Take back the hobby

I went to the local coin shop today to pick up some 2x2s, and all five clerks were working with people selling gold. As I was waiting to be helped, a few more people came in behind me, and I thought there was a good chance they were either selling or buying gold and silver.

Now I understand that coin shops have to do what they can to make money, just like any other business, but I often feel like I'm the only one who still buys coins when I'm there, and I think that's sad. Everything is gold and silver, and the people who buy silver don't care about the coin, just the silver. I wish the precious metal run would get over with so people could get back to real collecting again.

 

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overall it's good for the hobby. If it wasn't for the rise in PM values, many people wouldn't even become coin collectors, like myself for instance. If people weren't buying coins, gold and silver, dealers wouldn't be buying them. I find buying coins online is much easier because I can compare coins, prices and aqcuire them for cheaper and I don't have to waste time and gas money.

 

Well, you're not alone. I just traded in a little silver to acquire more numismatic items. I was using bars (purchased at $17) like cash at the show. (Along with plenty of real cash!) I'd love to see PM's tank. I don't think it will happen but would be glad to see it now. The trend is getting to be troubling to say the least.

Was just talking with the wife about a quarter oz, $5 gold piece last night. To think 10 years ago it could have been had for around $80 and that would have been with a numismatic premium! Almost sickening. And a couple of days ago it cost $510 to buy it now, with a numismatic premium.
You have to wonder what it will be worth in another 10 years? If it goes up 6.3 times again, it could cost $3,213 to buy one 10 years from now. Sounds crazy but nobody would have believed $500 half eagles 10 years ago either. If it only goes up to $2000, it was better than stashing the $500 in a bank over the next 10 years.

This is probably why people are in a panic to buy and crowding you out. May be frustrating but you can't blame them.

 

i got into the hobby when my mother gave me about 50 steel pennys and 3 mercs. and after that i loved pennys and i love the mercs but not for the silver in them. and now i collect half dollars pennys dimes nickels and sometime a dollar coin.. but all in all theres still people get coins becuase there a nice piece.

the coin dealer that i go to sells silver coin only by how much silver is in them.
but i dont collect gold i could but id rather have a nice old piece and not a pile of gold.



just dont like being greedy

 

I hear you. I was on vacation in Texas and stopped by a "Bullion Exchange" that advertises selling/buying PCGS slabs etc... Nobody was in the place, but they wouldn't let me look at anything. "Not selling coins now.. Just buying bullion." Went to an actual coin store, and there was a guard forcing people into a line. "I'm just here to look at coins in the cabinet." "No. Everyone goes into line." The guys pulled a few coins out of the cabinets for me that I could see, but were too busy with gold/silver to get anything out of the back. Fortunately, found a place that was friendly and not overrun by silver/gold traders. They're out there. Just have to bide your time.

 

I can see it getting some people interested, and then they might branch out into other coins, but it also means millions of beautiful foreign silver coins are going straight to the melters because no one wants them as coins, and it means everyone wants the newest silver eagles and Canadian silver coins but doesn't care about assembling a collection. It means there's no inventory at the coin shop because they are only buying silver so if you want copper you're s.o.l. I fully acknowledge that everyone is free to find the aspect of the hobby that they enjoy and to indulge in that, and for some people that means amassing a horde of silver, but to me that's not what it's about and I hate to see this mindset taking over.

 

I feel the same way you do, Hiddendragon. But, I'm fortunate my favorite coin shop doesn't deal with bullion buyers to much extent. They've survived very well over the past 40 years or so on coin collecting customers without having to abandon them to make a quick buck on bandwagon pseudo investors. The ones who leave their original customers are the ones we won't see around anymore when theres no longer any money to be made in bullion, and most of us have seen this happen a few times before.

 

Well all I can say is they never made stamps out of precious metals and look where stamp collecting went.

Edit to add even the copper cents are worth more than face value now.

 

I think the people in the shop crowding him out were selling gold and silver to the shop not buying it. Oh some might have been buying but my impression of the public is that most of them are sellers. And I can't see where selling your gold and silver would get you interested in collecting. And in fact it would probably drive a lot of marginal collectors out, sell off what they had and get out of it.

 

Yeah, several people have been complaining about crappy service to hobbyists recently.

 

Yes, in this case every customer in there was selling gold. That seemed a little unusual but I guess because the price has been going up so much lately anyone who still has spare gold is selling it. I live in an area with lots of jewelry stores and cash for gold places so I'm a little surprised that non-collectors would take their jewelry to the coin shop though. But I digress. When I see people buying silver, they are usually buying bullion coins, while a lot of people are selling real coins. I don't think that does much for the hobby either, and if you are a collector it doesn't make sense to buy silver coins for your collection now because you're paying a bullion premium, which only makes sense to pay if you are investing and hoping to sell for more down the road. But I can stay at the coin shop for two hours and be the only customer actually buying coins, and that's what bothers me. I'm not trying to judge anyone, but for me that's not what the hobby is about.

 

I see it a little different. I believe that the high metals prices are making really neat coins surface and enter the collecting world like never before. Bullion and collector coins run together and when a person is selling bullion most dealers would love to see nice collector pieces anyone might have for sale and sellers are usually all too happy to sell them at the same time. Yes, it is sad to see a common Walker in AU being melted, but I guarantee that if there is a shred of value over that, most astute dealers will recognize that and figure out a way to wholesale them to another dealer or find the end user themselves.

Some of the nicest coins I have bought last year came into my local shop piggy backed on a bullion deal and because the dealer is making out on that end of the deal, NEWPS can be a bargain as well. It is a great time for collectors, so load up before the focus reverses. JMO Matt

 

Yes, you are really correct, Before if you have a rare coin/s all you have to do just walk in to a Big Coin show and ask the bouse grader representative to certified your coin while you are watching. Now the present even you attend to coin show and submit your coin/s you can not watch that your coin will be certified but instead you have to come back for severals hours or next day plus the grading fee is an Highway robbery too much a lot of money. So an average collectors can not afford to pay for that kind of fee, Plus if you shipped your coins you will wait a couples of months to received it. In that case I rather to have my collection not to be certified and If I let them certified it I will be watching them looking to the graders hand that there will be no switching of coin gonna happen.
specially if your coin is in catagory of high value ranging price to 50k to 1 + Million US Dollars.

 

You are right on the money Hiddendragon. Out here in Rapid City its seems that all the coin shops want is silver or gold scrap.

 

I deal with a handful of dealers, mostly online. I would say 90% of my numismatic purchases are now made online direct & through auctions. No lines, and just a little waiting for delivery. When I want to sit down with a book of coins in front of the coin shows serve that purpose well.

 

No real grading service is going to switch out the coins.

 

Good point REDWIN117. If PM's were what they were pre 2008 hobbyists would definitely get better treatment IMO. It is
all to greedy a world out there.

 

I also went to my local coin shop last week to get some supplies and see what Mercury dimes they had. Basically they have become nothing more than a metals exchange. All I could really find was common date Morgans slabbed MS63 for $75 each. I asked what happened to all of the coins and they said they weren't making money on coins anymore. What is going to happen to them after this metals craze is over. It won't last forever. Also worth noting, a woman came in and wanted to sell her "gold" Sacagawea dollar because her daughter told her it was gold. Now in this day and age you would think people would do a tad bit of research on the net before driving to a coin shop to try to sell something they know nothing about.

 

Another thing: With the high price of silver I've been focusing on world coins lately since it's something I can do rather cheaply. Mostly that means buying base metal coins, but I was curious what the coin shop did with the foreign silver since I never see it for sale. They told me they melt everything foreign, and I mean actually melt it, not just use that terminology. Are they going through looking at every coin and checking for key dates or condition? Of course not. They don't have time or the knowledge, so it all goes into the melt bucket and gets destroyed. That bothers me too.

 

Funny you say that.. I saw a guy bring in 4 presidential dollars to sell as gold too. The dealer says, "Go spend them. They aren't gold." His reply, "are you sure?"

I wish I could have seen him get them in change at the supermarket, clasp them quickly in his hands with a grin and run out of the place thinking he just made $7200 in change.