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True Dealer Story 1
AMRC
Posts: 4,266 ✭✭✭✭✭
I have decided I am going to post some of my more interesting coin deals. So this will be the first official one in a series.
Last week I got a call from a woman. She called in response to one of my mailers that advertises that I do fee based numismatic appraisals for estates. She told me she was the executor of her brothers estate and had some coins she needed to sell but felt she now needed an appraisal before she sold because of a bad experience she said she had with a B&M. I explained my fees and the difference between retail and wholesale values and we made an appointment for later the same day for me to come to her home.
When I arrived we all sat in the kitchen where all of the coins were laid out on the table. I did a cursory review of the coins and there was mostly graded bullion that telemarketer's generally sell to unwitting buyers for ridiculous premiums. There were some MS70 Canadian Proof coins that were graded by the third tier company, some 90%, Some other raw Silver coins and a handful of PCGS graded coins. I happened to see the invoice for one of those MS70 coins and it turns out the brother paid $395 each for them. He had bought 10. I grew a bit nauseous. As I took the time to look at everything she had and to enter the values in the spreadsheet she began to make comments about how the person at the coin shop looked at everything for a few seconds and began tossing the items around and began making comments like "this is just Silver," "these are not worth anything" and, well, I think you get the idea. She then pointed to one of the PCGS coins that was in a baggie and said "he looked at that and right away wrote $8,000 on the baggie." So of course that got my attention. I wanted to see this coin that the B&M offered $8,000 for. I mean the reality was that most of everything was just bullion so a value like that really did stand out. There was also 4 PCGS graded early commems.
The coin in the baggie was a 1885 PCGS MS66 3C Nickel and sure enough there was $8,000 written with a Sharpie right across the bag. I looked it up and the last one that sold had a CAC sticker and sold for $29,000. I told her a coin like this needs to be sold at auction to realize the highest and best price for the trust. I further explained that because I was a recognized dealer with Heritage I could put that coin in auction for her and she would be entitled to the whole amount of hammer as Heritage pays me a commission out of the buyers premium. I tallied up the rest of the collection and it added up to about $6,000 retail. She then asked me what I would pay for that part of the collection and I told her. She not only accepted my offer but gave me the other coin to put into auction for her. Needless to say I waived her appraisal fee. I left the home with a decent profit on the coins I bought, plus the commission I will get when I put that coin into auction. Needless to say it was a pretty good day for business. I really felt I got this deal because I came in, sat down, listened, and took the time to educate her and help her maximize the return for the estate, and not my own.
I am not sure about the logic around treating people who walk in with coins like is, but I have to say I hope the this B&M keep up the good work. They are the best thing for my business.
Last week I got a call from a woman. She called in response to one of my mailers that advertises that I do fee based numismatic appraisals for estates. She told me she was the executor of her brothers estate and had some coins she needed to sell but felt she now needed an appraisal before she sold because of a bad experience she said she had with a B&M. I explained my fees and the difference between retail and wholesale values and we made an appointment for later the same day for me to come to her home.
When I arrived we all sat in the kitchen where all of the coins were laid out on the table. I did a cursory review of the coins and there was mostly graded bullion that telemarketer's generally sell to unwitting buyers for ridiculous premiums. There were some MS70 Canadian Proof coins that were graded by the third tier company, some 90%, Some other raw Silver coins and a handful of PCGS graded coins. I happened to see the invoice for one of those MS70 coins and it turns out the brother paid $395 each for them. He had bought 10. I grew a bit nauseous. As I took the time to look at everything she had and to enter the values in the spreadsheet she began to make comments about how the person at the coin shop looked at everything for a few seconds and began tossing the items around and began making comments like "this is just Silver," "these are not worth anything" and, well, I think you get the idea. She then pointed to one of the PCGS coins that was in a baggie and said "he looked at that and right away wrote $8,000 on the baggie." So of course that got my attention. I wanted to see this coin that the B&M offered $8,000 for. I mean the reality was that most of everything was just bullion so a value like that really did stand out. There was also 4 PCGS graded early commems.
The coin in the baggie was a 1885 PCGS MS66 3C Nickel and sure enough there was $8,000 written with a Sharpie right across the bag. I looked it up and the last one that sold had a CAC sticker and sold for $29,000. I told her a coin like this needs to be sold at auction to realize the highest and best price for the trust. I further explained that because I was a recognized dealer with Heritage I could put that coin in auction for her and she would be entitled to the whole amount of hammer as Heritage pays me a commission out of the buyers premium. I tallied up the rest of the collection and it added up to about $6,000 retail. She then asked me what I would pay for that part of the collection and I told her. She not only accepted my offer but gave me the other coin to put into auction for her. Needless to say I waived her appraisal fee. I left the home with a decent profit on the coins I bought, plus the commission I will get when I put that coin into auction. Needless to say it was a pretty good day for business. I really felt I got this deal because I came in, sat down, listened, and took the time to educate her and help her maximize the return for the estate, and not my own.
I am not sure about the logic around treating people who walk in with coins like is, but I have to say I hope the this B&M keep up the good work. They are the best thing for my business.
0
Comments
-Paul
8k coin
29k coin
auction.
ballpark... where did it finish???!!!
EAC 6024
<< <i>you can't do this!
8k coin
29k coin
auction.
ballpark... where did it finish???!!! >>
This was last week. Auction has not occurred yet.
It should be obvious that potential sellers don't want their noses rubbed in their or their relatives poor purchasing decisions, yet I've seen it far too often.
It's a pleasant relief to see the other 'side of the coin'.
Thank you and I look forward to additional installments.
Happy, humble, honored and proud recipient of the “You Suck” award 10/22/2014
<< <i>How does the 3C look? Toned, white, solid 66? >>
All white. It was in an old holder so off to PCGS it went. I think it may have a shot at a plus. When it comes back from there it goes to CAC. I call it processing.
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
Looking for Top Pop Mercury Dime Varieties & High Grade Mercury Dime Toners.
<< <i>
I am not sure about the logic around treating people who walk in with coins like is, but I have to say I hope the this B&M keep up the good work. They are the best thing for my business. >>
Yeah they may well be good for your business - but I am sure they sour more than a few people on coins though. But your being on the up and up does far more for the hobby and I am sure she will share her positive experiences - good karma goes much farther than snarfy deals like the B&M example.
Worry is the interest you pay on a debt you may not owe.
Honesty and integrity goes a long way in business.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
Great story with a great ending.
The hotel buyers are good for business with my local B&M dealer. After getting what he felt was a sour offer from the traveling hotel buyer's, a guy walked in with $2900 face value of 90% coins in a pillowcase once that were put up in the late 50's. Needless to say he was surprised how much the hotel buyers were gonna rip him a new one and was thankful that he had heard of this coin shop on the radio.
Too many positive BST transactions with too many members to list.
And a rattler PCGS MS65 also reached $20,000+.
What I think many B&M's would have done with that group of coins was to offer strong on the silver items, and then try to get the 3cn on the cheap side.
While I don't condone that, it's probably how most others would have approached it. Those guys tried to get both parts of the deal cheap.
If $8K for a coin that is worth no less than $20K all day long is not a rip, I'm not sure what is. Just because a shop has a big rent to pay doesn't necessarily
entitle them to pay 25c to 30c on the dollar. There are plenty of shops doing quite well w/o paying 25% on better rare coins. But I've seen that at my local
shop as well. In that instance several very rare mint state 20th century US gold coins came into the shop raw and were purchased for 30%. Their wholesale
value at that time was around $80,000 for the group. In this case there was no AMRC or anyone else to get the word out.
Armenia, thank you for sharing that story, and am glad that it had a happy ending for
all concerned; it's very unusual to find so esoteric a valuable coin amongst the clutter.
Looking forward to your class this Summer, I have already signed up for it. Myself and
Glenn Holsonbake are co-instructors at another 2nd Session Course, The Coinage of
Charles Barber.
See you in Colorado.
~~~~~~~~~~~~
Coin collecting is not a hobby, it's an obsession !
New Barber Purchases
Any chance it was minted in china?
<< <i>How is a $20,000 coin mixed in with silver?
Any chance it was minted in china? >>
It was in a PCGS slab but I guess there's a slim chance that the slab could also be counterfeit.
Worry is the interest you pay on a debt you may not owe.
This is good stuff. I eagerly look forward to more of your first-hand accounts.
<< <i>
<< <i>How is a $20,000 coin mixed in with silver?
Any chance it was minted in china? >>
It was in a PCGS slab but I guess there's a slim chance that the slab could also be counterfeit. >>
Hence the reason for the "process" (going to PCGS and CAC) as discussed earlier as you are absolutely right!
Larry L.
Maybe they read this board.
Good on you for the time and effort you took. It's a good example.