There has been a lot of talk recently about the coin market vs our curent economic condition. I check ebay every day or so to look at buffalo nickels. It appears to me a trend is starting and I wondered if anyone else is noticing this, or is it my imagination? There are a lot of sellers that in the past only had raw "high grade" buffalos for sale. Now I'm starting to notice they are listing buffalos of lower grades than I've ever seen them do in the past. Just as a theoritical example they would sell buffalos in the 2 to 4 hundred dollar range, and now selling lesser quality in the 70 to 150 range. Doesn't necessarily mean the "better" coins are worth less yet, just means people are not willing to spend what they did in the past. Has anyone noticed this in other coins, or if you sell on ebay are you doing the same?
To me it seems like the quality of a lot of different coins has decreased in the last few months. It seems like the last 2 or 3 months I can't find anything worth bidding on - and when something decent does come along it goes higher than I am willing to pay. So I am not really sure if it is the market or what. Plus it seems like some of the dealers I like are selling less and less on Ebay.
The last couple of months the number of buffalo nickels (that's all I've paid any real attention to for about a year) has increased that are up ofr bid. You are right about the quality of coins up for bid has decreased, but I disagree with you on one point again realizing I'm only talking about buffalos. I think the prices are starting to slip a little, there are a couple of key dates I need that I'm holding off on and will wait to see what happens. I also think some of the big ebay sellers that deal with a lot of buffalos either quit buying or are holding their better raw key coins.
I have been shopping for a 1924 S and 1927 S peace dollar in MS-63 for the past eight months. Yes, IMO the price has slipped on average for those two semi-key dates. I check Heritage, Teletrade and eBAY. However if the coin is on the high end of the grade so many think it is PQ or might jump in grade than those have gone for a premimum. I have also noticed at least on eBAY the volumn of these two coins in this grade has gone down. I think people are holding them for now, but four months from now??
Well, if the market is drying up and assuming either as a dealer or an invididual, you need to sell items, what would you sell? Right now is not really a good time to get top dollar for your better stuff, but you still need to have some income. So you start focussing on the items that you could easily replace, if you needed to. That would mean the lower and mid-range coins. Let's not forget that accidentally or not, the e-bay fee structure has changed recently as well. Last week I sold a non-coin item on ebay for $28.99 with free shipping. After paying the USPS, PayPal and E-bay, I had $13.04 left. E-bay is getting worse and worse if you're selling low-buck items.
My observation about eBay is that the sellers are not taking into account the current economic climate. Items are being priced the same as several years ago, but money available to the buyer is less. So the question to the sellers is: Do you want to maintain your higher asking prices knowing that you will be selling fewer items? OR Do you want to sell at prices more in keeping with the current economic situation? Either way the sellers are going to have to do some belt-tightening along with the rest of us.
There is an enourmous amount of coins going into shows to sell to dealers but not alot being purchased here in Michigan anyway. Again I have to mention the article in Coinworld as having an effect on whats happening. I have heard several guys say to dealers at shows they have had enough and are getting out because of the counterfeits from China. One guy had a suitcase full of different sets. He sold his entire collection because of that one article. I have seen guys come across saying they have been layed off and are selling whatever they can to buy food etc.. Dealers are getting alot of walkins right now, and they are lowballing collectors over and over again. I watched a dealer buy a 1867/7 IHC that had four full diamonds raw for a steal, same seller had a PCGS MS65RD 1910S Lincoln that he sold to the same dealer for what I thought was to low. I am sure that its a $600 coin. He paid $350 for it. Coins are slipping and I fear we have not seen the worst as far as selling goes. Maybe some dealers here can shed some light on this from what they are seeing and be honest about it.
I'm not surprised dealers are lowballing. By doing that they can offer the coins at a price that will sell. Does the dealers no good to buy coins if they can't flip them. But if dealers try to sell the coins at today's catalog prices, they're in trouble. The catalogs haven't yet adjusted to the lower market. People aren't going to pay yesterday's prices in today's market. Don't get fooled by articles in the popular coin journals. Most of the time they are reporting about top-of-the-line and rarer stuff. That market is holding because the buyers that could afford them still can. But most of us down in the trenches can't afford prices from 2006 with a 2008 income. At least I can't ... and won't.
I looked on ebay today at buffalo nickels for the next 24 hours. The ones I need are too low a grade, priced too high for the particular coin, or too high of a grade and price for me.
