Reactions to seeing a dealer reselling your coin

Discussion in 'Coin Chat' started by ctrl, Mar 16, 2012.

  1. ctrl

    ctrl Member

    Hi,

    In my planning and pondering setting up a specialty online shop, I've been curious how others feel when they see a coin they've sold to a big dealer being sold for X% more than what they were paid for it. Or when a collector sees a coin that just sold at an auction recently being sold for X% more by a dealer. What's the general reaction collectors have? I imagine there is a difference between those who spend time researching and searching and viewing auctions obsessively, versus those who collect and don't spend time looking around much outside of what their dealer shows them.

    It's just something I've gotten curious about: how do people react when seeing a coin they just sold to a dealer sell for more, or when they see a coin just sold at auction selling for more by a dealer? Any ideas?

    Apologies if these random thoughts and questions seem off the wall.

    Thanks.
     
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  3. Leadfoot

    Leadfoot there is no spoon

    Do you expect the dealer to sell it for the same as they paid you?

    Are you suggesting the markups are not fair?

    Personally, I find it interesting to note the dealer's markup, but the dealers I work with don't charge exorbitant markups to begin with (10-20%), so I am not surprised.
     
  4. ctrl

    ctrl Member

    Woah, Sorry if I wrote my question poorly, but I was in no way suggesting markups are wrong nor surprising. I was just wondering how collectors felt about seeing something they just sold listed at a higher price and selling to someone else, when in this day you can in some ways circumvent the dealer and sell directly on eBay, consign to heritage, etc.
     
  5. snaz

    snaz Registry fever

    No, never surprised. I understand if I sell to a dealer I am willing to accept being paid less than the coin is worth. Just like if I sold a watch to a pawn shop, an antique to an antique shop, or anything else for that matter. When selling directly to the people involved in the business you should always expect them to leave room for them to make profit.

    Otherwise why would they buy it? Now if I wasn't a collector, and I asked for an appraisal, had a coin appraised at .. say... $300, then they offered $225 I would be happy. But if I went the next day and they had it listed for $850 I would be a little curious where there was a miscommunication on the value of my coin when the appraisal was done.
     
  6. Yacorie

    Yacorie Junior Member

    I think you nailed it.
     
  7. rodeoclown

    rodeoclown Dodging Bulls

    I don't sell my coins so I am unaffected. :thumb:
     
  8. Leadfoot

    Leadfoot there is no spoon

    Thanks for the clarification. That makes more sense to me now.

    How do I feel about it: It doesn't bother me in the least. I sell coins to dealers because I can get instant cash. If I wanted to wait or gamble on an auction, I would do so.
     
  9. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    It doesn't bother me as long as I've gotten what I feel is a fair price for what I've sold. If I worried about such things I wouldn't sell in the first place. Besides, folks gotta eat so I don't begrudge anyone from making a few bucks......:)
     
  10. Hunt1

    Hunt1 Active Member

  11. treehugger

    treehugger Well-Known Member

    I think in general, all things considered, life is pretty much of a wash. You win some and you lose some. When a person looks back near the end of their life, I think they realize, when they take everything into account, they pretty much broke even. An individual situation might bother me for a minute, but once I put it into perspective, I'm back to normal.
     
  12. kookoox10

    kookoox10 ANA #3168546

    Something folks just getting into the hobby have to realize is that you can't have that type of feelings being in the buy and sell game. Buy coins you know you can make a few bucks on, and sell inventory to have money for more purchasing. Some of the greatest and well known dealers that have been around for years didn't get to where they are at by screwing people to make a quick profit. They make little bits of money here and there, but it all adds up!
     
  13. JCB1983

    JCB1983 Learning

    Any negative thoughts might be because of a personal attachment to a coin. From an economical perspective it might be good for the coin world. The markup in prices generates positive growth in the value of the coin and could be good for long term investment purposes. I do believe that eBay has leveled the playing field as far as the big time dealers go though.
     
  14. EdS

    EdS Member

    The only time I had a negative reaction was when I was very new to bullion coins (eagles, kooks, maples, ect..) and had a local dealer tell me they had no premium.. even slabbed coins. He'd buy them for just melt. I was new.. and believed him. Came in the next week.. and saw the coins listed with the heavy premiums over melt. Even now, I seen new modern bullion in his shop occassionally, with pretty large premiums. I learned my lesson with him... and now, only buy & sell private mint bullion and US 90% from him.

    Profit is fine.. we all make profit, or we'd be broke. But lying to make a profit.. it can make the collar hot.
     
  15. dannic113

    dannic113 Member

    Personally I think most realize dealers need to make money and therefore pay less and I understand that and am fine with that. If people want fair market value try to sell it yourself. However things do happen you just have to learn, deal and adapt. The only thing that would bother me is if the dealer is unscrupulous. Really lowball offers or under/over grading coins to get them cheaper or make more than they are worth. Most times I just stop doing business with them and let it go. In fact I just had an online dealer accept and then cancel my order so he could double the price on an item. I've also had a brick and mortar try to lowball on bullion just say no thank you and walk out.
     
  16. dannic113

    dannic113 Member

    Not even for a Klondike bar? lol.
     
  17. icerain

    icerain Mastir spellyr

    When it comes to business like buying/ selling things. You have to let go of whatever you sold, there really is no point in thinking about a dealer selling it for more. There is not much you can do about it once it leaves your possession.
    And besides there must be a reason why you sold it in the first place. Either you needed the money and the sale was sufficient or you made money on the sale.
     
  18. quartertapper

    quartertapper Numismatist

    In response to your post, I would have a problem with a dealer that gave someone the big story that the coin they are trying to sell them is not in very much demand currently, and gave them a pretty low price at a time of desperation. Then the dealer puts a 200% mark-up on it. Yeah it's a free market, but I wouldn't hesitate to tell others about it. (Keep in mind this situation is completely hypothetical.)
     
  19. EdS

    EdS Member

    My local guy will tell you that slabbed MS69 & 70 silver eagles are just "bullion" and he buys at $2 under melt. heheheh....
     
  20. quartertapper

    quartertapper Numismatist

    My local dealer does not make an offer on slabbed bullion coins, because he generally knows the guy got hosed on TV when he purchased them. Being in business can be challenging when confronted with these scenarios. Not insulting the customer is the key.
     
  21. Leadfoot

    Leadfoot there is no spoon

    There's a flip side to that though.... Some of the biggest names in numismatics screw people for a living. Not all, but more than a few.

    Heck, even my local B&M has been doing it going on three decades.
     
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