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 Replies: 35 / Views: 5,049 |
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Pillar of the Community
United States
3843 Posts |
I decided to stop at a local coin shop that I don't usually frequent but since I was in the neighborhood (and on occasion they have some bullion for reasonable prices) I stopped in. Now I'm using the word 'coin shop' a bit loosely since they also deal in jewelry and various other 'profitable' re-sellable items. They don't have a great selection and their prices are a bit higher than some of the other larger shops in town. I was browsing around since the shop had a customer that was getting an offer on some 90% silver coins including a couple dozen silver dollars. The shop owner wasn't there and the assistant was the one assisting the customer who was an older lady and said that she was selling some of her husband's coin collection to raise funds for some unexpected auto repairs. The offer was 7x face for the 90% junk silver and $8 each for the Morgan dollars. When the customer asked why the offer was so low on the silver dollars, the dealer said that they were circulated and that Morgan dollars were so common that they were out of favor with collectors. The lady after requesting a higher price and implying that she was going to shop the collection around a bit, eventually took the dealers offer saying that she needed the cash. I was looking at some currency in their display case, casually listening to the negotiations going down. After the lady had sealed the deal and was getting her money I left. I don't think I'll be back since the assistant dealer clearly didn't pay a fair price in my opinion and was untruthful when telling the lady that Morgan dollars wouldn't sell when justifying his low price. He had plenty of worn common date Morgan dollars in a bin for $24 each and from my previous visits I know the owner (or the assistant) won't negotiate on them since according to the owner his wholesaler will pay him that amount in bulk. What is your opinion: Was the assistant dealer unethical? Would you ever patronize that shop again? Thanks, Joe2007 *** Moved by Staff to a more appropriate forum. ***Edited by Joe2007
02/19/2016 5:58 pm
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Pillar of the Community
United States
3210 Posts |
Stores are in it to make money, especially pawn stores who have very little ethics and morals in my opinion....I went to a local pawn store and a guy was asking $10 per 1964 Kennedy.....$30 for common Morgan's. Overpriced by a good amount. I would have talked to the lady and offered her more honestly perhaps like $14 per Morgan and 10x face for 90% silver. I frankly wouldn't care if the store got mad cause I hate people getting ripped off. All I would have to do is go outside with the woman and do the deal there and technically the store owner couldn't do anything. Just my opinion.
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Rest in Peace
United States
7075 Posts |
The stores have to pay for rent, insurance, a security system, electricity and who knows what else, all the while trying to make a living.
If there was a bin of Morgans then it is probably true that the dealer can't move them fast. If the dealer doesn't do a large volume business then he's got to make it up some how.
There are huge mark-ups on everything we buy in stores. How else could they have half-off sales?
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Pillar of the Community
United States
1812 Posts |
When Silver spot was around $4.00 a ounce in 2000, I was paying $8.00 for Morgans & $6.00 for Peace dollars... Common low grade & Culls were $5.00 each.. You should have interupted them and ask the woman if she had any CC Dollars, saying they are worth a lot more... The most they could do is ask you to leave.. |
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Valued Member
United States
129 Posts |
I would have said that id buy them from her at a better price and just never went back to that shop again.....
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Pillar of the Community
United States
4085 Posts |
I think they low balled her but she should have an idea of what the coins are worth going in as well. I did a quick google search "how much are Morgan silver dollars worth today" and quickly saw $15-30. Took less than a minute. Armed with that information, she should have walked out. It's a business transaction, so seller beware applies. That said, I'd probably not return to that shop to spend my hard earned money. Edited by KenKat
02/19/2016 6:54 pm
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Pillar of the Community
United States
1191 Posts |
Seems shady to me. I'd write up the story and give them a bad review online. I hate seeing older people taken advantage of like that.
I understand they need to make money but offering such a lowball offer when they are in desperate need of money is unethical IMO.
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Bedrock of the Community
United States
11951 Posts |
I think....
As much as you don't agree with the way the dealer and the
dealers workers conduct business or don't agree with the
prices they pay, you should not interfere with his business. Just as you would not want someone telling you
how to run your business.
As for the prices they paid, they do sound low, but I did
not see the coins. Most people are very surprised at the
prices they get from coin shops, they are often lower than
they think.
Also the cost of keeping a coin shop open can be more than
most imagine. It takes a lot of profit just to keep the
doors open.
I think if the prices one shop is charging is much lower
than others in the area, than there is a good chance they
will not stay in business very long.
Lastly imagine if there were no coin shops in the area,
the same coins may have been taken to the bank for deposit.
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Valued Member
United States
398 Posts |
Lady walked in and could of walked out ..... And it would not be right to ask anything while the transaction is taking place unless you knew the lady, then you have every right to talk but otherwise no-no on talking ......
After the transaction went down you could of immediately offered $9-$10 and put the clerk in a pinch, after all, not much demand, his words and use them against him .......
As for store honest / dishonest - most in the resell biz have to work that way, unfortunately nature of the beast and the assistant sounds like a sharp buyer, not his first rodeo!
Edited by LocalCoinGuy
02/19/2016 7:43 pm
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New Member
United States
26 Posts |
Quote:When Silver spot was around $4.00 a ounce in 2000, I was paying $8.00 for Morgans & $6.00 for Peace dollars... Common low grade & Culls were $5.00 each.. If I was as old as I am now in the year 2000 (I was 15 then), I would have bought as many pre-1921 Morgan's as I could for $8 each! |
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Pillar of the Community
United States
8137 Posts |
I Personally think that the shop low-balled her. I wouldn't interrupt the deal, since hat might come off as rude, but I wouldn't go to that shop anymore.
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Pillar of the Community
 United States
3843 Posts |
Thanks for the opinions. I wasn't going to interrupt the deal but if she left without selling I would have said something. Occasionally I'm asked by locals where the best place is to buy or sell, I'll make a note of this shop in the places to avoid (or at the very least get several offers from other shops and check ebay before selling to). I thought about stopping in on another day to say something to the owner but I've decided against it. He probably knows what is going on and may actively encourage low offers and dishonesty, I don't know. Sure makes me appreciate the other dealers in town who probably would have offered in the neighborhood of 10x on the junk silver and $13 for the Morgans. Not great prices but within reason. |
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Valued Member
United States
383 Posts |
Bottom feeders... If it had been me, I would've offered her much better on the spot. Since it was a dealer/location that you didn't frequent or care to visit often, being asked to leave certainly wouldn't have bothered me at the time.
ET
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Bedrock of the Community
United States
12057 Posts |
Making a large profit when purchasing coins from a customer is not unethical. Making a large profit when purchasing coins from an UNINFORMED customer IS unethical. Having seen firsthand the markups in gold and diamonds, such behavior applied to coins does not surprise me in the least. It's most common at those "WE BUY GOLD/SILVER" establishments. There's one about 3 minutes from my home. As a test, I took the gentleman a solid 24 kt nugget ring with 8.5 grams gold weight, and a solid back rhodium setting of 3 K/SI1 0.3ct round cut diamonds. Insurance value is around $4000, since I had just had it professionally appraised at a GIA shop I've been doing business with for years. Told the gentleman behind the counter I'd just inherited the ring (true, a year ago) and needed to sell it to make some money to pay off bills (not true.) He looked at it for a minute with a loupe, poked it with a pen looking thing, and offered me $175. I was tempted to produce the certificate (with laser measurements and photos) from the professional dealer about 4 miles away...but resisted temptation. Politely declined his "generous offer." As I'm leaving - "You could try a pawn shop but you won't get more than $200 for it." Member ANA - EAC - TNA - SSDC - CCT #890 "Most of the things worth doing in the world had been declared impossible before they were done." -- Louis D. Brandeis |
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Pillar of the Community
United States
1119 Posts |
I was thinking you could have asked the price to buy some of the Morgans they already had there. While the customer was there and could overhear the price that they are selling the coins for. If the customer does not want to perform even a cursory attempt at research before selling it is not anyone's fault but their own if they get taken for ride. They have the right to sell or not to sell; no one forced them to sell or to buy, they weren't selling health insurance.
Also to Paralyse, the difference between insurance value and actual value when it come to jewelry is often 2 to three times or more than actual value. The place is a we buy gold place not a jewelry store they pay for gold by weight not by design or value as a piece of jewelry. Gold per gram right now $39.65 times 8.5g = $337.02. If I were a shop in order to stay open I wouldn't be able to offer more than around $200.00 for it either. Did the professional dealer about 4 miles away offer to buy it for anywhere near $4000?
Edited by Steele
02/19/2016 11:46 pm
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Pillar of the Community
United States
624 Posts |
Quote:
I was thinking you could have asked the price to buy some of the Morgans they already had there. While the customer was there and could overhear the price that they are selling the coins for. That would be great Steele. "Well you see these Morgan dollars are very worn. I can only give you $8 each." "Excuse me, I hate to interrupt but I was just wondering how much these very worn Morgan dollars would cost me?" |
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Replies: 35 / Views: 5,049 |
Posted 02/19/2016 6:25 pm
