Club appraisal/buying weekends

Discussion in 'Coin Chat' started by Owle, Feb 6, 2016.

  1. Owle

    Owle Junior Member

    HI--I just thought I would run this by other club members. An area club has periodic appraisal and buying weekends. They spend a lot on advertising for this. Bullion generally gets sold to a local bullion buyer and the numismatic items then get listed for sale in their auctions. Does anyone here know if there are any problems doing this? Thanks.
     
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  3. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    Doing what? Maybe you should post this in "Support & Feedback".

    Chris
     
  4. Conder101

    Conder101 Numismatist

    Only if they are lowballing the people that bring in numismatic coins so they can get them cheap for their auctions.
     
  5. Owle

    Owle Junior Member

    A dealer in a neighboring state told me that it is against the law for them to do this, not sure why because it is NY? Lowball? Probably. I bought a silver commem. set worth many multiples of what it sold at in their auction. Also China year silver coins have been sold way under market value. So they could probably say they were not responsible for researching every item; par for the course, I see coins being bought by dealers way under value.
     
  6. omahaorange

    omahaorange Active Member

    Not sure what exactly you're asking here, but I'll take a shot with part of it.

    I'm pretty sure all states require auctioneers to be licensed through that state. I'm also sure the law varies from state to state. Here in PA, you must enroll in and complete a program (this is only offered at one school, located in Harrisburg), test, then complete an apprenticeship program under a licensed auctioneer. Along with the license comes a whole set of regulations that must be followed.

    With that said, many coin clubs hold "auctions" at their monthly meetings. These are "internal", intended for the club members only. If I read your original post correctly, the club you mention holds periodic auctions that they advertise to the public, get public attendance, then auction the goods. This would indeed, probably be illegal (especially in New York). All it would take is one disgruntled buyer (or seller) to file a complaint with the state licensing board, and it could be all bad. Someone will be on the hook for fines, income taxes, and unpaid sales taxes. If, on the other hand, the club is utilizing a licensed auctioneer (even if he's donating his time), then it should be okay. As long as it's on the up and up, there would be nothing wrong with it.

    I won't get into any ethical discussions. As long as the buyers and sellers are happy with what they get, this isn't any different than any other auction, estate or otherwise. Market drives the price. You always take your chances when selling at auction.
     
  7. Owle

    Owle Junior Member

    Actually the auction is closed to the club members. I'm not sure how they handle the accounting as they generally sell the bullion items to a local dealer for cash. Probably 100K a year in buying; the collectible coins and currency get auctioned once a month. Thanks for your thoughts. I don't know who is licensed for what, but inquiries had no specific replies.
     
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