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 Replies: 10 / Views: 2,273 |
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Pillar of the Community
United States
1192 Posts |
I was wondering what was going on at this odd coin store and what their buisness model would be. Sorry for this being so long but It just made be extremely curious. I decided to finially stop into a coin store near my house again since the first time I went there as a kid. The first time I went in I was like 10 and they were smoking and were weird so I walked out without talking to anyone or looking. This time I went with my friend to see what I had been missing. The place looked like a small time dealer with some prices and displays. The clerk/ owner was buying a few hundred Morgan dollars from a woman and said he would be right with me while after he got done counting out their money. After he was finished and they left. After he asked what I wanted to sell I said I was just browsing to buy, he informed me they didn't sell coins. In the back there was like four older guys huddled around a table playing cards with stacks of silver dollars piled around them almost like poker. After that I left to go on about my buisness. I went to my normal dealer afterwards and I asked her about it and she said it was a little strange and they didn't have any involvement with him . He buys coins and then immediately sells it to one of the gentlemen at the table in back. I asked if they were dealers and she didn't believe so. Though she isn't the owner of either store so she just might not be aware. I go to about 8 stores in the area and some shows and I didn't recognize any of them as being employes or dealers of the places I've seen. The store has a normal sign outside announcing it was ______ coins and it appeared like a little store. No mention of buying bullion or anything from the street. What is likely happening here? I don't think they were buying to melt it down. They also had boxes of older copper coinage like large cents so it wasn't just about precious metals. Is it like a retirement club for wealthy collectors or more like a wholesale place that would sell to other dealers? We were joking around how it looked like a front for laundering money. I should mention that there was 17 years between my two visits, so it's been its been around for awhile. Edited by Bertensgrad
10/14/2014 03:48 am
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Valued Member
United States
214 Posts |
Interesting story Bertensgrad. Sounds like a bad place for kids. I could imagine a kid walk in with a double eagle that he got as a present and hear the guy say "wow kid, this is worth $50." The kid thinks that's a lot of dough, but its the owner that really gets the dough.
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Pillar of the Community
 United States
1192 Posts |
Yeah it had a real funny pawn shop meets gentleman club feel thing going on. The guy was polite but didn't seem too friendly. You could tell he wanted us to leave as soon as possible. I would had asked him what his role in the industry was but I couldn't think of a polite way to ask and we were weirded out haha. Plus he didn't seem the type to elaborate on his personal buisness.
Though I would want some one to leave if I had a few hundred ounces of silver on my table and them see me handing out a few thousand dollars of hundred dollars bills haha. I had the distinct feeling there was a shotgun on the other side of the counter haha.
Edited by Bertensgrad
10/15/2014 12:30 am
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Valued Member
United States
234 Posts |
Seems like a really shady business going on there.
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Pillar of the Community
Canada
3049 Posts |
There's actually two explanations I have....
1) It may be front for a loans place.
2) The other and more plausible explanation is that this place is an actual card house... you said you saw some people sitting around a table playing cards.... that could actually be the bread and butter of the business...
The other coin stores don't know much about this one place.... that's a pretty crystal clear sign to steer clear of the joint..
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Pillar of the Community
Canada
2519 Posts |
Maybe it's something like this? In Indonesia there's this kind of shady business, where you "sell" something you own for a loan, then when you have enough money you buy it back at an interest. The person who gives the loan holds the item for some time, then if you can't pay back after some time your item gets sold through other channels (the person who gives you the loan doesn't sell it to individuals by himself, he sells it to a store or some kind of middleman first). It's called "gadai tukar". Not sure if this exists in Western countries but if it does I don't know what it's called.
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Pillar of the Community
United States
1192 Posts |
Yeah I'm a buyer not a usual seller haha, so I have zero interest in going back to him ever. I asked three different dealers and they all said they knew the place but didn't have any involvement just that they knew he immediately sales to the guys at the table. So weird. What is a card house? Like illegal gambling? I live in a pretty boring part of Indiana where gambling is tightly controlled and limited to racetracks, casio riverboats, and one OTB palor.
To the previous comment would that be like a pawnbroker without his own store who resells things to other stores?
Edited by Bertensgrad
10/15/2014 02:54 am
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Bedrock of the Community
United States
20753 Posts |
Goes on all the time in some places.
Once I took my kid and tried to stop in a near by restaurant. We were the only customers although the parking lot had lots of cars. We sat down and a guy in suit came out and said waht do you want. We asked for a menu and he said they don't have any. We asked for a couple cheeseburgers and again he said they don't have any. Also, no cash register around either. We left and that place has been there for about 20 or more years.
Another restaurant we tried to go to is always lite up and the doors closed. Sign says closed for now in the window. Been like that for at least 20 years. And there too cars always in the parking lot.
Pawn shop by me has sign in front that includes coins. I went in and was told they don't buy or sell coins.
I suspect that if your not part of the right organization, just keep away.
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Pillar of the Community
United States
1192 Posts |
Yeah at the moment I have over 8 dealers that I would sell to around me before going back to him haha.
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Pillar of the Community
United States
7375 Posts |
Doesn't sound illegal on the surface since they're in plain site. But if you showed up with a pile of Morgans and wanted to get into a card game, I'm sure they'd oblige....bye bye Morgans. Yeah, sounds like a negative vibe to me fur shure.
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Pillar of the Community
United States
1192 Posts |
Yeah just from a estimation of what I saw on the table and the amount he counted out he was paying $10 apiece for the Morgans. I wish I could buy even culls for that price which these didn't appear to be.
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Replies: 10 / Views: 2,273 |
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Posted 10/14/2014 12:54 pm
