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Is the currency of coin shows still hard cash?
MGLICKER
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99% of my buying and selling is online, so virtually all payments are electronic.
Tucson show is in town and though I skipped today, I may drop by on Saturday.
Does one still need a pocketful of FRN's to buy coins at a show*?
*I have no problem paying the 3% upcharge to use plastic or paypal if the coin is right and my cash stash is depleted.
Tucson show is in town and though I skipped today, I may drop by on Saturday.
Does one still need a pocketful of FRN's to buy coins at a show*?
*I have no problem paying the 3% upcharge to use plastic or paypal if the coin is right and my cash stash is depleted.
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I also take both credit cards (with Square) and Paypal, but almost nobody uses these.
In doing shows large and small since 1989, I've been very fortunate to have taken a bad check only once. It was for $25, and when contacted the gentleman made it good immediately - including fees.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
<< <i>In my experience cash is universal, checks require references, and credit cards can be a problem. >>
True. Problem is one never knows how much is needed.
"In God we trust. All others pay cash."
At the recent FUN show, I was playing middleman on an item - delivering it from one collector to another - the collector at FUN offered to pay for it with a wad of cash and I told him to give me a check instead. I just don't like walking around with all of that green stuff. Checks are fine by me.
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2) If your references are good, you will have no problem using personal checks or credit cards
3) If the margin on a particular coin is thin, the dealer will prefer a check over a credit card
"Seu cabra da peste,
"Sou Mangueira......."
I've dealt with who can vouch for my check. It's usually enough to just mention names. That said, I usually carry
around up to a grand in cash "just in case". Some dealers are more inclined to take a check if one pays a part
of the invoice in cash.
EDIT: If the dealer really didn't want to take my check and I loved the coin, I would consider letting him/her
wait to ship me the coin until the check cleared. That would require my trusting the dealer in question, of course.
I generally don't like using plastic to buy coins at a show.
Second is check with proper ID AND references
Last and seldom used is plastic! Cost the dealers a percentage that is in some cases more than the profit.
"She comes out of the sun in a silk dress,
running like a water color in the rain...."
I might take a check on something under $50. Credit cards, no way. Yes cash is king at shows and plastic money is not looked on favorably.
I do take bullion coins at melt as trade in (assuming its something I think I can sell) and numismatic coins can be traded in based on CMI x CDN Bid or else blue sheet - PCGS, NGC only. This may seem harsh but I have listed slabbed coins on ebay (auction starting at 99c) that could not even bring blue sheet. That's ok if someone wants to trade me coins to buy something from me at a show bc they don't have the cash, but I certainly don't want to pay more for them than what I could blow them out for on the Bay!
Of couse some will take other forms of paymemt but cash is king, there are always atm machines. Numerous dealers carry lots of cash at all shows ther is zero exception to that and numerous buyers also carry lots of cash.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
I've made purchases at shows before with paypal, right then and there. If you want something you can make it happen, but don't give up, trade, flip make things happen
RAD#306
<< <i>cash is still the man.. Sept show in Illinois, a man pulled 2 stacks of hundred dollar bills from a small bag ...over $20,000 .. for some gold coins >>
Depending on the dealer, that much cash could easily kill a deal as well. Technically that transaction would require the filing of an 8300 form, which many customers may not like.
<< <i>
<< <i>cash is still the man.. Sept show in Illinois, a man pulled 2 stacks of hundred dollar bills from a small bag ...over $20,000 .. for some gold coins >>
Depending on the dealer, that much cash could easily kill a deal as well. Technically that transaction would require the filing of an 8300 form, which many customers may not like. >>
As a dealer I would be reluctant to accept that deal. You don't know where the cash came from, and you will have to file with the Treasury Department when you deposit it. Smart dealers don't want that hastle any more. There are a few dealers on the national circuit who gotten into trouble over this. I won't name names, but it has happened.
If you know the person from whom are taking the check, or that person has great references, I'll take a check over cash any day.
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<< <i>
<< <i>cash is still the man.. Sept show in Illinois, a man pulled 2 stacks of hundred dollar bills from a small bag ...over $20,000 .. for some gold coins >>
Depending on the dealer, that much cash could easily kill a deal as well. Technically that transaction would require the filing of an 8300 form, which many customers may not like. >>
As a dealer, if you go to your bank to get $20K in cash for buying at a show is your bank still required to file the 8300?
<< <i>
<< <i>
<< <i>cash is still the man.. Sept show in Illinois, a man pulled 2 stacks of hundred dollar bills from a small bag ...over $20,000 .. for some gold coins >>
Depending on the dealer, that much cash could easily kill a deal as well. Technically that transaction would require the filing of an 8300 form, which many customers may not like. >>
As a dealer, if you go to your bank to get $20K in cash for buying at a show is your bank still required to file the 8300? >>
First off its unlikely your bank will just hand you 20k cash as they prefer to be notified in advance, yes I found this out first hand. You dont go to your bank and pull out 20k, you go to your bank and pull out 2k each time till you have the 20k. As far as the 20k transaction, thats not a large amount of money when it comes to coins, pretty common for dealers as well as buyers at large shows to have at least that much cash on them, I always have my buisiness checks in case they are needed but cash is always king PERIOD. When I go to a large show such as fun I am in a hurry the first day. I am there to buy inventory on dealer set up not spend time writing checks. I am hitting table after table and buying coins, I prefer to make it quick and not spend time writing checks. If I must pay with a check then I scribble the amount and leave the check and coins then swing by later to finish up.
<< <i>
<< <i>
<< <i>
<< <i>cash is still the man.. Sept show in Illinois, a man pulled 2 stacks of hundred dollar bills from a small bag ...over $20,000 .. for some gold coins >>
Depending on the dealer, that much cash could easily kill a deal as well. Technically that transaction would require the filing of an 8300 form, which many customers may not like. >>
As a dealer, if you go to your bank to get $20K in cash for buying at a show is your bank still required to file the 8300? >>
First off its unlikely your bank will just hand you 20k cash as they prefer to be notified in advance, yes I found this out first hand. You dont go to your bank and pull out 20k, you go to your bank and pull out 2k each time till you have the 20k. As far as the 20k transaction, thats not a large amount of money when it comes to coins, pretty common for dealers as well as buyers at large shows to have at least that much cash on them, I always have my buisiness checks in case they are needed but cash is always king PERIOD. When I go to a large show such as fun I am in a hurry the first day. I am there to buy inventory on dealer set up not spend time writing checks. I am hitting table after table and buying coins, I prefer to make it quick and not spend time writing checks. If I must pay with a check then I scribble the amount and leave the check and coins then swing by later to finish up. >>
I'm aware of the preference to notify your bank before making large withdrawals and the taking out a little every day thing, tho I suppose it's possible they may fall under the "related transactions" thingy. Since the coin biz can be a cash intensive business I was just curious if ealers had any real qualms about withdrawing large amounts of cash for legitimate needs.
As I understand it, not only will a bank have to report a single withdrawal of $20K in cash, but if you come in for $2K on a regular basis, they'll have to report that as a "pattern of behavior," (that is, an attempt to evade the $10K in cash transaction reporting rules) which is why many banks are "de-emphasizing" (that is, closing the accounts of) customers that handle a lot of cash on a regular basis.
I've read a few articles on this in the major newspapers (WSJ, NYT) over the past year.
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<< <i>While I'm not in the retail side of the bank I work for, I still get stuck taking the anti-money laundering training.
As I understand it, not only will a bank have to report a single withdrawal of $20K in cash, but if you come in for $2K on a regular basis, they'll have to report that as a "pattern of behavior," (that is, an attempt to evade the $10K in cash transaction reporting rules) which is why many banks are "de-emphasizing" (that is, closing the accounts of) customers that handle a lot of cash on a regular basis.
I've read a few articles on this in the major newspapers (WSJ, NYT) over the past year. >>
You are not going to outsmart the banks... PERIOD. These AML rules are the way they are for a reason and the banks and governments don't want to be made a fool. I am not in banking either but I am heavily involved in ICTA so I get plenty of training from that side. On our side of things there are two types of reports an 8300 and a SAR and I believe it is similar for a bank. The 8300 is for simply that you took in 10k+ in cash in a single or related transactions. A SAR is when a company or institution take in cash that is not explicitly required to be put on an 8300 but raises suspicion for whatever reason. This could range from someone bringing in 7k in cash, all 10s and 20s that wreak of pot to someone bringing in large amounts of cash frequently but not doing anything to indicate the transactions are explicitly related. I am paraphrasing this so don't take it as the gospel, but according to the ICTA AML consultant and former criminal investigator for the IRS, 8300s rarely get looked at unless you are getting investigated for other things. Every SAR report is at least looked at. Further, you will never know a SAR was filed against you as it is illegal to tell someone that a SAR was filed.
It is absolutely true what Dave is saying that banks are closing coin dealer accounts. The biggest reason is not deposits and withdrawls though it does contribute. The largest reason is non-compliance with AML rules and not having the proper documents on file. The rules have been in place for a long time they really just started enforcing them
If you are a coin or bullion dealer who indiscriminately takes in a lot of cash in large transactions, you are opening yourself up to money laundering charges. Think about it. Could a drug dealer or bribe taker ask for anything better than to convert their cash in gold, silver and platinum without leaving a lot of money on the table to cover the risk of such a transaction? That's the risk dealers take if they don't watch their step with such transactions.