Nothing. I mean almost ...NOTHING.... beats a "guaranteed buyback."
topstuf
Posts: 14,803 ✭✭✭✭✭
My first shop was between 2 other dealers.
Not a ..great...situation.
ONE of them offered a ...guaranteed buyback. 
Their "policy" was .... believe it or not.... A guarantee to buy ANY coin they sold for. EITHER... grey sheet OR an accumulated TWENTY PERCENT PER ANNUM.... appreciation. In perpetuity!
This was HARD to "sell against."
I had many customers (many very memorable) tell me that they would not buy from me ...against...that "guarantee."
Now, bear in mind that they also used television commercials ...(daily on a financial channel) ...to entice buyers.
They had a fine sounding named "advisor" who was on staff and "counseling" potential coin buyers.
Well, they went out of business. SURPRISE SURPRISE 
However, to unknowledgeable people, it sounded great!
When they closed up, the first people to call ME were the same ones that I had told that such a policy would be impossible (yes, they also had the same "guarantee" on bullion. )
We all know that this "buyback" is influencing a lot of people to count on it and divert their purchases to that policy from whoever offers it.
I'm surprised that many dealers haven't gone that route.
It is powerful beyond belief!
Guarantees expire when the guarantor does. 
FWIW
Comments
Thanks! Great story and lesson.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Three coin shops in a row! Almost like a coin show.
What was really cool is that they offered to STORE bullion for customers.
About the second call I got was from a guy who had called indignantly about 2 weeks before The DAY because I wouldn't ....store... his 70 Krugerrands.
I have to admit a bit of satisfaction when he called to ask what he could....do.. about the situation.
Hmmmmm..... :'(
It's amazing how people will accept a guarantee from anyone as if it is from a strong company like Apple or American Express.
I made a purchase under a guaranteed buyback from a dealer who advertised nationally in full page ads in Coin World. He refused to honor it claiming that in his state he was not obligated to keep a promise after ten years.
i believe that Hannes Tulving offered a similar buyback guarantee and eventually went to prison when he was unable to honor his guarantee.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Wow, interesting, thanks for sharing !!!
There is a lot of fraud and chicanery in numismatics. There is no such thing as a reliable, dependable guarantee of any kind in this hobby.
You should out him.
People will fall for anything especially if
well presented.
Coin fads come and go, coin business is volatile full of risks, but good deals can be made. One has to make his own deals.
Yesterday a dealer came to my table said he would buy 2 coins I had $98 in for $240 what I quoted - said wb back (cdn bid on them $220). Both ones slow moving, wanted c them go. Nothing happened. Couple hours later went over to his table - he said he was about to come over. I asked him price on $5 Lib MS 62 happened to c in his case (perhaps get a deal) he said $325 (cdn bid $335, cpg $450, PCGS PG $510). It is a nice coin - gave him my 2 coins plus $85 for it. So got my sale plus what looking for USGTC close to melt.
Nice parallel to many of the TPG guarantees which have evaporated without a trace
Latin American Collection
It is not a guarantee without a legal, signed contract....Anything else is just carnival hype....Always ask them to put it in writing. Cheers, RickO