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Hmmmmmmm, what to do

Okay, I was telling someone I know (Buddy 1) about my helping someone else (Buddy 2) grade and appraise a number of pieces in their collection and that those pieces brought almost exactly what I had appraised them for.

Buddy 1 informs me that he inherited a large number of coins (mostly Morgans, Eagles and Double Eagles) over 40 years ago from his father. He now wants me to grade them and sell them for him and he has offered me 50% of the proceeds (although I haven't actually seen the collection yet, it's in a couple safety deposit boxes).

Question is, should i actually sell them and split the proceeds, keep them and pay him his 50%, or cherry pick the best and pay him the 50% of value and then sell the rest and then split the proceeds?

Oh yeah, Buddy 1 owns a scrap yard and repo business.

Jim

Comments

  • jbstevenjbsteven Posts: 6,178
    take the 50% and smile.
  • tjkilliantjkillian Posts: 5,578 ✭✭✭
    I don't see any reason you cannot buy the coins yourself. If he trusts you enough to give you 50% of the take, why would he care if you are the buyer? We all assume everyone is honest, so there should be no question.

    Tom
    Tom

  • Buy what you want and can afford - and pay him his fair share.
  • poorguypoorguy Posts: 4,317
    If you are a collector, here's what to do:

    1. Cherrypick the best coins.
    1.1 Make a deal with the guy that if he will give you these few coins, you will sell the rest of his coins and he can keep whatever they sell for.
    1.2 If he doesn't like the idea, give him 50% of what they are worth and go to step 2.

    2. Take the rest:
    2.1 Sell them
    2.2 Split the proceeds

    Hell, if he's not poor, ask if he'll donate the good ones to your set where they will be cherished by generations.
    Brandon Kelley - ANA - 972.746.9193 - http://www.bestofyesterdaycollectibles.com
  • ddbirdddbird Posts: 3,168 ✭✭✭
    I would sell them all then buy coins with the 50% he gives you. I know your appraisal was prob. good but your buddy will always wonder if he could have gotten more if you had sold them to other people.
  • K6AZK6AZ Posts: 9,295
    Send them to ANACS. image
  • NoGvmntNoGvmnt Posts: 1,126
    Poorguy, I don't have it in me to ask him to donate them to me, personally I would feel like I was taking advantage of him and his trust.

    ddbird, Everyone that knows me personally, knows that they can absolutely trust that I would never mislead them for my own personal gain. With regard to selling everything and buying other coins with my 50%, for me to purchase a coin it has to have EXCEPTIONAL eye appeal and it wouldn't be prudent of me to pass on any such coins that may be in the collection.


    K6AZ: image

    Jim
  • GooberGoober Posts: 980 ✭✭✭
    Offer them to forum members at 50% image
    Prost!

    Why step over the dollar to get to the cent? Because it's a 55DDO.
  • solidsolid Posts: 2,975
    Here's an idea that is sort of gray area, but with good intent:

    1) You prepare auctions for all of his lots on ebay.

    2) Have him open an ebay account, and instruct him to bid a
    maximum amount on your behalf for the select few coins you
    desire to own.

    3) Any of these coins that he wins (with your bid), up to 50% of
    the total proceeds you end up keeping for yourself.

    This would technically be shill bidding, but not in an attempt to
    deceive other bidders. Instead, it would insure that your buddy
    gets a fair shake for all of his coins and he will have no question
    about your integrity on any coins you end up with.

    The downside, of course, is that there would be ebay fees on
    any lots won by you in this manner.

    What do other people out there think - would this be a fair
    way to handle things? Is it still shill bidding?

    Ken
  • TayTayTayTay Posts: 465 ✭✭


    << <i>Is it still shill bidding? >>



    Yes.
    "What are you putting that tape on your nose for?"
    "Exactly."

  • LincolnCentManLincolnCentMan Posts: 5,347 ✭✭✭✭
    Pay him a fair price, but try to keep the coins you want.

    David
  • haletjhaletj Posts: 2,192


    << <i>Is it still shill bidding? >>



    No because the bidder honestly wants to buy the coins (for his buddy).
  • Set the starting bid on the coins you are interested in at the price you are willing to pay. This is not shill bidding and if they do not sell you save on the fees and the coins are yours. Joe
  • 291fifth291fifth Posts: 24,343 ✭✭✭✭✭
    If he is going to give you a sales commission of 50% you should sell all of the coins. Not doing so could put you in a position of having your ethical standards called into question. This is a business deal and should be handled as such. Don't allow your collector instincts to cloud your judgement.
    All glory is fleeting.
  • krankykranky Posts: 8,709 ✭✭✭
    This is written assuming that the guy trusts you totally, as you mentioned.

    Sell them all and take your 50%. Even if your buddy has no doubts about your honesty, that's the only way to make sure there is no shred of doubt about things being on the up-and-up.

    Let's say you either keep some or all of the coins as part of your 50%. Ten years from now, he happens to mention your coin deal to someone. That person insists that he got screwed because he knows "all" collectors do that, blah, blah, blah. Your buddy may never even mention it to you, but the seed of doubt could be planted -- so why risk hurting your relationship?

    And the clincher to me is that 50% is an exceedingly generous deal considering the coins you are talking about. Remove all doubt about things being done fairly, sell them all, and whatever you want you can afford to buy back afterwards.

    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.

  • coinguy1coinguy1 Posts: 13,484 ✭✭✭
    Sorry, if he were my "buddy", I wouldn't accept 50% of the proceeds. And, even if he weren't, I still wouldn't. Instead, I'd calculate a fair price for my time, trouble and expertise and base my compensation/percentage on that.

    I'd also try to avoid any appearance of conflict of interest and if I were going to "cherry pick" the collection, explain it to him in detail before the fact, as well as pay a fair price for that material. Some type of auction is usually a good way to avoid such conflicts.
  • nwcsnwcs Posts: 13,386 ✭✭✭
    I agree with those who say sell them all. However, I offer an alternative idea for the coins you really want. Grade them right, show the coin and the going market price to the guy who owns them and examples to show your grading is reasonable. Then negotiate a price. That way everything is on the up and up, no seeds of doubt for the future, and you get to have the coins you want. Everyone wins in that scenario.
  • dorkkarldorkkarl Posts: 12,691 ✭✭✭
    do what a FRIEND would do.

    i've helped many friends disperse inherited coins, if your honest, & you really treat him like a FRIEND, you'll do fine.

    K S
  • razorface1027razorface1027 Posts: 4,242 ✭✭
    The BAD me says cherrypick. The OKAY me says take the 50%.image
    What is money, in reality, but dirty pieces of paper and metal upon which privilege is stamped?
  • mirabelamirabela Posts: 5,013 ✭✭✭✭✭
    50% sounds like sort of a crazy commission to sell in the first place. I'd have to fall on the side of either calculating a fair value of your services and charging that, then making offers on the pieces you want -- maybe using those prices as reserves or something in a fair auction? -- or maybe you can work out something where the pieces you want *are* your fee for your services, if their value makes that appropriate. If his collection is worth more than a little, it sounds like he's really on the losing end of it, paying 50% sellers fee.
    mirabela
  • Sell his coins for free in exchange for a few coins.
    Ha indossato il disordine con italia!
    imageimage
  • ShamikaShamika Posts: 18,781 ✭✭✭✭
    If he's REALLY a buddy, I'd insist on nothing more than a 20% commission (if not 10%) and help him sell the coins.

    Don't let money come between a friendship.

    Buyer and seller of vintage coin boards!
  • NoGvmntNoGvmnt Posts: 1,126
    Shamika, you're absolutely right.

    He came to me and made the offer. Although I don't know the extent of the collection he stated that there are at least 200 Morgans and a lot of Eagles and Double Eagles along with other denominations, but it's been so long since he looked at them he isn't sure what is all there (he has zero interest in coins!!!).

    I told him this morning I would not accept 50%, but I will consider, at the most, 25% if there is a lot of time involved in cataloging and selling for the best price. He doesn't really seem to care what he gets for the coins, it's more like he just wants to get rid of them.

    I have been explaining how to grade them and intend to get a guide to make sure the Gold is authentic.

    Jim

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