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Do 21st Century Coin Collecting Methods Drive Prices Down and Hurt our Hobby?
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<p>[QUOTE="calcol, post: 3077725, member: 77639"]Doug, thanks for the analysis. However, I don't see how the majority of dealers can make most of the their profit selling to other dealers. I can see how it can account for most of their cash and inventory flow though. Dealer-to-dealer sales/purchases must be a zero-sum game. Some dealers will profit in these transactions, some will lose, and probably the majority will break-even or come close to it. If you're going to toss-in dealers buying from non-dealers and then selling to dealers, that's different and goes beyond dealer-to-dealer.</p><p><br /></p><p>With regard to dealer-to-dealer sales setting prices for sales to non-dealers, it's an interesting question. In the US coin market, collectors expressing their demand at auctions is a big factor for more expensive coins (slabbed coins going for a few hundred $ and up). For less expensive coins, I dunno. You may be right that dealer-to-dealer sales prices are the determining factor.</p><p><br /></p><p>Is there any way to know the distribution of retail sales (auction or dealer-to-collector) by coin value? Put another way, on a total sales dollar basis, how does the retail market for lower-end coins compare to that for higher-end coins?</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>
[QUOTE="calcol, post: 3077725, member: 77639"]Doug, thanks for the analysis. However, I don't see how the majority of dealers can make most of the their profit selling to other dealers. I can see how it can account for most of their cash and inventory flow though. Dealer-to-dealer sales/purchases must be a zero-sum game. Some dealers will profit in these transactions, some will lose, and probably the majority will break-even or come close to it. If you're going to toss-in dealers buying from non-dealers and then selling to dealers, that's different and goes beyond dealer-to-dealer. With regard to dealer-to-dealer sales setting prices for sales to non-dealers, it's an interesting question. In the US coin market, collectors expressing their demand at auctions is a big factor for more expensive coins (slabbed coins going for a few hundred $ and up). For less expensive coins, I dunno. You may be right that dealer-to-dealer sales prices are the determining factor. Is there any way to know the distribution of retail sales (auction or dealer-to-collector) by coin value? Put another way, on a total sales dollar basis, how does the retail market for lower-end coins compare to that for higher-end coins? Cal[/QUOTE]
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Do 21st Century Coin Collecting Methods Drive Prices Down and Hurt our Hobby?
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