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What exactly does CDN bid/ask mean to you??

keetskeets Posts: 25,351 ✭✭✭✭✭
This seems to be a very confusing thing, at least to me. Some will say that it's the buy-sell prices that dealers use, but they don't. Some will say that collectors aren't dealers so they shouldn't even use the CDN. Some will say it's wholesale, but what I see is 10% back of bid and so on. Very confusing......................

So please tell me what CDN bid/ask means to you. Thanks in advance.

Al H.

Comments

  • coindudeonebaycoindudeonebay Posts: 1,735 ✭✭✭
    Means that you'll have to sell at 20% back of bid and will most likely buy at bid if you are a buddy of the dealer or if you are a decent customer you'll buy between bid and ask and if you're a total newb and you look like you don't know what you're doing, you'll pay full ask.
  • BarndogBarndog Posts: 20,518 ✭✭✭✭✭
    I know a dealer who goes by CDN exclusively, so what it means to me is to find properly-graded stuff in his inventory that CDN has flat wrong.
  • WaterSportWaterSport Posts: 6,947 ✭✭✭✭✭
    Just another tool to figure out value, and that is it.

    WS
    Proud recipient of the coveted PCGS Forum "You Suck" Award Thursday July 19, 2007 11:33 PM and December 30th, 2011 at 8:50 PM.
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭✭
    I think the reason for the confusion is that it's used in ways not intended by the publisher. The values reported are supposed to be (according to CDN) for wholesale dealer to dealer transactions, but the greysheet is easily obtained by retail buyers, enough of whom expect to actually be able to buy at the listed prices. I think a lot of dealers just find it easier to use CDN prices as more of a retail (for you, a special price) starting point for selling instead of trying to explain exactly what the values are supposed to mean and factor this into their buy (10%-20% back of bid) prices.
  • For most early type, it's a good starting point for the coins I look for to buy. Some series are a little off and the slinky effect often results in prices not accurately reflecting current values as a very dynamic market is inherently not good for printed price guides. Additionally, coins with exceptional eye appeal and quality for the grade constantly get dragged down by wholesale values in the greysheet. People look at a coin that is CLEARLY head and shoulders above typical graded examples and they will say "Well greysheet (or God forbid bluesheet) is X amount. How come it's more than that?" I simply respond with how much I paid (sure I tell it, why should it be secret? Does it matter anyway?) and usually point them to auction prices realized in comparison with what greysheet/bluesheet is. This generally produces a 15-20% spread even for common coins with average eye appeal yet acceptable for the grade.

    In the market there are bluesheet coins, greysheet coins, and retail coins. This is how I generally look at the sheets. This may not apply to everybody and there's a good chance that my point of view may not be in-line with everyone else's based on the niche in the market they may be a part of. I'm also thinking of this in terms of classic coins. I'm not as familliar with the modern or commodity type market that many others are involved in but I'm sure it's heavily reliant on bluesheet prices especially for buying large fairly common raw collections and in that sense, it is a valuable tool.

    Bluesheet coins will never sell (or hopefully shouldn't) sell more than bluesheet prices. These are the coins that are the result of overgrading and people are sucked into the label. I have occasionally found decent coins at just above bluesheet prices but it was in larger bulk deals that needed alot of weeding out and extra work to find acceptable coins in it. These are definitely the cheapest prices you will find for a coin of the date you are looking for.

    Greysheet coins can run the gamut of fugly to attractive and their prices float between greysheet levels of next down and next up grade values.

    Retail coins are the ones that you will only occasionally find at greysheet levels but typically trade on the wholesale level above greysheet prices and sometimes have a stable market well above greysheet prices. Think nicely toned coins, prooflike coins, shot upgrades, hot-spot series the market, ect.
    Brandon Kelley - ANA - 972.746.9193 - http://www.bestofyesterdaycollectibles.com
  • lasvegasteddylasvegasteddy Posts: 10,447 ✭✭✭
    ya know keets,

    to me it's gibberish i hear time to time

    i can see how a dealer is presented with a vast amount of stock that he may have no clue of all prices and use it for a reference on profit margins

    myself...a collector though
    i use heritage/ebay and my gutt for what i'll bid or ask

    i'm sure it had great importance in it's day before heritage/ebay auction price archives but now...that cat is out of the bag

    why would i sell at or below bid when i can get ask plus with heritage/ebay vehicles in place

    i'd think oneday the greysheet will turn black...just my 2 cent piece

    coin prices are simply what the next inline will pay (it's how they go up or down) and past sales mean less then others present
    everything in life is but merely on loan to us by our appreciation....lose your appreciation and see


  • Coin FinderCoin Finder Posts: 7,513 ✭✭✭✭✭
    Dealers cannot know the latest value of every coin they are shown, the CDN makes this dealers job easy by justifing a buy price quickly and a sell price. In most cases it is the lowest "value" guide out there so they find comfort in that.

    All dealers are different. A another good question would be if dealers that specialize in a particular series like eagle eye, use the guide at all for the same purpose above.
  • tahoe98tahoe98 Posts: 11,388 ✭✭✭


    .........why not ask for the same as a retailer asks for the coin? when you see it advertised for x amount of money why should you HAVE TO sell to a dealer and not a collector?imageimage
    "government is not reason, it is not eloquence-it is a force! like fire, it is a dangerous servant and a fearful master; never for a moment should it be left to irresponsible action." George Washington
  • keetskeets Posts: 25,351 ✭✭✭✭✭
    i guess my point is that i understand it's intended to be used by dealers to buy and sell from each other(sic), but that really doesn't work. it suggests that a dealer would buy from another dealer at "ASK" and sell to another dealer at "ASK" so nobody would be using the "BUY" price in a crazy sort of way, if you believe it's for dealer-dealer transactions. if you think it's for dealer-dealer and dealer-collector transactions, then the dealer-dealer would be "BUY" and the dealer-collector would be "ASK" but everyone knows it's only for dealers!!!!

    to make things even sillier is that dealers often sell at "BID" so they buy at "BID minus" usually around 10-15%.


  • << <i>I think the reason for the confusion is that it's used in ways not intended by the publisher. The values reported are supposed to be (according to CDN) for wholesale dealer to dealer transactions, but the greysheet is easily obtained by retail buyers, enough of whom expect to actually be able to buy at the listed prices. I think a lot of dealers just find it easier to use CDN prices as more of a retail (for you, a special price) starting point for selling instead of trying to explain exactly what the values are supposed to mean and factor this into their buy (10%-20% back of bid) prices. >>





    So if a dealer is willing to sell coin "x" to another dealer at sheet....why wouldnt he want to sell it to a CUSTOMER at the same price?
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭✭


    << <i>it suggests that a dealer would buy from another dealer at "ASK" and sell to another dealer at "ASK" so nobody would be using the "BUY" price in a crazy sort of way, if you believe it's for dealer-dealer transactions. >>

    I believe the "bid" value is intended to be what a dealer who wants to buy the coin is offering and the "ask" value is what a dealer who has the coin wants for it.

    << <i>to make things even sillier is that dealers often sell at "BID" so they buy at "BID minus" usually around 10-15%. >>

    As I suggested above, since retail buyers often want to use greysheet pricing when buying, I think it's probably easier to just go with the flow and offer less than bid when buying in order to be able to sell at bid and still make a profit.

    << <i>So if a dealer is willing to sell coin "x" to another dealer at sheet....why wouldnt he want to sell it to a CUSTOMER at the same price? >>

    Who knows? If I had to guess, it's because sales to other dealers generally involve less hassles than sales to retail customers. Or it could be something else entirely- you'd have to ask the specific dealer to be sure.

    Here's what it says at the bottom of the greysheet (some parts have been snipped out for brevity:

    The weekly COIN DEALER newsletter (the Greysheet) reports the national Dealer–to–Dealer wholesale coin market, monitoring all possible transactions and offers to buy and sell coins sight–seen.

    Prices reported derive from the highest legitimate Bids and lowest legitimate Asks seen nationally; they do not necessarily reflect the levels at which any particular dealer might offer to buy or sell that coin.

    INVESTOR/COLLECTOR NOTE: The prices in this newsletter are from Dealer–to–Dealer transactions; you should expect to pay a premium above Ask when purchasing coins in a retail transaction; you may also commission a Dealer for your purchases.


    I would think that if you use this (or any) tool in a way that is not intended, the results might possibly be unproductive.
  • MikeInFLMikeInFL Posts: 10,188 ✭✭✭✭


    << <i>So please tell me what CDN bid/ask means to you. >>



    Doesn't mean a thing to me, personally. However if I sold coins to dealers, bid would mean something as I would expect their offers to be based on this number.
    Collector of Large Cents, US Type, and modern pocket change.
  • This content has been removed.
  • lcoopielcoopie Posts: 8,874 ✭✭✭✭✭
    to me
    it's a guide to happiness
    if I find a desirable coin for ask, I am happy
    LCoopie = Les
  • RWBRWB Posts: 8,082
    What exactly does CDN bid/ask mean to you??

    On the primal level of consciousness it means the union of all spirits of creation and anti-creation; light and dark being one. It is the great singularity of all universes and source of time. Its meaning transcends all conception by sentient beings and is totally incomprehensible – totally unrecognizable – by all.
  • coolestcoolest Posts: 2,281 ✭✭✭
    You can take the grey sheet and subtract 50% off the bid price and that will give you a good idea what a dealer might be willing to pay for your coin if you need the money now.
  • keetskeets Posts: 25,351 ✭✭✭✭✭
    On the primal level of consciousness it means ......................image
  • roadrunnerroadrunner Posts: 28,322 ✭✭✭✭✭
    3 things.

    dead nuts accurate
    or
    way too low
    or
    way too high

    Depending on the series and grade, any one of the 3 can apply. But for frequently traded coins the first one is usually the case. For the others, it's pot luck. Know your series and your pricing.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • coinkatcoinkat Posts: 23,990 ✭✭✭✭✭
    very little... unfortunately, I am in the minority

    Experience the World through Numismatics...it's more than you can imagine.

  • fcfc Posts: 12,796 ✭✭✭
    i gave up on price guides a long time ago except as a rough estimate
    to get the general feel for an item. CDN is something i never bothered
    to get or even look at for more then just a glance. Ebay/heritage/etc..
    tell me what i need to know for the most part when it comes to coins.
  • BAJJERFANBAJJERFAN Posts: 31,468 ✭✭✭✭✭
    Since "sheet" is for raw coins how many add a premium fo NGC or PCGS slabbed coins?
    theknowitalltroll;


  • << <i>Since "sheet" is for raw coins how many add a premium fo NGC or PCGS slabbed coins? >>




    Blue sheet is for "sight-unseen" slabbed coins... they list PCGS, NGC, ANACS and ICG...

    Grey Sheet is for "all properly graded coins" sight-seen, whether slabbed or raw.


    The best thing I have come up with to say to someone who insists on trying to purchase a coin, that IS NOT a widget, by "the sheet"...

    I simply and kindly suggest that they go buy an example of the coin from the publishers at CDN... image
    Re: Slabbed coins - There are some coins that LIVE within clear plastic and wear their labels with pride... while there are others that HIDE behind scratched plastic and are simply dragged along by a label. Then there are those coins that simply hang out, naked and free image


  • << <i>3 things.

    dead nuts accurate
    or
    way too low
    or
    way too high

    Depending on the series and grade, any one of the 3 can apply. But for frequently traded coins the first one is usually the case. For the others, it's pot luck. Know your series and your pricing.

    roadrunner >>



    I generally agree, but there are some baffling inconsistencies. For example, I will sell you circ 38-D Walkers at 15% back of bid and I will make good money - they trade much lower. I will buy every circ 1857 large cent that you have at the sheet, and promptly sell them for profit. Why is this? No idea. Some issues are just priced wrong consistently.

    For eye-appealing rarites, or overgraded junk, sheet it not really that relevant.


    merse

  • ShortgapbobShortgapbob Posts: 2,332 ✭✭✭
    This is something that I quickly had to learn in the business....and sometimes I still don't know. The Greysheet Bid is supposed to be the highest sight-seen offer by a dealer to purchase a coin on the wholesale market. However, I learned just how these levels are manipulated. Some individuals will "run up" the bid on a coin that they have a position in so that they protect their position. This can be done because the bid is sight-seen and does not have to be honored if they do not like the coin. So, essentially, they can reject any coin. Some coins, like 1938-D Walkers, 1921 Peace Dollars, 1894 Morgans and 1911-D $2.5 Indians have bid levels that have been run up over the past few years. Now, it can be very difficult to get Greysheet Bid out of these coins.

    Sometimes, dealers who are searching for certain coins or series of coins will intentionally not put numeric bids on the market to prevent the Greysheet Bids from increasing. They will simply tell you to offer them for a quote. Some coins like early coppers, early quarters, key date $5 Indians and others are nearly to purchase at Greysheet levels. The reason is that these levels to not reflect the true market for these coins, as the levels are being held artifically low.

    What you learn very quickly is that, like any other price guide, the Greysheet is only a guide. It is also something that can be and is manipulated in both price directions. The continuous challenge is figuring out what areas are being manipulated and in which direction.
    "It is the mark of an educated mind to be able to entertain a thought without accepting it." -- Aristotle

    For a large selection of U.S. Coins & Currency, visit The Reeded Edge's online webstore at the link below.

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