If you were a local dealer, would you pay a premium for anything?
291fifth
Posts: 24,709 ✭✭✭✭✭
Remember, you are now a local dealer and not a collector. This is "product."
My own answers:
Toners - No.
Varieties such as Sheldon, Newcomb, Overton, VAM, etc. - No.
PQ coins - Yes, but with strict limits.
Coins in PCGS plastic - No, not just because of the plastic. For coins to be wholesaled to other dealers, yes, because they do sell better.
Better silver medals/Franklin Mint sets - No, they would all be bought back of melt.
My own answers:
Toners - No.
Varieties such as Sheldon, Newcomb, Overton, VAM, etc. - No.
PQ coins - Yes, but with strict limits.
Coins in PCGS plastic - No, not just because of the plastic. For coins to be wholesaled to other dealers, yes, because they do sell better.
Better silver medals/Franklin Mint sets - No, they would all be bought back of melt.
All glory is fleeting.
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Comments
maybe an tiny exception on PQ rarities......maybe just above melt.
Too many positive BST transactions with too many members to list.
-Paul
<< <i>I completely agree with all of your answers, 291fifth. I work for a local B&M dealer, and when he wholesales coins, he does not get premiums for these things. If he had a ready and willing market that would pay a premium for those things, he would pay a premium.
-Paul >>
It's business.
<< <i>Remember, you are now a local dealer and not a collector. This is "product."
My own answers:
Toners - No.
Varieties such as Sheldon, Newcomb, Overton, VAM, etc. - No.
PQ coins - Yes, but with strict limits.
Coins in PCGS plastic - No, not just because of the plastic. For coins to be wholesaled to other dealers, yes, because they do sell better.
Better silver medals/Franklin Mint sets - No, they would all be bought back of melt. >>
Any dealer, local or otherwise, should pay a premium for any coin that he can then sell for a premium. If he has customers who buy toners for a premium, then the dealer should buy them for a premium. If he doesn't, he shouldn't. It's not complicated.
But to simply decide 'toners-no, PQ coins-yes' is silly.
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
That and his sense of fairness.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>I think the answers all depend on how much the dealer can re-sell the coins for. They are inventory to him. >>
I agree with Longacre. I estimate what I can sell the coins for, then figure out what I can pay. On key coins, I figure the market is nationwide, so I have to pay more than for something like bulk lots of wheat cents, for which the market is more local (because of shipping costs).
An authorized PCGS dealer, and a contributor to the Red Book.
I have sometimes set up at local shows and sold coins and paper money. The last time I did so I had many Sheldon numbered large cents and even a few nice toners.
There was absolutely no interest in the toners since I was asking a premium. I eventually took them to the ANA show and sold them to some dealers for minor premiums. Not worth the effort.
Locally, there is only one collector I know of who openly seeks out Sheldon varieties. (I'm sure there are others who try and cherry-pick, but who cares about them...they only buy when they can pay no premium over the base value of the date.) This collector looked through my stock at great length and eventually bought a few coins, none at any premium over the base value of the date. Eventually, I sold one of the Sheldon varieties at a considerable premium in an eBay auction. However, there were only two bidders that wanted the coin at more than the base value for the date. How often is a bidding war like that going to happen? Again, not worth the effort to supply coins to a bunch of cheapskate buyers.
I have a collection of modern medals, many of which are silver. I recently tried selling some of my duplicates on eBay. They either sold for below melt or didn't sell at all when the minimum was barely above melt. Another bunch of cheapskate buyers who aren't worth the bother.
Then there is the issue of the value of the dealer's time. Let's say a widow walks in the door with a nice group of large cents or capped bust halves. None of the coins are attributed by Sheldon or Overton numbers. Should the dealer:
a. Offer to attribute the coins for free, even though the widow may then take them elsewhere?
b. Offer to attribute the coins for a fee?
c. Just make an offer based on the dates only?
How much is a dealer's time worth? Many of these people have spent decades learning the field and have extensive and expensive libraries. Should they be willing to attribute for minimum wage? What rate should they charge?
I've been around the field long enough to experience what happens when you get too excited about very thin specialties. This is not something a local dealer would want to risk money on.
In my case, where I specialize in Large Cent varieties, I'd attribute the Sheldons or Newcombs and pay the seller a fair price based on attributing the varieties and their values. If it's a collection of any size and more than a small number of coins, build your time and profit margin into the offer. Many varieties with clear diagnostics are readily recognized by specialists and don't require much attribution work except grading and pricing. You can decide whether to buy or pass based on whether you feel you can sell the material or not and you may adjust you price depending on whether you are going to retail or sell to another dealer. If it's not worth your time - just pass, if you cannot offer a fair price.
Now, if you are cherry-picking another dealer, well ...................
<< <i>Any dealer, local or otherwise, should pay a premium for any coin that he can then sell for a premium. If he has customers who buy toners for a premium, then the dealer should buy them for a premium. If he doesn't, he shouldn't. It's not complicated.
But to simply decide 'toners-no, PQ coins-yes' is silly. >>
I'm with him.