Where do Wholesalers get coins????

Pherris

I was wondering where bulk wholesalers get their inventory. I am not talking about dated material but mainly generic gold specifically Saints and $20 Liberty's? The can offer them in quantities of 50-100 at a certain price I can not believe they are always holding inventory of them and there prices seem to be the same give or take a few bucks, so where do the "wholesalers" get these coins? Just curious. Thanks

Iwog

Wholesalers are part of the estate liquidation racket and draw most of their inventory from hundreds of small coin and jewelry shops all over the country. These are usually heavy advertisers in the yellow pages and will generally bid 10-60% of greysheet on "buckets and boxes" collections with an unknowlegable seller. Most circulated common gold will then be shipped to the wholeseller who has a fixed advertised buy price. The market is liquid enough that keeping a large inventory isn't necessary and there are always plenty of marks who have recently lost a husband to keep the system running.

To their credit, the wholesalers keep a fairly tight spread of around 10-15% because they have the volume to support it. Jackpot coin shop dealers however generally have NO LIMITS and will brag about the times they screwed a particular seller out of thousands of dollars. One of these shop dealers in Northern California paid $400 for a $25,000 gold coin a few years ago by calling it counterfeit and was promptly sued after the seller found out. The dealer is still in business and still pays for a large add in the yellow pages. The high cost of advertising keeps the average Joe from participating in this game. It costs a fortune to subscribe to the dealers only market system.

roadrunner

I consider both Heritage and National Gold Exchange to be major wholesalers. If you need to sell something quick for a fair price, they'll take it. If you need a large order of Saints today, they can do it. They both buy huge quantities of generic gold, esp. saints from overseas sources. I've been told they could be sending in 100's of choice to gem saints into the services at any time. That number could be as high as a thousand too. There are still fresh, raw deals coming out of Europe and Heritage buys a lot of it.

roadrunner

MadMarty

Shhhhhh, there is a dealer I know in Houston that tells me there is a huge warehouse in Pfluggersville. It is stacked to the roof with bags of Morgans and other BU silver coins. You can't just show up there and get coins, you have to be a member!!!

Deadhorse

<< <i>Shhhhhh, there is a dealer I know in Houston that tells me there is a huge warehouse in Pfluggersville. It is stacked to the roof with bags of Morgans and other BU silver coins. You can't just show up there and get coins, you have to be a member!!! >>



You can't believe everything Jason says.

MORGANHUNTER2

Shhhhhh, there is a dealer I know in Houston that tells me there is a huge warehouse in Pfluggersville. It is stacked to the roof with bags of Morgans and other BU silver coins. You can't just show up there and get coins, you have to be a member!!!

And if it were true- half of texas would have known it by now.

Deadhorse

<< <i>Shhhhhh, there is a dealer I know in Houston that tells me there is a huge warehouse in Pfluggersville. It is stacked to the roof with bags of Morgans and other BU silver coins. You can't just show up there and get coins, you have to be a member!!!

And if it were true- half of texas would have known it by now. >>



Well, the Pfluggersville address is to throw people off. I happen to know that it's really in Cut 'n Shoot.

Nickelback

Pfluggersville? You know, where I live we have places like Eek and Tuntutuliak...I think I'll search for a dealer thereabouts...(I'd be surprised if they're wholesalers, though...)

mrearlygold

Isn't there a wholesaler named greg the great or something like that?

BYOF's though


Tom

dthigpen

Yes, GregTheGreat is now a flip wholesaler. He'll let you sell him one, but he'll make you give him the whole box to make him shut up.

mrearlygold

<< <i>Yes, GregTheGreat is now a flip wholesaler. He'll let you sell him one, but he'll make you give him the whole box to make him shut up. >>

darktone

All the small shops sell to them to get cash and get rid of all the duplicates. mike

BAJJERFAN

I thought they "ordered" them from the factory or got them from COINS-R-US!! or COINS BY COSTCO!!

Pherris

Thanks Roadrunner and the rest. I see Heritage was mentioned is this the same heritage that auctions all of the coins?

BAJJERFAN

Yes its the same Heritage!! Not really sure I would call them a wholesaler as we commonly think of the term tho. The few big dealers who buy the bullion silver eagles from the mint are a better example of coin wholesalers than Heritage is.

dpoole

It's "Pflugerville." And the bags are actually full of SBA dollars.

mhammerman

"Well, the Pfluggersville address is to throw people off. I happen to know that it's really in Cut 'n Shoot." deadhorse

Actually, it is in Old Dime Box, just west of the city limits. Louis knows where it is, that's where he gets all them shiny commems.

morgannut2

When you sit in an auction and see the guys at Rare Coin Wholesalers buy 100's of common coins totalling over a mill, you might be watching a wholesaler. When one guy at an auction year after year buys using 5 different bidding numbers, year after year, he's probably a wholesale agent. When you see the greysheet bid price at Heritage in the description, they're probably buying wholesaled material (their profit is the 15% vig plus the mailing self-insured). If you want their names, just say hi at a
FUN auction.