The future of the coin dealer.
oldgoldlover
Posts: 429 ✭✭✭
The internet has done wonders helping put buyers and sellers together over the few decades no matter what you collect or need. It has also put several jobs six feet under like travel agencies. I am wondering how long it will take to put more buyers and sellers together at a smaller spread. You can now get all the common coins you would ever need online and some very rare coins are on E BAY but that is one source I avoid, My belief is the dealer will have to live with smaller margins and be more of a finder/consultant for the quality material. It seems to be starting now but selling out of your own inventory will become increasingly difficult as a result of inventory carry costs and liquidation time. In coming years there may well be a site where third party brokers will be paid to evaluate the graded coin and determine what it should sell for transaction or not. They will be fee based and have no conflict and no carry inventory but put buyer and seller together and oversee the transaction to make the trade fair to buyer and seller. I know of one large dealer that sells out of a very large dealers inventory at a markup.
Answers
I would never buy my high value coins without knowing the dealer or trusted eyes on the items.
All my small items I buy on my own.
All my mid range coins I buy in my own via auctions but mostly with CAC approval. I've purchased many without and they have been CAC. (See crazy thread on cac). Or I buy through a trusted dealer. I don't name names but her initials are LS.
All my high end coins have to be cac, eyed by two others and myself. There is no other way.
So to comment, since there is no question really: yeah. Smaller coins the net will make it "easier". I'm not going to a coin show to buy. 2015 nickel for my complete nickels set.
I still go to coin shows to talk to the dealers and mingle but these days if I'm not bidding, it's mostly for a beer. Ha ha.
My Type Set & My Complete Proof Nickel Set!
Margins might get smaller due to technology but coin dealers still add a lot of value and will continue to do so. By definition they get to look at tons more coins than collectors and will always have (on average) better eyes.