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Bedrock of the Community
Australia
21788 Posts |
Cars boats, coins, whatever.
Do your pricing research diligently against the condition of what your are considering to buy, before making your decision.
That's what most of are doing right now, when it comes to making up your mind to buy issued coins in the aftermarket.
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Pillar of the Community
 United States
7953 Posts |
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Moderator
 United States
188952 Posts |
I think I see what you are saying. For example, there are more mint products that sell cheaper on ebay a year later than there are mint products that had gained value. |
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Bedrock of the Community
13014 Posts |
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We are talking about a secondary market. That means used. Not really. You can have sealed US mint products and a lot have still lost value, same with the still in package things from other mints. Quote:
uyers of most other types of products expect them to decrease in value when they leave the showroom.
If we argue that the "collectibles" market is different, then I will argue that there is always high risk in identifying what is a collectible upon release, and anyone playing that game should be aware of those risks.
Coin's aren't clothes. What you are still missing is there is a difference between losing value and 90% plus being worth less than half on a consistent basis. The only chance most things have of increasing is a top pop grade, even the top pop grades on many things sell at or below issue prices, ask Canada how well it's gone with them trying to sell $100+ an ounce silver products that were over priced. Anyways blame whoever you want, he was spot on about the greed of the mints |
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Pillar of the Community
United States
7953 Posts |
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What you are still missing is there is a difference between losing value and 90% plus being worth less than half on a consistent basis. I think we have different definitions of "value." To me, value is what the market will pay for a given thing, at a given point in time. It has nothing whatsoever to do with what someone paid for the item in the past. Because markets invaribly change over time. If the mints are greedy for charging what someone will pay, then so is every other retail establishment on the face of the earth which is allowed to charge what the market will bear. |
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Bedrock of the Community
13014 Posts |
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If the mints are greedy for charging what someone will pay, then so is every other retail establishment on the face of the earth which is allowed to charge what the market will bear. If I don't like the price of something at Best Buy I can go to Walmart or vice versa along with countless other options. Government monopolies (which is exactly what the mints are) don't have markets. The aftermarket is the first true test of what they are putting out. You literally go to jail if you set up a mint that made exactly what they were making so there is a huge difference and free market rules do not apply. All mints offer discounts to big buyers which is fine, but with the world mints some of these discounts can be substantial. There is plenty of profit in the pricing and the mints themselves would rather just deal with distributors if they could instead of the public where you have to ship a lot more and deal with more returns. The dealer was spot on about how the mints are gouging on many items where only the highest graded hold up. Coins aren't a consumable, or something that is worn, or played, they're essentially in the same condition a year later as when you bought them but now the $100+ coin is worth $40 is you're lucky. Like it or not as he mentioned drops of that magnitude do turn people off from collecting. If you aren't familiar with some of the premiums these world mints are charging you might want to take a look, makes the US mint look like a discount shop |
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Pillar of the Community
United States
7953 Posts |
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Government monopolies (which is exactly what the mints are) don't have markets Of course they do,because someone is buying these products. To me, this would be like saying there is no market for new BMWs because nobody other than BMW and their dealer network can make and sell new BMWs. I think we'll never see eye-to-eye on this aspect of the issue. There is also an issue of business accounting that that nobody has brought up (the smaller the mintage, the higher the fixed cost per coin for low mintage products), which likley affects the pricing policy of the mints. I guess we can at least agree that disgruntled customers is a problem we'd both rather not see. |
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Bedrock of the Community
13014 Posts |
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To me, this would be like saying there is no market for new BMWs because nobody other than BMW and their dealer network can make and sell new BMWs. Except others can make almost identical cars and BMW has to compete against other car makers. BMW also has to sell cars to stay in business. The mint doesn't have to compete against anyone, no one else can make coins for their country (with few exceptions on the world mint scale for major mints which is what was being discussed) and they don't have to sell a single thing to collectors in order to make money for the year. The US mint has no competition for US coins, same for The Royal Mint, Canadian mint, Perth is technically an Aussie mint but for collector coins they don't directly compete with overlapping products anyway and so on. Quote:
There is also an issue of business accounting that that nobody has brought up (the smaller the mintage, the higher the fixed cost per coin for low mintage products), which likley affects the pricing policy of the mints. The 100+ an ounce silver products that were referenced almost all have mintages of several thousand or more. Here's a good example https://www.mint.ca/store/coins/1-o...w_Releases_& 105 USD at the time of this posting with a mintage of 5k. A sellout would be over a half million USD in revenue, if their production costs are anywhere close to that they are extremely mismanaged. Don't get me wrong I actually am a big fan of the world products and think they do a better job than the US mint especially on ultra moderns, but I do also understand that a lot of the silver products prices have exploded in the last couple years trying to take advantage of the increased popularity Edited by basebal21
05/11/2019 3:42 pm
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Pillar of the Community
Canada
5246 Posts |
At my LCS, they have the same problem. The reason they offer so little to buy is that the customer demand is so little-the stuff keeps coming in and not going out, unless it is to be melted for silver. There is nothing they can do about that.
What they can do is try to break the bad news to the seller is a nice way, but it will always be a disappointment when Dad or Grand-dad's collection is sold for a fraction of what they know he paid for it. Very often the bad news is found out when the estate is broken up. That being said, some people are Ok with that, others react badly, no matter how diplomatic the LCS is.
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Replies: 24 / Views: 3,243 |
First Page
Posted 05/07/2019 08:09 am
