What do the "We're Always Buying" dealers do with all of the coins?

Longacre

I've sold a few coins to some local dealers and some national dealers who advertised that they are "always buying everything!!!" (although some people whose ads I called claimed that they "were not buying that right now" when I inquired about selling (but that is a different story for another thread)). The prices that I sold for were quite fair and reasonable, so I was wondering what the dealers do with all of the coins that they purchase. I can understand that if they bought at rock bottom prices they could immediately turn the coin for a profit, but again, I sold at what I thought were fair prices. So does any dealer out there have any insights?

ziggy29

My understanding is that many of them cherrypick for their own inventory and wholesale out the rest.

byergo

I doubt that any dealer who buys all coins, all of the time, can be paying a price that I would find acceptable.

greghansen

If they're 'always buying', they are likely also 'always selling' to someone else. I'm glad your experience with the prices you received was satisfactory. They are a business, however, and I reckon they had a game plan to make a profit on the coins, even if it was only a few percentage on a wholesale turnaround deal.

cladking

Even the wholesalers tend to specialize a little bit. Yes, they might buy all
coins but if you want the best price on everything, you'll still have to shop it
around a little bit.

The less expensive coins are mostly going to the retailers with the print ads
in national magazines and to the TV shopping channels.

mintluster

<< <i>If they're 'always buying', they are likely also 'always selling' to someone else. I'm glad your experience with the prices you received was satisfactory. They are a business, however, and I reckon they had a game plan to make a profit on the coins, even if it was only a few percentage on a wholesale turnaround deal. >>

I agree. How is Melbourne? My parents live there. I love that place. Wish I lived there.

MICHAELDIXON

I'm not a big dealer, but "I'm always Buying!" I have specific dealers who want specific things. One dealer wants only certified gold, another cleaned or damaged gold, another only wheat cents, etc. Most of the coins I buy never hit my website and that is due to the many collector want lists and dealer want lists I have. You would think that running a monthly live auction, I'd have lots of items to place in them myself, but I don't. I like to think I pay fair prices. In the last year, I've only had two offers rejected; one was for common date coins and bulk silver where I'd have turned it over and made 10% and the other was for modern slabbed coins the seller had paid Well over retail for. Before I make an offer, I research what the coins are actually selling for. I research the Grey Sheet, Ebay, Teletrade, Heritage and on-line price guides. If the coin is selling for $X, I can't pay $X, make a profit and stay in business. Most of my business is repeat business, as most sellers are happy with what they have received. If I buy a certified coin and it upgrades, I'll split the profit with the seller 50/50. Some of the members of this board can attest to that fact. I try to be honest, as I know how it was to be a collector trying to sell everything and getting offers of nothing!

Shamika

I believe the statement "We're Always Buying" is often a marketing scam though not always.

SDCollector

I think the "we are always buying" is generally true. For small shops/dealers, this is how they make their money by turning the coins quickly to a wholesaler. There's no way, IMO, that a small shop can stay in business by selling coins.

dorkkarl

what's "quite fair and reasonable" to you? those rare times when i've offered to sell coins to such outfits, i've been able to find better offers elsewhere (or just consigned the coins for a better return).

K S