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Using your knowledge to make a fair profit vs. outright deception: where's the line drawn?
dan1ecu
Posts: 1,573
If someone walks into a coin shop with a rare data shield nickel, for instance, and the dealer (knowing that the coin is worth hundreds of dollars) says "well... for common date shield nickels in this grade, I pay $25," giving the seller the impression that the coin's worth only $25, that's dishonest, isn't it?
On the other hand, if the dealer says something like "This is a rare date. In XF they generally sell for $900, so I'd be willing to pay you $650 for it," then that's honest. The buyer is then fully aware of what's going on, and can make an informed decision. I personally don't think that the dealer would be obligated to disclose to the seller how they might get a better price for the coin.
Where do you think is the line that separates a fair use of one's knowledge to make a profit, versus taking advantage of another person? Is ANY deception - whether it be giving false information, or giving a false impression, or concealing information - acceptable when dealing in rare coins?
Dan
On the other hand, if the dealer says something like "This is a rare date. In XF they generally sell for $900, so I'd be willing to pay you $650 for it," then that's honest. The buyer is then fully aware of what's going on, and can make an informed decision. I personally don't think that the dealer would be obligated to disclose to the seller how they might get a better price for the coin.
Where do you think is the line that separates a fair use of one's knowledge to make a profit, versus taking advantage of another person? Is ANY deception - whether it be giving false information, or giving a false impression, or concealing information - acceptable when dealing in rare coins?
Dan
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If they purchase an item without knowing the value and it turns out to be valuable, that is when the grey area appears.
IMHO, it comes down to the level of the professional that you are dealing with.
I firmly believe in numismatics as the world's greatest hobby, but recognize that this is a luxury and without collectors, we can all spend/melt our collections/inventories.
eBaystore
<< <i> do not believe that professionals can legally buy a valuable coin that they know to be worth X for much less than half of X, unless it is a really difficult item to sell. >>
You live in a state with more laws on this than mine. I'd echo, I don't think a professional can ethically buy for less than half of X, with the exception you made. I'd also make an exception for total junk. A guy can retail common IHC's in Good for $1.50, say, or wholesale them for $.80. OK if he offers me $.55 for them? I think so. It needs to be worth it for him to play.
(edit for typo)
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
On the other hand, a collector buying from a dealer... it's fair game... they know what they are getting into, it's the dealers responsibility to themselves (Or their boss) to know what they have and sell it appropriately... if I see you have a very pretty toned Morgan at bid... I'm gonna buy it... if I see a rare die marriage of Half-Dime at type cost... I'm gonna buy it... if I see a PR69DCAM AH Kennedy in a proof set... Hell yeah, I'm gonna buy it...
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