Why must coin shops provide a 2-way market?

AgMe

It's been talked about before, but if a coin shop (or dealer) feels he/she must provide a 2-way market, is it wrong to deeply discount your bid to purchase a series you're "not into"?

I don't think so, your feelings?

(I'm a collector btw)

~g

Conder101

I think you are perfectly right. If a dealer is offered coins that he has little or no market for, they are either going to be sitting in his inventory a long time tying up capital, or he is going to have to flip them to yet another dealer who is also going to be needing to make a profit on the coin as well. This means that for coins such as these they will HAVE to offer a lower percentage of retail than someone who can place the coin with a collector quickly.

DennisH

I don't recall ever seeing anything that says a shop must provide a two-way market in anything except what it chooses to.

roadrunner

They don't have to. But I have a number of shops I no longer visit for that very reason. They sell high but won't buy back the same stuff they sold high....for even close to the orig amount.

roadrunner

crito

It's a requirement of the US Mint, but only applies to resellers of gold and silver bullion coins:

"To become a United States Mint Authorized Purchaser, your firm must meet the following financial and professional criteria... Provide a liquid two-way market for the coins."

SOURCE: http://www.usmint.gov/consumer/index.cfm?action=AmericanEagles

291fifth

If a dealer doesn't operate a two-way market he won't get any business from me.

RYK

For the same reason I have zero expectation for the local coin shop to sell me an XF Dahlonega $5 or an AU Civil War era $3, I do not expect the local shop to buy the coin from me at a decent price. The best place to sell a specialty coin is to a specialty dealer, and often the same dealer who sold you the coin.

SDCollector

I generally buy from the same local coin shop and I generally sell to the same local coin shop. I have reasonable expectations when I sell back to them, since I know they are running a business and it's not a hobby for them. I get fair prices when I sell back. When I walk in they know me, they know my budget, and they know what I like. They also know that I will likely sell back to them in the future. Which is fine with them.

Find a dealer you trust and try to establish a consistent business with them. It makes this hobby much more enjoyable.