Should dealers provide more public details regarding their capitalization to attract more coins?
Longacre
Posts: 16,717 ✭✭✭
Although I tend not to look at the ads in Coin World too closely, I do notice that a lot of dealers are always looking for fresh coins. That makes perfect sense because without new inventory and fresh material, they would have nothing new to sell.
I frequently read that Dealer X or Dealer Y has done "$10,000,000 in deals last month" or something similar. As a collector, the solvency of a dealer is very important to me, and I want to make sure that I get paid if I put coins in consignment or otherwise use a dealer to sell the coins for me. Other than a few of the big dealers, I really don't know how solvent or well capitalized the various dealers are.
Does anyone think that it would make good business sense for a dealer to publicly give more details about their capitalization, financial resources, and free cash flow in order to entice more collectors to sell to them? As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
I frequently read that Dealer X or Dealer Y has done "$10,000,000 in deals last month" or something similar. As a collector, the solvency of a dealer is very important to me, and I want to make sure that I get paid if I put coins in consignment or otherwise use a dealer to sell the coins for me. Other than a few of the big dealers, I really don't know how solvent or well capitalized the various dealers are.
Does anyone think that it would make good business sense for a dealer to publicly give more details about their capitalization, financial resources, and free cash flow in order to entice more collectors to sell to them? As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins? >>
No... but will you adopt me?
NO.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
These are not public companies, they can do whatever they want.
Folks in the middle of the dealer-dealer biz already know who can deliver and who can't, and who has a history of financial stability. Collectors with their ears to the ground also have some idea.
Buy me a drink in Baltimore and I'll fill you in further
<< <i>I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins? >>
Hell, I did more than that in my coin photography division.
<< <i>As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins?MrEureka >>
Not really, Andy. I was just gonna hit you up for a loan.
Ray
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I'm not sure that I trust much other than cash on the barrelhead or a check drawn on a large national bank with a branch nearby at which to cash it.
Consignment? Downright scary. Performance bond? What if you held one written by AIG?
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
<< <i>As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins? >>
It's like Gringots over there - big piles of gold coins guarded by bespectacled workers and wild animals.
Anybody can provide details about their finances, but whether that information is actually accurate or true is another story.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
We'll see who has the cattle in the next couple of years.
Re dealers looking for fresh coins, it's the same as dealers looking for want lists. They may say them want them, but they never act on them.
<< <i>When you meet clients, do you present them with your tax returns so they can see how YOU did last year? >>
That would be a fun world to live in. Hauling a giant box of files around with you, spreading out documents all over the table at every meal, etc.
<< <i>Re dealers looking for fresh coins, it's the same as dealers looking for want lists. They may say them want them, but they never act on them. >>
Why wouldn't a dealer act on a want list? It's like an automatic sale if you find the right item.
It's like Gringots over there - big piles of gold coins guarded by bespectacled workers and wild animals.
You think Andy will recongize the allusion to Harry Potter? Aki maybe, Andy no.
<< <i>I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins?
It's like Gringots over there - big piles of gold coins guarded by bespectacled workers and wild animals.
You think Andy will recongize the allusion to Harry Potter? Aki maybe, Andy no. >>
I'll admit it was a risk, but I believe a risk worth taking.
<< <i>Why wouldn't a dealer act on a want list? It's like an automatic sale if you find the right item. >>
What if the customer is picky about what coins he buys and how much he pays? If the customer passes on a coin, the dealer may be stuck with a coin that may be difficult to unload unless he has it on memo from another dealer and can return it.
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
There is also the security issue. If Heritage said they did so many million in auction sales last month, it would be great promotion. But if Steve Ivy said he personally sold so many million in rare coins, that introduces personal risk.
I am just speculating because I really don't know. But makes sense to me.
NSDR - Life Member
SSDC - Life Member
ANA - Pay As I Go Member
<< <i> like an automatic sale if you find the right item. >>
That's a very good Question. I've had several dealers solicit want lists from me. Never once did I get a call "I have what you're looking for" and it wasn't really esoteric stuff, either.
<< <i>As I said, there are some dealers that I simply would not consider doing business with solely because I have no idea of their financial footing. Does anyone have any comments?
I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins? >>
Could you bail me out ?
Edit :
(P.S. to dorkkarl, I read " 185" but only hear a song by joe walsh in my head. Thanks to you.)
"My Maserati does one eighty five... I lost my license and now I can't drive"
<< <i>
<< <i>Why wouldn't a dealer act on a want list? It's like an automatic sale if you find the right item. >>
What if the customer is picky about what coins he buys and how much he pays? >>
In my experience, all customers are picky about what coins they buy and what price they pay.
<< <i>If the customer passes on a coin, the dealer may be stuck with a coin that may be difficult to unload unless he has it on memo from another dealer and can return it. >>
If it's something we'd buy for inventory anyway, that's not an issue. And if it's something we wouldn't buy (maybe because it's in a series in which we don't do much in, or it's extreeeeeeeemly esoteric), we'd take it on memo.
<< <i>
<< <i>I did $185 million in sales last month and have $322 million in the bank. Wanna buy some coins?
It's like Gringots over there - big piles of gold coins guarded by bespectacled workers and wild animals.
You think Andy will recongize the allusion to Harry Potter? Aki maybe, Andy no. >>
I'll admit it was a risk, but I believe a risk worth taking. >>
It flew right over my head and I didn't know what CCU was talking about. Thanks for the clarification!!
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)