80% of Greysheet bid... is that normal?

Discussion in 'US Coins Forum' started by Dougmeister, Oct 8, 2015.

  1. Dougmeister

    Dougmeister Well-Known Member

    If a LCS offered me 80% of Greysheet for a common year, solid PF64 Shield nickel, is that market average?
     
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  3. Treashunt

    Treashunt The Other Frank

    Is it slabbed?

    If so, it seems a bit low.

    I'd like to see 90%
     
  4. ToughCOINS

    ToughCOINS Dealer Member Moderator

    This is always a difficult question to answer succinctly.

    Why, you might ask?

    Because, with so many collectors running around trying to buy coins back of Grey Sheet, dealers cannot make money unless they buy coins even lower than that.

    So, here are some questions for you . . .

    1. What do you think he should pay for it?
    2. What would you be willing to pay to replace that coin, once you've sold it?
    3. Do you think that figure would make the dealer a fair profit if he pays you what you expect to receive?

    - Mike
     
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  5. Collecting Nut

    Collecting Nut Borderline Hoarder

    I would think that when you sell to a dealer, lower than gray sheet pricing should be normal but 20% profit seems a bit high. At that percentage it adds up very quickly as the value of the coin increases. 20% of a $10.00 coin is $2.00. Fine but at $100.00 you're at $20.00 and a $1000.00 coin is $200.00. OUCH!! There should be some leeway instead of a set percentage based on the coin. That, to me, seems more fair and balanced to the seller and the dealer.
     
  6. Bedford

    Bedford Lackey For Coin Junkies

    Sounds in line to me . From the past realized prices with out the juice most common dates in 64 sell 5-10% back of bid already.
     
  7. Dougmeister

    Dougmeister Well-Known Member

    @Treashunt, yes it was slabbed.

    @ToughCOINS:
    1. I was hoping for 90%
    2. I'd be willing to pay Greysheet +10% or so (but then again, I'm a newbie)
    3. Yes
    I guess it is a simple case of supply and demand. I understand that there are more of the common dates out there, so they cannot demand as much of a premium. In his defense, he did indicate that he could have offered more if it were a more difficult date.

    It was my first time at trying to sell a really nice, slabbed, obviously solidly graded coin to a LCS. I naively thought I could get something close to Greysheet for it.
     
  8. JPeace$

    JPeace$ Coinaholic

    I agree with @Dougmeister about it being a case of supply and demand.

    If I were the dealer, I'd also consider the following:
    • My audience: would I be buying a coin I knew would sit in my inventory or require extra work on my part to move it out of my inventory?
    • Coin value: The lower the value, the higher the discount. As a dealer, I'd know what gross dollars I would need from the exchange and the lower the value, the less gross dollars would be generated, so hence, the higher the discount percentage.
    • Did I actually agree with the grade of the coin?
     
  9. Dougmeister

    Dougmeister Well-Known Member

    He definitely agreed with the grade.

    When I read your reply, it reminded me that he did say something about it possibly sitting on his shelf for a while. It is making me re-think my strategy of building a U.S. Type Set. Maybe I should bring the quality down a notch or two and go for a tougher date, etc.
     
  10. medoraman

    medoraman Supporter! Supporter

    I would agree with the dealer most likely. It all comes down to supply and demand like you said. Is there a large amount of shield nickel proof collectors? I am guessing its more of a type coin. I also assume the 64 would be holding back proof type collectors, many of whom value 65 and above for their type collections. So, given those thoughts, I am not sure 80% for the coin is unreasonable. The dealer has to eat too.
     
  11. JPeace$

    JPeace$ Coinaholic

    You might want to look at buying just before the "jump" in price. I wouldn't worry too much about key date. If you buy the coin for quality in that price range, IMO, it will always be liquid. It's when you settle for quality that you can get into trouble.
     
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  12. Vegas Vic

    Vegas Vic Undermedicated psychiatric patient

    Look at ebay completed sales. Subtract 13% that is where you should be
     
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  13. NorthKorea

    NorthKorea Dealer Member is a made up title...

    20% back of bid doesn't seem totally unreasonable.

    Greysheet prices are based upon dealer-to-dealer transactions. Let's say the coin is a generally slow moving piece that has a bid at $100 and ask at $105.

    If the coin is a slow mover, it's entirely possible that the $100 bid is an aberration, with the next bid being $88. Without having a spread listing, it'd be tough to determine this being the case or not.

    Anyway, the dealer would need to also pay to have the item shipped/insured, which might add another $5-$10 to their cost of selling.

    So, if it's a $100 coin, that's really a $88 coin, offering $80 might even be a bit high, but the LCS owner recognizes that he can take a marginal loss in an effort to build a relationship or maintain an existing one with the local customer base. Just my thoughts.
     
  14. NorthKorea

    NorthKorea Dealer Member is a made up title...

    I know a lot of people (and when I say a lot, I mean everyone I've ever heard speak on the topic) suggest buying before the jump. I think this concept actually creates artificial demand for coins before the jump and artificial demand shrinkage for coins after the jump. It's entirely possible that the actual selling price (as opposed to whatever guide pricing) of the coins might indicate a much, MUCH smaller gap than the presupposed jump. Just a thought.

    Personally, I would consider looking at coins on both sides of the jump. If you can get the coin above the jump for a price that significantly closes the gap, consider doing that instead of simply buying the coin below the jump. For those willing to hold onto their collections for a long time (most collectors, I'd say), this can be far more beneficial in terms of building a quality life collection.
     
  15. SuperDave

    SuperDave Free the Cartwheels!

    It has never been easier to personally leverage a retail audience for your coins to sell. No real reason to include a middleman who will have to make a profit of their own. Dealers can only sell to their customer demographic, and if they don't move much for Classic Proofs you'll get no leeway. Drop it into a Great Collections auction or similar, and you'll get a decent price.
     
  16. JPeace$

    JPeace$ Coinaholic

    I agree that no one recommendation fits all, but in some of the series I collect, that price jump is thousands of dollars, so being able to find one in the higher grade closer to the lower grades price is not a real possibility.

    When I'm buying a coin, there are many other factors involved than just price. But I'm also wanting to collect the best coins I can afford too. It just depends on my goal for that collection. For example, in my type set collection, I base my purchase point primarily on how much I like the design. I won't spend as much on a design I don't love. It's just my way. Others don't have to adopt that strategy.
     
  17. Mainebill

    Mainebill Bethany Danielle

    Grey sheet is only a guide. I'm assuming you meant an average solid 64 example 80% is not unreasonable as there not super hot sellers. A series like Morgan dollars or seated quarters etc that are popular and have a lot of collectors you can expect 90-110% of bid. Coins with exceptional eye appeal you might as well throw out the guide I find coins of popular series that are solid for grade and original with good appeal I'm happy to buy for bid or even over and never have a hard time selling. Coins that are slow movers have to be cheap. So I feel a fair offer and you could always attempt to negotiate 85 or 90%. It can't hurt to try
     
  18. physics-fan3.14

    physics-fan3.14 You got any more of them.... prooflikes?

    You are making an assumption that the Greaysheet number is accurate and up-to-date. The dealer may be making his offer based on what he knows he can sell it for.

    And 80% of Greysheet doesn't seem terribly unreasonable. You could probably get a bit higher, but that is reasonable.
     
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