Is it common for dealers to buy from auctions and sell on the bay?

Discussion in 'Coin Chat' started by goldrealmoney79, Nov 1, 2020.

  1. goldrealmoney79

    goldrealmoney79 Active Member

    A lot of auction houses have all this talk of bringing top dollar, but I was curious is it common for dealers to buy from an auction house and then sell on ebay for a nice markup? The coin below is what got my juices thinking...

    https://www.ebay.com/itm/1899-O-Morgan-Silver-Dollar-PCGS-MS67-CAC-Gorgeous-Toning-/293789230576?hash=item446733e5f0%3Ag%3AD%7EEAAOSw6zlfic1o

    Auction price, notice the dates, only a couple weeks apart!
    https://legendauctions.hibid.com/lot/73044069/-1-1899-o-pcgs-ms67--cac/
    not a bad quick flip/mark up. how many coins end up going through this process??
     
    TonkawaBill likes this.
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. Evan Saltis

    Evan Saltis College Dorm Collector

    Yes. this happens a lot, and to be honest I have done it for lower-tier coins
     
    TonkawaBill likes this.
  4. kanga

    kanga 65 Year Collector Supporter

    Yep, sure is.
    I've a friend who doesn't collect.
    He buys at auction, generally get them slabbed (NGC or PCGS), then flips them on eBay.
     
    TonkawaBill and Mainebill like this.
  5. baseball21

    baseball21 Well-Known Member

    Yes and it's also very common for dealers to buy on eBay and sell at auctions or in their stores/at shows
     
  6. Mainebill

    Mainebill Wild Bill

    And very common to buy details coins crack them out and sell raw
     
    serafino, TonkawaBill and Evan Saltis like this.
  7. Collecting Nut

    Collecting Nut Borderline Hoarder

    Of course it is.
     
    TonkawaBill likes this.
  8. KSorbo

    KSorbo Well-Known Member

    I’ve bought slabbed coins on eBay auctions that had recently sold on Heritage in the same slab.
     
  9. GDJMSP

    GDJMSP Numismatist Moderator

    And that's what they do. Problem is most folks don't know what "top dollar" actually is.

    In other words, there's what top dollar is in the real world, and what most folks think top dollar is. And they are completely different numbers with the real world number often being a good bit lower than what folks think top dollar is.

    Which is why the auction houses and dealers sell stuff on ebay to begin with. They pay real world prices, and get fantasy prices on ebay.
     
    Hamilcar Barca and TonkawaBill like this.
  10. Clawcoins

    Clawcoins Well-Known Member

    When I used to buy slabbed coins on ebay I would also search for that coin elsewhere. Many times I would find it on ha.com or other websites.

    They can't relie on estate sales, or individuals all the time. Even here many people are looking to flip coins. buy low (based on their perception and knowledge) and sell higher.

    Over on FB the prices are out of whack higher from newbie collectors who get stuck in the bidding war and not the actual value of something. There are dealers here who now sell on FB to cash in on that phenomenon.
     
    serafino and TonkawaBill like this.
  11. mynamespat

    mynamespat Missing Hugs and Handshakes

    Does the Legend sale price include buyer's premium? Assuming the Legend sale price is 5757 before buyer's premium, this flip is relatively unimpressive after paying all the fees and shipping. The ebay seller only netted maybe ~5% (~$300-400ish). That is a fairly risky venture once you start considering the possibility of things like getting scammed, losing an item in the mail, or paying paypal fees/shipping on a return.
     
  12. wxcoin

    wxcoin Getting no respect for 65 years

    Sometimes I'll check Coin Facts for recent sales for a particular coin and grade and notice a nice coin that sold on Ebay for 20-30% lower than similar auction sales. Even with the sellers commission one could probably flip the Ebay coin for a nice profit. I see coins advertised on Ebay at a significant markup from what I saw realized at auction for the same coin. Some people can't wait to fill a slot in their collection and will pay more than most of us would. Me, I can usually wait but unfortunately, father time isn't making me any wealthier.
     
    jamor1960 likes this.
  13. massterc1930

    massterc1930 New Member

    One point not covered, the coin listed at $7500 did not sell on eBay. Auction ended without a bid.
     
    Larry E and Charles Riley like this.
  14. Mr.Q

    Mr.Q Well-Known Member

    I rarely see higher priced items sell on the bay. Better safe than sorry in my opinion.
     
    TonkawaBill likes this.
  15. kanga

    kanga 65 Year Collector Supporter

    IMO those items are being advertised by the seller.
    If they sell, fine.
    But the seller is letting people know what he's got AND what he'd like to get for it.
    But as those of us who attend shows know the first quoted price is a starting point for negotiations.
    There is generally a lower acceptable price.
     
    serafino, TonkawaBill and wxcoin like this.
  16. GoldBug999

    GoldBug999 Well-Known Member

    I know that David Lawrence sells the same coins on both eBay and its website. If you see something you like on eBay from them, just go to their website and pay 10% less +/-.
     
    serafino and jamor1960 like this.
  17. GDJMSP

    GDJMSP Numismatist Moderator

    You can usually find most coins at some dealer's shop for less than what you'll find it for on ebay. All ya have to do is take the time to look.
     
  18. mark_h

    mark_h Somewhere over the rainbow

    What is funny is some dealers list on ebay, but if you go to their online store you can get it cheaper without all of the fee's added into the final price. But EBAY has its place in the scheme of things. I also wonder if people really buy coins off amazon - those prices are even higher than ebay.

    In an emergency once I sold some graded coins to the local shop. I did not expect them to list them on ebay, but they did. Not sure they made as much as expected, but all the coins were listed as true auctions. What was funny was not only did they sell them in three days, but a few were relisted on the 4th day with buy it now prices 20% to 30% higher. I only saw one of those sell. The rest eventually just stopped getting listed.
     
  19. calcol

    calcol Supporter! Supporter

    Yeah, I find this to be the case if you can figure out how to contact the dealer outside of eBay. Some dealers make it easy by their choice of eBay name, phone number, etc. Some make it difficult. Sending an email via the eBay system doesn’t always work. The eBay email bot is pretty good at detecting a go-around and may delete phone numbers or email addresses. It can often detect phonetic attempts at a phone number or email address.

    I remember doing a go-around deal with a seller in the UK. An eBay email bot detected it, and eBay threatened to ban him. Poor guy was so frightened, I could almost see him shivering from California. :inpain:

    Cal
     
  20. -jeffB

    -jeffB Greshams LEO Supporter

    Funny thing, though -- that "fantasy money" coming in from eBay spends just the same as the "real world money" coming back from Heritage.

    eBay is a market. You might not respect the people who buy there, but they are buying. A lot of the asking prices might be fantasy, but if an item sells, that's "real" enough for me.
     
  21. GDJMSP

    GDJMSP Numismatist Moderator

    It's pretty simple, in my context, fantasy equates to prices that are higher than they should be. Put another way, paying more coins than they are worth, paying more than you can easily get them for elsewhere.
     
Draft saved Draft deleted

Share This Page