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CDN Pricing for non-dealers
erwindoc
Posts: 5,456 ✭✭✭✭✭
I was glancing through a CDN supplemental insert I got from a friend and it had pricing from a couple of years ago. Accounting for the rise in silver pricing, the prices were still very attractive and I would suspect that for non-silver coins that it hasnt changed much. How does a collector or non-dealer take advantage of the pricing in it.
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CDN is meant to be wholesale (dealer to dealer), so you need to find a way to buy wholesale or negotiate real well with dealers.
Also, different dealers use the CDN differently. It is "wholesale"; but for very commonly traded issues dealer to dealer pricing will actually be a percentage back from CDN with the intention of selling to a collector at CDN.
-TEJ
<< <i>CDN is just another tool. One that is a few years old is not very reliable so it would be worth getting one new or from the previous month (just ask a dealer, they usually have one).
Also, different dealers use the CDN differently. It is "wholesale"; but for very commonly traded issues dealer to dealer pricing will actually be a percentage back from CDN with the intention of selling to a collector at CDN.
-TEJ >>
To be fair...you should also state the opposite is true as well!
If you go to one or more shows regularly, then I would suggest either looking for wholesale-type dealers yourself or else going to your regular dealer(s) and describing the type of material you want the price range you're looking to pay. If you have a good relationship, your dealer will point out the wholesale-type dealer. If you have a great relationship, your dealer will go to that dealer, get the material you want and then offer it to you at a nominal profit.
Check out the Southern Gold Society
<< <i> If you have a great relationship, your dealer will go to that dealer, get the material you want and then offer it to you at a nominal profit. >>
This!
You have to be careful out there.....I know a dealer who always touts to customers at his table that he prices coins at "Bid" 'just for them'....the problem is, he is a notorious overgrader. He does NOT sell his nice slabbed coins anywhere close to Bid.
Other observations - coins with nice toning, super original surfaces, or legitimately scarce coins (better date seated and Barber coins, early large cents, etc.) rarely sell anywhere near Bid, even dealer to dealer. On the other hand, many dealers would probably be happy to sell Proof sets and other common material to anyone at Bid. Of course, they are paying well back of Bid for this stuff.
<<<---Very few find a champ like my little friend.
<< <i>Collectors who want to buy coins at CDN prices are like dog owners that go to the pound to get a pet.
<<<---Very few find a champ like my little friend. >>
Provided that the CDN reflected wholesale values for all series, I might understand your analogy; however, there are several series where CDN bid and ask are at or near retail prices. In some cases, coins can be had in retail transactions for less than "bid." Examples of this included classic commemorative coins and generic Morgan/Peace Dollars in high grade. As such, I think your analogy is off just as much as Greysheet pricing often is. This also cuts the other way for some series, and your analogy might apply to some dealers. For some coins, you cannot possibly buy them at or near bid or ask (even if you are a dealer).
I would suggest a reference like CW Trends, Redbook, or the PCGS price guide to gain a consensus. Even then there are certain key, scarce issues one will have to pay strong prices for in order to acquire not to mention esoteric examples like rainbow toners.
$1100 to $2500.....yet CDN bid/ask is $1500/$1650 or thereabouts. Getting a price based on CDN w/o knowing the precise quality of the coin is basically useless.
Certainly stickers, + signs, stars, etc. would all help a prospective buyer in trying to determine where on the grading contiuum that their coin resides. A price of $1400
could be a burial on overgraded dreck, while $1800 could be a steal for a coin that is borderline upgradeable. On many better coins, the CDN bid and ask levels are well
under current market prices. So one could pay over current bid/ask and really be stealing the coin. I recall one time buying a better date AU58 draped bust half dime.
I had to pay MS60 CDN levels! The nerve of that seller....lol. And I was happy to do that considering that an AU58 was worth 2X to 3X MS60 CDN money.
If one studies the pricing and grading of their own area well, then can consistently "overpay" based on sheet levels for the coins they buy....and end up with bargains each time.
The sellers will think that you're an easy target. If you're lucky, they'll keep finding coins to "stick" you with. In the end, the sheet pricing is often far less an issue than the
quality and rarity of the coin. CDN is just another price guide. It could represent a burial, full retail, wholesale, or the bargain of a lifetime. Depends on many factors. The prices
of many better date 18th and 19th century coins are often too low. The same can be said for quality better date 20th century circ coins (1901-1930).