Do you feel sorry for dealers when you take away their profits?
relayer
Posts: 10,570 ✭
I was looking at a couple of seated liberty dollars on eBay from a dealer a few weeks ago, both NGC XF-45, with starting bids of $425.
The PCGS price guide lists these at $425 and Numismedia lists them at $310 and $300
They relisted them last week with no reserve and I bought both, the 1870 for $332 and the 1871 for $315, which I assume they still made a little money on (but maybe not). And besides, there were no buyers at $425 anyway so they might as well asked for $500+
Anyway I guess my point is, it must be very difficult to make money as a coin dealer. You either have to buy coins very cheap at the right grade, or buy undergraded coins and make your money with the value in the point difference.
Even though this dealer wasn't able to take the family out to a steak dinner with his profit at $425, at least he was able to keep them feed one more day, albeit probably only at McDonalds.
The PCGS price guide lists these at $425 and Numismedia lists them at $310 and $300
They relisted them last week with no reserve and I bought both, the 1870 for $332 and the 1871 for $315, which I assume they still made a little money on (but maybe not). And besides, there were no buyers at $425 anyway so they might as well asked for $500+
Anyway I guess my point is, it must be very difficult to make money as a coin dealer. You either have to buy coins very cheap at the right grade, or buy undergraded coins and make your money with the value in the point difference.
Even though this dealer wasn't able to take the family out to a steak dinner with his profit at $425, at least he was able to keep them feed one more day, albeit probably only at McDonalds.
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If a dealer can provide a service and make a profit by finding a specific coin for a buyer or by bidding a coin for a buyer at an auction the buyer is unable to attend then he earned his money and deserves it. BUT... A guy who just buys and sells coins is providing no service except to himself by trying to take a slice out of a pie he is moving from A to B. I hope he loses money and finds a real job. Most collectors try to buy low and sell high that doesn't make us dealers who have performed any service to anyone but ourselves.
I wish all dealers would go out of business, sell off all their inventory and there would be a lot more coins in the hands of collectors who can enjoy them. If the "dealers" want to make money in the coin business let them sell time as agents working on behalf of buyers and sellers and charge accordingly.
Buying, selling and collecting coins is a hobby, not a business. If one choses to make it a business then they must sell their value added, not coins.
I do.... so I go by the store and leave a $20 bill in the Inbox every month.
He's got a light bill to pay, you know?
Again, real nice solid coins you purchased...congrats!!!
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Tom
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
I don't have any idea what he paid for them, all I know is that he had them listed for $425.
Maybe he only paid $300 and wanted 40% profit but when they didn't sell he listed them with no reserve and took whatever the market would pay (then he'd make a 5-10% profit)
But if he paid $350, then he lost money but moved some inventory. If he is in the business of selling coins, he needs to make a profit in order to stay in business.
If you sell at auction you have no idea what the final selling price will be. It seems a better business plan would be taking your money to Vegas and putting it all on a number on the roulette wheel.
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<< <i>Do you feel sorry for dealers when you take away their profits? >>
Yes, but I get over it very quickly.
Russ, NCNE