I have lost money on every coin i have ever purchased.

i have been buying and selling coins since 2008 and i have never even once made a profit on any coins. i have lost money (often times quite a lot of money) on every coin that i have ever purchased. i will give just one of the many examples of this, about a week ago i had sent a group of early u.s large cents to a coin dealer to sell to them (i have sold coins many times to this dealer before and they paid average prices) there were 11 low grade large cents in the group of coins, most of the coins were draped bust cents and one silver dime. a few of the coins had some nice details. i received a check for $11.00 yesterday from this coin dealer for the group of 12 coins. (this coin dealer and many other coin dealers will just send a check in the amount that they would pay for for the coins sent to them without asking if the amount is okay first. i spent over $100.00 on the coins that i sent to this coin dealer and i received a check from the coin dealer for $11.00. has anybody else had these types of problems with buying and selling coins?

 

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You need another dealer, or sell directly on Ebay.

 

I'd find a different dealer ... and try not to sell to dealers in general, unless you got a real bargain buy somewhere of something that you really don't collect.

 

Sorry to hear about your experience, that sounds very frustrating. I have found that the spread between what a dealer sells a coin for and what they buy a coin for can be quite large, 30%-40% is not unusual. I am not sure where you bought the coins from, but buying from dealers and then later selling to dealers will almost always lead to a loss.

With the specific coins you mentioned, where they impaired large cents? Did they have corrosion, scratches, or other problems? If so, these can be very hard to sell. I would try ebay next time or find a different dealer, do you have one locally?

Another option is to post coins up here before you sell them, we may be able to give you an idea of what they are worth.

 

Well since the worst draped bust LC cull is worth at LEAST $5 if not $10 I would say you getting robbed badly. I would find a real dealer and dump that loser. I don't doubt for a minute he will dump those large cents on ebay probably for 20-30 each with no problems.

 

Unless you cleaned them or otherwise damaged them between the time you bought them and the time the dealer sold them for you, I can't understand how they'd lose so much value. I would treat this as a test that your coin dealer just failed...

Like others have mentioned, in the future, you can always list them here. In this case, you certainly would have cleared more than $11.

 

Stick to people that just want to buy the coin for themselves rather than selling to a dealer who is buying to resell. If you are losing that much money like in this example then there is no reason to sell to that dealer.

 

Send that check back and gets your coins. A 90% hit is too much to ask. Even if you overpaid by 1000%, I would rather sit on them forever than take a hit like that. Unless of course you are in a bad situation, or a crackhead, there is no reason to take a beating like that.

 

Coins as a general rule really aren't a great investment to begin with. Of course, the TPGs and dealers aren't going to tell you that. And, there are notable exceptions. But, when selling to a dealer, they're going to have to buy at wholesale. If you must, you should shop the coins among several dealers. It's like the "eggs in one basket" logic. At the minimum, you want two or three competitive bids. Generally-speaking, a brick-and-mortar dealer is going to apply the highest margins, while an internet paper-pusher dealer will operate at lower margins. But, again, it's just like anything. You live by one, you die by one. Always, best to shop around.

 

You are either paying too much or you are selling to the wrong people. Find another card game!

Chris

 

Welcome to coin collecting. You've now been "educated" LOL

Buying anything retail is, for the most part, a TERRIBLE "investment." But seriously, most coin-shops are little more than pawns and you'd be LUCKY if the spread were 40%.
Supporting someone's business (rent, salaries, etc.) is no crime, but you got a -89% haircut. Sorry sucka, you just got played... but most "coin lovers" do sometime(s.)

You also know they'll mark "your" (low-priced) coins right back up to "their" high prices in the case again? That's the coin-grift, it's a 1-2 punch.

What's it worth, really?
1) Look at feeBay, ALWAYS do research before buying
2) Average 3-5 same-same auctions, subtract -11%
3) That's WHAT IT'S WORTH at market, the REAL fair price (approximately.)

Coin dealers HATE anyone knowing that. Litmus test? Tell them the eBay price you saw for a grossly overpriced coin in their case, watch them squirm or get angry. Why should the truth make a thieving coin-dealer so angry? Is it the realization that their corrupt business model (decades of preying upon ignorant fools) is now - in the Age of Free Information - permanently broken? LOL Let's hope so.

Still want a coin from your favorite chiseler's shop? o.k. but make a fair LOWball offer next time and stick to it. Be polite. Decline the case-price and walk out if your WELL-INFORMED price isn't met. Tell him his prices are too damn high, if he asks Why?

btw, if broker-dealers in the financial service industry (my biz) pulled these coin-grifting stunts they go straight to jail.

 

I would never sell to anyone, dealer or otherwise, under those arrangements you have specified. Email him clear pictures or tell him what you expect for them ahead of time. Tell him they are on consignment only until you discuss payment. A phone call to him should have been made to clarify your position.

 

May I ask if you are buying for profit or simply as part of your collecting experience?

In regards to the dealer sending an $11 check; if you've done business with this guy before and found him to be fair, I can only assume the coins were culls, but you still should have had some sort of understanding before giving him the coins. As Beef has already said; buying from dealers to sell to dealers is usually a losing plan unless you truly know what you are doing and/or are able to provide a valuable service. I mean no disrespect in saying this, but if you've lost money on every single coin you've bought over the last five years and are not buying for collecting enjoyment, it is probably time to stop, at least until you are able to do so without throwing money down the drain.

It is worth noting that not every dealer runs off to ebay with every low-value coin they buy. He very well may bulk/wholesale out to another dealer at nowhere near your assumed $20-$30 each. Other than the OP's definition of "nice detail" on a few, we know nothing about the coins in question, and without the whole story (from both sides) there is not valid reason to assume the worst.

Regardless, I am quite sure that the OP probably could have gotten more elsewhere, but he made the decision to knowingly sell to a dealer without any price stipulations, so hopefully he will see this as a learning experience. This is not to say the price paid was fair, but we simply do not know the dealer, his market, or his plans for the coins.

Interesting.....

 

Low grade large cents are probably not what this dealer focuses in, and while it was definitely an insulting price, they have to be able to move inventory. eBay is definitely the best place to go for a group like that in my opinion.

 

That stinks you lost out on all that money.
I can't say I feel bad for you, though.
Why would you ever just drop off a bunch of coins at a dealer and let him mail you a check for the amount he chooses?
Makes ZERO sense to me.

 

I was wondering the same. I have sent coins to a dealer so he could make me an offer, but he did not just send me a check for them. Once he had the coins, he priced them out and then called me with his offer. I turned the offer down and he sent the coins back to me.

OP - can you turn down the offer, send the check back and get your coins returned?

 

I nearly got sick reading that! Even pulling copper from a few boxes of cents would net 30%. I hope this guy at least sends an X-mas card.
If you dont want to mess w/fleabay, even CL would be much better. Or, get to posting & sell here.

 

He is using the generic "CASH 4 Stuff" model. Send a lowball check first ~ if they cash it, done deal. If they send it back, send a somewhat higher one, repeat until they accept the check or reach your profit model limit, and send the stuff back. Most people sell at some low point.

 

get to know the grade of the coins you are buying and buy a book. if it were me selling to make a profit I would buy better graded coins. what attracts you will/might be attractive to someone else. see what ebay auctions go for also completed auctions might help. most dealers buy below retail 20-30% lower than the price you bought it because they need to make a profit on the coins too. also let them know what money you have into each coin.