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<p>[QUOTE=&quot;kaparthy, post: 24250, member: 57463&quot;]Great post, ND!</p><p><br /></p><p><br /></p><p>Thank you for stating this axiom of Austrian economics.&nbsp; Austria put Eugen von Boehm-Bawerk on their 100 Schilling note.&nbsp; On the back was not the national bank, or the national mint, but the Institute of Science.&nbsp; Austrians from Carl Menger to Ludwig von Mises -- and his pupils (see <a href="http://www.mises.org" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.mises.org" rel="nofollow">www.mises.org</a>) -- made economics a true science.&nbsp; In doing that, they brushed away the superstition of socialism (mercantilism, etc.).&nbsp; Even though we buy and sell money for fun, many numismatists harbor socialist ideas about markets. The fact is that past prices are irrelevant.</p><p><br /></p><p>&nbsp; </p><p>There are secret clubs within the secret club. In other words, dealers build relationships. Dealers know each other by reputation or from transactions.&nbsp; This is another axiom of economics.&nbsp; Even Austrians will claim that <b>markets are impersonal</b>, and they are to an extent: when you buy or sell, you care more about the material or service and the price than you do about the other person&#039;s lifestyle or religion or whatever.&nbsp; This is certainly true of &quot;mature&quot; markets such as the New York Stock Exchange or the Chicago Board of Trade.&nbsp; All that counts is the numbers.&nbsp; No one cares who you are.&nbsp; However, <b>numismatics is not a &quot;mature&quot; market</b>.&nbsp; It is a very personal business.&nbsp; No two people (not even dealers trading with dealers) will get the same material at the same price on the same day.&nbsp; Relationships matter.&nbsp; </p><p><br /></p><p><br /></p><p>Be prepared to negotiate.&nbsp; Understand that you necessarily overgrade and overprice your own material.&nbsp; We all do.&nbsp; The only price that counts is the one that sells the item.&nbsp; If a collector is willing to ask, &quot;Is that your best price?&quot; then the collector must expect a counter-offer, as well.&nbsp; If a collector walks into a coin shop or bourse floor with one price in mind for one item, that does not leave room for a negotiated settlement.&nbsp; If a collector is willing to change the deal (price, materials, etc.) then there is an opportunity for buyer and seller to come together.&nbsp; </p><p><br /></p><p>As I said, relationships matter.&nbsp; If you talk to the dealer, you learn their needs and greeds and you can work with them in the future, if not the present.&nbsp; You offer a coin and you want $27.&nbsp; The dealer counters with $17.&nbsp; You can come down and he can come up, but you are still apart at $25 and $20.&nbsp; Ask: What would you pay $27 for?&nbsp; The dealer will tell you their expectations.&nbsp; Maybe those expectations are pipe dreams or maybe not.&nbsp; At least you know who you are dealing with.&nbsp; If you cannot do business, then you cannot.&nbsp; Life goes on.&nbsp; If you do this with enough people over enough time, you bring your own understanding of the markets up to the market level.&nbsp; You become a wiser collector.&nbsp; </p><p><br /></p><p>&nbsp;</p><p>And that is the nicest thing about this.&nbsp; Relationships matter.&nbsp; That said, however, knowledge rules and the markets do not care if you are young or old, white or black or green, male or female or transgender, Christian or Muslim or Subgenius.&nbsp; If you know your material -- and if you are known to know it -- your estimations carry more weight.&nbsp; &quot;Yes, I know that the XF price is $57, but according to Kevin Flynn&#039;s book, the 1857 is known for weak strikes and this has a sharp strike.&nbsp; Look.&quot;&nbsp; That carries weight.&nbsp; You might not get the price you are asking, but you will be remembered as someone who is knowledgeable.[/QUOTE]</p><p><br /></p>

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