The greysheet is a price guide that changes on a weekly basis as opposed to the redbook which is only published once a year. Dealers use the grey sheet for pricing dealer to dealer and then for retail add 10% - 20% or more right? Here is my question. Do dealers go thru their inventory on a weekly basis and change prices accordingly? If not, how often do you change prices on coins sitting in your showcases? Maybe it is not a question of how often, but when. By example, and don't yell at me for this example, you purchased a coin for $20 on that days grey sheet pricing. You mark it $25 and place it in your showcase. 2 months later the grey sheet now states $24 for that coin. Do you raise the price on that coin to $29?
Great question. A lot of dealers you will find will not place prices on the coins. This way, they can quote the most up to date price available. Bullion is always this way. Now on the other hand, if a price is marked, it should be sold at that price regardless of market price at the time. The vast majority of time, dealers do not have inventory sitting on the shelves. It is hard to run a business that way. Now that doesn't mean that we don't have some, but the majority is turned over quickly. Before going to a show, the inventory will be looked over to make sure current prices are on. Any adjustments made. Having said this, you have to take into consideration the costs associated with updating prices. For my firm, it costs us 50 cents to put a coin in a holder. That is factoring in the time of the employee. So is it worth the time to re-package many coins. NO. If the dealer has bought the coin at the right money, the profit will still be there. Sure they may make a few extra dollars, but it is always better to move merchandise than make a couple of extra dollars.
ND said it well. I would only add that many dealers mark only those items that are on display. Inventory items are put up in holders but not marked until they are placed on display. Also bear in mind that dealers do not the Greysheet pricing for buying common coins that will sit in inventory. As ND said, we make sure there is plenty of profit in those items that may sit for a while. As for the PQ inventory, it does turn quickly.
My inventory changes every week with little exception. It's very unusual for me to own anything for more than a few days. The exception to this would be coins valued at $5 and less that we keep in binders at the shop for youngsters, people starting sets or buying for their kids/grandkids. I sell collector coins based on greysheet value regardless of what I paid for it. If it's gone up a few bucks I rejoice...if it's gone down a few bucks I groan and sell it anyway. I might also add that retail coin prices and greysheet prices often don't vary that much. I know many dealers who sell at shows for greysheet ask prices, although truly rare coins will always bring a premium.
Common coins are coins that each and every dealer in the country has sitting around in a box. As an example, if you contacted us with a handful of BU 1922 Peace dollars, we would not bay bid for them. That is because we have several rolls sitting around collecting dust. We only sell a few a year as they are very common they can be picked up everywhere. PQ is premium quality coins. This is where it gets fun. I will reach deep into the pocket for exceptional coins. Regardless of what the greysheet says. Our customers know that these types of coins do not enter the market everyday, and that it will take more to own it. As an example of premium quality coin. A while back we bought a 1921-S Walker in MS-63. Very few examples of this date are in this grade, and even fewer become available. We had to pay a few thousand over ask to get the coin. You also have to consider that most sales throughout the day occur between dealers. We buy/sell/swap/consign and borrow coins from each other to move different items around. Just because one dealer has the ability to move certain coins doesn't mean the other will. It is all part of the fun of being a coin dealer.
