Why would anyone buy a coin from a coin dealer?

bobbly · February 4, 2008 9:36AM

So the dealer buys his coins from the Auction house, then marks the price up a good 25-30% then sells it to you. So why not just buy the coins straight from the auction house?

fc · February 4, 2008 9:35AM

some dealers have access to coins outside of the auction venue.
imagine an old timer walking into a fun show and selling his 50,000
dollar half eagle collection to lets say JJ Teaparty.

Kinda foolish to not visit their website to check or put in a want list
for a considerably rare item you need to complete your set.

Steve27 · February 4, 2008 9:37AM

What makes you think dealers buy their coins from auction houses?

Lionel · February 4, 2008 9:38AM

Because you just look through that glass at that coin that catches your eye, and the coin winks back at you, and it's love at first sight, and money is no object.

Just guessing, having never bought a coin from a dealer.

Barndog · February 4, 2008 9:39AM

I can't watch or discover every auction or coin for sale that I might want. Most of my nice coins have come from dealers.

bobbly · February 4, 2008 9:40AM

I have learned 2 important things about coin collecting: #1 If you buy from from a dealer, your (probably) going to overpay. #2 If you buy overgraded coins from self graders, your going to overpay.

IGWT · February 4, 2008 9:49AM

Sounds like you're about to reach #3: If you buy exclusively at auction, you're likely buying coins consigned by dealers, and at a higher price than if you had purchased directly from the dealers.

fc · February 4, 2008 9:51AM

#1 If you buy from from a dealer, your (probably) going to overpay.

he has a point there.. especially if you sell the coin in the same year.
there is very few situations where you can buy from dealer A and
sell for a profit to dealer B.

at an auction with fresh material, you have a much better chance of
making a profit in my opinion. especially if you have a good eye for
coins with significant eye appeal.

but who buys a coin just to sell it months later unless it was a mistake?

Russ · February 4, 2008 9:55AM

<< #1 If you buy from from a dealer, your (probably) going to overpay. >>

If you buy from the right dealer, you can flip it in a day for a 40% profit.

Russ, NCNE

ColonialCoinUnion · February 4, 2008 9:59AM

Who do you think are the biggest consignors to auctions?

IGWT · February 4, 2008 9:59AM

<< 

<< #1 If you buy from from a dealer, your (probably) going to overpay. >>

If you buy from the right dealer, you can flip it in a day for a 40% profit.

Russ, NCNE >>

True.

Or you can can forego the profit to keep the coin in your collection.

wondercoin · February 4, 2008 10:00AM

I know someone who bought a coin from a seasoned veteran dealer recently for right around $1,000 that will be reselling it for about $17,500-$20,000 probably later this month. The key is not buying a coin from a dealer vs. a collector vs. an auction. The key is to be an expert in the series YOU specialize in.

Wondercoin

dizzyfoxx · February 4, 2008 10:02AM

I've often felt this very same way. Dealers are of course nice to buy from (the right dealers that is) because they usually have weeded out the undesirable coins, have good quality images and can give an accurate description of a given coin. But, if you're able to do enough research on your own to find out what you need about a given coin, then by all means buy directly from the various auctions.

quickwing · February 4, 2008 10:04AM

<< So the dealer buys his coins from the Auction house, then marks the price up a good 25-30% then sells it to you. >>

WOW, I didn't know it was that easy. I think I'll quit my day job and become a coin dealer.

IGWT · February 4, 2008 10:05AM

<< I've often felt this very same way. Dealers are of course nice to buy from (the right dealers that is) because they usually have weeded out the undesirable coins, have good quality images and can give an accurate description of a given coin. But, if you're able to do enough research on your own to find out what you need about a given coin, then by all means buy directly from the various auctions. >>

Isn't it often less expensive to buy directly from dealers than to buy indirectly from dealers through an auction house?

DoubleEagle59 · February 4, 2008 10:08AM

I actually prefer buying from a dealer than an auction.

In fact in the last 10 years, 99% of my purchases, have been from dealers; 1% from auctions.

Why? Because it's so much cheaper to buy from dealers than it is from auctions. Auctions has commissions, other taxes and 100 collectors/dealers looking at the same coin you're looking at. There's no way you can buy it cheap.

Russ · February 4, 2008 10:09AM

<< << #1 If you buy from from a dealer, your (probably) going to overpay. >>

If you buy from the right dealer, you can flip it in a day for a 40% profit.

Russ, NCNE >>

True. Or you can can forego the profit to keep the coin in your collection. >>

Only if you're insane.

Russ, NCNE

RYK · February 4, 2008 10:09AM

In general, there is no one right or wrong way to buy coins. Unless you are collecting something extremely rare or esoteric (0.1% of the coins or even less), a dealer may be the better place to buy. That said, if you have a system that is working for you, keep on truckin'.

fc · February 4, 2008 10:11AM

wondercoin nailed it.

an intelligent collector who knows his series will always do well.
they know what a rare coin in their series is worth better then
a regular dealer.

they can buy from any situation with comfort.

end of story.

GoldenEyeNumismatics · February 4, 2008 10:38AM

<< #1 If you buy from from a dealer, your (probably) going to overpay. >>

You just need to go to the right dealers.

BECOKA · February 4, 2008 10:41AM

One key point is dealers can see the coins in hand at the auctions. Most buyers don't attend and are wary of buying from a picture on line.

Many people here have first hand experience at how the coin can look totally different than the picture.

The dealer went through the work to fly to the auction, view the coins and purchase the best. They have every right to mark up the prices to cover their time.

antonyfire · February 4, 2008 11:35AM

The goal for my collection is high quality coins. That doesn't mean expensive, just the best of the grade (eye appeal, strike, original surfaces, etc).

Right now I am unable to determine quality vs. run-of-the-mill coins from auction pictures.

Hence, I'm buying through trusted dealers with expertise in the area I'm interested in.

I've gotten stunning coins through this method. I'm not as interested in getting a "good deal" as I am in getting a fantastic coin.

For me, atleast, my attempts at getting a bargain have ended up losing me money in the long run.

cheers!

prenum · February 4, 2008 1:42PM

Sure most expert collectors know more about their specialty than most dealers and collectors. But, they usually have learned this through a collaboration with a trusted dealer. Furthermore, even though they could buy some of the coins they need directly they almost always rely on their dealer partner. Why, because it serves their purpose. Their purpose is to find the best possible coins to satisfy their collecting objective while avoiding all the landmines.

Point #1 - most of the great rarities, and most almost great rarities, are not sold through auction. I know this may be hard to believe for some of you, but that's the whole point - they are sold privately with no fanfare. You have no idea of what is happening.

Point #2 - if you think you are going to buy a great coin at auction, while competing with all the dealers and the collectors they represent, and you think you are going to do it 'cheap', you are dreaming. Just keep your hand up!!!

I think some of you need to plant wheat in your backyards because the bakers might be ripping you off.

percyb · February 4, 2008 1:50PM

Because the coin dealer is handy or convenient or trustworthy and helpful? Is this a test? If so, I'll say all of the above.

vplite · February 4, 2008 2:04PM

<< wondercoin nailed it.

an intelligent collector who knows his series will always do well.
they know what a rare coin in their series is worth better then
a regular dealer.

they can buy from any situation with comfort.

end of story. >>

Or as a wise man once said, "Knowledge is Power."

prenum · February 4, 2008 2:11PM

<< wondercoin nailed it.

an intelligent collector who knows his series will always do well.
they know what a rare coin in their series is worth better then
a regular dealer.

they can buy from any situation with comfort.

end of story. >>

Absolutely, if they ever had a chance to buy the coin.

Griv · February 4, 2008 2:20PM

<< some dealers have access to coins outside of the auction venue.
imagine an old timer walking into a fun show and selling his 50,000
dollar half eagle collection to lets say JJ Teaparty.

Kinda foolish to not visit their website to check or put in a want list
for a considerably rare item you need to complete your set. >>

Why is this even a question? fc is right on. Dealers are professionals just like your accountant or lawyer. It is extremely important to choose the right one(s). Don't cry about fees if you are seeing results. Do you expect them to work for you for free? Sadly, many do. many see this as their hobby and are extremely resentful of anyone that looks to make a profit in the coin industry. These people are MORONS in my opinion. Not too be rude, maybe they prefer idiots or retards. Either way, it's a messed up dichotomy. I’ve lobbied Wondercoins to simply buy all the available US coins on the market to put an end to this madness but either they are upset for me spilling the beans or are trying to decide if I am off my meds again. Not a bad call I have to say.

WinPitcher · February 4, 2008 2:22PM

That is where the coins are? Is this a trick question?

Steve

ccmorgan · February 4, 2008 2:29PM

Knowing what a coin is worth before you buy is the best way not to over pay no matter where you buy it.

seemyauction · February 4, 2008 2:37PM

<< Who do you think are the biggest consignors to auctions? >>

Wholesale Dealers..............what do I win?

Griv · February 4, 2008 2:40PM

All kidding aside. I have had the priviledge to work with many fine dealers such as Bill @ GnS Eagle, Mitch @ Wondercoins and Wayne @ Southeast Quality Coins to name just a few. Also thanks to the semi-sellers/collectors who are als infinitely helpful. NeoCoins immediately comes to mind.

The bottom line is when you need a professional, nothing else will do. IMSHO

BECOKA · February 4, 2008 2:42PM

<< Knowing what a coin is worth before you buy is the best way not to over pay no matter where you buy it. >>

And if you are buying something that never comes up then knowing what its worth goes out the window.

If worth is based on sight unseen lifeless for the grade then that goes out when a true gem full of original skin and luster shows up. If you have ever seen one you might pay more than it's worth too.

Unknown · February 4, 2008 2:49PM

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Lakesammman · February 4, 2008 3:03PM

You guys are all too smart for me. I'm still trying to figure out the original intent of the post.

ccmorgan · February 4, 2008 5:39PM

<< 

<< Knowing what a coin is worth before you buy is the best way not to over pay no matter where you buy it. >>

And if you are buying something that never comes up then knowing what its worth goes out the window.

If worth is based on sight unseen lifeless for the grade then that goes out when a true gem full of original skin and luster shows up. If you have ever seen one you might pay more than it's worth too. >>

Well if you can't find it then you will not over pay for it then. So don't worry. But if you do find it, it will be expensive but if one has that kind of cash then over paying isn't as big of an issue then is it?

You learn what the coin is worth your looking for in a particular grade or 2...then go from there. Don't go in clueless is the main idea and impulse buying is bad also.
But we all might be guilty of that.

Why would anyone buy a coin from a coin dealer?

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