Question: What % do coin dealers take off when buying gold bullion?

Hi guys, as I said in my other thread, I've been looking for a classic head for some time as I've missed my old one, I have OCD and have matured , the anti OCD meds combined with my therapy have helped me "let go" of obsessive thoughts about anything , including coins. I have $1150 in gold bullion. Mark Feld has a nice pleasing golden orange crusty $5 classic head with surfaces similar to my last coin. I emailed him to do a straight trade. I know me well now, and much more aware of my thoughts and emotions, the medications ive been taking regular helped significantly. The coin, assuming he will even consider selling it to me, is $1025. If he won't do a straight trade to liquidate the bullion, I'm wondering what % a coin dealer would take off the spot price (to resell for profit) 3 years ago , my favorite coin shop bought my bullion for exactly spot, a rare occurance. So, if 10%, I'd be safe, I'd have $1035. 15% I'd be screwed and would have to make up about $50 -$60 difference by cash. Do most dealers do 10%? I can always call the shop and ask, thanks guys.

 

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IDK what dealers do, but most collectors will pay you over spot for gold coins. You could always try selling it to another collector, either here or elsewhere.

Sorry if I am not answering your original question.

 

edited

 

I read this more precisely as "How will Mark Feld respond to my offer?" No one here can answer that with certainty, even if they've had a highly similar situation with the same man.

In business a nice disposition and flattery can't hurt, and face-to-face or phone calls are usually better than email. But I'll also say this (not referencing Mark Feld or anyone in particular) : many coin dealers are real curmudgeons. So how does a buyer successfully haggle with a prickly seller? That's the million dollar question, what's the best way to finesse the Buy.


On the PM coin business climate:
fwiw, the PCGS Key Dates and Rarities Index (however useful that is) is basically flat, down -2.4% over the last 3 years. Meanwhile, Gold (GLD) is UP +80% in the same period.
http://www.pcgs.com/prices/Graph.aspx?range=3 years&filename=keys

Ergo: trading Gold for Coin should be better now than before! Lucky you.

Another question to my mind is whether or not bullion is generally easier to trade for (numismatic) coin w/ moderate PM volatility. My hunch is that - generally speaking - rising bullion price (at relatively high POG) warrants discounting the soft-value of collectible Gold coins. So how did avg numismatic values fluctuate in these periods, below? Again, by my read the 3-Yr PCGS chart looks to favor coin BUYERS, not Sellers in the near term.

Using GLD as a quick-&-dirty scrolling proxy, maybe someone has better insights to any Gold Coin Price correlation in the last Quarter of the Year:
In Sept-Dec 2011, Gold fell -15%
In Sept-Dec 2010, Gold rose +14%
In Sept-Dec 2009, Gold rose +15%
In Sept-Dec 2008, Gold rose + 6%
In Sept-Dec 2007, Gold rose +28%
In Sept-Dec 2006, Gold rose + 2%
In Sept-Dec 2005, Gold rose +18%

A more general observation on the Gold Bullion market:
I think the absence of Gold Seasonality (May-October) is eerie. On average, Gold's 'Summer' Seasonality exhibits a -9% pullback over 18 weeks. We've now had two successive years without a Seasonal pullback (May-October.) Based on the last 40 years or so, that extraordinarily BULLISH sign of gives some confidence that Gold (bullion) is better than Money (Paper) in trade transactions and for the medium term (5 Year) expectation, POG.* fwiw, there were some HUGE (-25%) seasonal swings in another solid Gold Bull Market, see 1973 and 1975. I also suppose this means Gold's parabolic move is still some ways off, at least 4 years. We shall see.

Relatively speaking and 'trend intact,' circumstances favored the Gold Coin 'bullion trader' who kept his/her powder dry. The tepid chart of PCGS Key Dates and Rarities Index doesn't suggest Buyers will lose the advantage any time soon. I'm not saying dealers must agree to anyone's low-ball trade offer, however. A seller's ability or willingness to accomodate (discount) is driven by his/her particular circumstances &market outlook. And that's why a solid relationship with a reputable dealer is invaluable, IMO.... 'Special Price for Friends.'

*Caveat? Another stage of deflationary collapse like 2008 - "the Black Swan" - should drop POG at least -25%. No idea how sensitive the premium on numismatic value is to something like that, either.

 

Great info, I have a great coin shop about an hour drive , 47 miles away or so, but they are very nice reputable. Last time I went they offered me 100% of spot for my .9999 bullion bars and charms. I emailed they and (it's been several years ) they said they'd offer me 96% of spot for all my bullion. Most dealers do 10%. I've had nothing but good service with them, one of the people working there was a former PCGS grader. So with my bullion, I calculated, worse case scenario (if my Vietnam gold bar only contains .22 AGW instead of .24 AGW, just in case. That leaves me with current spot price at a total of $1095, worse case scenario . This is at 100% spot . Adjusting for 96% spot, I multiplied that by the differences (100 - 96 = %4) , by .04, getting roughly a total of $1051 for my bullion. I'll probably get slightly more since I'm pretty sure my Vietnam gold (.9999 fine ) is 0.25, exactly roughly 1/4 an oz. Mark Feld relied to my email and said he couldn't do bullion trade, but I could sell it for cash and get a money order. He's holding the coin and it has some luster, a bit crusty with original surfaces, and has some nice reddish orange toning. It's listed at $1025, but again surprising me with his generosity like last time, is selling it me for only $900. Here's the link this nice coin on his website for rare coins and ill include an image, I'm very happy with it: Link: http://www.markfeldcoins.com/inventory.html#gold Picture of it: . Coin Description on his web site: 1834 Classic Head $5 PCGS/CAC XF45 $1025
Evenly worn, with clean surfaces and pleasing orange-gold color. Somewhat lighter in hue and brighter than seen in my image. A nice type coin.