Dealers vs Internet Bids

Hi folks
this may only apply to the local situations but I'll ask anyway.
Locally the 'recognised' coin dealers all charge much more than the coin is available for on our local internet auction site. I'm not talking very rare coins here, just your average joe coin - the Mandela coin is a case in point. It's got a mint run estimated at 41000 if I remember coin news's quote correclty...although it seems most are being held back by the mint. But the dealers generally charge 4 time more for a PF62 than I can get on the auction site. The dealers say they refuse to buy coins biught of the auction site...although how would they really know?

It's all enough to give me a big headache. This is mainly a hobby, not a business venture after all...

 

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The thing to remember is that dealers are independent. They can do what they want, how they want, when they want. Then the next day they can turn around and do the exact opposite.
To be successful, auctions must cater more to the public.

 

It's a tough call and requires caution. The dealer coins might be higher quality than what is carried on the internet site. When one coins costs 4X more than another, that should be a warning that the cheaper coin isn't equal in quality despite what is advertised.

 

So many other things to consider. For example a dealer with a store must make sufficient money to pay for expenses as well as feed his family. Other dealers that just travel to coin shows must pay for thier transportation, food, renting of tables and spaces, etc. All have unseen expenses that must be paid for from the profit of their sales. Coin autions usually have numerous coins to sell, massive audiences if on the internet, very low overhead and you pay for shipping and handling. Then there is the horror stories of ebay and other places where what you see is NOT what you may get and many, many times nothing you can do about it. With most dealers you can see what you get, chew down the prices, return more easily if not satisfied. A dealer, once they know you can look for certain coins for you whereas an auction house or ebay, your a nobody so what you see is all there may be and occationally not that either. If you get to know a dealer with a store and want to sell your coins they may be willing to put them out in their store for you for a price, naturally. With ebay or other auction houses you can ask but heaven only knows what is the results.
True the average dealer charges more but there are so many advantages that it may well be worth the extra cost.
My only experience with buying from ebay or on line dealers has never been anywhere as good as from coin shows.

 

Well said, Just Carl. My opinion is that if multiple local dealers are all asking about the same price for any given coin, then I'd be very suspicious of any similiar coins that I could get online for much less. The best part of buying from locals dealers is that you get to see and hold any material before purchasing. There's no doubts of condition, color, etc. Plus, the local store owner wants to be there in the future whereas the online sellers often come and go with the wind so they may never have to explain why they sold a cleaned or counterfeit coin.
tradernick

 

In my opinion prices of coins are more expensive at dealers because they need to make some kind of a profit, the coin is more likely to be genuine unlike the internet where many counterfeits are being sold everyday , and you get to actually see and inspect a coin before purchasing unlike online you get to see small pictures which give you a small amount of information.

 

Al the items I speak of are slabbed, mostly NGC. I gather it's probably possible to crack a slab and put in a fake slip or different coin, but it seems like a lot of trouble for a 'common' coin. We're talking maximum of $1000 here. Am I wrong? Is it easy to crack a NGC box?

So far my collection consists of 5 coins. I bought 2 Mandela Inaugeration PF62 2000 from a dealer for $ 500 each. I got a PF69 version online for R1000....

Sigh, to have lotsa cash...to buy cash...

 

Buying slabbed coins by a reputable company and getting charged 4X as much locally? Seems those dealers are either totally out of tune with the internet or just refuse to acknowledge that it IS a factor.

I am like most others here (I think). I like to actually see the coin when possible then work out the details if I'm really interested. I have four local dealers. Two I do business with as the others refuse to budge and even tell me "I could get X amount of dollars for this on ebay" when I've already done the homework. Bottom line is they make nothing from me.

Of the two dealers I do business with one is VERY computer illiterate but has enough sense to realize that he may have to adjust prices to make a sale.

Hey, these guys DO have overhead and I consider them my friends after so many years. I'll pay a couple extra bucks for a nice coin but not 4 times as much.

Get to know your dealers if you haven't already. Show them your pieces without mentioning price or where you got it. "Test" them out. If they like your coins but still insist on charging 4X what you're paying find different dealers, attend shows and be careful on the internet.

 

Yeah, getting to know a few dealers as the days go by. Funny, some promote the Nelson Mandela coin, the other's say it's a big con. Would be nice to have some consistency. I think that first dealer is just way expensive, but they do certainly seem reputable. Stick coin south africa into any search engine and their name is usually the first up. I centainly have huge amounts to learn...

 

Krugerrand Gold

I would be interested to know how much (in US dollars) the one ounce gold Krugerrands are selling for in S. Africa.

 

I just got a great deal on a coin from a dealer near Trenton, NJ after checking web sites, coin shows, and other dealers. 500.00 less then any other place same grade

This dealer really did give me a great deal.

 

I'll check it out at the mint and let you know. Got a show this weekend.

 

Right, 1Oz Krugerrands (22cr gold) selling for R6,850.00. using an exchange rate of 1:[FONT=Arial,Helvetica,Verdana]7.117392 I get a cost of around $962.43.

Strangely, you can get a proof set of the 4 coins, 1 Oz, 1/2Oz, 1/4Oz and 1/10 Oz for a little less than the four individual coins cost...although I gather proof coins of bullion coins is not a worthwhile difference anyway.
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For proof Krugerrands to be profitable there needs to be a buyer willing to pay. That's why I stick with raw regular strike; much closer to spot when you buy them. Thanks for the info. It looks like your price of $962 is about $260 more than they sell for in the USA.

 

You say you can get the coins at your friendly internet auction site?
How can you be guaranteed to get the coins you want? A dealer gives you a wider range of choice, and can even be active in getting you what you ant, plus there's someone in person who can guarantee you get good, decent coins and not ripoffs like on ebay. Not only that a few coins seem better value at some dealers...
Bottom line is: it is always nice to have more choice

 

Well It's ok if you have to have a specific coin to finish that set you've been working on for ten years, but there are plenty mandela coins - i think about 1800 have been slabbed, so not exactly slim pickings. The one I bought from SA Coin is on the local web auction, slabbed, for 1/5th the price...silly me