Suspected coin dealer employee seeking arbitrage - lowest of the low

If the employer does not know he's doing this then it is horrible and despicable. But they may know and have a prearranged agreement for some of the coins they employer does not want.
It's hard to see from the outside IMO
Not really like Insider Trading at all more like a ATT saleperson selling Verizon phones at the ATT store with out the V knowing about it

 

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Actually some do. Where my friend works employees get coins for cost up to a certain amount per week. When i visit that privilege is extended. Obviously they have limits or like you said they'd go under, but they move enough volume where this perk doesn't hurt them.
Guy~

 

I then stand corrected... hahaha!!

I was sitting here thinking about it... I have sold a few coins at cost as well.. but this was because I paid too much for them to begin with... and I just wanted to get out. I will re sculpt my statement to change NEVER... to HARDLY EVER... hahaha

 

Did I miss something here. I thought the employee was buying coins from clients that were for his employer and selling them for himself?

What that not the point?
If so that is cutting the employer out and very bad IMO.

 

Oh...lol that's NP at all.
Retract all I said if that's the case.


I read:

"I suspect a coin dealer employed by a reputable coin collector company is buying coins wholesale through his employers channels"

as without his knowledge.

 

Well go on a sales call make an offer for this pile with company check and the other pile with cash.

Or say's that they could not make a deal but there was a deal made of all cash for himself.

Or...

If you want to cheat you will/can but will get caught eventually. Just thought that was what he was talking about.

 

This is the only proof I have:

a colleague of mine knows who he is and where he works, but apparently his boss thinks he is a "collector" - as in, "oh you collect coins? You can buy these at a good price for your 'collection' ". I just doubt the boss knows he is selling them off.

But looks like alot of people here have made it clear that doing this is common practice! Ha! It seems like there are sharks out who don't give a damn about the coins, they will just make a buck out of you. I got into the stocks business years ago, but looks like I was kidding myself! While I'm trying to make an honest living there are sharks out there making risk free profit behind their employers back/at the expense of their employer.

Look. Guys I'm not talking about unsellable rubbish $50 coins.

I'm talking : coins worth in magnitude between $500 and thousands of dollars. Some are new release 2010 proof sets - about $1500 - and are still being advertised on the company website. Some other coins in excess of $3000. The thing is he is selling them for about $200 less on ebay than what his company is advertising them for on their website.

Taking away their business? If his boss thinks he is just a collector but he's doing this activity on the side then it's got to be wrong. But if this is common practice- then it's a darn good way to make risk free profit. That's all I'm saying.

 

Well we keep getting more and more of the story so my opinion keeps changing
With this last info he's doing wrong ethically. Not illegally but it's sounds like he's lying to his employer.

 

Unfortuneately I don't see how this is any of our buisness. Employees are constantly trying to whiz their employers... it happens in all businesses and the bosses find out and can people all the time. But this is something that the boss should discover on their own... He is under a false impression about his employee... that's his fault... even if the employee has told him otherwise.

If you want to make it your buisness and go to his employer... go ahead... I have to assume that your contemplating this?

 

Look. You're right I'm sorry about this.

I just came to this forum to speak with fellow collectors and dealers to find some facts about whether this behavior by a employed dealer is normal.

I have gotten a bit fired up in the process of discussing this matter. I guess I just see it as dishonest, considering the collectors this person must be taking advantage of.

But anyway I've clarified it all now. Since this is common amongst employed dealers I'll leave it at that.

 

Cleus, You will find that when you apply normal business rules to the coin game, that it comes out looking like many involved are crooked. Your examples is one instance of this phenomenon, IMO. You are right to call it out, however your protests will fall upon deaf ears....Mike

 

I'm not trying to dog you... I'm just trying to get a little more information...

If the employer is a friend of yours... then I'd definitely tell him. I would want, if not expect my friends to tell me... If you don't know this guy from a guy you pass on the street... I'd advise you to leave it alone... That was more the point I was after...

 

There,s a fine line there, As a dealer myself a profit must be made
But not so much people feel getting taken advantage of!

 

Thanks. No I have no affiliation with the employer

 

A few months ago, someone actually posted that they were doing this and trying to build their own client base, and then they faded away. I can't remember the name, but they were here in Calif.

 

He could be doing it with the companies full knowledge to gain new contacts or potential customers to deal directly with the company. Cheap way to advertise.

 

cleus55,

I reread your OP and see it a bit different than my first post would indicate. Sorry, was getting ready for work.

IF the guy is "preying" on his connections than I don't agree with it but I doubt it would last too long. It will also tarnish his name big time. Dealers communicate.

I've had times in the past when I've inquired about a coin and he's asked me if it was for me or for resale. He pretty much knows what I like so it's not too difficult for him. If it's a common coin that I don't collect he usually gives me a pretty fair price so he can make a few bucks and I can as well.

I've also turned coins down because it was more than I was willing to pay. On occasion I've caught him in a really good mood and he's just given me the coin. I like that situation.

It all balances out and it's because there is trust.
If this guy is violating trust it will catch up with him.

Finally, we have a website as well and most items are full retail. There have been many occasions where we have listed the same item on ebay that is on our website and received less. Bottom line is turning the merchandise and making a profit.