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From where do the dealers and auction sites get their coins?
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<p>[QUOTE="IdesOfMarch01, post: 7807134, member: 39084"]Most markets have some inefficiency, and many markets exhibit moderate to large inefficiencies (just Google "market inefficiency studies" to be overwhelmed by the amount of research on this topic). The ancient coin market is no different. Even with the Internet and independent auction platforms like eBay, there is no certain way to efficiently find buyers for those coins that no longer fit your collection.</p><p><br /></p><p>Consider, for example, a nominally valuable $250 late Roman bronze that you might want to sell. How do you go about doing this? You of course want the best price you can get for the coin so maybe eBay will work for you, but even this approach takes time and effort (packaging, shipping, verifying delivery, etc.), and doesn't scale well to a larger collection of, say 100+ coins that a collector might want to sell.</p><p><br /></p><p>This is exactly the service that dealers offer, albeit at a discounted price that might not work for you. Reduced to the most basic business premise, it boils down to a collector's personal effort and time (for a greater return) vs. the simplicity and timeliness of selling to a dealer. I wouldn't apply the pejorative "... make a living by skimming money between transactions..." to most dealers, although it would certainly apply to a minority. </p><p><br /></p><p>I'd be interested in reading responses on this topic from some of the dealers who frequent CoinTalk.[/QUOTE]</p><p><br /></p>
[QUOTE="IdesOfMarch01, post: 7807134, member: 39084"]Most markets have some inefficiency, and many markets exhibit moderate to large inefficiencies (just Google "market inefficiency studies" to be overwhelmed by the amount of research on this topic). The ancient coin market is no different. Even with the Internet and independent auction platforms like eBay, there is no certain way to efficiently find buyers for those coins that no longer fit your collection. Consider, for example, a nominally valuable $250 late Roman bronze that you might want to sell. How do you go about doing this? You of course want the best price you can get for the coin so maybe eBay will work for you, but even this approach takes time and effort (packaging, shipping, verifying delivery, etc.), and doesn't scale well to a larger collection of, say 100+ coins that a collector might want to sell. This is exactly the service that dealers offer, albeit at a discounted price that might not work for you. Reduced to the most basic business premise, it boils down to a collector's personal effort and time (for a greater return) vs. the simplicity and timeliness of selling to a dealer. I wouldn't apply the pejorative "... make a living by skimming money between transactions..." to most dealers, although it would certainly apply to a minority. I'd be interested in reading responses on this topic from some of the dealers who frequent CoinTalk.[/QUOTE]
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From where do the dealers and auction sites get their coins?
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