Pros and Cons of Local Coin Shop or Online Purchasing

This has been a topic on my mind lately. I would like to get input from members of this forum. I have never purchased online before and only purchased from LCS a few times. I am new to all this. I ran the numbers on my LCS purchases versus what I would have paid online. I would have paid $1.00 less per oz of silver by purchasing online. So it is a better deal financially, this is obvious. There are some hassles and long wait periods doing transactions online but you save a lot when you start stacking and that means more ounces in your stack. What are the benefits of purchasing from the LCS? Is it only so you can sell back to them?

 

Log in or Sign up to hide this ad.

Building a rapport with your LCS can get you not only better sell prices but preferential deals on other items they get in.
My LCS shows me items that others won't get a chance to see. To some that may not matter (boring silver stackers) but if you like 70's art bars, hand poured silver, ect it can be excellent.
I think in all of live building a network of friends helps and you do not get that online.
You also loose the knowledge that they give (if it is a good store).
And like any buy local thing it helps keep your town stronger in your own little way.

 

supporting locals, and actually seeing the coin in hand....no brainer.

 

I made made 5 transactions with my LCS guy. He told me on silver he sells $2.00 over spot and buys $2.00 under spot. I didn't make any purchases over $330. Should I just ask him if I can get a better deal if I make bigger purchases? Or be more subtle?

Good points.

 

I could get cull coins from my dealer, he would call me as it came in....and charge spot. He knew he could rely on me, so when he had bills to pay, etc....it paid off. Then again he would pay 50% to buy it. Times have changed.

 

If you're literally just after silver and only care about poundage, buy from whoever has the best price. If you're after something more than that, you can benefit from establishing a relationship with someone local. Like @Duke Kavanaugh said, sometimes, they'll show you the good stuff they have in the back, just because they like you and they know you're interested in it.

Why not? The worst he can say is "no," right? It's not like he's going to refuse to take your money after you politely ask about volume discounts.

 

Developing a relationship with a Local Coin shop is certaintly a great venue to pursue because as others have mentioned developing a relationship with the employee(s) of the shop will be beneficial in getting better prices and having someone on the lookout for something you want.

Let's say you want a 1916-D Mercury Dime. You go to your LCS and tell them you want the coin in F12 condition. Problem is your LCS doesn't have the coin but if you're friendly with them they'll keep an eye out for you so long as you prove you have the money to buy the coin. Most likely if they don't have the coin they'll ask you what your budget is and call you when they find something within your budget. They get a quick flip on a coin you get a coin you want for a good price and you didn't have to do much work to get the coin.

On the other hand if you want a 1916-D Mercury dime odds are you could find the coin somewhere online for a decent price and buy it from a reputable online dealer or eBay seller with little to no hassle. The downside is you're looking at pictures and sometimes pictures of the coin don't look like the coin you actually receive which can be annoying but that's what return policies are for.

 

I could find some great bargains at my LCS like ASEs only $0.50 over spot. Coins that lost numismatic value due to a rising spot price were also good sources for deals and can make a stack a little more interesting. I prefer building a relationship for all reasons previously mentioned. Also you never have to worry about something getting lost in the mail and you get immediate delivery.

 

This ^^^

I've been given many great deals at lcs's and shows due to having the ability to be instantly affable. I can intuitively size up the personality of someone quickly face to face and pivot accordingly. If you can make quick connections with people and not come off like a customer but a long forgotten friend you will find that in most cases you will get a much better deal than the guy that just walked in wanting to look though the case or junk bin.
Online this all but vanishes

 

Don't forget shipping costs online.

If you're beating the LCS price for the coin, but you have to pay $2 more to ship it, is it still a deal?

Buying online I always factor the 'all in' cost of a purchase.

Is it going to cost you $2 to drive to the LCS?

 

This is a really good point. I have found sites that have free shipping on purchases. I did not calculate the cost of me selling to them when it comes to shipping. Also the pain in the neck and the time it takes is an issue when it comes time to sell.

 

I'd buy a few from the LCS for a few months. If they aren't able to give you any "behind the counter" deals or bulk discounts, I'd go online for large purchases. Continue to buy at the LCS in small amounts to work on the relationship.

 

My experience is that if condition and eye appeal are important to you as a collector you need to see and handle the coin. No amount of photography can equal that kind of appraisal. This is especially true of ancients, medieval, all hammered and early modern period, say up to 1800 or so. Besides, talking to the proprietor and often the locals who hang out in the shop, can be enjoyable in itself. I don't know about collecting as an investment but as a hobby nothing beats a trip to the local coin shops to see what just showed up. I also have found out that if you become a regular and pay cash you can get a pretty hefty discount.

 

I know for myself I had 3 LCS's in the city I grew up in. It was great as one would travel to different show that I would never have been able to go to. He would occasionally call me to ask if I wanted something that he found and thought would be good for what I was collecting at the time. As there are some things that I wanted regardless if it was paper, glass, wood, or something totally different, as long as it wrapped around the theme I was going for. I never would have been able to obtain the items I did during that time if it was not for my LCS.
Today is a totally different story, with the advent of the internet I can find just about anything anywhere that I would want. Heck look at the demise of local coin club numbers compared to before the internet. We all can meet here and question and learn without leaving the comfort of our surroundings. It used to be, if you did not make the meeting you had to wait weeks to be able to question someone who "might" have the knowledge you were looking for.
Having a LCD is good for everyone. I still go in once in awhile to make purchases as I would rather pay a couple extra bucks and support my local economy than not have one here. Besides it is harder to get a child interested in collecting when they can only look online. Going and holding and looking up close or hitting that bargain bin for something that just appeals to them for what ever reason, just can't be beat.
Take a child and visit your local coin shop today.

Disclosure: I am not a dealer and have not been paid to say anything. LOL

 

I agree with this in principle (and 100% agree with the remainder of your post). However, every online dealer I've dealt with has offered at least a few days examination privilege after receiving the coin to evaluate it. That's not the same as being able to pick it up and hold it in your hand without obligation at a shop, but you do get to examine the grade and eye appeal of the coin before deciding to add it to your collection.

Oh, and good pictures really do help a lot. I've bought coins from dealers with good pictures and never had a second thought about them once they arrived, because the picture conveyed what I needed to see.

It all comes down to dealing with good, reputable dealers online and avoiding the ones that say "L@@K!!!11!! PQ+++++ MS73 BLAZER."

 

When I was buying bullion a typical purchase for me was a roll of ASE and one AGE. Buying locally cost me about $40 more for the metal, but no shipping charges. So the costs were pretty close. But, not worrying about a lost or stolen package, not waiting for the mailman, not worrying if the company goes bellyup with my money, not having to give my name and CC info ect. made buying locally the clear winner. Plus, as mentioned before, building a rapport with the local shop can be useful if I want to tag along on a grading submission, getting first dibs on a fresh walkin-in ect.

 

For me, LCS are outrageously expensive compared to the larger online dealers. We also have sales tax on which makes it even worse.

I have little issue waiting for product purchased online. I can take a couple weeks when paying with check, but its not like its something that I need to have in-hand right away.

 

This Strategy is where I am leaning right now. I am buying bullion not collecting coins. I paid $180.00 over spot for my Silver going through my LCS. I would have paid $90.00 over spot if I had gone online for my silver purchases and would have 6-7 ounces of silver more. Granted, I did really like some things about going into the LCS. He sells sports cards and comic books which I like to look at. Paying for the silver and getting it in your hand gives me utility too. I like bringing my kids there too as he gives them free football cards, granted they are just commons. The LCS does show up on the web with good reviews too. Establishing a good rapport with the LCS can be good if I need to sell. And I am thinking about collecting coins. So it boils down to $90.00 to me. Maybe I can get the LCS to give me lower premiums or not.

 

Bman, I was going to ask you if you were just buying silver...if you are looking for higher quality coins with potential numismatic value...you can do very well on line...but you have to be able to exit a deal on a specific date/mm coin and come back to it later. I feel that I have done well with MS Walkers and have a formula that I use to buy them. Good luck.