Overdepending on the graysheet

I was at a show and saw some great coins, both pcgs ms 65 coins and both were excellent examples for this grade. One was a SLQ that had a graysheet price of $355 but he wanted $500. For a different dealer, there was an Indian Head BN that that had a graysheet price of $80 but he wanted $200. Really nice coins, but after some web searching of comparable sales I decided to pass.

I wonder if I need a reality check. Are the gray sheet prices that far out of whack? I don't expect to pay graysheet price consistently but I thought those prices were steep.

 

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I’d be more likely to believe that the coin show prices were out of whack. Or if the coins were truly exceptional for the grade, or the dealers thought they were, they could have been holding out for the right buyer.

 

Without knowing what it was it's impossible to say, but you said they were excellent examples and premium examples generally can't be bought for greysheet prices without getting lucky.

 

I agree with baseball21. Great looking coins can bring crazy prices. Coins with nice pretty toning can bring several times sheet prices. Many dealers will pay a strong price and mark it up from there. Someone will come along, fall in love with the coin and pay the price.

 

Sometimes greysheet errs in the other direction. For example, 1850 half cents are super hot right now. At the last show I was at, dealers were selling VFs around greysheet, which I believe was $140, but on eBay, they routinely sell for $240 or more.

 

I thought Graysheet values were dealer-to-dealer prices.
If so, retail would be higher.

But my experiences with the Graysheet were from before ownership changed.

 

Yeah, but it is available to everyone, so collectors use them a lot as well.

 

It's not available to me anymore.
The new subscription cost stopped me dead.

 

Thank you for your expertise and feedback!

 

Many different factors could be at play here. Incorrect CDN, Overly nice example for the grade, sudden upturn in market trends, crazy dealers, etc. Did you try to haggle at all?

 

Ask the dealer why they are charging double for what that grade of coin goes for elsewhere. They might actually have a legitimate reason; i.e. variety, error, toning/color, rarity, etc.

I had a dealer asking way too much so and I showed him the ebay listing of the same grade selling way less. He said the buyer on that auction just got a really lucky deal. I then knew he was just overcharging because that coin routinely goes for less and he simply didn't want to acknowledge the fair market price because he was hoping uninformed folks would pay more.

 

I was once scammed out of $100 on a $25 note because I trusted the dealer’s pricing. Never EVER blindly trust a dealer.

 

No, the gray sheet is what most dealers go by. What is high is the show prices. Some dealers ask more and are willing to come down as a "show discount". I do a lot of antiques and at shows the prices are always higher than in an antique shop.

Remember, dealers at coin shows come from all over and their market area at home may allow them to get these prices.

I too have passed on several coins that were $200 over the grey sheet.

 

A good number just don't care since you're likely a one off customer they won't see again when they're out of their area. Obviously that doesn't really apply to large national dealers but for many it does

 

It's hard enough to sell coins at grey sheet prices without a buyer still trying to talk you down. I don't know how a dealer would make many sales if he's charging way over. Most coin buyers at shows you'd think are fairly informed.

 

Dealers at the show by me this weekend were using the grey sheet and Red Book for prices. Granted all of them are small time locals but I have heard a lot of grumbling about the cost of the grey sheet being absurdly high now. But there is always a guy who is 25% higher then everybody else at the show.

 

these samples were actually beautiful. Definitely on the higher end of the 65 grade. I did some research just for my sanity and it did not make sense to go for it. I also talked to my wife who is full of wisdom. If the ms65 indian head gray sheet was $80 and I bought the coin for $200, how much would I get from a dealer if I sold it, no matter how great the coin was? I would guarantee no more than $100 and I think I would be lucky.

The difference was so off I decided not to haggle; I thought it was not worth it. Then again, I may be off here. I punted to wait for another day.

 

Well said.