1940-s Jefferson nickel, FOR $40????

Just curious, but why do you think he ought to lower his prince? If he gets it, more power to him. If he doesn't, he is the only loser.

 

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fishin, Huh. Good for him, maybe he will land one.

 

There is an arbitrary profit margin for coin dealers set by the coin collecting community. If a dealer makes more than that arbitrary profit margin he is considered a crook. I'm not sure if I read that in the Redbook, or ANA's website, but it's the way of the world.

 

I would be most interested in what that might be. Could you please site what you are referring to? I find it in neither the Red Book or Money.org. I can assure you that it is not the "way of the world" I live in.

 

There is a line (distinction) between making a profit and taking people to the cleaners. But it is not the coin collecting community that sets an arbitrary profit margin; rather the coin collecting community generally sets prices that are considered reasonable for a particular coin yet they are not set in stone (pricing in coins can be fluid and depend on a number of variables), and coins priced much higher than that generally won't sell (can be exceptions) and those that are priced much lower will generally sell (can be exceptions). The difference isn't in the profit margin the seller gets from these when the prices the coin collecting community are saying are reasonable and just. The only difference is really whether the seller has left money on the table by pricing too low, and whether the seller has lost money and opportunities to sell if pricing too high. A coin obtained for 10.00 (as an example) and sold for 2000.00 nets the seller a 1990.00 'profit' and essentially the same coin that is obtained for 400.00 and sold for the same amount nets a 1600.00 profit and another obtained for 1500.00 and sold for the same amount nets only a 500.00 profit. None of these profits are 'too high' if the amount they net is within the realm of what three buyers want to spend on it and coincidentally falls into the supposed price range of the coin, whether by red book, grey sheet, or a lot of personal knowledge. Neither situation, even the one where the coin was obtained for 10.00 means the person selling took advantage of someone else.
If in this case all of a sudden the coin that is being advertised for 40.00 became 'hot' and ultra-valued, then 40.00 could be a great buy for it (not that I'm saying it will) and this person's probable guess at how much it might bring would be not be a problem with profit. And if all of a sudden a person wants this exact coin and is willing for whatever reason to part with 40.00 for it, then the seller was astute enough to be listing it for that amount.
What would be 'wrong' (i.e, taking advantage of someone) is more in line with the problem of selling bottled water at huge markups to people who are desperate for water in an emergency. Where as soon as the emergency is gone the price will drop..... as in bringing in a case of water and wanting 100.00 for it. But in coins there is no guideline for a huge price. The only issue would be is later, to possibly get into whether it was a legal contract or not. There are illegalities in selling, but I don't think this coin actually fits into that situation.

 

Kasia, that is a lot of words, but I think that is what I am saying.
BTW, bkozak33, by any of your definitions of an "arbitrary profit margin", I would be considered a crook. I found a 1931-S Lincoln in circulation. It therefore cost me 1¢. I sold it for $90.00. That is a profit margin of 99.99%. You cannot get much higher than that.

 

It's just a bit of sarcasm, likely based in part on how certain people on this forum seem to think it their place to dictate how much someone can or should sell a coin for.

 

rlm, I was being facetious. I get tired of people complaining about what dealers try to sell their coins for. Nearly all the coins in my collection, I paid more than book value, and most of the coins I sell, go for more than book.

 

Apparently I am missing them - than goodness.

 

I dont think I sell much that you would be interested in.

 

I was referring to the people complaining.

 

I think your math is fuzzy.... I am thinking it is a whole lot more than 99.99% profit (100% profit means you sold if for 2cents I believe)......

 

I did not say "profit", but "profit margin".
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.[1]



where Net Profit = Revenue - Cost

 

If the guy puts a nickel up on the internet for all to see, says it's one of a kind and asks for $40, he deserves whatever criticism comes his way... that's the nature of the murky, polluted water he is fishing in. Were not talking about a slightly overpriced item here. If it's an innocent mistake then he should appreciate the heads up, if it's on purpose to snag a sucker, then to hell with him.