I never thought of a dealer's inventory as speculative in nature, but perhaps it is...
Longacre
Posts: 16,717 ✭✭✭
I was taking a look at the most recent Legend Market Report. In it, the author states the following:
"Having no coins around is both good and bad. It's bad because the market can actually slow due to lack of trading. We know that if we can not find the coins on our massive Want Lists, then we do not make sales. Sure, we have an inventory, but like everyone elses, it is speculative in nature."
The comment about inventory being speculative in nature is interesting. For the dealers (and collectors), do you view a dealer's inventory as speculative in nature? In particular:
(1) Is it speculative in the sense that you don't know what the market might be interested in buying?
(2) Is it speculative in the sense that inventory ties up capital that can be better used for other inventory if the market turns on a dime?
(3) Is it speculative by its very nature because the entire coin market itself is excessively thin?
(4) Is it speculative because of the vagaries of the auction process, and the fact that some coins for for silly money, while others go for reasonable sums?
"Having no coins around is both good and bad. It's bad because the market can actually slow due to lack of trading. We know that if we can not find the coins on our massive Want Lists, then we do not make sales. Sure, we have an inventory, but like everyone elses, it is speculative in nature."
The comment about inventory being speculative in nature is interesting. For the dealers (and collectors), do you view a dealer's inventory as speculative in nature? In particular:
(1) Is it speculative in the sense that you don't know what the market might be interested in buying?
(2) Is it speculative in the sense that inventory ties up capital that can be better used for other inventory if the market turns on a dime?
(3) Is it speculative by its very nature because the entire coin market itself is excessively thin?
(4) Is it speculative because of the vagaries of the auction process, and the fact that some coins for for silly money, while others go for reasonable sums?
Always took candy from strangers
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)
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)
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Comments
By the way, I thought Mick said "Didn't wanna get me no train" One of those mysterious lyrics, I suppose, like "Excuse me while I kiss the sky"
for almost all of these coins is huge. Values of colorfully toned Morgans do not always hold up---they undergo more of a rollercoaster ride than blast white Morgans.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
<< <i>The comment about inventory being speculative in nature is interesting. For the dealers (and collectors), do you view a dealer's inventory as speculative in nature? In particular:
(1) Is it speculative in the sense that you don't know what the market might be interested in buying?
(2) Is it speculative in the sense that inventory ties up capital that can be better used for other inventory if the market turns on a dime?
(3) Is it speculative by its very nature because the entire coin market itself is excessively thin?
(4) Is it speculative because of the vagaries of the auction process, and the fact that some coins for for silly money, while others go for reasonable sums? >>
YES.
Plus AngryTurtle's comment as well.
Clearly, this is the cause of glacial ice retreat, disappearance of snow from the summit of Kilimanjaro, deforestation of Brazil, toe fungus, removal of Viagra from golf course vending machines, and wobble of the earth's axis.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>It can be confusing to read literally the writings of the semi-literate. >>
Ouch. Spoken like THE MAN.
RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'
CJ: 'No one!' [Ain't no angels in the coin biz]
<< <i>... >>
Somebody lost his nerve.
All in all, it's a risky business.
<< <i>My interpretation was that "speculative inventory" means coins that you don't have a good idea of which customers are likely to buy them. This is as opposed to coins that you think you know who the likely retail purchaser will be. >>
I agree. Examples of buying "on spec" include most coins in most of your favorites dealers' inventories.
"Look up, old boy, and see what you get." -William Bonney.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......