How do you feel about a dealer who liquidates his entire inventory and is sitting on a huge cash bal
Longacre
Posts: 16,717 ✭✭✭
I was taking a read through the latest issue of Coin World and there was an ad by a BIG dealer. I hear that this dealer has a very good reputation, and I was intrigued by the text of his advertisement. I believe this is the dealer that sends you on a free boat ride to Niagara Falls if you visit him at his office (query where you would accept a trip from a coin dealer on a boat that gets perilously close to a massive waterfall 
The ad indicates that the dealer has liquidated 100% of his inventory and is now sitting on a HUGE cash balance. This dealer is attending the ANA Show, and he is not going to be tied down to a table or that pesky inventory. He is still looking to buy and sell coins, though.
Questions:
(1) Does the fact that he sold out of his inventory and is now holding cash instead give you any pause? Or does that show what a market maker he is and how double nuclear white hot the coin market truly is?
(2) In the ad, he differentiates himself from other dealers by highlighting his heavy cash position and no inventory. Is that a proper thing to highlight and a valid differentiating factor?
The ad indicates that the dealer has liquidated 100% of his inventory and is now sitting on a HUGE cash balance. This dealer is attending the ANA Show, and he is not going to be tied down to a table or that pesky inventory. He is still looking to buy and sell coins, though.
Questions:
(1) Does the fact that he sold out of his inventory and is now holding cash instead give you any pause? Or does that show what a market maker he is and how double nuclear white hot the coin market truly is?
(2) In the ad, he differentiates himself from other dealers by highlighting his heavy cash position and no inventory. Is that a proper thing to highlight and a valid differentiating factor?
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
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
It tells me 2 things about him...
1] He wants folks to stop him in the isles and offer him collection that he can buy CHEAP! [ Quick Flip ].
2] He believes that the coin market, including "better" items, is going to drop QUITE a bit more...
and he does not want to be holding ANY inventory.
Just my impressions.
********************
Silver is the mortar that binds the bricks of loyalty.
He just wants first dibs on your fresh material.
Steve
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"Because I can"
myurl The Franklin All Old Green Holder Set
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The Reeded Edge
<< <i>I thought he was supposed to retire by now...lol. At least that's what he had said in previous ads. >>
Yes, in and out of retirement more often than George Foreman
I dont know who the dealer is nor do I care. But what I think, is that he is a rare breed. And I admire him.
Knowledge is the enemy of fear
on piles, he may not have been referring to
money.
Camelot
If he wants to buy from the public perhaps he should pay for a table.
Steve
My first thought is that I should offer coins to him to see if he wants to buy.
That said, a 100% cash position does lead me to think that this dealer doesn't believe in the short-term trend for coins.
<< <i>I don't believe him. >>
Don't coin dealers always tell the truth?
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
Why is this so called dealer unnamed? I don't subscribe to Coin World and find it's no longer possible to buy Coin World in local coin shops or bookstores. How about giving out a name, unless we're playing a forum game of being unnecessarily coy. I assume the dealer in question has done nothing wrong.
But I am backing out of my coin collection.
I do not know if coins will be going up or
down in value, but I have to get ready for
MY eventual "LAYAWAY". I will probably keep
half the A BOX of coins and a few
SO CALLED DOLLARS, but auction everything else
in the next Goldberg Auction. If I were just 30 years
younger and still knew what I know now.................
sighhhhhhh!
Camelot
Dick
How do you feel about a dealer who liquidates his entire inventory and is sitting on a huge cash balance?
This would depend on two things;
1. How much he was able to get when he liquidated his inventory vs. what his actual cost was.
2. His definition of a "huge" balance.
Richard is a nice guy, but I'm not sure this ad works. To me its saying, if you want to sell your coins to someone who just blew out all of his. Stop me at the show - I'm the tall guy with the empty briefcase.
If I were a full time dealer, liquidating everything to stay nimble would have been the best course of action. I admire the guy's thinking as well.....assuming he's not lying. If it's Nachbar, didn't he just get liquid for retirement?
roadrunner
> If it's Nachbar
If Longacre is talking about Nachbar then it might be worth noting Nachbar strongly advocated moving into bullion when exiting rare coins.
DPOTD-3
'Emancipate yourselves from mental slavery'
CU #3245 B.N.A. #428
Don
He doesn't care what any of us think about his "large
cash balance", and the fact that his ad says that he's
'liquidated his entire inventory'.
We are not his target market for this ad - he has a
specific reason/target for the ad, and the wording
in it.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
<< <i>His ad isn't aimed at any of the members of this forum.
He doesn't care what any of us think about his "large
cash balance", and the fact that his ad says that he's
'liquidated his entire inventory'.
We are not his target market for this ad - he has a
specific reason/target for the ad, and the wording
in it. >>
This is pretty interesting. I doubt that you can provide further details, but I find this interesting.
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)
Now did he really retire?
If he did not retire, then was his previous advertising fraudulent?
<< <i>Sounds like marketing BS. >>
Agree. It's all hype. This dealer knows just what to say to work guys like Longacre into a frothy frenzy.
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
I have nothing more to say on the subject.
If he only handles purchases for client's want lists,
he does not have to tie up money in inventory. Purchases
are presold and he can reduce his mark up as dealer costs
are minimized.
Camelot
<< <i>I have a problem with his marketing. His previous advertising was that he was retiring so he had a "going out of business sale."
Now did he really retire?
If he did not retire, then was his previous advertising fraudulent? >>
Jewelers like to have 75% off sales.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>I have a problem with his marketing. His previous advertising was that he was retiring so he had a "going out of business sale."
Now did he really retire?
If he did not retire, then was his previous advertising fraudulent? >>
Maybe he changed his mind.
<< <i>
Jewelers like to have 75% off sales.
It is similarly impossible to pay full retail for either a mattress or oriental rug.
<< <i>
<< <i>I have a problem with his marketing. His previous advertising was that he was retiring so he had a "going out of business sale."
Now did he really retire?
If he did not retire, then was his previous advertising fraudulent? >>
Maybe he changed his mind. >>
No, that would be harmless.
It's got to be something more devious than that. He must have figured out some *new* way to screw collectors or something. After all, isn't that what so many people here say dealers do?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
GOING OUT OF BUSINESS
There is a reason for this. One reason is that the phrase is/has been abused by many operators for decades. Think rug trader.........
I think this dealer in question should have used that phrase for at most 30 days. Then retired.
I wonder how long it will take him to use it again. To Re-retire.
His ads are annoying.
If you are so curious about his reasons why don't you give him a call and ask him, rather than engaging in a lot of speculation?
GOING OUT OF BUSINESS SALE
INVENTORY LIQUIDATION
ALL INVENTORY MUST GO
Then you drive by months or years later and see the same store and it still has the same sale.
with their business as they will. It is really non of our
business if they retire, or decide later to reenter
business. If the person has been an honorable and
fair dealer, then they are to be commended for reentering
the coin business.
Camelot
I would not read anything into the state of the coin market from the ad. Just publicizing the fact that he will be an active buyer (and a quick flipper).
merse