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Buying back a coin you sold
streg2
Posts: 52 ✭
I know there are a lot of dealers and folks that sell coins on here. How do you approach a situation when some you sold a coin asks you if you will buy it back? No matter the reason, could be anything from change in collecting direction to family crisis. Are you willing to buy any coin you sold? Do you offer a percentage of the sold price? 70% 80% 90% just wondering.
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type2,CCHunter.
Ex forum member that has reached the age of dating and college. Coins come last these days!
bob
As for a dealer I think that it is important they buy coins back at fair prices. Of course that price could depend on the market at the time.
I am only a collector, however I did buy a coin back from an ebay sale once. It was a raw wheat with nice toning and I did tout the toning when selling. PCGS did not like the color an qt'd the coin. I bought the coin back and paid shipping. I did like the coin very much and still have it. In fact I am glad I bought it back.
<< <i>If another collector bought a coin from you it's because they liked it too. If your having sellers remorse why monkey around low balling? Go in at 100% buy back or don't even bother. Just be thankful if they agree to sell it back as the opportunity to reacquire is worth more then haggling over a few dollars. >>
He didnt say anything about sellers remorse, he was offered a coin he sold to someone, no idea where you got sellers remorse from or that he should be thankful
First, 20 years ago when I was getting into collecting and before I knew much I went into a shop and bought a couple hundred dollars worth of collector coins. Several days later, after studying them, I went back in and asked the dealer if he would consider buying the coins back, at a discount. I was polite and explained that I had not "shopped" them, but that I wanted higher quality coins. As these were lower priced coins, I suggested a 25-35% discount. The dealer gave me a full refund. Over the years I have spent many tens of thousands of dollars with that dealer and he continues to be a friend and a primary source for my collecting needs.
Second, last year a good friend and mentor passed away. Prior to his passing, and during a brief period when he thought he was getting better, he went overboard and spent 100k or so total on coins with several dealers. Upon his passing, a friend and I went about re-selling his recent purchases for his wife. Two of the dealers, Doug Byrd and Tom Reynolds essentially said they would buy back anything they sold to this individual at very modest discounts...10-15%. That didn't surprise me as I knew these guys. A third dealer who I don't really know also was a class act...Steve Hayden...and I understand he purchased back everything he had recently sold. A fourth dealer with whom I and my friend had done business before sold a high grade set to my friend. I thought the purchase price was quite high, but that is beside the point. That dealer refused to make an offer to re-buy. Said he did not have the cash available. Understandable. I said the family didn't need the funds any time soon. I also suggested a fairly steep discount. He simply refused to review the set or buy back at any price. His prerogative, of course. However, I would never purchase a coin from that individual again.
Tom
The first involved the purchase of a 1920 D in a small ANACS holder graded MS 63. The price paid was really high. When I got the coin I noticed the luster was subdued and the coin appeared dipped out. The strike was good. I tried to cross it at PCGS under one of their promotions. The coin wouldn't cross. I had other knowledgeable folks look at it and they all said it was a dipped out 62 in a 63 holder. Tried to get a buyback from the world renowned Bowers and Merena. I still have a letter from this deal from QDB criticizing PCGS grading. They bought the coin back for about 80%. I took a bath and learned a valuable lesson about coin purchases from the big boys.
The second involved a purchase of a raw MS 63 1926 S. The coin was submitted to NGC and graded 63. Within a year of purchasing this coin, the coin turned from all white to a mottled toning mess in the slab. I mean seriously ugly. It was obvious to me that the coin had been doctored when I purchased it raw. I sent it to the "collectors friend" to review it. He said he couldn't believe what had happened to the coin. He offered to buy it back in the slab for 75% of what was paid. A valuable lesson learned about purchasing raw coins.
The third involved a purchase of a 1918-S in an OGH graded AU 50. The images of the coin were better than the coin. At the time, I was trying to put together a complete collection of SLQ's in OGH. Should have sent it back but kept it. You should always trust your first impression of a coin. I found a lot nicer one graded 58 a few years later. The AU 50 was butt ugly. I tried to sell it at a loss for months. No takers. I sold it back to the dealer for 80% of the original price.
Buybacks are great if you don't mind taking a bath in most instances. I have learned valuable lessons from those buybacks. If I purchase a coin now, I trust my initial instinct and return it. Buybacks are great but you are better off getting it right the first time. An education in buying coins may be tough but it is valuable.
Just my two cents.
I have two other hobbies in addition to coins. The political buttons market is very fluid, and there are really no reliable price guides. The selling prices from one dealer to another can vary greatly. If I could be assured of getting 75 to 80% of what I have paid for many items, I would feel very lucky.
The token and medal market also generally has higher mark-ups than coins. I've made money with medals and tokens, but it has only been due to the fact that the market for those items has gone up a great deal in recent years, mainly due to the Internet IMO.
My third hobby is model trains. There most everything you spend on them is down the tubes. There is a secondary market for used goods, but unless it has somehow how become a "collectable" most of your money is down the drain.
I know that losing money on coins is disappointing, but I don't know of another hobby where your chances for getting back what you paid and perhaps more are any better.
I know that markets go up and down, inventories change, dealers don't like the way I look or are having a good/bad day - still how dealers handle buying back something they sold to you really affects future business, at least for me.
Steve
<< <i>My experiences run similar. Jim O'Donnell sold me a coin that I returned because I found a better one - he gave me back my full cost. I bought a cent from Tom Reynolds that turned out to be one I already had - he bought it back at what he paid for it before he sold it to me (I take him at his word). Gene Bruder sold me a raw PF 65 three cent piece that I recently tried to sell back to him - he refused to consider it. My favorite is J Cline badmouthing my 1916 quarter in a PCGS 40 holder when he had sold it to me as a 50 and had a 35 for sale at more than I was asking for the 40.
I know that markets go up and down, inventories change, dealers don't like the way I look or are having a good/bad day - still how dealers handle buying back something they sold to you really affects future business, at least for me. >>
How dealers handle buy backs affects my relationship with them too. Years ago I made a mistake on an early lage cent. I offered to sell the coin back to the dealer from whom I had bought at 60% of his selling price. He won't buy it back. Needless to he is one those who does not get any of my time when I go to the shows. It was a foolish move on his part given the amount that I spend at some shows, but each their own. BTW I eventually sold the coin for more than the 60% buy price I offered to him.
Looking for Top Pop Mercury Dime Varieties & High Grade Mercury Dime Toners.
<< <i>
<< <i>My experiences run similar. Jim O'Donnell sold me a coin that I returned because I found a better one - he gave me back my full cost. I bought a cent from Tom Reynolds that turned out to be one I already had - he bought it back at what he paid for it before he sold it to me (I take him at his word). Gene Bruder sold me a raw PF 65 three cent piece that I recently tried to sell back to him - he refused to consider it. My favorite is J Cline badmouthing my 1916 quarter in a PCGS 40 holder when he had sold it to me as a 50 and had a 35 for sale at more than I was asking for the 40.
I know that markets go up and down, inventories change, dealers don't like the way I look or are having a good/bad day - still how dealers handle buying back something they sold to you really affects future business, at least for me. >>
How dealers handle buy backs affects my relationship with them too. Years ago I made a mistake on an early lage cent. I offered to sell the coin back to the dealer from whom I had bought at 60% of his selling price. He won't buy it back. Needless to he is one those who does not get any of my time when I go to the shows. It was a foolish move on his part given the amount that I spend at some shows, but each their own. BTW I eventually sold the coin for more than the 60% buy price I offered to him. >>
I'm sure these type of sentiments reflect many collectors' frustrations time and time again. Through the years I can say the bulk of my purchases were from well known, respected, national, and local dealers that I can count in one hand. Nowadays where do I turn to when it's time to sell, certainly none of the aforementioned dealers, but...
1. BST,
2. BST,
3, BST,
1. ONE and only one dealer
2. One and only one dealer
3. One and only one dealer.
Latin American Collection
<< <i>when I buy something I own it, I certainly wouldn't expect a dealer to sell me a coin then offer to buy it back at all, I find it very odd, that people here feel the dealer has any obligation at all to buy back a coin unless its found to be counterfeit or something >>
of course, dealers do not have any obligation to buy back coins they've sold to their customers. However I've read time and time again dealers stating that they'd be happy to buy back coins they have sold. Besides isn't one source of a dealer's inventory coins they have handled in the past? In my situation, the coins I'm selling were bought a decade or more, and in some cases double decades or more (some dealers will call them "fresh coins)."
What is so frustrating is when they make low ball offers for coins that they've previously labeled as PQ, or make you jump through hoops in order to even make an offer on said coins. Coins like MS CC Morgans that can be sold any time, anywhere to almost anyone.
Another example is I sold 3 MS 93CC Morgan to the one dealer. He bought them w/out seeing pics of coins. How kewl is that.
<< <i>when I buy something I own it, I certainly wouldn't expect a dealer to sell me a coin then offer to buy it back at all, I find it very odd, that people here feel the dealer has any obligation at all to buy back a coin unless its found to be counterfeit or something >>
To a point you are right, but if the item was good enough for that dealer to offer at a price at one time, then one would think he would be willing to handle it again at reasonable discount.
Now of the market for that item has totally collapsed, that's one thing.
If the dealer has moved on and is in another area of the coin business or has left the profession all together, that's another.
If the market is the same or stronger, and that dealer is still selling the same type of merchandise, that's another. It says to me that that dealer is out to get people and has no faith in the material he is selling.
If I had a coin that I would not buy back at reasonable amount I'd tell the customer up front. What kind of would that be?
Years a ago a regular customer wanted to trade a certified commemorative half dollar in on something else. It was the worst certified coin I had ever seen. The piece was black as a lump of coal with no luster. I think that it had been dipped and then sent in for grading covered with dipping solution still on it.
I told the guy I didn't want the piece, but he kept going on and on until I took in for 20% below Blue Sheet in trade, which I told that customer was price. I sold the coin to another dealer for 15% below Blue Sheet with the idea that there would be no return. Condemn me if you want to, but that was my approach.
I've always felt that most local shops sell mostly marginal, over-graded or lower end stuff to their customers and that they just don't want it back. For one, they can't afford to buy that stuff back without a huge discount to what they sold it to you for. To do otherwise would expose the huge margins they are working on. They'd rather buy fresh stuff through the door from the unknowing as MS63 and sell it for MS65 money than to pay fair money to buy stuff back from the "informed" at the stated grade. Most of them pray that you never come back as a seller......but just keep buying from them on the one way street. When initiating a relationship with a local shop or any dealer for that matter make it a point of trying to sell something back to them before too much time passes. If you get resistance early on they may not be worth keeping as one of your dealers. And if you never try to sell anything back to them until hour hand is forced? Then there's a good chance you'll get to start your own thread here someday.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>Tried to sell them back - actually just credit towards a new purchase - and was offered a little less than half what I originally paid. They're still in his 2x2s with his hand written price on them so there could be no question about them being his or the price I paid. I was a little disappointed and didn't take him up on the offer... >>
Do you know how long they were in his inventory before you bought them? Do you know how long he expects them to stay in his inventory should he buy them back from you? I suspect the answers to those questions have some impact on the amount he offered to pay you.
<< <i>there will always be dealers willing buy an item, but should any dealer even for a second feel obligated to buy it back or risk someone never doing business with them again ? I just don't see how that is fair, the dealer didn't sell it because he would like it back, he sold it to grind out a bit of profit, if a dealer is willing to do a but back that dealer should be commended, but if a dealer sells a coin and would rather not handle it again, should that dealer be condemned ? I say no >>
You are not going to get consensus on this position. I spend my money with dealers I trust. If they are specialty dealers, I would expect them to repurchase anything I bought from them - and I think most of them do; just maybe not at a price I'd like. Still, I would expect them to make some sort of offer. But if they sell me over-graded crap and refuse to consider buying it back - they are off my list. Furthermore, if they sell coins that they don't buy back - I think one should be wary of them.
Not saying that you are wrong; I just think this position is wrong for me.
Sometimes On a good customer, I will try to pay a little better if I can than I would if off the street.
jim