I always like to have a purchase in hand right away but large market place gives more selection. Lets assume that I can find what I want in both the shop or EBAY. Can I expect a lower price with the coin shop since they don't have auction fees? Or does the potential smaller volume of a local coin shop vs. a large seller on EBAY bring up the sales price to the same level as EBAY or higher. Example I am looking at buying is a common date Saint Gauden Eagle say 63 to 65 grade.
In my experience they've been both pretty close in pricing. Like any competitive driven marketplace, the guy with the higher prices doesn't last very long when selling the same thing as the guy with lower prices.
Auction fees vs. the overhead/expense of a physical retail location. Hmm.... not that it's a bad question, but I think you're failing to look at the big picture. I believe it wise never to assume how much overhead any individual dealer/seller has as this is something that can vary greatly from person to person regardless of their chosen selling venue. With that said, the coin you are looking for in the stated range issomething that as a generic can usually be had for a very modest premium, and with relative ease, at either venue. However, unless you have a close by shopin mind that has the very coin you want in stock, eBay or an online retailer may well be your easiest and overall least costly option, especially if you're willing to buy generically.
I also think it depends on your relationship with your local coin shop. My favourite shop is actually owned by a jeweler and he only does coins for fun. His pricing is usually very fair (because his jewelery pays almost all the bills) and he knows me so he always gives me a discount on everything. Including the stuff in his already discounted bid. So I prefer going there over Ebay. But it's harder for me to travel there So I usually only see him at coin shows.
When I used to live by a coin store, I always preferred shopping there over eBay because I wanted to support the store, I had greater confidence in their merchandise, prices on most was normally about the same, and they had sales. I got to know one of the employees a little bit and he would cut me deals. eBay has a larger selection but I enjoyed going there. Something like the coin you're looking for could be a step in forming a relationship with your LCS.
LCS all the way. I much prefer seeing the coin in-hand, under proper lighting, before making a purchase decision. It's easy to hide flaws in photos, and it's easier to get taken when you don't know the person selling the coin to you. The relationship with the seller is key, IMHO. I've learned so much about collecting from my local coin dealers, and as has already been mentioned, the local guys will even cut you a deal once in a while.
I have found if I can find two comparable coins - 1 on ebay and 1 at the local shop, the local shop is usually cheaper. Not always, I also prefer to look at it in hand, but sometimes just not possible. I also use online dealers also - never know where you will get the right price.
