I have a large store credit with a dealer I frequent from offloading some coins. Due to this crappy economy, I can't really justify spending cash instead of this credit. I was hoping to save it for some key coins, but of course, it can take a long time to find quality. The dealer has a 3-leg buffalo nickel in the grade I'd like. The only thing is, I tend to not collect "error" coins - I typically stick to regular mint issues, and shun overdates, etc. I have every other regular issue Buffalo, and this is considered part of the set by most. Can't decide whether to pull the trigger, this credit is burning a hole in my pocket. Thoughts?
IMO a 3 leg is not a bad buy or coin to use as a hope for increase of value (if it is not certified you are taking a big gamble). But if you are concerned with percentage of value over cost IMO then plain old 90% junk silver is you best play for the next few years . Buuuuttt... if you dont like or need it as an investment, WAIT.... - there is ALWAYS a better coin out there.
I think about buying another one from time to time, watching some on ebay. If you have studied the coin & looks like it matches the NGC grade and the good price with your credit. I would probably do it. I think the 3 leggers will always be a solid coin to buy. Edit: I bought that one above years ago for about $225
What you describe is a common ailment. We're all familiar with it, we've all experienced it. But the smart thing to do is to wait. Use patience ! You'll be much happier in the end. Think of it like this. A man decides he wants to settle down, get married and start a family. Is it wise to run out and marry the first woman he can find that will say yes ? It's like that with coins. Be patient, wait until you find the one that is right for you
My immediate thoughts are: I would never have a "dealer credit" unless I knew this dealer personally and even then it would be really iffy. I say this because a coin dealer is primarily a business and once the business goes down the tubes, all store credits become dischargeable liabilities. In other words, having a financial stock in a coin store is not my idea of a good investment given the volitility of today's economy. As for the 3 legger, these are proven to be market acceptable and as long as the dealers price is not out of line with reality, I say cash in that credit as soon as possible. If not that coin, then something else. I need to ask, why did the dealer only giving you "credit" instead of cash? Is he/she cash strapped? Because if thats the case, then having a "credit" is probably the worse thing that you could have next to an empty promise.
Very good point. If the dealer is cash strapped, and he has to close the store, your credit will be worthless.
With many dealers, in the case of a return, the only thing they offer is a store credit. That is their choice and they have the right to make it. In this situation, apparently the OP agreed, up front, to getting a store credit in return for some coins he "sold" to the dealer. That's not say I don't understand what you are saying, I do. Even so, the OP agreed, it was his choice. You may have made a different choice.
I recieved a 7% premium on the coins I sold for taking store credit instead of cash. I've done it before with some success. It certainly puts a damper on what you can do with the proceeds, because you're limited to what comes into one dealer's stock. But I knew proceeds would be reinvested in other coins. Plus, I'm relatively young, so if I'm forced to finish off my buffalo collection instead of getting some key date standing liberty quarters, I can live with that.
