Discussion, rather than a question: Buying just to re-sell?

I know most of the posts here are along the lines of "What is the retail worth of this coin I have?" But I'm brooding over a question that I thought some of you might want to chime in on.

I'd like to sell a few coins that had been my grandfather's - for example, a 1911 Indian head $5 piece. I felt like I was getting low-balled by dealers, tantamount to price-fixing, so I thought I'd look around for coin clubs and collectors instead. But I was just meeting with a collector who in fact was offering me less than what dealers were offering. Now, a retail dealer has not only to make a living, but also has to pay overhead, so obviously he needs a profit. But it turns out that this collector I was talking to - all he's planning on doing was buying to re-sell and was expecting the same profit, or more.

Anyway, I'm feeling grumpy and disillusioned. Do many of you buy mostly only with the idea of immediately re-selling? Do you buy because you love to collect, or because you're focused on making a profit? Seems to me there's a difference between what a coin is worth "objectively" vs. what it's worth to someone just looking to make a fast buck.

 

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You need to find the end user, the collector who wants the piece to just have it to realize retail pricing. It's not always that easy to do, hence the reason coin dealers exist.

Ebay is probably your best bet.

 

Sigh. You keep being told the dealer offers are decent, but you do not believe it. Why don't you just list it on ebay and let the market decide what it is worth? Guess what? I buy many coins just to sell, and I buy many of them ON ebay. Meaning I am offering as much or more than the end users, then turn around and try to sell it for even more to the same end users.

 

The dealer is going to be your fastest way to sell, usually. But, he has overhead costs and must make a profit.

The end collector is going to give you the highest price, but will often be difficult to find.

The vest-pocket dealer (a name for that other class you are talking about) is going to give you one of the worst prices, for a number of reasons. I won't go into them all now. There are some high quality guys that fall in this category - but the opposite is also true.

In the end, you have to decide what is your priority. Do you want to sell it quickly and get the cash fast, or are you willing to put in the work and maximize your profit? There are a number of threads here about what is the best method to sell, just do a search and you should find them.

 

check out Ebay to see what your coin has sold for and other auction sites. get an estimate of the average price of those are. that should give you an idea what the price should be close to.

 

@ccarroll, is the coin graded or raw?

 

Here.. just to bring you, or anyone else not familiar with the ordeal, up to speed:

https://www.cointalk.com/threads/frustrated-by-supposed-price-lists.269995/

 

This sure seems like a lot of headache over $200.

 

I'm not sure as to why we want to sell Grandpa's coins. I wouldn't.

 

IMO, if you want to maximize the value of your coin sale, then you need to know exactly what you are selling. Only then you can negotiate a good price with any seller, be it a dealer, vest pocket dealer or collector.

If you don't want to take the time to educate yourself, than no matter where you sell this coin(s), you won't know whether you received a fair price or not.

 

What is this "profit" thing you speak of? We don't need no stinkin' profit!

 

You could also try the sale forums here, list it with the price you want to get. If no one responds you'll know that perhaps that's a bit too high, etc. Plus selling here is no fee's involved with Ebay, etc (well maybe Paypal if used but you can ask buyer covers those or sends the way to avoid them)

 

Watch Pawn Stars: Rick - OK, my expert said this is worth $450, how much do you want for it - Customer - Well, $450 - Rick - That's retail, I have to sell it and it might not sell immediately and I will have to carry it in inventory, yada yada - Customer - OK, $440.................. That's the reason Rick has no hair, he pulled it all out.

 

You bring up an interesting point beyond another option... anyone possibly interested in her coin who has read her threads certainly isn't going to be okay with the previously mentioned happy medium... knowing her options, they're going to want it at that same price, or perhaps a token amount over. The point is that the lines between "dealer" and "collector" today are nowhere as well defined as the OP seems to think, or at least seemed to think prior to her recent, hopefully eye-opening experience.

 

It is true, the dealer must make a profit and also has to buy what can sell. There are plenty that buy coins just to resell. I have bought to resell and also have sold to those planning to resell. When a person buys a dime from me and they sell "unsearched wheat cent rolls" we know where it is going. I generally don't buy just one coin in a collection to resell. I buy the entire lot. I keep what I want and pass on the rest. Single coins I usually end up keeping and it is paid for by my sales.

 

I buy coins with the idea of reselling but I eventually just add it to my hoard.

Go on ebay put your information in the search and then check completed auctions. You can get the highs and lows of all auctions. Then decide if you want to let it go.

I for one would hold onto Grandpa's coin, but then thats me. If you want what the market can bear sell it on ebay as a buy it now. Coins and precious metals have a lot of honest people in it but sadly there are a bunch of guys trying to make a fast buck.
I guess I should sell my hoard and make sure my investment isn't given away at half price. Because my kids or grandchildren won't know what they are worth either.