Coin Shops

[CherryPickinTeller]

Was at work this morning and noticed this guy who was taking halves out of a coin album and putting them thru the machines. Went over to help him and he told me he had 7 albums of halves and 5 albums of old dollars. He then told me he went to a coin dealer and the ones he was dumping now were the ones the coin dealer said were not worth anything. I asked him what types of halves and dollars he had. He said the dealer bought all the pre 64 halves and the old dollars were from the twenties and earlier. All he was dumping was 2 albums of halves which had about 80 coins in each one. Out of curiosity I asked how much did the coin dealer give you? He told me $3 for the halves and $5 for the dollars.......

Talk about a rip off. This guy looked like he was in his mid 30's and I'm guessing he had no idea as to how much they are worth. I couldn't even tell him how much they were actually worth because it probably would have killed him knowing he got ripped off for that much money..

Anyway a nice 64 Quarter from the reject today

 

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[baddbluff]

Here is why threads and posts like these piss me off. All of you will go into a business a couple times with your vast knowledge of "value" and turn your nose up, walk out disgusted, and make it your mission to tell anyone who will listen how much of a rip off the business is. All the while, you have no clue what the overhead of the shop may be. You have no clue what the rent, the utilities, the payroll, or the taxes are. Yet, you have the vast knowledge of "value" to know that the business owner should be paying you 90-95% of the "value" of the item, then turn around and only attempt to sell it at 100% of the "value". Let me clue you in people, that business goes out of business in less than 6 months, and the owner lost his livelihood, his dream, his savings, and there is a good chance he lost his family. The "value" of something is only what someone else is willing to pay for it, not what a book says it should be. If the dealer is only willing to pay $3 for a coin, or .01 for a coin, that is the "value" to him. You are asking for his money, so your perceived "value" means squat! that doesn't make him a rip off, that makes him someone who is knowledgeable about his business, and what he needs to do to stay in business. If you don't like the prices, be polite, and leave. then go somewhere else to see if you can do better. .

1. I have a BA & a doctorate degree... Pretty sure I am more educated than you. And I'm pretty sure that the newer members of the board are collectively intelligent enough to be offended by your snooty jabs at them, too.

2. I run a business that NETS $1M+ a year. (Capital M means 1 million by the way). I am pretty sure I know how to run a business. Part of running a business is developing a pricing strategy that will earn you repeat customers.

3. I have been collecting/buying/selling coins since you were in diapers.

4. Ever heard of QVC or Littleton Coin Co? Would you recommend these companies to your friends as a good place to buy coins? This dealer is the same. He preys on ignorant people. So does a prominent dealer from San Diego who will remain anonymous. He thinks his "accurate grading" makes it okay to price his inventory 35-50% higher than anyone else. There are many great dealers out there who are honest. And they aren't putting the future of their livelihood or families on the line. Most of them do quite well.

 

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[CoinFetcher]

I've been in the hobby for 35 years, and I can't count the times that my offers of "twice what the local coin shop is paying for silver" have been turned down, because "the dealer has been in business for a long time and he must know what he's doing".
The local dealer has a constant flow of traffic in and out of the store all day long. His buy prices aren't great, and he's not the only game in town.

Been there. And it seems, the more down-on-their luck the person seems, the more likely they will go with this route.

 

[Xiao en]

Buy low sell high.

In what world are you kids living in?
If you all want to sell coins u want to sell at spot, if you want to buy "junk" coins you want to buy at spot or below.
Ever hear of a spread?? a margin?? go buy some stocks and make a profit when it moves a nickle.... you didnt cover your buying spread.
Simply put a LCS can not stay in buisness at the whims of the market price.

My advice is to deal with a LCS you feel comfortable with.
an quit complaining about a deal that wasnt as sweet as you wanted it to be.....or goto another coin shop.


On a side note if the opportunity came to you to buy into your local coin shop as a partner would you?

 

[fistfulladirt]

On a side note if the opportunity came to you to buy into your local coin shop as a partner would you?

Sure would!
My LCS doesn't pay well, but they sure do bring in the customers!
There is no excuse for one to get "ripped off". If they do it's their fault, not the coin dealer. We live in the info age and info is at our fingertips...if I were selling a used car, would I first do my homework on it's value, or would I sell it to the greasiest low-balling dealer in town expecting a great deal?

 

[Xiao en]

Im looking at this opportunity now.
Maybe it is something that can keep me local to home where i dont have to travel like i do now for work.

 

[jr98119]

Buy low sell high.

In what world are you kids living in?
If you all want to sell coins u want to sell at spot, if you want to buy "junk" coins you want to buy at spot or below.
Ever hear of a spread?? a margin?? go buy some stocks and make a profit when it moves a nickle.... you didnt cover your buying spread.
Simply put a LCS can not stay in buisness at the whims of the market price.

My advice is to deal with a LCS you feel comfortable with.
an quit complaining about a deal that wasnt as sweet as you wanted it to be.....or goto another coin shop.


On a side note if the opportunity came to you to buy into your local coin shop as a partner would you?

So true. You only get ripped off if you allow yourself to get ripped off!

 

[Dixiegal]

Honestly when you are dealing in PM you really need to do a minimal amount of research. It takes about 5 minutes to look up what the going price of junk silver is. Then you go to the coin dealer. They are in business to make money. Let the seller beware.

 

[GarouLady]

I go to coin shops and ask around what their selling and buying prices for the various coins I am interested in are. Thanks to threads like this I have learned to do my homework first before going to my LCSs. One instance paid off. I went to a nearby coin shop and asked about ASEs. They were offereing the coins for 40 dollars apiece (at this time silver was at 32 dollars an ounce). I called around to local pawn shops and at the time none had any. So I noticed an old coin shop that had moved to a new location (closer to me - yeah!!) and called them. They were offering 2012 ASEs for only 35 dollars, just 2.50 over spot. even with driving the extra mileage to me that was a whole lot better than the $40 ASE. That's not to say the 1st coin shop rips off and I do understand they need to make a living too, but thanks to threads like this, I definitely plan on calling around, googling and doing my homework before I think about buying anything other than junk silver.

Sincerely, Garoulady

 

[Yinzi50]

There are several LCS around me. One of them is regarded as thief even by other LCS owners. He offer less than 50% melt for gold and silver. Offering $3 for a 90%er is just like a thief.

 

[fistfulladirt]

Offering $3 for a 90%er is just like a thief.

It is not just like a thief. A thief does not "offer" theft, and the LCS is not forcing one to sell to them.

 

[FormerTeller]

Here is why threads and posts like these piss me off. All of you will go into a business a couple times with your vast knowledge of "value" and turn your nose up, walk out disgusted, and make it your mission to tell anyone who will listen how much of a rip off the business is. All the while, you have no clue what the overhead of the shop may be. You have no clue what the rent, the utilities, the payroll, or the taxes are. Yet, you have the vast knowledge of "value" to know that the business owner should be paying you 90-95% of the "value" of the item, then turn around and only attempt to sell it at 100% of the "value". Let me clue you in people, that business goes out of business in less than 6 months, and the owner lost his livelihood, his dream, his savings, and there is a good chance he lost his family. The "value" of something is only what someone else is willing to pay for it, not what a book says it should be. If the dealer is only willing to pay $3 for a coin, or .01 for a coin, that is the "value" to him. You are asking for his money, so your perceived "value" means squat! that doesn't make him a rip off, that makes him someone who is knowledgeable about his business, and what he needs to do to stay in business. If you don't like the prices, be polite, and leave. then go somewhere else to see if you can do better.

Offering below spot to cover overhead and turn a profit is part of a good business strategy. My LCS offers 80% to 85% of spot. Offering 30% or less of spot is taking advantage of people, and IMO is not a good business strategy, as it is not likely to generate repeat business. Personally, I abhor a business that takes advantage of people's ignorance. If a widow walks in with her late husband's coin collection, a conscientious business owner would offer her a fair price, rather than try to make as much profit as possible. Many people on this board have taken similar measures in similar situations.

This thread doesn't need to be locked; instead, you need a lesson in manners. If you don't agree with what other people have posted, state your reasons and leave it at that. Calling members imbeciles and citing "the low collective intelligence of a lot of the newer members of this board" is offensive and non-productive, and against the TOS I believe. I might also point out that having joined in September 2012, you fall in the above category...

 

[FormerTeller]

It is not just like a thief. A thief does not "offer" theft, and the LCS is not forcing one to sell to them.

The LCS may not be forcing anyone to sell. However, most people that sell do not know the value of their collection. They go to the LCS rather than the CASH 4 GOLD places because they consider the LCS to be experts in coins, and expect at least a relatively honest answer or evaluation.

 

[sack0silver]

When somebody sells or buys something for a perceived "unfair" price and everyone is all up and arms about the ripoff its freaking annoying. This guy is not a victim, he is an idiot.

Most likely lead up to the guy's sale of his collection: "Oh gee wiz, I just inherited a bunch of coin albums, and from when I learned to read dates at the ripe age of 23, they seem to be of some age. I sure would like some money right now, because buying all these "unopened" $10 face rolls of half dollars on ebay for $18.99 plus shipping is sure getting pricey! I wonder how much they are worth? Well, instead of spending 33 seconds and becoming a well informed seller, I am just going to concentrate on figuring out how to work this door knob device and then promptly get violated by my local coin shop!! Yeepeee!!"

 

[Treasure_Hunter]

Personal attacks on members or against this forum will stop now unless some need a vacation from TN...

Bottom line is a business can charge or offer what ever they want, they are in business to make a profit, they have overhead. It is the buyer and or sellers responsibility to know what a product is worth...............there is never a reason to attack members or forum.

 

[jerseyben]

Here is why threads and posts like these piss me off. All of you will go into a business a couple times with your vast knowledge of "value" and turn your nose up, walk out disgusted, and make it your mission to tell anyone who will listen how much of a rip off the business is. All the while, you have no clue what the overhead of the shop may be. You have no clue what the rent, the utilities, the payroll, or the taxes are. Yet, you have the vast knowledge of "value" to know that the business owner should be paying you 90-95% of the "value" of the item, then turn around and only attempt to sell it at 100% of the "value". Let me clue you in people, that business goes out of business in less than 6 months, and the owner lost his livelihood, his dream, his savings, and there is a good chance he lost his family. The "value" of something is only what someone else is willing to pay for it, not what a book says it should be. If the dealer is only willing to pay $3 for a coin, or .01 for a coin, that is the "value" to him. You are asking for his money, so your perceived "value" means squat! that doesn't make him a rip off, that makes him someone who is knowledgeable about his business, and what he needs to do to stay in business. If you don't like the prices, be polite, and leave. then go somewhere else to see if you can do better.

AMEN! Well said and totally spot-on!

I don't know how old you are but there is an increasingly growing mindset/trend that I am calling the "ebay generation". Young folks who have the internet at their fingertips expect everything to have a set price. The old concept of something being worth "what someone is willing to pay" is coming to an end. The world is changing dramatically and we are shifting from a physical/localized world economy to a globalized/virtual world economy. The art of negotiation is being lost.

A few years ago I would have told you that everything I just described is a good thing. However, the problem with all of this is that IN THEORY and ON PAPER it all makes perfect sense. Unfortunately, IN THE REAL WORLD, someone is ALWAYS going to take their cut. Additionally, there is the expectation that these things have a set value but THEY DONT UNDERSTAND WHY. All they know is, "this is what my phone says I should get for it". So when a person walks into a coin shop, pulls out their phone, and starts rattling off ebay prices, there is a big disconnect between the "real world" and the new digital online economy (ebay).

 

[jkng]

My LCS gives 95% of spot for junk silver

 

[Treasure_Hunter]

I might add there could be some members here who even own one so attacking all coin shops is not cool....

 

[GlenDronach]

I think we can all agree that within 20% would be acceptable. If they buy at 80% of spot and sell at 20% over, that would be a good profit, and fair enough for the general public. Offering less than half is not acceptable. The guy should have done more research, but the coin shop is ultimately shady.

I get better deals on silver at antique/small coin shows. They don't have the overhead they need to manage.

 

[maverick]

I might add there could be some members here who even own one so attacking all coin shops is not cool....

Calling us members all imbeciles and such is not cool either, again, just sayin. HH, Maverick.

 

[Treasure_Hunter]

Maverick that was handled, my post addressed that issue...