If a dealer typically has a strong buy-back policy, under what circumstances is it OK for him to ref

Longacre

This question is totally hypothetical, but I am curious what people's views are. Let's say you're a long-time client of Dealer X. You almost exclusively buy coins from Dealer X, and whenever you need to sell a coin, you sell it to Dealer X (in particular, if you purchased a coin from Dealer X, then Dealer X always gets first shot at it). Dealer X has always paid strong prices with his buybacks.

Let's further suppose you want to sell a coin back to Dealer X that you bought two years ago from him. However, this time, Dealer X says that he is just not in a position to buy the coin back. Under what circumstances would this turn of events be acceptable:

a. Dealer X does not need to give a reason because he is under no obligation to buy anything back from you.
b. Dealer X says he is a little short on cash because he just acquired a BIG collection from a Well Heeled Collector™.
c. Dealer X says the market for your coin is a little soft right now, and you should hold on to it in his opinion.
d. Dealer X says that there are two major shows coming up, along with the requisite auctions, and he cannot use his capital right now to buy your coin, but will consider buying it next month.
e. Any other reasons?

MrEureka

The answer is "a", of course.

However, a good dealer will always try to find a way to help his client achieve his goals.

Colquhoun

Personally if it was a dealer I had a long time relationship with I don't think any explaination would be needed. but MrEureka is 100% right in that a good dealer will help his client reach his goals.

rgCoinGuy

I think those are all legit reasons. Dealer X may also be in liquidation mode as he is getting ready to turn the rest of his coins into a condo on a beach and cases of Corona.

BECOKA

No explanation needed. If a dealer knows he will have trouble selling it why should he buy it back. If he offered a lower price because of the difficulty then that might make thing a little better.

charley

Respectfully, you have not listed the terms of the Dealers' "strong buy-back policy". The hypothetical aside, no logical answer except -A- can be selected.Without Malice, John Curlis (PS: Consult Mark on Hypotheticals?).

kranky

Well, it's tough to disagree with MrEureka. I think the dealer would be better off not giving a reason if he/she's going to pass on the coin. The worst thing the dealer could do is offer a lower-than-fair price even if cashflow is an issue at the moment. But offering to take the coin on consignment couldn't hurt.

ricko

I agree with Andy.... Cheers, RickO

SeaEagleCoins

<< <i>Well, it's tough to disagree with MrEureka. I think the dealer would be better off not giving a reason if he/she's going to pass on the coin. The worst thing the dealer could do is offer a lower-than-fair price even if cashflow is an issue at the moment. But offering to take the coin on consignment couldn't hurt. >>



If I were unable or unwilling to "sink my own $" into a particular coin, I would offer to sell it on consignment.


Cash flow issues might make me unable to outright buy the coin...

Soft and/or limited market for the coin...or already have some examples in stock...might make me unwilling to buy the coin...

also...for a regular customer...I've found a buyer for them...at little or no charge...and if there is a charge, it is a couple of %... but usually it is more like a cup of coffee and a hotdog...or watch my table for 5 minutes so i can take a little break...


(edited to add... for the most part I'm always happy to see a coin I've sold offered back to me down the road...it's like a reunion with an old friend...I like the coins I sell and would always enjoy being able to handle it again)

PerryHall

<< <i>e. Any other reasons? >>



He buried the customer in that coin and he doesn't want the collector to know it.

Broadstruck

He buried the customer in that coin and he doesn't want the collector to know it.



PerryHall

walkerman

A dealer can change his inventory to a new specialty and no longer stock a coin he sold in the past. Generally speaking A is the correct answer. Dave W





The sorrow of poor quality lingers on long after the joy of low prices has been forgotten.
David J Weygant Rare Coins website: www.djwcoin.com

Hmann

a, b, or d

Any cash flow reason would be good with me. All business have cash crunches at some point... I wouldn't worry about it and if I had bought so much from this dealer in the past, I would have confidence he would make it up to me with some purchases in the future.

RYK

Bankruptcy

ajman

<< <i>

<< <i>e. Any other reasons? >>



He buried the customer in that coin and he doesn't want the collector to know it. >>

derryb

bankruptcy

roadrunner

f. I never sold you THAT coin! .....lol

But I could list more. While Longacre's list are all valid reasons, it usually comes down to the fact that the dealer charged you too much and they
really can't use it back without a huge discount.....which would then show you why these aren't the guys you should be buying from. Better to let you down gently with the
OP's reasons and keep you in the flock.

But over my 40 years in coins dealing with dozens of B&Ms and countless mail order and retail dealers there was a distinct preference not to want to buy back coins that they sold me.
It had to be more than coincidence. .......fwiw those were also the "raw" coin days. The worst example given to me by one of my "locals" (circa 1976) even went so far as
to claim the coins I brought back for offers weren't even hers (reason f)...like I had multiple 1799 bust dollars in VF and 1838 RE halves in BU to try and "dump" on her....lol.
Needless to say that was the last time I was in her shop. Even with slabs there really isn't any difference today. Same game....just a slightly different approach. Dealers can even
turn the tables on this. My brother bought a choice BU $20 for $275 during the late 1970's and was chastised by the selling dealer for selling it so quickly (to someone else) when
offered $325 a few months later...making a quick $50. He called him a "dirty little speculator." So now collectors need permission from their local dealers before they can sell?....lol.

There's never going to be a "right" time to buyback a coin the dealer doesn't want to see back again.

roadrunner

johnny9434

ill go with e. for any reason he wants at the time. jmo

Myqqy

Every time i read posts from Roadrunner about the dealers he has had contact with over the years, i get a little depressed...

RYK

<< <i>Every time i read posts from Roadrunner about the dealers he has had contact with over the years, i get a little depressed... >>


Yes, RR seems to have been kicked to the curb more than once over the years.

roadrunner

<< <i>

<< <i>Every time i read posts from Roadrunner about the dealers he has had contact with over the years, i get a little depressed... >>


Yes, RR seems to have been kicked to the curb more than once over the years. >>



I think I was just "lucky" growing up in the greater New Haven, CT area where there were probably 2 dozen coin shops within a 25-35 mile radius.
The sad part was that most of the guys were either crooks or knew so little about coins to be basically no different than crooks. But this was just part
of normal coin business life in the 1970's and early 1980's when grading standards were quite variable from dealer to dealer. By 1980 I had left all my old
"local dealers" behind as I moved on to a more national scene. But it was soon quite clear that the national dealers were no prize either. It seemed like
Kansas City (MO and KS) were breeding grounds for some of the worst offenders. This is probably why when I see offending behaviors in dealers, or newbies
that need some guidance, I'm happy to assist them in any way possible. Taking lumps shouldn't be a requirement to learning about coins. At least the newbies
today don't have to deal with the crap that went on in the pre-slab days. While it's not perfect today, it's far, far better. But my mentality concerning B&M shops,
and dealers in general was forged in the 1970's. And it's ironic that some of the biggest crooks of that era are our luminaries and sages today.

roadrunner

291fifth

f. His lawyer is on his way to the courthouse to file for bankruptcy. (One bad show and several bad chili dogs too many.)

OK, RYK already mentioned bankruptcy.

ambro51

when he sells you something horribly overpriced and he laughs and laughs and laughs.

never gonna buy THAT back.

and Ive been there done that.

Elcontador

Just because said dealer paid the individual strong prices re buybacks in the past does not mean the dealer has a buyback policy, per se. It could have been that said dealer was able to quickly flip these coins he bought back for strong money, and have nothing at all to do with a buyback policy.

From the words used in the OP, said dealer did not have a buyback policy at all. Therefore, no explanation re the refusal is needed. Personally, if dealer AI sold someone a coin, if said coin wasn't an overpriced POS, one would think said dealer would be willing to buy it back under normal circumstances in the course of business.

cape

I've got to say if I owned it and sold it to one of my collectors ..... means that I liked it when I owned it and I wouldn't mind owning it again ! Of course the market changes and you'd have to check current auction prices .... as to the current value and pay accordingly.

Longacre

<< <i>

<< <i>

<< <i>Every time i read posts from Roadrunner about the dealers he has had contact with over the years, i get a little depressed... >>


Yes, RR seems to have been kicked to the curb more than once over the years. >>



I think I was just "lucky" growing up in the greater New Haven, CT area where there were probably 2 dozen coin shops within a 25-35 mile radius.
The sad part was that most of the guys were either crooks or knew so little about coins to be basically no different than crooks. But this was just part
of normal coin business life in the 1970's and early 1980's when grading standards were quite variable from dealer to dealer. By 1980 I had left all my old
"local dealers" behind as I moved on to a more national scene. But it was soon quite clear that the national dealers were no prize either. It seemed like
Kansas City (MO and KS) were breeding grounds for some of the worst offenders. This is probably why when I see offending behaviors in dealers, or newbies
that need some guidance, I'm happy to assist them in any way possible. Taking lumps shouldn't be a requirement to learning about coins. At least the newbies
today don't have to deal with the crap that went on in the pre-slab days. While it's not perfect today, it's far, far better. But my mentality concerning B&M shops,
and dealers in general was forged in the 1970's. And it's ironic that some of the biggest crooks of that era are our luminaries and sages today.

roadrunner >>






Hey RR, your very own Longacre grew up in the New Haven, CT area, and I wonder if you and I went to the same coin dealers. There were two in the Milford/Orange area on the Post Road that I used to go to.