Raregoldcoins.com: Has ebay made the coin dealer an endangered species?

RYK · February 22, 2006 2:43AM

Link to article

I also agree that the self-service marketplace has changed the landscape significantly. Wanna buy a coin? Buy it on ebay and avoid the middleman. Wanna sell it? Sell it on ebay and avoid the middleman. This approach to coin collecting can be successful but it depends a lot on the knowledge and experience of the collector and the type of coins he/she chooses to collect. For some series, ebay is the best way to go, buying or selling. For others, there are more traps than gems and/or the coins are thinly traded.

I personally would like to see more older or established dealers take in younger, aspiring numismatists. I do see this happening to a degree, but not nearly enough.

ziggy29 · February 22, 2006 3:11AM

I don't think so. I used to think that, but not so much any more. The bigger eBay gets, the less attractive an alternative it becomes.

Many nice and highly desirable coins with good images on eBay get "sniped" to a price level considerably higher than even a reputable specialist dealer would charge from a fixed-price list for a similar coin. This tips the scales back to the dealers.

Unless nice quality coins can be consistently purchased for a fair amount below a high-quality dealer's prices, I think the "smart money" will de-emphasize buying on eBay. In this respect, eBay bidders have become a victim of eBay's success. As more and more of the nicer stuff on eBay gets moon money and above, the more sense it makes to begin (or rekindle) business relationships with your favorite dealers.

Fairlaneman · February 22, 2006 3:19AM

Most young people probably would rather be a Tiger Woods or even a few steps under. Some how I think the money would be better and the job much more rewarding.

Ken

ColonialCoinUnion · February 22, 2006 3:29AM

Today's collectors have unparalleled access to coins on both the buying and selling side, so in that limited sense most collectors don't need a dealer anymore.

On the other hand, the opportunity for a collector to buy and sell all the wrong stuff and get screwed is at an all time high (particularly based on today's prices), so working with a knowledgeable adviser who knows coins is perhaps more important than ever.

ziggy29 · February 22, 2006 3:32AM

<< <i>Most young people probably would rather be a Tiger Woods or even a few steps under. Some how I think the money would be better and the job much more rewarding. >>

Then maybe they shouldn't demand that the new blood be "young." I'm not far from a point in my life when I could take a significant pay cut to do work I enjoy (probably 5 years or less), and I know I would be enthusiastic about working around rare coins. But I'd probably be mid-40s by then, so even if I planned to keep at it for 20-30 years (which I might for work I loved) perhaps none of the established dealers, TPGs or other employers in the coin business would likely want much to do with me.

relayer · February 22, 2006 4:25AM

Wanna buy an AT'd Peace dollar? Buy it on eBay
Wanna sell an AT'd Peace dollar? Sell it on eBay

But without a dealers participation, you won't get it holdered at NGC. So eBay is nothing without dealers making it possible.

streeter · February 22, 2006 4:31AM

My experience has been that you need to see the coin. I've been buried by ebay sellers with stuff that I just put on a local bid board and take my loses.

The last two transactions around Christmas--with a paucity of bidders- I ripped a couple of transactions and the sellers did not ship and couldn't provide any shipping information. But they gave me great feedback when they cashed the POSTAL MO.

Ebay has turned into a junkyard.

RYK · February 22, 2006 4:32AM

On the other hand, the opportunity for a collector to buy and sell all the wrong stuff and get screwed is at an all time high (particularly based on today's prices), so working with a knowledgeable adviser who knows coins is perhaps more important than ever.

I could not agree more. When I am buying/selling less expensive coins, I am comfortable doing it on ebay, on the bourse, on the BST, etc. When the stakes are higher, I always get expert help.

291fifth · February 22, 2006 4:33AM

Smart dealers have learned to use eBay themselves.

TwoSides2aCoin · February 22, 2006 4:49AM

what we do not need are big shots in the biz beating up or inferring that newbies in the biz are Wannabes. It's just like using the "N" word for some of our brothers and sisters. It is disparaging, disheartening, rude and insensitive and reflects no mastery of one's language or sensitivity to their attempt to "grow" our business.

These boards are okay by me cuz I spent enough time in the military to know a KNOTHEAD when I read one, but for those who show up here cuz they got grandma and grandpa's old wheat cents that probably aren't worth typing about, then having to read some comments on the boards, well... we all would do better to encourage and nurture "newbies and wannabes" and not make them feel like they are the scum of the earth with a box of "modern crap"... (okay it's funny to you veterans, but think of our children)

I also am not suggesting that these boards are filled with those types, but I have sure read enough over the past six months to steer clear of some... it is why I tend to joke more, and at least try to laugh.
Ebay and online auctions tend to sanitize where some dealers and collectors tend to demoralize

okay, there's my two cents worth....
without having even read your link RYK

now that I've read the link............I'll stand by my words.

rhedden · February 22, 2006 4:50AM

What's the difference if you get screwed on ebay, or screwed the old fashioned way? There were just as many cheapskates and crooks at coin shows in the 1980's, but now they've taken their business to the internet too.

mirabela · February 22, 2006 5:47AM

I have come to the conclusion that I can more reliably find coins I will really enjoy owning from a certain handful of dealers than I can find them on eBay. Now and then I turn up something really cool on the BST, too. I don't rule anything out, but the ratio of awesome coins to hours spent trying to find them seems more favorable with a half dozen known dealers than anywhere else. As long as this remains the case for enough collectors -- and I don't see why I should think it won't -- then the dealers aren't going anywhere.

coinlieutenant · February 22, 2006 5:49AM

Since I am one of the people thinking of joining the small pool of younger dealers, I would say that one of my goals is to provide service in a manner that proliferates reliance on a dealer. Collectors, especially new collectors are so focused on price comparison that they miss what most seasoned collectors realize; a small group of honest knowledgable dealers is your best friend.

Of course, every dealer wants to facilitate reliance on a dealer...however, many dealers just want to take take take, and not give in return, other than the actual product.

Ebay will NEVER fill that void, although there are a small number of good ebay dealers. However, it is impersonal and without a medium to spread knowledge. Dealers in some cases are scared of the informed collector. Exactly the opposite kind of customer that I want when/if I start my business. I want knowledgable collectors that understand coins and arent slaves to greysheet or other price guides. I want personal relationships with lots of dealers around the country to provide quality coins to a group of intelligent and well informed collectors.

Think Jerry McGuire...its all about the Qwan...

J

drwstr123 · February 22, 2006 6:36AM

<< <i>What's the difference if you get screwed on ebay, or screwed the old fashioned way? There were just as many cheapskates and crooks at coin shows in the 1980's, but now they've taken their business to the internet too. >>

Isn't that the truth! I.ve found some scumbags online and I've met some wonderful people online. Kinda just like the real world. Online has re-introduced me to the hobby, with both good and bad but without parking.

RYK · February 22, 2006 6:39AM

Collectors, especially new collectors are so focused on price comparison that they miss what most seasoned collectors realize; a small group of honest knowledgable dealers is your best friend.

Well-stated, Grasshopper.

Longacre · February 22, 2006 9:21PM

It is a nice article. I wonder whether it is economically possible for a dealer to take a young numismatist under their wing and show them the ropes of the business. Other than having the YN as an unpaid intern, I am not sure if it makes sense to pay the YN to learn. I do think it is a great idea to have an apprenticeship concept in numismatics, and it will serve as a way for YNs to truly learn all aspects of the business. It is similar to the way I feel about law school-- they should ditch the 3rd year, and require all law students to enter into an unpaid apprenticeship with a senior lawyer for a year. That is the only way to learn how to practice law. You can't learn anything from a law school textbook. The same with numismatics. You have to get out there and "do it".

TheRaven · February 22, 2006 10:10PM

I will not do any business on ebay.....

In my opinion the risk is higher then the potential reward.....

DeepCoin · February 22, 2006 11:58PM

I think the title is somewhat misleading. eBay is making the storefront more obsolete, not dealers. There are many dealers who have expanded their business to eBay. I think the one place the storefront has the advantage is when they deal with people who inherit collections and have no interest in coins, nor do they know anything about the hobby. The storefront dealer will typically do very will in this situation.

What eBay has done is allow the collector who has a nice little collection to sell upgrades without getting seriously damaged in the transaction. Of course, much depends upon the series and grades involved. The coin market really exists in quite a number of discrete segements. We see individuals here all the time who are quite the exception to the average collector and enjoy coins well beyond the reach of many.

There is only space for a very limited number of dealers at the high end of the collecting spectrum. For every firm like Legend, there are a 100 guys selling 1999 silver proof sets.

I would argue that eBay has helped the hobby immeasurably in that it has stimulated demand from folks who do not live near a local storefront dealer or where the regular large coin shows are held. eBay should be considered as a part of the internet as a whole in my view as it is the electronic age that has opened inventory across the country to everyone.

Just MHO on this.

chabot510 · February 23, 2006 12:09AM

I personally do not think that ebay has made the coin dealer an endangered species. I believe that the lack of new and younger dealers is all a matter of the booming coin market. To become a dealer of any noticeable size, you must have a good amount of capital. As D. Winter stated, it is now almost impossible to start without a six figure dollar amount.

As a young dealer myself I am plagued by not having enough capital at times. Luckily, I have been creative and have had support from several key people in borrowing money from various sources in order to stock my inventory.

JSsson · February 23, 2006 1:07PM

I still see many coin dealers around, and it seems from what I see here there are plenty of younger dealers who can fill the void in the future. I don't believe that coin dealers are an "endangered species" in any way, and I think the personal touch will be important for many years to come.

PerryHall · February 23, 2006 8:24PM

Many coin dealers that I know worked in one of the professions and upon retirement became full time dealers using their coin collections as inventory. They could set their own hours and could supplement their retirement income doing something they enjoyed.

Michigan · February 23, 2006 9:57PM

Big advantage Ebay has over local dealers is the wide selection of coins available. I haven't bought anything
from the two local dealers in ages because they just don't have what I'm looking for.

Some people live in rural areas with no dealers or local shows to attend - Ebay is very handy.

Buying face to face from a dealer can sometimes be an intimidating experience that some people would
just as soon avoid - and some dealers also would just as soon avoid some buyers who can make
life difficult as well.

Raregoldcoins.com: Has ebay made the coin dealer an endangered species?

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