how trustworthy is the coin dealers newsletter (CDN)
fc
Posts: 12,804 ✭✭✭
I am such a skeptical person. It is in my genes.
CDN was started in 1963 by Orvil L. Payne. It was created by dealers
for dealers. The history of the company can be found here.
No where on the site, can I find a list of names of who owns/runs/
partners/whatever the business. A heritage article though, did have
some names. Ex-dealers it appears of course. Link here.
In the 1990s, a lampoon of the newsletter came out called the
"Coin Demon Newsletter". It made fun of absurd dealers and the
coin hobby in general. It was published by Bigbootie of Wastelands, California. Info was found here.
Does anyone have a copy of this to share with me?
During the 1970s, CDN was owned by a coin promoter. The sheet
during this time was used by insiders for coin speculation. This info
was also found on the link above. Accurate? Maybe someone here
can fill me in in more detail.
Did the advent of this sheet basically ruin regional pricing by dealers
before the internet? After all, a coin being sold on the west coast
may not be sellable at the same price on the east coast.
Antique stores generally do not use this newsletter. They often just
buy a coin for lets say $10 and then mark it up 100% to $20. A coin
dealer on the other hand rips someone for that same coin for $10
dollars and then marks it up to the greysheet price of lets say $100.
Amazing how they get the best of both worlds.
Well, I would like your thoughts please.
A link that summarizes my worries about this hobby is written
by Mr. Snow of course. http://www.indiancent.com/articles/thoughts.htm
I am beginning to understand why he is well respected.
CDN was started in 1963 by Orvil L. Payne. It was created by dealers
for dealers. The history of the company can be found here.
No where on the site, can I find a list of names of who owns/runs/
partners/whatever the business. A heritage article though, did have
some names. Ex-dealers it appears of course. Link here.
In the 1990s, a lampoon of the newsletter came out called the
"Coin Demon Newsletter". It made fun of absurd dealers and the
coin hobby in general. It was published by Bigbootie of Wastelands, California. Info was found here.
Does anyone have a copy of this to share with me?
During the 1970s, CDN was owned by a coin promoter. The sheet
during this time was used by insiders for coin speculation. This info
was also found on the link above. Accurate? Maybe someone here
can fill me in in more detail.
Did the advent of this sheet basically ruin regional pricing by dealers
before the internet? After all, a coin being sold on the west coast
may not be sellable at the same price on the east coast.
Antique stores generally do not use this newsletter. They often just
buy a coin for lets say $10 and then mark it up 100% to $20. A coin
dealer on the other hand rips someone for that same coin for $10
dollars and then marks it up to the greysheet price of lets say $100.
Amazing how they get the best of both worlds.
Well, I would like your thoughts please.
A link that summarizes my worries about this hobby is written
by Mr. Snow of course. http://www.indiancent.com/articles/thoughts.htm
I am beginning to understand why he is well respected.
0
Comments
One way to test the validity of the CDN is to try to buy and sell the coins per these prices. If you cannot consistently buy or sell coins at a price that is pegged near CDN with a 15% or so spread, the CDN will not work for you. For the coins I collect, most people have little use for it.
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
scarce date XF/UNC bust half dimes for example. Teletrade has so many shill bids and high reserves you can toss out all of their gold
prices and much of the type coinage as well.
roadrunner
These days I much rather look at the Heritage site or Ebay for past sales, it gives me a much better idea.
Chris
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
.... dealers bid below the grey sheet price on most coins listed in the CDN anyway. It is a good guide to go by. It is more reflective of the month to month than the week to week market activity and much closer to accurate than a hard bound red book. The market still dictates pricing, but it really ought to be a monthy or bi-monthly publication. It is Overkill, at it's best and Redundant, at it's worst.
I am a skeptic too, but look at the daily racing form for horses..... It is a mere guide to history and offers an opportunity for one to "speculate" with a more educated guess than just "tossing" money out there without researching one's picks
Or the Wall Street Journal.... everyone needs a little insight to make their picks.
This particular rag "CDN" is about as good as it gets for a weekly publication. (barring these "other" coins that Laura ascribes to).... I speak more from the lower tier, common folks mouth. For us, it is a relatively close guide to what coins are going for. We all know the market has been hot and that is what drives the price more than a publication will.
It's reporting, plain and simple..... Maybe not great reporting, but reporting nonetheless.
Ah, I guess it is about as trustworthy as that guy changing them numbers on the big sign that tells the price of gas at the local gas station every day.
``https://ebay.us/m/KxolR5
In any event, even if the Gray Sheet were perfect, it could only tell you what a coin sold for last week, not what it will sell for tomorrow. Folks seem to forget that this "handicap" is more meaningful in a rising coin market.
Check out the Southern Gold Society
the market. They do a pretty good job of scouring buy lists and other venues to find
what is being paid. They do react quickly and sometimes changes come quickly.