. The newbie would be more likely to think that an AU Bust half is an AU Bust half. Without learning more about coins (which you need to in order to differentiate between overpaying and "strong money"), the newbie will probably just buy whatever is available. I'll bet if the newbie continued to remain uneducated, they would end up with a hodge-podge collection of coins.
The good news is that I don't think it takes much to realize that there is more to coins than just the grade, especially if you're putting together a date set. You'll soon notice that some of your pieces look nicer than other coins in your collection that have the same grade. If you're actually looking at your coins (and not just putting them away in a safe deposit box), I suspect a novice would start to ask themselves some questions and may begin to learn more about their coins.
Jeremy
collector from most of the worst exposure to loss in the hobby.
This being said, "fair value" is relative. If this collector just keeps everything he's offered then over
time there might be some improvement in the value he recieves relative to the cost as a dealer
comes to view him as a valuable customer. Over the long term however, the dealer will notice that
even the less than stellar pieces being sent are being kept and there will be likely to be some ero-
sion in the quality and value of offered coins.
If some coins are being returned then the dealer will start to notice a pattern and determine what
this buyer is seeking. It will be provided, and how well the collector does will be determined largely
by market forces. There will be more "value added" in the dealer's efforts and he will probably charge
a slightly higher mark-up.
If a collector were to return the better items or just return things at random then eventually the dealer
will factor this in and add the cost of returns (and then some) to the price. Many dealers in this situ-
ation might also try educating the customer a little.
A site dedicated to the sale of rare and high MS grade Morgan and Peace Silver Dollars. All coins are graded by ICG, PCGS, NGC, or Anacs, and are priced well below PCGS values.