Canadian Coin Prices

for a very simple question regarding prices the OP got a lot to chew

For collectors thinking they can get 50% of trends for their coins when selling to a coin dealer, I say two things:

1. You've probably never been self-employed in your lifetime, and

2. You haven't observed ebay completed prices since 2008.

Now....about margins,

Prior to the financial crisis of 2008 (start of the massive downturn in the coin business) I was selling ICCS graded coins to many dealers for 60% of trends and they were selling at 80% of trends. They were working on only a 20 point margin because they were moving this material very quickly, almost at the same show I was selling to them!! This is a very important point.

Now, forward to today's cra**y market, where a dealer selling at 80% of trends is just a dream. Dealers are selling anywhere from 50% to 75% of trends. They however CANNOT work on the same 20 point buying/selling margin they used to because the coins aren't moving like they used to. A lot of dealers don't even want to buy anything because their inventory is already stagnant, but if they are buying, they are offering between 35% to 45% of trends.

So in conclusion, to the collectors who are being offered 50% of trends for their coins and are not accepting this offer because they think it's too low, are either 1. misinformed or 2. totally delusional.

@John100

That's the whole point with pricing as John has noted!

That would be an excellent idea and maybe more people would stay with the hobby. I don't agree with others that have said the Canadian market is in great shape how can it be when the best place right now in the real world is selling via USA. vs the outlook here at 40-50% like chasing fools gold

As a dealer and a store owner, the retail market for Canadian coinage stands at %50-%60 trends at best! There are a few exceptions with certain rare varieties and if a couple of collectors are looking very hard for something. I just sold an 1895 ICCS old holder grader MS65 large cent for 800. Good quality coin that trends at 1625. I have an MS63 1925 PCGS cent for sale at 500 and no go. So the market suffers. As mentioned above, no dealers will be anywhere near 50% trends for coins unless desirable. Close to 20% would be more of reality. The only time the ration closes for me if I already have a client for a coin that I'm buying.

The answer is a HUGE "it depends".

For coins in a popular series, eye appealing, at a good price point, near full trends is still an accurate retail guide.

For coins suffering from any of the following: unpopular series, ugly, etc, you'd be lucky to get 40% of trends at retail.

Factor in the dealer's margin on those and you'll get wholesale offers anywhere from: no offer, 20% of trends to 85% of trends.

As a concrete example. Problem free 1925 nickels in VG sell extremely well at quite close to full trends. Higher grade 1925 5c pieces, even if they are nice, are slow/non-movers.

On the topic of spending money on a coin collection - I won't use the term "investing"....

I think the problem is that society today in general is very obsessed on short term gains. Buy a lotto ticket or go to the casino and become a millionaire tomorrow, get a good education and you'll get hired to a high level job tomorrow, don't bother saving up for something you need, just borrow and just get it tomorrow....... As a society we also seem rather discontent. We turn over cars, houses,....spouses -- to some even 5 to 10 years can seem like an eternity, boring, the yearn for something new, something different, we're constantly tempted in many different ways. (Dare I suggest the economy in general relies on a high level of frenzied spending behaviours.)

Coin collecting or any hobby was never intended to yield short term gains. By definition hobby is something enjoyable which we spend our leisure time doing. Similar to not buying for short term gains is the purchase of other things such as stocks, bullion or real estate, yet many people often believe they've stumbled upon a get rich scheme. The time horizon is most often suggested to be 10 years at a minimum in order not to lose money and hopefully break even. Hobbies that cost money definitely fall into the luxury spending category, so it continues to baffle me where the mindset that the ordinary person who knows little or nothing about the hobby can just start buying coins with a view to immediately sell at a profit comes from?

To add, I have great respect for coin dealers and the challenges they must face in today's business environment. I suspect ebay has been a double-edged sword. It's opened the door to increased exposure for the main stream market but it's also attracted a segment of short term churners with no overhead, thereby increasing the competition. It also makes me wonder if by virtue of the ease of ebay selling that existing collections are being sold that would perhaps otherwise been held onto by beneficiaries - thus increasing supply without increased demand. But what is different about the health of the hobby in general in Canada as opposed to the US?

Just have to ask, what was your first impression of ICCS, if you don't mind commenting.

I hope this was not intended to start bashing ICCS.