Local dealer buys depending on the market

Recently, I had taken in some coins to a local, numismatic certified dealer. Very high end jewelry/coin store.

They advertise on their site that they pretty much interested in buying most american coins and currency, but when I bring it in to show them the items. For instance, I brought in some 1929 depression era currency that can bring in like 30 to 50 bucks a pop depending on their condition.

I was told to go ahead and keep those particular items as the market isn't really in demand for them.

Same thing happened with the Indian Head $2.50 coin, it fairs a good amount online, but they won't take it because of the "market." for them.

Am I safe to assume that this dealer ONLY purchases based on what that particular store can flip? I was able to sell Wheat Pennies to them no problem as it is high in demand, but if that store doesn't think it can turn it over for a profit or they KNOW that no customers have been coming into the store asking for it, they won't even buy it.

Am I right in thinking this?

 

Log in or Sign up to hide this ad.

Sell em yourself on eBay. No reserve auction. .99 start. Take decent to good pictures. You will get market price minus 10%-15%

 

Some dealers don't bother with trying to sell on eBay, so they either need the clientele to walk in and purchase the coins, or they are stuck with dead inventory. I would bet that they are more like the we buy gold guys who could care less about most coins unless they are quick flip bullion. These items can be sold the same day at an established profit margin.

 

I wouldn't sell to him. I also wouldn't buy from him.

 

Every dealer has their own business model. Basically if the dealer can make a profit and it's worth his time to do so, then he'll buy it...otherwise he will not.

Sometimes I'm amazed at the amount of work some do to take pics, write the descriptions, and list stuff on eBay for very little if any profit, sometimes at a very small selling price. Oh well, to each his own.

 

First, if you were in business, would YOU buy something you didn't think you could turn for a profit? Of course not, so why should a coin dealer be any different? It's easy to point to eBay and assume there's a market for most anything, but the reality is that not all dealers, and for many different reasons, use it as a sales venue.

Second, did you give this person any indication of your price expectations? Perhaps you didn't - I don't know - but it's common for people to expect unrealistic prices for their wares, often pointing to eBay as their justification, and while failing to take into account fees and reasonable profit margins when doing so. It's also fairly common to point to a "market" when not wishing to buy and wanting an easier out than simply saying so. There can be near countless different and valid reasons for a shop/dealer not wanting to buy certain material, and this is just a simple reality of the business.

 

I don't know anything about the dealer or the shop, but I'm sure whatever they are doing is what works for them.
The only thing that strikes my funny bone is that they wanted the Wheat Cents over the gold $2.50! I think the "market" in your area is completely different from the "market" everywhere else

 

"Did you give this person any indication of your price expectations?"

That's a key point. A coin dealer who has been around a long time, someone walks in to sell, the dealer probably knows in less than a minute if the potential seller is "really" going to sell or not. I used to work in a high end camera shop, I usually knew quickly if the potential buyer was "really" going to buy the camera or not. You just develop a sixth sense after years of doing it. Of course you can still be wrong, but likely here the dealer felt like you weren't going to part with the items at a low enough price, so why waste time trying to buy it from you.

 

Thanks for the information.

Actually, they follow the grey sheet standard. Whatever "bid" that's on that sheet, is what they are willing to pay me for what I have...and I went along right with the price and was satisfied with it.

I was able to sell the Wheat Penny (full set) for the "Bid" that grey sheet. So we reached an agreement with that. But I think they are looking for specific items, even though they advertise they buy any US Coins and Currencies.

 

I know, right? That kind of blew my mind that they paid me the grey sheet "bid" on the Wheat Penny set, but refused that Indian Head 2.50. I'm guessing they are basing the demand on whatever customers in the area are desiring.

I $2.50 Indian Head coin could wind up sitting up on his shelf for a good while without making him money, all the while he's aware that people will pay good money for the wheat pennies. *shrug* It is a mystery how he would want some, but not others.

I may have to start to look at other dealers that aren't so finicky about their choices. I mean advertising "You buy US coins and currncies" then no owning up to it by saying, "Well, we don't need those...the market isn't in demand for those." To say what he said about the Indian Head was quite baffling. I don't want to waste my time driving there to be turned down as they have to see them.

Rather silly to completely turn away a good coin and even give a minimum for it?

They wouldn't even give me a minimum amount, just "You can go ahead and keep those, we don't need 'em."

I try to probe with him on the phone what I have, but they say they have to see it first to determine if they want to buy.

 

Again, if you were in a business with such a wide variety of material, what would you do: advertise a comprehensive list not only of the individual items, but also conditions that you're interested in, especially if paying to do so, or would you generically state that you're buying X, knowing that this is likely the best way to get people in the door? Just because this is a hobby for most involved, let's not forget it is a business for others.

 

Perhaps the Lincoln set was uncleaned and have their original skin, and are actually worth a premium price over whatever grade was decided on for the Gray Sheet price. Perhaps the gold coin was cleaned or had a flaw you didn't know about which reduced the value, and is actually worth much less than the grade decided on for the Gray Sheet price.

 

Yeah most dealers only buy what they can make profit on or what customers are looking for.

 

Dealers also know a falling market. Say Grey Sheet price for gold coins is showing a downward trend over the last few months, you know what your demand is, would it be a good idea to buy a coin that you know it may be a couple months before it's sold?

 

That could explain why the dealer turned it down. Dealer might not want to let the customer down by telling him it has been cleaned or is counterfeit.

Dealer might also not want to get into an argument about whether coin is cleaned/fake with the customer. You know how some customers are in denial about their stuff being damaged goods.

Just a possibility if not cause market demands, as OP states.

 

I have to agree with icollectoldmoney and Hommer is saying, if he said it was cleaned, then he would have told me and not actually lie and "Say the market doesn't call for this particular coin."

Why? Because he actually told me at one time one of the coins had been cleaned.

 

Oy vey...

The guy didn't want to buy your coin; get over it. It is fully within his right to decline anything offered to him, and for whatever reason (which is none of our business) yours just happened to fall into the category. The man very well may not have had any use for it at bid (are we talking generic bid or date/mint?) and therefore HE has NO market for it and this would not be a lie. It seems to me that instead of being pleased to have someone willing to pay straight bid for whatever interests him, which isn't always the case and is pretty fair, you're choosing to focus on a trivial nothing. Truth be told, it's this "damned if you do and damned if you don't" approach from certain collectors that is often why dealers, when declining a buy, will give a non-confrontational reason instead of simply saying, if is the case, they dont want, need, or could profitably pay a reasonable price.

 

No need to be accusatory and condescending in your response. I'm trying to educate myself here.

 

This seems perfectly reasonable to me. The dealer wants to buy what he knows he can sell, because he'll make a profit on it. He's there to make a profit. If he has customers asking for certain material, he'll be sure to buy it. If he doesn't have customers for something, it doesn't make sense from a profit perspective to buy it.

Your coin has value, and in another market it may sell very easily.

 

Right, that does make sense. I would think a store front would be different than an online sale.