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 Replies: 55 / Views: 7,229 |
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Pillar of the Community
United States
539 Posts |
as a foreign coin collector I feel pretty left out when it comes to local shops. I've called the two local shops and they pretty much said all they do is precious metals. They didn't even have some basics like a self adhesive 2 x 2. So I didn't even bother going in to look for mid-range foreign coins. Granted I probably should go but neither seemed very welcoming.
I live in San Jose, CA. If anyone knows of any shops here or in the surrounding SF Bay Area that sell something other gold and silver, I would love to visit that shop. A 'junk' box was the best I was lead to believe the ones I called had.
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Valued Member
United States
85 Posts |
I had to start buying all my supplies from on-line stores. OF The two dealers in my city only one carries any supplies at all and his stock is kinda meager. I know it doesn't help them for me to buy that way. But they can't sell what they don't have. Same with the coins. They can't sell me a 1988/89 cent, because they don't have any. One dealer here opened two locations, but I think he is more a gold and silver pawn shop than anything else. No supplies at the location I visited and a very low displayed inventory.
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Bedrock of the Community
United States
19952 Posts |
Since I'm in a big city I'm fortunate to have tons of coin shops nearby. My favorite one gets almost all my business and it's a great place to learn. I've spent many, many hours hanging around and talking to the owner, his workers and customers. Yes, you can learn a lot on the internet.....but nothing comes close to sitting in a shop where I get to talk to the experienced folks, learn and look at coins in hand. A lot of times I'll see a one time customer come in to sell and as soon as they leave the owner lets me look over the stuff. That's where I've bought some of my best coins! This is stuff that's ususally been sitting around for decades and the collecor or the collectors family is selling......some amazing coins show up sometimes.
As far as price, my dealer uses CDN+ for the most part. If he's in a good mood, sometimes I'll get at or slightly below CDN....but I always know the price is fair and I don't mind him making a profit. It's what keeps him in business.
Bottomline....I LOVE MY COIN SHOP!
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Pillar of the Community
United States
958 Posts |
most the coins shops around here are just silver buyers,alot dont even have a big selection of coins in the shop anymore. Unless they steal the coins from a unspected person that just brings them in and sells them at silver value its not really profitable to buy and resell alot of coins in this economy many people just cant afford to keep their hobby going
rent,electric,keeping a inventory,advertising it gets pretty costy even if you have low overhead of say 1000$ a month thats still 12,000 a year in overhead and you gotta try to make it in coins
its become a tough gig for many coins shops
silver was low not to long ago and many coins were not worth much the junk silver had no real value excpet melt at $5 a ounce and not even worth the trouble
if they can cash in on the silver buying craze well thats a good thing it a sure bet buy for 10x12 face resell the nice ones send off the junk and 14-16 times face
its a win win for the shop
If silver falls back down to $ 5 a ounce I think most shops wont make it and just close up
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Pillar of the Community
Australia
3831 Posts |
Be assured, there's no way silver can ever fall back that low unless the price of oil falls back to 40-50USD, that was when oil was dirt cheap and silver was around that price range. Unless some oil company finds a 100+ year reserve of oil, it's not going to happen.
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Valued Member
United States
85 Posts |
Silver will definitely come down at some point, when and how much of course is anyone's guess. Production costs being a huge factor. But the shops that stay in business will be those that adapt. Already, it seems that the on-line stores are taking over the market. I believe that benefits TPG's greatly, as buyers now need to rely on certifications rather than a dealer's opinion written on the flip. The rapport between the dealer and collector gets lost in cyberspace, and it's easier to sacrifice integrity knowing you never have to face your clients. I mean, no one is going to come charging in saying you overgraded a coin. lol Next, this brings pressure on the TPG's to perhaps over rate coins submitted by dealers in large quantities. Competition to sell the service to the biggest clients may reflect in grading. It is certainly not the business it once was. |
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Valued Member
Canada
307 Posts |
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stil have a couple dealers that I am loyal to but for the most part I lost faith in them after I was hit by hard times a few years ago and tried to sell some coins. The way they lowballed me was despicable, I fully understand that they have to buy low and sell high to make a living but these arrogant dealers were offering less than melt on some $40 to $60 coins. Most dealers will only pay 30-50% of the actual value and the upper end of that is only for key coins and only if they need it so I can understan your feelings....I had a collection that was worth trends value over 10,000 I like you fell on some hard time and had to dump it I only got around 3500 for the set...no 48 silver dollar though....This soured me for awhile but I got back into it with the idea of fun and not investment and I have not looked back |
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Bedrock of the Community
United States
20753 Posts |
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I totally support the local coin shops. No franchises there that I know of. they are one of the last hold outs. Other than the pawn shops which are a joke. WOLF
Usually true but not always. Some never get coins so when they do they have no or little idea of what they have. Until they do, they usually sell them for much less than anyone else. |
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Pillar of the Community
United States
2589 Posts |
I buy from dealers occasionally, but almost never sell to them. I find I can get better prices for many items selling online. Dealers in heavily populated areas have little problem staying afloat. In my area I see two kinds of dealers, well established ones that sell high end coins as well as bullion and the other type largely consists of bullion buyers that sell mostly low end junk. Its these bullion buyers that will go out of business if silver and gold crashes, the higher end dealers are here to stay I think.
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Pillar of the Community
United States
581 Posts |
I think two points are really salient here:
1. I think most of us have been less than pleased with some of our online purchases. Sure there are return policies, etc. But if you buy at a B&M, you're much less likely to be disappointed when you get home.
2. I like the remark about the markups on TV's, etc. The problem with coin dealers is that we have a pretty good idea of buy and sell prices. I remember knowing a fellow in Great Britain who had a clothes shop. He said 150-200% markup was normal. So even if there was a 50-75% blow-out sale, they were still making money hand over fist.
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Bedrock of the Community
United States
20753 Posts |
There is a lot of coin stores around me and just never thought of checking them out since we have so many coin shows. So yesterday I typed in coin stores for my state in Google and came up with a lot of them real close by. So just for a test I tried a few of them. The closest ones to my house.
The first one advertised on the internet hours 9AM to 6PM. Got there and sign in the window said hours 1PM to %PM so I left since it was 9AM.
Second one I tried was really, really small, had a large sign out front stating we buy Gold. They had less coins for sale than I have at home.
Third one I tried was closed with no info on the door.
Next was a pawn shop that advertised coins for sale. Went there and they had only some beat up Silver Dollars for rediculous prices.
Think I'll stick to coin shows.
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Valued Member
United States
307 Posts |
The old coin shop was like the barber shop. You enjoyed the conversation and received the benefit of quality friendship. This all ended when money became the prime motivation in a persons life. I too had a need that required immediate cash. I turned to my collection and the local coin shop and was very suprized  to learn that my collection was worth 30% of Blue Book value. I was forced to ask a friend to sell my part of my collection. He sold all the coins over Blue Book value.  I was charged a 15% commission and still received more than Blue Book. The coins were sold on ebay and I received payment in 20 days. I now belong to several clubs and forums trying to keep up with the times. The old coin shop may be a thing of the past.  |
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Valued Member
United States
61 Posts |
As a person looking to open a coin shop in the next few months I sure wished I was surrounded by dealers like the ones you mention; I think I'd do pretty well with 12 years of customer service experience. Unfortunately, my competition sounds NOTHING like what you guys describe. We (my competition would be the store I work at now) don't close early, we don't open late, and we don't see pigeons walking in the door. I fully agree the future of crappy brick and mortar shops is in doubt. But I added a word.
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Valued Member
Finland
294 Posts |
Nowadays it's one kind of luxury to have a human being in front of you despite what services or products you are buying. When I'm visiting in my local coin shop I buy just accessories or few coins from a bargain bin but nothing high end stuff.
I usually buy my coins from second hand shops and flea markets, which are much cheaper places to buy coins than coin shops are.
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Valued Member
United States
85 Posts |
As I pointed out earlier. This has to be a major boon to TPG's. Practically everyone knows the only assurance you have on any purchase is the slab. I mean, we all buy the coin not the plastic, right ? But, the overhead, lack of inventory, etc compared to on-line shopping and auctions has just about killed them I think. For many of us that are homebound, it's a boon in a way. I can shop the entire world for their inventory, compare prices, order coins or supplies and have it placed on my front stoop. With books, clothes, food and everything else. I truly feel brick and mortar shops are soon to be obsolete in nearly every aspect of trade. Even supermarkets offer online shopping and some deliver ! The convenience is great, and the latest generation is more accepting of it and it will naturally just become a part of their lives. IMHO |
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Replies: 55 / Views: 7,229 |
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Posted 08/14/2010 6:53 pm
