Uninformed buyers getting burned.

It's amazing how people get sucked into "great deals" on coins when they are clueless and gullible.
I've seen it for years at shops and see it even more that I'm in one.

What's really scary is when the folks come into the shop to sell this stuff and are apalled at what they offered. Most sell and I'll guarantee at a huge loss.

Recent examples:
The boss bought a collection full of stuff from the Morgan Mint. Nice looking cases - probably worth more than the coins. A "year" set of Walking Liberties including AG 1916-S obverse and a 21-S. Hey, AG is acceptable for tougher dates but did they HAVE TO CLEAN EVERY COIN IN THE SET?

Then there was the quarter date set. Washingtons that is. Boss had me break it down. We kept the 32 as it was decent but cleaned.
He had me toss all the silver into the melt bucket then wanted me to update our stock of BU clad.
Nothing happening. ALL OF THE CLAD WAS HARSHLY CLEANED.

We get our share of Littleton as well. I'll give them this much. Grading is always good now as for the price.......

We also get "packets" if from various sources. You know - a sealed plastic pouch with a label stating date, condition and PRICE.

1948-D Roosevelt the other day. The guy probably bought it 20 years ago. Nice BU coin actually - could go MS65. He paid $21.95.

I bought it for $2 from the boss. Junk silver to him. I sold it for $5.
My buyer will be happy with that coin for $5. Not a bad price at all. Only $17 less than someone paid for it a long time ago.

My co-worker and I were discussing this. I told him we were in the wrong business - sort of. After all we could buy crap all day, advertise it and sell it at a HUGE markup.
Only problem is that we both like sleeping at night.

Yes, I'm rambling but have to vent SOMEWHERE.

Oh, the money these people could have saved.

 

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I think usually the people who do little if any research before buying coins are those who are looking to make a profit in them someday. But, such as with buying stocks, an investment that is bought in haste without doing the homework is as good as throwing money into a slot machine. Wise investments take a lot of hard work. I don't feel sorry for these people one bit, and wouldn't lose a wink of sleep making a profit off of their laziness.
Guy~

 

A good place to vent and I don't blame you. I see some of the "leavings" down at the coin store I go to.

 

Hey, folks like Abon have familys to feed too yannow..... ( ouch, did I say that? ) LOL

Yeah it is bad, I see them brought in when I'm at the B&M as well.

 

I'm not sure the situation is unique, and in that sense it's hard to get too upset. People lose money in antiques, casinos, race tracks, artwork, jewelry, timeshares, and countless other purchases that seemed like a good idea at the time. Even truly expert collectors lose money. Ironically, the more expert the collector, the more money they might lose because they are more likely to make large purchases. I think that perhaps you are just very close to the business end of the losses that somewhat blows them out of proportion.

 

how unfortunate but true. i disagree that the rose colored glasses fall off i think the whole thing goes along with the clothes but that just MHO

 

Ask GD. I tried that experiment at the ANA show and got a lesson in reality real fast. There is s thread somewhere about it, I realised what my wife and daughter will be dealing with if ( WHEN ) anything happens to me. Thats why I dont mind paying for a little plastic these days, it will protect THEM.

 

Hey Clembo - I was wondering if the 'new' had worn off yet and if you feel different on the other side of the counter. I have watched a LOT of that those 'seller shocks' as I usually get by a coin shop a couple of times a week and have found myself self sitting quietly going through coins as a seller BLASTS the dealer because "they" paid $$$$ off TV just last year and don't understand WHY the no good dealer won't pay them the same amount as HSN charged them. Or just as bad - as you say - a somewhat experienced collector buying split grade coins doesn't understand how much difference the 2-3 points make in the value.

As GD says - every single collector on here needs to take their coins NOW and get a couple of bids. If you're collecting for the JOY of collecting ~ and you consider the time, money and interest you've invested in your coin collection as part of your own hobby that could have been spent at sports, bars, gambling, movies, art, or other non necessary items, great. If you're collecting thinking you're leaving your heirs a fortune ... it may help you reconsider plan B = Sell a few of the coins and buy more life insurance.

I know the ONLY way some of the coins I have now will be worth more than what *I* gave for them depends on the market and bullion content. I do have a few key mints, dates and high grades and hopefully those will continue to hold their value for a few years and I can sell them and take a nice trip some day when I get ready to retire, get rid of some of the accumulation and concentrate on only a couple of really special coins. After all, they say you can't take it with you and I have no one to leave it behind (to).

 

Great points made here by everyone. Thanks for letting me ramble.

Those that work in shops will see this on a more regular basis.
Informed customers notice it all the time in passing.
Trying to sell raw coins can and will bite you in the butt. (With the big dogs)
This is not the only field it happens in.
Caveat Emptor.

As for YOU CoinGal, I doubt the newness will ever wear off. It's not just a job it's an adventure.
I buy the "easy" stuff at work. Junk silver mainly. Set rates as it were.

Watching the boss and an HSN customer is always different. Some just accept their lack of knowledge while others do just get plain stupid. They can always say no but I will say this about the boss. Unless they are seriious about selling in the first few minutes it's a waste of his time and he's not afraid to tell you that.

 

I went to the Baltimore show a year ago and bought up about $6,000 in merc dimes. I paid $1 per coin. Today they're worth about $1.25 in just bullion weight. I had my grand kids sort through most of them by dates and put them all in tubes. Kids had a great time touching and sorting. It was worth the money just to see them having a good time. Now I've made 25% on them. Now I'm gonna sell 'em by dates etc. for a minimum of $1.25 each. No rush at all, maybe I'll let the grand kids sell 'em. Better than leaving the $$$'s in the bank.

 

Those who buy from this Ebay seller stand a good chance of getting burned: http://myworld.ebay.com/coinmadz/ . He appears to be a self-slabber who often assigns much higher grades to his coins than they would grade elsewhere, and sometimes threatens lawsuits against those who leave him negative feedback.

 

Dude is offering a 1928 Indian $2.5 in a pseudo-slab "graded" MS66. That's a VERY valuable coin if it were actually MS66, which it isn't. The current bid is much, much lower than a real MS66 would bring, so apparently most folks figured it out - STAY AWAY from this one.

 

the mistake most people make is trying to sell to a seller...they need to sell to the end user. A coin sellers job is to make money off coins, thus they buy low sell high. A coin seller will almost ALWAYS low ball. It doesnt matter what coin you bring in they will have some reason why they can only give you so much for it and it will always be disappointing. The end user will be more willing to pay a reasonable price for a coin as it is something they want and not simply something they are looking to flip.

Certainly some collectors will come in with something they think is worth a lot and it truly isnt worth what they thought...but in the end...dealers low ball..plain and simple and they will always have a litany of reasons why they wont pay more than 10-15% of the price.

I have seen it here, people low balling worth before they even see the coins, just from a list...they are already coming up with reasons like...'well, you say they are this grade but they probably arent so I will assume they are lower grade' before quoting only a fraction of the lots worth. People here were lowballing to about 15% of a coin lots book value at the grades stated on a hypothetical question .

If you arent willing to sell your own coins to collectors directly...expect to be gouged.

 

Mark:
That seller is amazing!

And that is some of the scariest stuff that I have seen since abon.

Thanks for the laughs.

 

Unfortunately, many folks haven't figured it out. Instead, they apparently think they're safe paying a price that corresponds with a lower grade, but don't realize that in a number of cases they are still paying too much. I'm guessing that's because they don't realize that the coins can be even more over-graded than they might fathom. For example, I have seen examples in that seller's MS66 holders which appear to be AU and/or cleaned.

 

I only wish I thought it was funny.

 

Mark:
I had to say that, otherwise I may have to find another hobby.

Enough is enough!

Although the sellers are outright crooks, it is also the buyer who is to blame.

As an advertiser in the NY area used to say: "An educated consumer is our best customer."
[the shame is that he sold clothing.]

Now, if we can only get these buyers to simply throwing away good money--
But, I'll bet that if you approached them (the buyers) with legitimate coins, and properly graded at a fair price that they would pass. Since they can buy nice shinny coins on ebay.

 

I agree that the buyers must share part of the blame. I just don't want sellers who operate that way to get a free ride.

 

That's been pretty much my angle as well Mark. I can't be "the police" but if I can stop one person from getting burned I'm all for it.
If the seller hates me it gives me a warm fuzzy feeling.