I've been watching alot of auctions on EBAY and see: 1. Sellers starting their bidding above market value? 2. Unslabbed coins selling for way more than they are worth. 3. Coins selling like AU and MS when they are plainly F to VF at best. Are people just paying anything for coins on Ebay?
Quite often, yes. There are many buyers on ebay who have no idea at all of what they are doing when it comes to buying coins.
1. Sellers starting their bidding above market value? "Market value" is a subjective term. 2. Unslabbed coins selling for way more than they are worth. "Worth" is a subjective term, not to mention that I more often see slabbed coins selling for more they are "worth" ("worth" still being entirely subjective). 3. Coins selling like AU and MS when they are plainly F to VF at best. "Grading" is subjective. People are willing to pay what they are willing to pay, and I can't see how that has anything to do with greed. A Barber quarter is worth exactly 25 cents, but there are people who will pay more for it. Pretty elementary, but a seller lists items and hopes to get as much as he can for that item. A buyer hopes to get that item for the least amount. Thus, the dance and if no one has defrauded and all parties agree, I don't see the problem.
This is a very tough question to answer. Maybe Ebay bids are unrealistically high, or the prices everyone are used to are unrealistically low. A coin shop has to move merchandise by pricing it for a limited local market where there might only be a small group of people actively collecting a certain series. Put the same coins on an Ebay auction and the coin will be viewed by more collectors of that series in a day than would see it in a year in the shop. Maybe 20 years from now we will know whether the Ebay bidders were foolish for overpaying for overgraded coins, or if the serious hobbyists underappreciated and underpriced things for years that they thought of as "common" but turned out to be highly prized collectibles. Markets with large numbers of participants tend to be efficient pricing mechanisms.
The ignorance of the average Ebayer, on both sides of the auction, makes me feel like the only predator in a sea of prey. I hope it never changes.
I saw one this eve. a merc dime, the description was" I dont overcharge for shipping like some do, well shipping was U.S.mail $12.00, priority mail, $18.00, that's for one thin dime mind you!!! Oh yah and there were bidders. I know what you mean about the over grading, it seems that every single 1916d, 1921 and 21d mercs are graded as GOOD when in fact they would struggle to make an AG. There a few sellers who do accuratly grade and I have bought a few that were actually one grade higher than described. I watch the key date mercs closely and it stuns me to see paying $155 for a roll of dimes because the description says " coin on the end is a 16d??. I've seen AG 1916s dimes go for $20. or more because the seller states " could be a 16d ". I would'nt mind if some of these fools would bid up my listings, Ahh, yes I would, twice I had bidders pay to much and I felt quilty so I threw in some xtra coins in the shipment.
I think the group is being pretty tough on this one. I've bought and sold a fair number of coins on eBay. Frankly, I believe the eBay has leveled the playing field for the hobbyist/collector. It's revolutionized the game. No, I don't believe that greed runs eBay. Indeed, it seems less of a factor than when I recall local dealers as being the only game in town. In the early 1980s I gave up coin collecting since I was sick and tired of everything I wanted to sell to a dealer being junk, and everything I wanted to buy as being golden. Now on eBay, the buyers and sellers find matches. The coin market is much more LIQUID now. That's good for everyone.....except perhaps the local dealer. Knowledgable and unknowledgable coin collectors have been around for ages. Ebay doesn't cultivate or punish them anymore than they were getting kicked around at any time in the past. If you buy unslabbed rare coins on eBay, you better know what you're doing, ask a lot of questions, and deal with a reputable seller. I've had a few instances where I bought a coin, viewed it and noted it was (for instance) cleaned, then returned it for a full refund. That was understood upfront from the seller. I've been quite pleased with the caliber of person I've deal with on eBay. If a buyer uses good benchmarks (I think Heritage coins lists some pretty good coin value benchmarks) you won't get into too much trouble on eBay. Then again, as a seller, some people don't think...or just get caught up with the auction format. Well that's good for the seller. I don't see anything wrong with that if the coin's accurately described and the terms are clear and fair. Houston_Ray
I got tired of being out bid on certain date coins on Ebay so when I went to town to buy coin supplies I checked out the dates that I was looking for at the dealer. Now I had known he low balls the price when he buys but to my suprise his sale prices are also low ball. I'm buying a lot from him now.
I make it a habit to review all my watched items and ending prices. Most coins seem to sell at or below retail by 10-30%. However, there are some that are not graded by the seller(as most ebay sellers do not attempt to place a grade on raw coins but do hint at their opionion of the grade in the item description) that make me feel sorry for the buyer as they paid way to much. The local coin dealer could have beat the price. As lakebreeze mentioned, i have picked up certain coins way less than average ebay prices at local dealers. Mention Ebay and watch how the dealers will reduce his "best price" for you. Good luck and happy hunting...
Hey guys... These are the most ignorant buyers I have ever seen. And, it's hard to find good deals when faced with beginners with no conception of value starting bid wars. http://cgi.ebay.com/1943-U-S-A-Penny_W0QQitemZ8374703292QQcategoryZ786QQrdZ1QQcmdZViewItem
Neither ignorant buyers, nor auction fever, are limited to online auctions in general, or EBay in particular. I've seen the same thing happen at live auctions. I once watched a portable black and white TV go at a US Customs auction for more than $250, with no box, owners manual, or warranty. To top it off, it was built to receive on the European standards and wouldn't receive US station transmissions. Oh yeah, at the time you could buy a similar brand new US set for under $100, or get one free from Sears if you bought a color set!
I believe most people forget that many individuals that use EBAY have no other source for items they wish to buy. In many locations there are few, if any, coin dealers. In some areas of our coutry and other countries there are people that have to travel 30, 40 or more miles just for croceries. My wife came from a place in Wisconsin where the nearest town with a traffic light was 30 miles away. Thererfore they have nothing to compare in person about coins conditions or prices. As for me I think EBAY is distroying the value line of coins. In my area ther are coin shows about 3 times a month within 10 to 12 miles. There are numerous coins dealers in stores or flea market invironments. Where I used to be able to get a coin for a decent price by hagling, the dealers nowadays just say pay what I ask or I'll just sell it on EBAY for even more. As an example I wanted to buy a Lincolh Cent, 1955DD, at a coin show for $800 about a year ago. The same dealer raised the price to $1400 at the next show and when I asked him why he said that's what I saw it on EBAY for so that's what I'm now asking.
I like Ebay - I make plenty of money for sellers and it doesn't cost me a cent. I lose plenty of auctions by bidding what I think a coin is worth. And if I really want it I do bid more - still lose but that is the breaks. Recently I did bid $100 over what a coin was worth (in my opinion) and still lost the auction. I like one of my local dealers - the other has to mark off his coins before they compete. The best part is I get to see the coin in hand. The problem being that both places usually only have common coins - at least what I am looking for. So I average 1/2 my coins from ebay and 1/2 from the dealers. I think the competition is good - plus I do not think the local dealers sell a whole lot on Ebay. Also I think Ebay has helped raise the value of a few of my sets - my 4 coin smithonian 6 months ago was only worth 850, now I was told 1150. Cool!
Your town has a traffic light?? Mine does'nt but we do have a newspaper box, 7 supper clubs and 6 taverns, 1 cheese factor. Oh yah and a church. Typical for Wi. I guess.
