Questions on buying.....

Alright guys----like always I have a question. :whistle:
I have tried and tried to come to a good point in this question but can’t find it…..I want everyone’s thoughts but more than anything the newer and younger collectors because I think when you are just starting out this question is one you think about....

I think I have a chance to buy some coins maybe up to collections….my copy of the Gray Sheet is on its way….and I’m trying to come up with a good way to price it…most dealers sell coins at BID or a little higher….

How do you think is the best way---

Look at the coin/s without looking at the price guide and make an offer that you think would be best?

Offer BID on the coin/s and hope I can sell at a little over bid?

Offer 20% back of bid and sell at BID?

Take a 2005 Red Book and offer the prices in it !?

NOW—on “junk silver”----

Spot price?

10% back of spot?

or just about 5 times face value?


I’ve only done something like this once before and the guy sold but he wasn’t too happy with the price I offered…I don’t want that to happen again if I can.

Thanks ya’ll---I think I’ve got a pretty good chance to get some good coins and hope everything works out—if it does I’ll try to post photos…

Speedy

 

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If I were in your shoes, i'd offer 10-20% back of BID, remember its still better than they'd get from a dealer. For the silver i'd offer 5% less than spot. I have no expieriance in something like this (lack of funds) but thats my guess.

 

So in other words a non collector is always going to want more than a dealer is going to offer ?
Hopefuly there won't be too much junk silver--that is unless its Franklin Halves!!!

Speedy

 

Not always. Screwtape and his 89 Morgan are a good example of a non collector not caring. If you're lucky you've got one of those types and the only thing holding you back is your own conscience.

As a newbie I wouldn't have a clue how to go about aquiring coins like that. I'd probably post pics in here and ask. *LOL* I know just enough to know I shouldn't be speculating. As for the silver I don't see why you couldn't offer 5 times face and see what they say. Decide where your top price is and keep that in mind and you should do fine.

Personally, I wouldn't worry about what frame of mind the other guy is gonna be in after the deal unless it's a relative, friend or someone you want to deal with again. In haggling you always need to start low and see where you go from there. If they get offended it's their problem.

 

The one I'm hoping for is a non-collector---I don't want to make the person think I'm ripping them off so I though that the Gray Sheet would be about the best one to go by....

Speedy

 

why not?

 

Since you asked for the opinion of newer and younger collectors, and I fit one of those criteria [and it isn't younger], I'll throw out some thoughts on what I would consider fair treatment if I was the seller.

I think since you are buying random numismatic coins in "bulk" the seller should expect to offer some reasonable discount from the greysheet price; perhaps up to 15%. You are saving him a lot of work that would be required to dispose of the coins one at a time, and it is reasonable that you should receive a discount, in my opinion. At least I would expect to have to offer a discount if I was in his situation unless the collection has some remarkable quality or completeness about it [for example, a complete set of Franklins in MS63]. If that was the case, that part of the "collection" might be worth a premium to the greysheet price since he has saved you the trouble of hunting down all of the coins in a completed set.

So I guess it could go either way depending on what he has.

I think the seller should expect to dispose of junk silver at a discount to the spot price. Maybe a fair price is half way between spot and what some internet dealers offer to buy junk silver at. Then both of you come out ahead.

 

Thanks for the info Cloud

IMHO if I have any questions of bullion or such I always know I can ask you....you have really gotten alot of info on that topic that I don't know!!!....maybe someday I'll learn!

Speedy

 

I try not to offer opinions on technical matters because I just don't have the numismatic knowledge that a lot of others around here have. But I think I have a little insight into topics like pricing and precious metals because I've been buying and selling things for years. Some pricing practices in the hobby that seem to be accepted as "normal" seem somewhat off-base to me. So I try to take advantage where I think I have an edge, and just stay away from everything else because I know I can't change things even if they appear wrong to me.

 

As already noted so much depends on if the seller is a coin dealer, coin collector, just a person with a lot of coins, someone that has inherited a coin collection. Then there is the question of do you know the seller, how well you know them, a realative, friend, neighbor, etc. If the seller is someone you don't really care about, get a copy of the Whitman Blue Book and show them the coin prices in there and make an offer a little higher than the ones listed there. Then again another question is the type of coins, condition of the coins, how many you want, what your plans are with those coins.
Regardless do not take a copy of a grey sheet or Red Bood with you when buying. Prices are to high and the seller will want those prices. The Blue Book is so low the coins will almost be worthless in some cases.
Not long ago at a flea market I purchased a notebook full of Nickels. There were 228 Buffalo Nickel, many Liberty Head Nickels, a few Jefferson Proofs and all for $180. It took a lot of hagling but since I knew I would never see that person again, the lowest price possible is what I offered. If he was a friend or someone I knew I think my conscience would have gotten to me.

 

When I come across someone trying to sell a collection of lets say junk silver, at todays silver price 5-6 times face is a fair price. Many dealers in my area will only pay 2-4 times face with silver in the $10-11 range.
Unless you are selling $1000 or more in "junk", a dealer might give $5-6.

Always ask what they want for the whole collection & if thats too much , give them a little info and refer them too a coin dealer. 90% of the time they will call you back. Then make your offer. I would use the Blue book and pay slightly more. Most of the time you both will come out a head.

 

Hadn't thought of that....maybe that is what I'll do!

Thanks alot ya'll!!

Speedy

 

5-6 times face isn't a "fair" price, it's a crooked dealer offer hoping that the seller has no alternative. I have no doubt that this sort of treatment is common, which is one of the problems with the hobby. Every new face that walks through the door is viewed as a sheep to be shorn rather than as a potential long term client. God bless Ebay for giving at least some folks a way to escape this sort of treatment.

I also think that asking someone what they want for a collection is pretty unprofessional if the seller is relying on the buyer to help him establish a value, particularly if there is a sense that the seller does not have numismatic expertise, but the buyer obviously does. Again, I have no doubt that this is a common practice, but an honest dealer will tell the seller what they can pay without fishing to find out the lowest acceptable price.

It's all a matter of how you wish to run your business and your life. But that's just me.

 

Well I would agree on things like Silver Dollars....but for a silver quarter 6 times face ($1.50) is pretty good money....my dealer sells them for $1.25 per quarter I think....

Again I would agree sometimes...if the person is a non collector then that wouldn't be the best way to do it...but if its a collector or dealer that knows about the market then I don't see any problem asking what they want for it without making an offer.....

I guess we all would do it another way......and I think alot of it goes with what coins the person is selling....

Speedy

 

find your nearest college kid and take him for everything he's got!


i even told the fella that it was worth 'something' (yes, vague), yet he wanted the cash more. when you're looking for deals, desperate people are the best way to go.

 

$1.25 per silver quarter???

$11.00 per ounce silver * .18084 junk silver content = $1.99. 1.25 is cheap!

In my opinion, offer a non-collector 15% back of greysheet bid, and ask a dealer or a collector the absolute lowest they can go. If you can accept the asked price, good, if not, too bad.