| Author |
 Replies: 14 / Views: 2,131 |
|
|
Pillar of the Community
Israel
2420 Posts |
Many local stores I've been to use the Greysheet for pricing coins they sell. If you ask for a price on a coin they just take a peek, and charge you the greysheet ASK price + 5-15% premium.
That said, I didn't encounter any that buy coins from the public based on these prices.
Did you encounter a store which pays the BID price minus some small discount (say 5-10%) on any US coin you bring them?
What is the reason for this asymmetry?
|
|
|
|
Pillar of the Community
United States
2757 Posts |
one shop I know pays 20% less than Greysheet.
|
|
Pillar of the Community
United States
2757 Posts |
|
|
Pillar of the Community
United States
1554 Posts |
Shops generally pay 10%-50% below Greysheet bid. The reason, as above, profit to stay in business. They may have to hold your coins months to years before they can resell them. Greysheet prices are meant for dealer to dealer trading, sight seen and of good quality for the determined grade.
Edited by 1893S
07/04/2014 11:33 am
|
|
Valued Member
United States
234 Posts |
I've been to at least one that bought based on greysheet values. 10-20% under, from what I recall.
|
|
Pillar of the Community
 Israel
2420 Posts |
I understand dealers need to profit, but it doesn't explain the asymmetry.
Why do they sell at 10% over ASK but buy at up to 50% discount over BID?
Why not the other way around?
Or a fixed 25% in each transaction (buy or sell)?
|
|
Pillar of the Community
United States
1554 Posts |
Your question has been answered in my post above, it's just the way it is. They don't ask 50% above bid because of competition. And coins have really never been sold at fixed prices also because of competition.
|
|
Pillar of the Community
United States
7616 Posts |
Most shops that I know pay Grey Sheet "bid" minus 5 to 50% of bid. If they are buying stuff they know they can move quickly they will pay closer to "bid". Slow moving stuff will be bought way back of bid. (Nobody likes carrying piles of clad commemorative Statue of Liberty half dollars). Bullion stuff will be bought according to the metal mkt prices and what form it is in.
Just like any B&M businesses, most shops have huge overhead (rent/mortgage, taxes, insurance, labor, utilities, etc etc etc). It is a capital intensive business that needs lots of readily available cash to support it. In some states/local jurisdictions you have to sit on stuff for weeks before you can sell it due to local 2nd hand laws that target stolen merchandise. Some shops even have to report what they buy to the police every week.
Generally speaking, the more volume you do, the closer to bid you can pay. If a shop has a standing order for all the GSA dollars that come through the door then the closer to Gray Sheet (or Blue Sheet) the dealer will pay. It's a lot easier to buy stuff you know you can immediately move out than it is to have stuff sitting around gathering dust in a showcase or piled in a box in the back room.
Hope these insights help answer your questions.
|
|
Bedrock of the Community
United States
20753 Posts |
Remember that the Grey Sheet, Red Book, Numismedia, PCGS web site, etc. are all Guides. JUST GUIDES. A dealer can sell or buy for whatever they want. In most instances I've come accross, dealers look you over to see if they can figure out what you know so they can either buy or sell for whatever they want. |
|
Pillar of the Community
United States
3343 Posts |
For coins that are obscure and in demand, dealers pay very well. But it's not enough just to be obscure. And you need to be dealing with people that move the specialty coins.
I would have no problem selling an 1856-S quarter, even with damage. But finding someone to buy an XF 1856-P is a whole different matter. "It's cleaned. There's a nick on the rim. It's barely a VF." Etc. A coin like this is dead stock for most dealers.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
07/04/2014 10:18 pm
|
|
Pillar of the Community
United States
3156 Posts |
one store I sell coins to pays 25% below bid. The other store will pay better than this if the coins are problem free with good eye appeal.
|
|
Valued Member
United States
324 Posts |
Asymmetry is not to be expected in a buying and selling environment that is negotiable and seldom fixed. Their goal is not asymmetry in any transaction.
|
|
Valued Member
United States
259 Posts |
What I find amusing about negotiating based on Grey Sheet is that every seller I encounter at shows tells me they have $XXX dollars in the coin and they will sell it to me for a 10% markup. Invariably, the net is right at or above Trends or PCGS pricing guides.
Insults the intelligence but I just walk if seller or deal don't sound right.
Edited by shermae
07/08/2014 3:45 pm
|
|
Pillar of the Community
United States
2077 Posts |
Quote:
Why do they sell at 10% over ASK but buy at up to 50% discount over BID?
Why not the other way around? They sell to collectors and want repeat business for those transactions. They buy from both collectors and people "unloading" collections. Repeat business isn't as important for buying. |
|
Pillar of the Community
United States
2824 Posts |
 westernsky .. that sums it up pretty well... |
| |
Replies: 14 / Views: 2,131 |
|
Posted 07/04/2014 08:26 am
