Sometimes you have a coin you no longer love, or want, or your focus changes. When that does happen, what do you do with those orphaned coins. I just recently dug through my collection and weeded out a lot of the coins I just no longer am fully enamored of, one of these was an Anacs graded (in the old small holder) AG-3 1916-D Mercury, which in all honesty was much closer to a FR-2 that an AG-3. It was ugly, but for what I paid for it at the time it was an okay deal. But, I find my tastes have shifted to better condition coins (I wish my budget would make the same shift) so out the door it had to go. Now I know that on ebay or another auction site it might bring X amount of dollars, but there are no guarantees. Now the dealer I frequent offered X amount of dollars to purchase the coin but XX to use it as trading stock. I took the XX and felt good about it as it was a significant premium over what I paid for the coin just 8 years ago. But what about the rest of you, how do you feel about using coins as trading stock, have you ever done it?
Yep...I bought a $1000 and a $500 note that was cheap that I didn't really want. Later traded it for a few fractionals that I did You can usually get a better deal if you pay attention to what your trading.
I frequently do it alot.I like to shop more than my wallet weighs.So I buy something,look at it,study it,photograph it,and enjoy it,until a new owner comes around and wants to buy or trade it.There are a select few,that I really dont want to part with.but I like to make people happy.I like to be happy.so a deal is a deal.They get what their after.I get to go re-shop for new kids.Do you think I could do a wife swap on the CT???
All the time. I never go to a major show without a bagful of things I either upgraded, changed my mind about, shifted away from, etc. And I have the same experience as you - the dealers usually offer me a bit more for the coin if I use it as credit to a trade. It keeps their cash high, turns over their inventory, and we all are happy.
I have traded coins in the past, but I typically prefer to convert them to cash and purchase whatever I like. Trading them directly is no problem, as long as you know the true market value. Dealers are happy to give you XX for your coin in trade, because they have paid XX-YY% for them.
Interesting. I've never got rid of any of my coins except the junk silver ones. I'll have to have a chat with my dealer on the next visit. I like the idea. In a way, it's a "win-win" situation - you get more "money" for your coin and the dealer is probably making something too - as Borgovan said.
IMO, trading is dangerous because you have to really understand the value of two coins as opposed to one. That said, it does have some tax advantages (e.g. like kind exchange).
Well, yes. But if you don't want something anymore and you want to get rid of it, should you automatically sell it? I'm not really talking cases where you are being offered less than what you paid for the coin, but more, sometimes significantly more. Additionally, I had not considered the tax ramifications, but you bring up a good point if I ever get to the point where I actually have to worry about it.
