Just a beware of price story...in a recent collection purchase
16DMERC
Posts: 223
Recently, I purchased a collection that was aquired through a well known "coins on approval" dealer. This company, i believe, sends coins that are of great quality and mostly undergraded, which is a good thing about them. The bad thing is that their prices are usually double and sometimes triple the actual FMV of the coin. Because of this, my heart sinks anytime I look through a collection and see their name, simply because I know the customer is going to be really upset when I tell them the value. This particullar customer was pretty upset, but because I was the third to look at it, i didn't get the brunt of his anger. I offered the most for his collection so he reluctantlly sold it to me. Here are some examples of what I'm talking about, based on what he paid between 2006- 2009, and what I offered:
1993-S 50C 90%slv Ch Proof-63 (their grade) $65.00
I grade it at PF68DCAM FMV= $33, I paid $25 (and it will probablly take a year to get that!)
1878 $1 8TF MS60 $275.00
I grade it MS63. Bid was $160, I gave him $145
1926-D $1 XF $58.00
It grades a nice XF45 Bid is 30.00, I paid $26
1946-D 50C VG $21.95
It grades F15, I paid 11.50
1995-S 50C 90%slv CH Proof-63 $185.00
It grades PF68DCAM FMV $40, I paid $30
Just on those, he paid $605, I paid him $237.50
There was also about $25 in 90% face from vg-xf that I paid 23.50X for, the sad thing was all were priced at minimum, double that. It is really a shame to see a dealer do this, I know it happens and always has, but its just wrong in my opinion. I tried to give this guy as much money that was in these coins as possible, and still did not come anywhere near where he paid. It will also take me a long time to move all this just to break even, that is fine, but it just goes to show the absurdity of dealers like this.
1993-S 50C 90%slv Ch Proof-63 (their grade) $65.00
I grade it at PF68DCAM FMV= $33, I paid $25 (and it will probablly take a year to get that!)
1878 $1 8TF MS60 $275.00
I grade it MS63. Bid was $160, I gave him $145
1926-D $1 XF $58.00
It grades a nice XF45 Bid is 30.00, I paid $26
1946-D 50C VG $21.95
It grades F15, I paid 11.50
1995-S 50C 90%slv CH Proof-63 $185.00
It grades PF68DCAM FMV $40, I paid $30
Just on those, he paid $605, I paid him $237.50
There was also about $25 in 90% face from vg-xf that I paid 23.50X for, the sad thing was all were priced at minimum, double that. It is really a shame to see a dealer do this, I know it happens and always has, but its just wrong in my opinion. I tried to give this guy as much money that was in these coins as possible, and still did not come anywhere near where he paid. It will also take me a long time to move all this just to break even, that is fine, but it just goes to show the absurdity of dealers like this.
Jake Blackman
blackman.jake@gmail.com
704-719-6866
blackman.jake@gmail.com
704-719-6866
0
Comments
I hate to look through collections like this also. Just kills you to even see it because 1) they got reemed when they bought it and 2) they're gonna take a huge hit when they sell it. These type of dealers feed on the unknowing masses and make millions doing it. I can think of one prominent "send on approval" company that's done this for many many years.
Too many positive BST transactions with too many members to list.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
blackman.jake@gmail.com
704-719-6866
I've been in your shoes many times. As you know, it's better to be the third one looking at the collection than the first one. The first guy there is the "bearer of bad news", and often gets labeled as the bad guy.
Looks like your prices were more than fair.
<< <i>Recently, I purchased a collection that was aquired through a well known "coins on approval" dealer. This company, i believe, sends coins that are of great quality and mostly undergraded, which is a good thing about them. The bad thing is that their prices are usually double and sometimes triple the actual FMV of the coin. Because of this, my heart sinks anytime I look through a collection and see their name, simply because I know the customer is going to be really upset when I tell them the value. This particullar customer was pretty upset, but because I was the third to look at it, i didn't get the brunt of his anger. I offered the most for his collection so he reluctantlly sold it to me. Here are some examples of what I'm talking about, based on what he paid between 2006- 2009, and what I offered:
1993-S 50C 90%slv Ch Proof-63 (their grade) $65.00
I grade it at PF68DCAM FMV= $33, I paid $25 (and it will probablly take a year to get that!)
1878 $1 8TF MS60 $275.00
I grade it MS63. Bid was $160, I gave him $145
1926-D $1 XF $58.00
It grades a nice XF45 Bid is 30.00, I paid $26
1946-D 50C VG $21.95
It grades F15, I paid 11.50
1995-S 50C 90%slv CH Proof-63 $185.00
It grades PF68DCAM FMV $40, I paid $30
Just on those, he paid $605, I paid him $237.50
There was also about $25 in 90% face from vg-xf that I paid 23.50X for, the sad thing was all were priced at minimum, double that. It is really a shame to see a dealer do this, I know it happens and always has, but its just wrong in my opinion. I tried to give this guy as much money that was in these coins as possible, and still did not come anywhere near where he paid. It will also take me a long time to move all this just to break even, that is fine, but it just goes to show the absurdity of dealers like this. >>
those prices are "little" compared to what the collector paid. I wondered if he/she had "ton" of fun acquiring the coins
Seller- thebigeng; morgansforever; bolivarshagnasty
Buyer-nibanny; derryb; zubie; smittys; konsole; tootawl; socalbigmark; fullcameo; coinkid855
blackman.jake@gmail.com
704-719-6866
<< <i>Agreed. But Like PerryHall said above, most of their customers are non-collectors, or new collectors, that I guess are thinking they are getting a fair deal... >>
As a dealer, I have had this happen a number of times. If I recall correctly, the company that markets these coins has over 300 employees. And my guess is that none of them are volunteers. To pay all of these people, the money has to come from somewhere, and the "somewhere" is their customers. I am not in any way defending this company's business model, just noting that when a company in this business brags about having a lot of employees, if their customers thought about it, they would have to understand they are paying for all those people.
An authorized PCGS dealer, and a contributor to the Red Book.
Well, he's informed now. Unfortunately, probably turned off coins forever.
Liberty: Parent of Science & Industry
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
<< <i>Nothing like a bad haircut to motivate someone to find a better barber. >>
Does getting scalped count as a bad haircut?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>This particullar customer was pretty upset, but because I was the third to look at it, i didn't get the brunt of his anger. I offered the most for his collection so he reluctantlly sold it to me. >>
Did you ask him if he offered the coins to the dealer he bought them from?
<< <i>Well, Littleton gets credit starting me collecting. >>
Me too, except it was stamps.
Russ, NCNE
Yes, Littleton is certainly responsible for getting many folks started collecting.
They advertise in many non-coin related publications, and their 'coins on approval' program has been very successful for many years.
Here is a coin that I picked up as part of a collection a few years ago. The coins came in these little cello pouches, and I kept just this one as an example. How's this for a VG Roosie?
Part of me wishes that they would use more commonly accepted grading standards. (Although I suppose that undergrading is better than overgrading.) But I do understand that for operational purposes, in order to run an efficient approval program, bullion-valued coins like the one above probably get labeled this way so that they don't have to do any sorting. Anything "VG or better" gets tagged as VG.
I wonder if they've changed their program since the silver runup?
<< <i>Well, Littleton gets credit starting me collecting. I bought a circulated walker/merc set when I was in 3rd grade ($4.95... not a bad price now!) and soon after found another "new customer only" deal I wanted, so my grandparents became new customers
Same here, and I didn't have many other sources for coins as a kid in a small city. I imagine they also have to cover the overhead of handling returned coins, which I expect is higher than the average mail order dealer.
<< <i>Yes, Littleton is certainly ...
I wonder if they've changed their program since the silver runup? >>
i made a new customer only purchase from them about 5-6yrs ago of SAE for $5 ea, max 10.
i still have 1 left and have traded 1 for the last 3yrs for a current year SAE.
100% Positive BST transactions
was called "Littleton" do not know much about them but the people who mentioned them had nothing good to say.
I could see something like this happen before a big bust like in the 80's, but i do not remember things
being booming in 2006.
Go BIG or GO HOME. ©Bill