You think coin pricing can be done better, and you think it should be done better. I applaud you for your optimism, but I challenge you to come up with a practical, implementable solution for your optimism.
It is one thing to say this or that, especially when it's shooting from the hip. It's another when you actually have to make it happen in the real world.
Go ahead, give it a shot, and formulate your detailed thoughts on this problem.
I think in reality, that dealers have been trying to work around (circumvent) the electronic networks to submit offers at higher prices without affecting the reported bid and ask pricing just as alluded to by TDN.
Dealers (and collectors) seem to no longer "raise the bid" for hard to obtain rare coins since doing so will not likely produce the coin. More likely, others will simply match his bid while others will exceed his bid, only to raise his "on paper" costs without any success. It only makes obtaining such coin even more difficult.
These same dealers and collectors instead seem to work behind the scenes and make multiple cell or regular phone inquiries announcing that they will pay well over bid to obtain the coin in question. Such buyer is then successful but such transaction is being done outside of the published bid/ask world.
In effect, a two tier market then occurs. The published bid/ask market becomes more of the sight unseen and crippled slabbed coins while a parallel market occurs for the better stuff.
Where collectors make the mistake is instead of trying to buy nice quality coins for the assigned grade at higher than bid, they look to get the best price they can and end up with low end and crippled coins for the grade. But yes, many coins can be gotten at bid. It is become part of our throw-a -way society but buying junk and replacing it ever few years because these consumer items are too danged expensive to fix.
The same thing that makes buyers think that a certified PCGS coin of a certain grade is worth the exact same thing as a raw coin of the same grade.
When I buy, I will certainly try to get the seller to go below ASK (hopefully to the BID price), but understand that a smart seller will not budge below the ASK line.
When I sell, I try to get the ASK price, but understand the buyer wants to buy at the BID price.
Your statement is funny in that the whole point of a BID and ASK price is to generate or take into account haggling.
I have not looked to see or determined if the spread between bid and ask for coins has increased in the past 10 years. I would guess that the spread expands at both ends of a market cycle. Greed , fear and desire to protect investment prevail as principals of market force. I am sure some of you have done the analysis for coins.
I have not looked to see or determined if the spread between bid and ask for coins has increased in the past 10 years. I would guess that the spread expands at both ends of a market cycle. Greed , fear and desire to protect investment prevail as principals of market force. I am sure some of you have done the analysis for coins.
Interesting comment.
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Comments
You think coin pricing can be done better, and you think it should be done better. I applaud you for your optimism, but I challenge you to come up with a practical, implementable solution for your optimism.
It is one thing to say this or that, especially when it's shooting from the hip. It's another when you actually have to make it happen in the real world.
Go ahead, give it a shot, and formulate your detailed thoughts on this problem.
EVP
How does one get a hater to stop hating?
I can be reached at evillageprowler@gmail.com
Dealers (and collectors) seem to no longer "raise the bid" for hard to obtain rare coins since doing so will not likely produce the coin. More likely, others will simply match his bid while others will exceed his bid, only to raise his "on paper" costs without any success. It only makes obtaining such coin even more difficult.
These same dealers and collectors instead seem to work behind the scenes and make multiple cell or regular phone inquiries announcing that they will pay well over bid to obtain the coin in question. Such buyer is then successful but such transaction is being done outside of the published bid/ask world.
In effect, a two tier market then occurs. The published bid/ask market becomes more of the sight unseen and crippled slabbed coins while a parallel market occurs for the better stuff.
Where collectors make the mistake is instead of trying to buy nice quality coins for the assigned grade at higher than bid, they look to get the best price they can and end up with low end and crippled coins for the grade. But yes, many coins can be gotten at bid. It is become part of our throw-a -way society but buying junk and replacing it ever few years because these consumer items are too danged expensive to fix.
When I buy, I will certainly try to get the seller to go below ASK (hopefully to the BID price), but understand that a smart seller will not budge below the ASK line.
When I sell, I try to get the ASK price, but understand the buyer wants to buy at the BID price.
Your statement is funny in that the whole point of a BID and ASK price is to generate or take into account haggling.
Interesting comment.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.