So what should be the spread on coins you buy as a collector?

bidask

So we buy coins from dealers as a hobby, as an investment, or maybe both. So when you buy a coin from a dealer do you ask what his/her buyback level is? What spread are you comfortable with? Does it even matter to you?

Raybo

<< <i>So we buy coins from dealers as a hobby, as an investment, or maybe both. So when you buy a coin from a dealer do you ask what his/her buyback level is? What spread are you comfortable with? Does it even matter to you? >>



Naaah, if I like the coin for what it is I buy it.
I have never asked a buy back price for any coin that I have bought, I just enjoy it.

Ray

AuldFartte

Lakesammman

There are no guarantees, unfortunately. The more you overpay, the better the buy back price.

ElKevvo

Never really ask....but I have never really returned anything so it hasn't been an issue.

K

TwoSides2aCoin

<< <i>There are no guarantees, unfortunately. The more you overpay, the better the buy back price. >>



As painful as that can be, it's true. That's why it's best to hoard what you overpaid for. Never let it be spoken of again. In forty years you'll be smarter than Einstein and in some ways, I think you already are, Tim !

roadrunner

From my local dealers I'm usually in at 0 to +5% of wholesale. And the few times I'm over wholesale it's usually because the coin is worth a premium to me for some reason or another. Recently picked up an old holdered NGC MS66 $20 Saint that glows like the sun (yeah it's conserved) and has 66++ surfaces. I paid an extra 5% for that.

I don't see why one cannot consistently get pieces locally at no more than 5-10% over wholesale. And if you buy only really choice pieces, that 10% can often be made up right away. Most local shops rarely pay anything extra for premium quality or old holders.
That's prime feeding ground from your local B&M's, esp NGC coins which often get no second looks.

roadrunner

COALPORTER

I don't think a 40 to 50% spread between wholesale and retail
is unreasonable.

I think the best test of dealer is to sell them a coin. But , first, try to develope a repore(sp) over time and you will get better prices.
I've sold dealers nice coins: we both know grey sheet, and we
both know the coin will "flip" fast, so hay, all the guy needs to
do is touch the coin and hand it to another customer, so 10% profit may not be too bad on a "high end" coin.

Get to know your dealers, and understand what they sell and buy.
Don't take "high end" stuff to a junk dealer. Don't take junk
to a "high end" dealer. (well AVOID junk and problem coins : you don't want to give a dealer anything to "point" at: any reason not to pay you much)

Avoid selling at BM stores, they usually look at grey sheet two grades down. Nothing like being offer XF price for a BU coin!

What really burns me are dealers that quote blue sheet on a high grade coin that is PQ.

Frankcoins

The coins with the highest percent buybacks are the "commodity" coins, which have the least reason to appreciate long term.

TwoSides2aCoin

<< <i>The coins with the highest percent buybacks are the "commodity" coins, which have the least reason to appreciate long term. >>



What's the difference between a collectible coin, a commodity coin and an investment coin ?

ziggy29

Normally, I don't care what a dealer paid for it. I either like it at the asking price or I don't.

Having said that, if I know a particular dealer has a history of ripping widows and newbies, I'm less likely to want to do business with them.

yellowjacket

For slabbed quality coins I hope to get 70% of current retail price when I go to sell. 80% would be fantastic.

Garrow

cladking

If you know the market than most of the non-junk you buy should be within 20% of wholesale.

If you don't know the market you'll average far higher.

RedTiger

There is no one size fits all answer. Someone buying wheat cents to put in an album may pay $2 for a coin that the dealer bought in at two cents in a big pot full of cents. The dealer isn't getting rich on these after paying someone to sort out the better coins, and then put the better coin into a 2x2 and a price on it.

The higher the price of the item, the lower the margin a dealer can afford to work on. Some dealers have publicly stated that they work on 10% to 20% margins on higher priced coins (above $500 in value). Another said they try to buy collector coins 20% back of sheet and sell 20% above sheet for collector coins.

Dealers in slow moving esoteric items tend to have much higher percentage spreads. As do dealers that deal in lower priced items. As do dealers that like to sit on large inventories instead of having a quick turnover.

The word "should" doesn't belong in the answer. There are dealers all over the place in terms of volume, spreads, and profit. A collector is best off learning the market prices, the typical wholesale and retail prices for the coins they are interested in. Hopefully before spending a lot of money. Fortunately, it isn't that difficult to get a good indication on prices. Discretely ask around, listen, watch what coins trade for at different venues.

/edit to add: To me, buybacks are mostly a marketing gimmick. The dealers know full well that most of the coins will not be offered back any time soon. If the coin market really sours and liquidity is gone, many dealers may go out of business, and their buy back becomes worthless.

sinin1

are you buying for you rcollection

or to walk down the street and sell to the next guy



this is an odd post in my opinion

bidask

<< <i>are you buying for you rcollection

or to walk down the street and sell to the next guy



this is an odd post in my opinion >>

a little of both, how do you buy?

BECOKA

If it is quality southern gold I don't think it matters much. It seems that a dealer could ask just about any price. From watching other collectors they can usually sell back to the dealer within a few months for a profit.