I discovered this article by Susan Headley at About.com and thought it was really helpful and could be useful, especially to newer collectors. It outlines the differences between wholesale and retail coin dealers, how they figure out what prices to offer when presented with coins from collectors, why some dealers offer more than others, the difference between wholesale and retail coin prices, dealer profit margins, and also gives some great advice on selling collections to dealers. Here's a sampling: People who sell their coins to coin dealers often feel they have been given short shrift. The dealer might stir his finger around a box or jar of coins for a minute or two (if that long) and then make an offer that seems too low. Even worse are the cases where the dealer opens up the blue Whitman folders, takes a quick glance, and then offers $9 for the whole collection. How can he know what the coins are worth if he doesn't even look at each one first? Is he trying to rip me off? Any way, I think this article is well worth checking out, hope you think so too! http://coins.about.com/od/coinbuyingadvice/a/coin_secrets.htm?nl=1
"If the coins are in slabs (plastic grading service holders,) they are generally worth more than the same coin that isn't in the slab. How much more depends on the quality of the slab it's in. If it is a PCGS or NGC slab, the coin should trade very near the Grey Sheet "bid" price, since these prices are for "sight unseen" coins which tend to be among the lowest examples in that grade" I think the article has that wrong. I'm pretty sure BlueSheet is the sight unseen price guide, while greysheet is most definitely sight seen prices.
Good article, it does a good job of laying out the framework that coin sellers need to undestand. A coin dealer is not able to offer any of the emotional value someone may have in the coins for sale.
Very nice article, Charmy. Thanks for posting it. However, here's an inside tip from Mike on selling coins that the author neglected to mention: Don't sell to dealers who sell to collectors, sell directly to collectors. Thanks again for posting this...Mike
They forget one point: Why rely on the dealer to do their work for them? Buy a book and reap the rewards. Or don't and you will not.
This paragraph is trying to state this I believe: I believe this is a great article showing the B&M side of the coin (pun intended).
Decent article but as with many such so called informative articles, they slowly vanish into that vast place where all such info is lost. Who will ever see that again? For beginners, they usually don't go searching the interenet for informative articles on buying and selling coins. Many visit or join forums such as this one and ask questions. Others just visit a coin show or store and ask questions. There are possilby many, many, many more such articles similar but lost unless once in a while found and linked as this one. Even now only seen by a few and most already aware of what is being said, then again, lost. A little on the pessimistic view point but way to many such articles and so few ever see them that should.
Thanks for the link Charmy, the pawn shop show on tv really gives a good view on how the dealers operate, at least the honest ones.
But Carl, how else does one maximize the exposure of this type of thing other than by doing what Charmy has done here, i.e., mentioning it and publishing a link? Your point is not only too pessimistic. It is also self-defeating. Thanks, Penny Lady!
Well, actually I ran across this article some time ago while researching the buying and selling of coins. I bet the majority of beginners do a lot of googling about coins. I know I do.
