Why do value guides and coin publications advertise coins that are over priced and varible with other dealers: yet, when an average collector wants to sell coins the dealers have a much lower constant price in relation to other dealers?
Wholesale versus retail. Reading a value book for coins is like looking at a 'sharper image' for electronic items. The price you pay for the 'thing' isn't the entire cost, it includes overhead (store rent, table rent at shows, travel, advertising, licenses, memberships, and hopefully coin expertise and guidance).
Doh, That is how they make their living. IMHO, If you want to buy and sell coins then do so with Teletrade or Heritage. I have several free passes with Teletrade where there is no fee if I consign a particular coin with them. In other words I sell the coin for free and the only the buyer only pays a fee. I have two or three of these free passes but have never got one from Heritge. The old and rare US coins market is going to get tighter and tighter so my adivse is buy nice coins now and wait ten or twenty years.
the market is currently getting so tight that to buy nice pieces I wait for months saving. I'm not spending any less than have in previous years, it's just buying less because of what I'm specializing in right now
It is not at all uncommon for a dealer's asking price for a given coin to vary by as much as 50% - 75%. In other words if you took 3 dealers one at a time and gave them all the exact same coin - the exact coin, not just one like it - it would be common to see the asking price be, dealer 1 - $100, dealer 2 - $150 and dealer 3 - $175. Dealers are free to ask whatever they want for any coin. They can ask double the true value or make you the deal of a lifetime. It's just up to them to decide. When it comes to a dealer buying a coin from you, it is not uncommon to see spreads between buy and sell prices to be as high as 40%. In other words a dealer may pay you $100 for a coin and then sell it 5 minutes later for $140. Again it depends on the dealer, some may be less and some may be more.
This is just the normal bid/ask spread that exists in any market. In the stock market, the bid/ask price spread can be a few cents. In real estate, it's the 6% realtor commission plus closing costs. In coins it is much higher because it's a less perfect market with fewer outlets to sell. Internet dealers who buy coins and auction sites like Ebay will probably put a lot of pressure on traditional dealers to offer more competitive prices. But a lot of people don't know where else to go to sell.
Dealers gotta eat so they gotta make money. Like has been said there is overhead etc in a shop. What do you get for that - A REAL PERSON and a lot of knowledge in most cases. I have 4 shops within easy "striking" distance of my house. I go to two of them because they know and respect me as I do them. They will give me better deals because they know I've been at it a long time. On the other hand if a customer walks into their shop looking for 2 Cent Pieces and I'm present they'll refer that person to me for info as they know I've been into them for years. I scratch their backs and they scratch mine. They will make a sale and give me a discount on something. The coin market is getting much tigher. I think it was bqcoins that said how he saves for months. I'm pretty much the same way anymore. I have committed to 4 coins in the past few months. Three are paid for and I still owe $550 for the last one. Total was $1750 and my wallets been pretty bare so it hit me hard. Why did I commit? Three of the coins I could sell at a profit today (I won't) but they'll continue to rise. I love the coins and they are part of my retirement funds. One day they'll go to someone like me but that's a long ways off.
