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Are some B&M's just selective Pawn Shops in disguise?
STONE
Posts: 15,275 ✭
Right before I went to sleep last night, my roommate and I were talking about Pawn Shops; for the life of me I don't remember how the conversation
got started. Then all of a sudden coins popped into my head and I put the two together.
I have never been inside a Pawn Shop, but I've seen enough commercials for them and I think I understand their business to know what they are like.
Pawn Shops give you much less than retail value for your item and the Pawn Shops deal in a myriad of items so that their business can be diversified.
Could it be plausible to compare some (or all) B&M's as selective Pawn Shops, but in disguise?
B&M's, the ones that I've been in, usually have knowledgeable staff that are sometimes friendly and somtimes willing to assist me. They know the coins
they have and what they want to sell them for, but I don't hear much conversation on market trends or what's HOT and what's NOT. I have also seen,
and experienced, on multiple occurances where I or someone else was quoted a less than fair price on a certain coin. I wonder if some B&M's are in it
just for the purpose of making money, or am I getting this wrong and all or most are in it for the advancement of the hobby?
Edited to add: I am not trying to bash B&M type coin stores, I have many good dealer friends who I have done business with for many years.
got started. Then all of a sudden coins popped into my head and I put the two together.
I have never been inside a Pawn Shop, but I've seen enough commercials for them and I think I understand their business to know what they are like.
Pawn Shops give you much less than retail value for your item and the Pawn Shops deal in a myriad of items so that their business can be diversified.
Could it be plausible to compare some (or all) B&M's as selective Pawn Shops, but in disguise?
B&M's, the ones that I've been in, usually have knowledgeable staff that are sometimes friendly and somtimes willing to assist me. They know the coins
they have and what they want to sell them for, but I don't hear much conversation on market trends or what's HOT and what's NOT. I have also seen,
and experienced, on multiple occurances where I or someone else was quoted a less than fair price on a certain coin. I wonder if some B&M's are in it
just for the purpose of making money, or am I getting this wrong and all or most are in it for the advancement of the hobby?
Edited to add: I am not trying to bash B&M type coin stores, I have many good dealer friends who I have done business with for many years.
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given what most dealers have to put up with on a day-to-day basis, it's a wonder that any of them even try to help the average collector. I know that after the 3rd or 4th time someone came in and offered me thier 'rare coins' - read cleaned wheats or some such, i'd probably scream and go postal!!
Total Copper Nutcase - African, British Ships, Channel Islands!!!
'Do not meddle in the affairs of dragons, for you are crunchy and taste good with ketchup'
<< <i>I wonder if some B&M's are in it just for the purpose of making money...... >>
I bet 99% don't get up every morning, or set up at a bunch of shows and say"I'm just in it for the advancement of the hobby."
As for my local B&M shop, it's not like a Pawn Shop at all......It's worse
wes
Too many positive BST transactions with too many members to list.
Some pawn shops are very selective in what they will pawn. There are two of them in my town, both of which operate out of coin/jewelry shops. They are very low key operations. Both are very selective about what they will give loans on. Forget about the electronic equipment as neither will give loans on that type of thing.
Recipient of the coveted "You Suck" award, April 2009 for cherrypicking a 1833 CBHD LM-5, and April 2022 for a 1835 LM-12, and again in Aug 2012 for picking off a 1952 FS-902.
With regard to southern Arizona B&M dealers (leaving Rick Snow aside, because he is a nationally known specialist), NONE of them would know what's hot and what isn't. Why? They don't do much traveling to out-of-town shows; they just go to Long Beach (for the most part). The local market does not mirror what I see elsewhere, either. For example, MPLs haven't sold well in Tucson this last year.
There is another issue with small B&Ms that are not 'national players.' Any dealer who largely relies on walk-ins for fresh inventory material will have an inventory that reflects this---most of the time, these dealers won't have anything seriously worth buying. Most of their coins won't be all there for the grade, or they will have issues, like spots or whatever. The only times that I see local dealers with any decent-looking fresh material are a few days after Long Beach shows (and few of these coins are of any real interest to me). When small B&M dealers (or vest-pocket dealers) offer unusual coins, especially ones priced above $5K, the first thing that occurs to me is what's wrong. If I decide to pick up a Dahlonega gold coin, for example, I wouldn't plan on getting one locally OR asking a local dealer to get one for me. Most of them are nice guys, but they don't handle enough scarce or higher-priced, more common coins for me to trust their judgment concerning what is nice for a grade (this includes some date/MM coins in the Morgan series!).
Concerning your pawn shop analogy, it's not that far off. Most small coin dealers handle more than coins to stay in business---stamps, fossils, jewelry, rare autographs, for example.
Pawn shops lend money based on collateral. The valuation of the collateral is set intentionally low to mitigate risk and encourage repayment of the loan. Often, collateral items surrendered by borrowers are wholesaled off cheap to keep the cash flowing.
B&M coin dealers are buyers and sellers in the community, not generally collateral lenders. There are good ones and bad, just like there are dry cleaners I prefer, and ones to which I will never return.
A good B&M is a treasure to locate.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
The vast majority of the people who work at them are genuinely interested in coins. In may not be for the "advancement of the hobby" that they own their shop, but it might just be that they like coins.
Could it be plausible to compare some (or all) B&M's as selective Pawn Shops, but in disguise?
Edited to add: I am not trying to bash B&M type coin stores, I have many good dealer friends who I have done business with for many years. >>
Sorry, but you just insulted the he;; out of us!
Tom DeLorey
Professional Numismatist, and proud of it!
<< <i>Stone,
With regard to southern Arizona B&M dealers (leaving Rick Snow aside, because he is a nationally known specialist), NONE of them would know what's hot and what isn't. Why? They don't do much traveling to out-of-town shows; they just go to Long Beach (for the most part). The local market does not mirror what I see elsewhere, either. For example, MPLs haven't sold well in Tucson this last year. >>
I'm not really talking one particular area (as you mention southern Arizona, of which I haven't really been to many dealers), rather that some of my experiences of dealers have been less than what I would have expected for someone in the business; this has been what I have experienced when dropping into B&M's in various places across the country.
<< <i>Sorry, but you just insulted the he;; out of us! >>
Tom D.,
I am not talking about Harlan Berk at all. I have purchased a couple of coins from Harlan Berk and I have never had a bad experience with them.
The staff here is top notch (maybe the best staff in the world) on the ancient coin market.
By no means are you just a common B&M dealer.
EVERYONE wants to make money. I collect coins because I love coins. But I could not do so without money. I have to sell coins to buy coins.
So, of course, they are in it to make money. And what a money maker it is! Rip little old ladies and sell at 10X the price to the "coin collectors" that walk in the door unaware.
Jonathan
Or
Or like this:
Well, they aren't Numismatists
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870