One-way markets and the modern collector.
DHeath
Posts: 8,472 ✭✭✭
One of the earlier threads made me think about the significance of dealer participation in the modern market. Although some dealers DO actively buy holdered moderns (I've sold a few four-figure moderns to dealers without listing them), it seems the vast majority are sold/traded between collectors. Some would suggest that indicates illiquidity or increased risk for moderns. Are the online auction venues changing the landscape? I find it extremely easy to sell nice holdered moderns. In my mind, I'm more skilled as a result of the experience (better photography skills, lack of fear, familiarity with the market, willingness to submit , willingness to buy raw, improved grading skills, etc.) I think most modern guys are. Are the online auction venues impacting dealer participation? I realize dealers are an important component of the market, and are often market makers for very expensive coins with limited markets, but what about coins collected by thousands? Can they compete in that venue? Isn't it easier to sell a coin from your home in a retail venue? Do modern folks try to sell to dealers?
Developing theory is what we are meant to do as academic researchers
and it sets us apart from practitioners and consultants. Gregor
and it sets us apart from practitioners and consultants. Gregor
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is simply in reaction to increasing demand but a few of these dealers do seem to be anticipating
markets a little. While the total value of modern sales at the typical shop still isn't very high, the
total numbers of such sales are growing rapidly.
Raw moderns and high value moderns are getting very easy to sell though there are only a lot
of buyers for the raw coins.
A good rule of thumb is that if anyone has access to a large number of raw coins and the coin is
fairly common then it will be difficult to sell the slabbed coins to any wholesale buyer. It appears
as though some of the raw coins are finally starting to dry up so there may be much more active
markets in these areas.
<< <i> Are the online auction venues changing the landscape? >>
Yes. And moderns are a huge beneficiary. I think not only have the online auctions created a two way street for moderns, to me it looks more like a freeway. Some dealers are trying to get into the race, but for the most part, with a couple of exceptions, they are being left far behind.
I agree. I am actively buying many different modern coins right now, but often must compete in auctions to buy them, just like classic collectors and dealers must do when buying many nice classics that come to auction. Collectors have easy access to sell their own material on the net now or can easily consign to an assortment of auctions - the landscape has certainly changed. But, with doing it alone, the collector does face the prospect of making a gross mistake in the sale of the material. For example, in a recent major auction, a handful of very scarce moderns were placed in the auction unreserved. I represented a customer who was able to buy the handful of moderns for about 40 cents on the dollar. That particular collector would have done probably 2x as well had he simply contacted one of the modern dealers to offer those coins dierctly (and would have been paid instantly instead of a roughly 4 month delay from sending the coins to auction to getting a check in the mail).
Wondercoin
The Ludlow Brilliant Collection (1938-64)
<< <i>Moderns are prone to a one way market because many of the dealer participants only "make their own" as they say. >>
Precisely. Those which can be made from raw coins tend to get made by the collectors who want
them or the dealers who supply the markets. These dealers prefer to find the coins rather than buy
them.
The point that seems to escape the modern bashing chorus is that most moderns which sell for substan-
tial premiums are far too scarce to have a reasonable expectation of making them yourself.
This is why they sell for high prices; they are scarce.
I hope this helps.
---------------------------------
"No Good Deed Goes Unpunished!"
"If it don't make $"
"It don't make cents""
<< <i>What are moderns? 1800+? 1900? >>
Do a search. There have been past threads discussing this question.
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
My personal definition is 1940 forward.
and it sets us apart from practitioners and consultants. Gregor
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
Russ, NCNE
At least once a quarter this gets discussed. Everyone knows that the modern era began with the Lincoln Cent (1909).
(I make it a point to give a different answer every time it comes up.)