It's Time To Stop Purchasing Raw Coins From Local Coin Shops

It is the collector's responsibility to learn how to grade accurately and make good purchasing decisions. If you do not agree with the dealer's assessment of the grade, then negotiate, or buy somewhere else that is willing to negotiate.

This is why it is always good to learn as much as you can about whatever coin series you are interested in, and learn how to accurately grade those coins. Not doing so is an invitation to being taken advantage of, whether unintentionally or maliciously.

Grading is subjective. Just because you don't agree with the dealer's grade doesn't automatically mean they are wrong. What was a VF30 coin 30 years ago is now AU50, and MS grades are handed out like candy, even when the signs of circulation are blatantly obvious. Worse, coins with serious defects are being put into straight-grade slabs. It is 100% in your best interest as a buyer to learn to identify these problem coins, and either pass on them, or negotiate a price in line with your opinion of the net grade taking the problems into account.

A dealer who has been in the business for 30+ years is not going to grade the same as a fresh bullion seller who has never handled anything not in a top-tier TPG slab.

If you really think a dealer is purposely overgrading all of their coins, the answer is simple: walk away. The problem will solve itself soon enough when the "FOR LEASE" signs go up in the window. There are so many options for purchasing coins now -- the Internet, coin shows, respectable dealers' websites -- that local coin shops who abuse their customers' trust should be allowed to go under. The hobby does not benefit from their existence.

By the same token, don't be that one guy that goes into a shop he's never been in, offers 20% less than greysheet bid on every coin, complains about every grade, and spends 3 hours looking at coins without buying anything. In that case, the problem's not the dealer, it's you.

If I can add... I think you are more than capable of grading coins and come up with proper values.

Brick and mortar stores have to make profit to survive and easiest method is to over-grade, I would imagine.

The only local coin stores that consistently make good profits are bullion traders. They are always making profit on each transaction, whether buying or selling, and I sometimes see shady people bringing bars of silver and gold coins for cash. They never ask for an I.D.

Well said Paralyse.

.and you should be a writer Twotonevf35.
You paint great images of both shops.

I agree with paralyse and don't understand the purpose of this thread if you don't want to hear the 'learn to grade' comments.

I would disagree with your premise. I think people should be purchasing more from local dealers, not less. It adds to the hobby to be able to go downtown and buy a coin in a brick-and-mortar store where you know the owner and the employees.

As others have said, it's up to the collector to be able to grade what they're looking at and decide if it's worth the money. If not, then don't buy it. And you can always engage in friendly bargaining--which I would think is part of owning a coin shop.

I think we've all gone through this subject many times. It is really obvious what dealers with a store do. And it is very obvious that you too if you owned a store of any kind would know what is necessary to do for business. And again, remember the store owner of any store, not just coins, needs to make a large profit to support not only the store but possibly a family. Imagine you owned a store. You must pay for the store, water, phone, gas, electric, fixtures, inventory, taxes and so, so much more. Then too there is that thing called family. If your trying to support them, you must really make a great profit on anything you sell.
Then along comes a customer and wants special deals.

A great place, I've found, to get great deals is at a flea market. Transient dealers who sell out of the backs of their cars don't have the overhead carl spoke of, so they can afford to have lower prices. And most of them are in the mood to bargain.