If you consign a coin to a dealer and they are victims of robbery, they croak, etc...
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I have always been hesitant to consign coins for reasons like this. What if they're the victim of a robbery and your coin goes bye bye and their insurance won't pay because they were somehow negligent. I hate to ask but would you have a legal case against them? Or if they kick the bucket and their wife doesn't know nothin' about coins.
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The dealer or his corporation or his estate is in the hook for the loss. Just remember to have him sign for the coins, just in case.
Doggedly collecting coins of the Central American Republic.
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If you consign your coins to a dealer who does not have insurance, he may be "on the hook" for the loss, but he may not have the money to actually pay you.
So if you are consigning to a dealer, it's important to ask about insurance.
Coin Rarities Online
Agree with both @MrEureka and @CoinRaritiesOnline regarding financial responsibility. Many folks never think about the risks of consignment, but the financial solvency of many dealers is extraordinarily precarious and if you are going to entrust these financial instruments to them then you had better be able to trust the dealer and know they are financially sound.
In honor of the memory of Cpl. Michael E. Thompson
For the reasons listed in the OP...I keep my coins close to home.
Amazed that folks mail off a good chunk of their net worth to an auction house. A lot of stuff can happen in 4 to 6 months.
Are you all sure? Someone on another forum posted a that on Judge Judy, there was a case where someone consigned something to sell. The place moved and in the process the item was LOST. She ruled the store was not responsible.
https://www.cgccomics.com/boards/topic/433566-judge-judy-and-consignments/
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Yeah I believe everything I see on TV. Not!!!
Amazed that folks mail off a good chunk of their net worth to an auction house
So, are you suggesting the Eliasberg family should have had a yard sale?
Member ANA, SPMC, SCNA, FUN, CONECA
much has been written about treatment of consignments in bankruptcy, because a lot of people have been screwed
Well, if you consign your coins to someone and he sells them but then goes to prison before paying you back, you’re probably screwed. Speaking from experience, of course...
If there is no paperwork or there is paperwork absolving the store of responsibility, then Judge Judy might well have ruled in favor of the store.
It's basic contract law:
If you leave the coins with the dealer with NO paperwork: you are a fool and the store probably has no liability. Hell, you can't even prove the coins were yours anymore.
If you leave the coins and sign paperwork absolving the dealer of all responsibility: then you are a kind-hearted fool and the dealer has no liability.
If you leave the coins and sign paperwork spelling out the liability, then you are smart. You still might not get any money if the store goes bankrupt, but you'll win the legal judgment against the store that is as good as the paper it is written on.
And, before you go off yelling about dealers etc. Has anyone read the fine print on Heritage, Stacks or GC consignment forms? Do they assume full responsibility? And if they went bankrupt before you were paid, would it matter that they do have responsibility?
Life is not risk free. You could get robbed at home. You could get robbed on your way to sell them. And, the thing many people don't think about: if a natural disaster swallows your bank and its safety deposit boxes, unless you have private insurance, you likely have no recourse against the bank. Most banks don't insure the contents of SDB's.
And, heck, if you really want to be paranoid. If you have been dutifully paying your house insurance for 50 years and the house burns down the day before your insurance company goes bankrupt, what percentage will you get on your claim?
Now, I could adopt the fetal position and cry myself to sleep by counting paranoid delusions streaming through my head. Or I could choose to live, be as responsible as I can, and realize that while a few bad things will happen to me, so will many wonderful good things.
Peace, brothers & sisters! LIfe is to be lived not feared.
All comments reflect the opinion of the author, even when irrefutably accurate.
So many right answers here already... Insurance, signed contract, etc.
Even still, in the words of my favorite expensive mouthpiece, "It depends". Issues like this are rarely simple, or quick to resolve.
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First, do not hesitate to ask for proof of insurance. make sure you always get a signed receipt.
Hey you could leave your watch at the jewelers for repair and poof!
Try and get a reference from the PNG (ugh) or some one about the person you are giving coins too.
You can protect yourself
Langbord's should have.
Makes a cash advance from an auction house a little more tempting, even if the terms are probably terrible.
Like everything else, they are no doubt negotiable.
Interesting topic, thanks !!!
This is a question of state law which is potentially subject to nuances in case law and statutes involving several different areas of law (e.g. contract law, tort law, and bailments/standard of care). In other words, consult an attorney in the relevant jurisdiction.
Best practice: consign to a firm or dealer that is fully insured, financially secure, and have written contracts for large value consignments that specifically address insurance, losses, etc. Some organizations like the PNG have (or did at one time) certain minimum asset requirements for members which is useful. The less working capital or assets a firm has, the higher the risk that recovery will be limited or non-existent if things head south.
Performing your due diligence in any financial transaction is critical. The potential for loss is small, however, as noted above, the possibilities are legion. I have not yet heard of a coin shop being consumed by lava in Hawaii...but it could happen. Cheers, RickO
There is no conformity regarding this situation across the states, although most have adopted laws that are modeled after the UCC. Then the fact questions come into play. What state was the coin lost/stolen in? Did consignee have their assets including your consignment seized? All of it matters. It surprises me in this business how much money is traded without any contractual documentation. I will say you are taking more risk than you think unless you are consigning to deep deep pockets.
Even the big boys can go under. It’s surprising how little warning there is at times.
A couple years ago I did a 6-figure consignment with a dealer. It represented a reasonable part of my net worth...... it takes a bunch of trust! Happily it all worked out well but you never really know. All sorts of possibilities and eventualities crossed my mind. You can do your best to take precautions and be careful but at the end of the day you have to trust people.
Might be worth a point or two if an outside insurer offered coverage in the event of a non payment.
Why not use eBay where u have control?