Local coin shop is screwing people, I think...?

[mrogers07]

I am not much of a silver stacker. I like to search rolls for collectable coins. I recently came upon some silver Kennedys and a Walker, yet only kept the Walker, for example.

Anyway, I wanted to sell some of the common silver I have come across lately...halves, dimes, war nickels, etc., so I called the local coin shop to see what they were offering. I know it's not much, but they offered me what would be about $70 for the coins I had. I got to the shop and it was closed. On a whim, I called a local pawn shop with a great reputation. They said they were paying spot. I went there and they offered $110 for the coins...spot. I have always been told that the local coin dealer would be the place to sell, but obviously that isn't the case. I have to wonder why I was offered so much less. They are only open six hours a day, five days a week, so is their business not doing so well and they need every profit point they can get? Is he greedy? Not a clue. It's amusing that he has flyers posted around saying he pays more than anyone in town, too. All in all, though, I guess I am lucky I found the shop closed.

Has anyone else found this to be true as well, that the local pawn shop is a better place to sell silver than a coin shop?

 

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[mxh5891]

It just pays to shop around. It will be different depending on where you are located. If you are selling enough you could try eBay or one of the online precious metal dealers.

 

[Death&Taxes]

Try a coin show; the high density of dealers produces a competitive environment that will force their bids up and asks down.

 

[port ewen ace]

go to the store, ask the dealer what number "X" face he pays. then ask him does he pay the same for a coin in Good condition and the same coin in Extremely Fine condition. his eyes will tell you if he's a cheat

 

[Jim in Idaho]

The guy is not cheating anybody. Cheating is when you lie. Cheating is when you sell a fraudulent item. He gave you an offer, and you refused. How is that cheating? That is nothing more than a typical free market exchange. When he doesn't find enough sellers to support his business, he'll either offer more, or go broke. Nothing cheating about that.
Jim

 

[mrogers07]

The guy is not cheating anybody. Cheating is when you lie. Cheating is when you sell a fraudulent item. He gave you an offer, and you refused. How is that cheating? That is nothing more than a typical free market exchange. When he doesn't find enough sellers to support his business, he'll either offer more, or go broke. Nothing cheating about that.
Jim

I guess that's true. I dunno...it just seemed odd that he advertises the best prices when he clearly does not have them. You're right, though...the market will decide. Given his stringent business hours and larger profit margin, I wonder how well the business is doing.

 

[Old Bookaroo]

Maybe that is the "best" price. For the dealer.

A coin dealer and a pawn shop operator are in two different businesses with different customers, different profit margins, etc., etc.

Shop around and get the best price you can.

Good luck to all,

The Old Bookaroo, CM

 

[Carolina Tom]

Poor small business owner is trying to feed his kids, and keep the door open. The ONLY reason he is in business is to make a dollar. I know that the $40 is a lot compared to the total amount, but that is the way a free market economy works. He is most likely doing the best that he can.

 

[NHBandit]

Any transaction regardless of the amount of money or what is being sold is the end result of TWO people coming to an agreement. If one of those people feels the deal is unfair he has the option of saying no. Simple concept really... Not sure how anyone can "get screwed" if they play by those rules..

 

[fltacoma]

Let me tell you this everyone, I work at a coin shop part time. Coin dealers have to make a profit in order to stay afloat, not to mention go to coin shows with hotel, food, and gas to pay for as well. It can be a lucrative business once you have been a dealer for a while and know clients/work with them on a daily basis. For gold, silver, and platinum, it is a narrow profit margin for sure. For each American silver eagle, it's only about $1.30 profit since dealers have to go through one of the mint's suppliers. For gold eagles, it's about 4.5%. So whenever people want to buy 90% silver, ask for the "times spot" price, or how many times face they are paying, and how many times spot they are selling. For gold and silver bullion it's about percentage. I would be more than happy to answer questions through messages!

 

[Mackaydon]

Coin shop guy didn't screw you, so why do you say he is screwing people?
Don............
People are screwing themselves by not shopping around for a better deal; it's not on the coin shop.

 

[Deft Tones]

A buddy took some mint sets to two buyers locally. One buyer is a fancy high-profile coin/jewelry shop that advertises, high traffic store front, like a cheap Anglo copy...the whole 9 yards. The second is a coin/collectables type shop (primarily coins and pm) if they advertise it's seldom, or very focused, the store has hand lettered paint on the windows, and it looks similar to a baseball card shop inside.

He had a reciept dated 1998 with one particular set. The first shop (the set was purchased here) gave him several reasons for their unsatisfactory offer. The second shop offered $1200 more and were sold on the spot.

 

[bertmaster2000]

If I correctly understand the original post, then it appears the LCS made an offer. The seller then contacted a pawn shop and was made an offer, which was a better (higher) offer than the LCS had made.

The seller didn't give the LCS a chance to match or increase their offer and live up to their claim "they pay more than anyone in town". As a result, I don't think the LCS did anything wrong.

 

[mrogers07]

The seller didn't give the LCS a chance to match or increase their offer and live up to their claim "they pay more than anyone in town". As a result, I don't think the LCS did anything wrong.

There was no increasing their offer. They were firm on the price they'd pay.

Look, I get what people are saying...a coin shop has to turn a profit. I suppose that the idea that they were ripping people of was a bit harsh. I guess I just have a problem with them advertising the best prices in town when they clearly are not.

 

[huntsman53]

Most of the time, you can get a better price for Silver, Gold or Platinum coins and bullion elsewhere than you can going to a Coin Shop. That is just the facts of life because they have to make money to live and stay open. Some are more fair than others which is likely due to the volume of precious metals and coins they move (buy and resell) but there are some that in anyone's book, are downright criminals IMHO. I know of a few of these and one especially in the nearby big city who has been seen giving old folks $700 for a cigar box full of high grade Carson City Morgan Silver Dollars. This specific Coin Dealer has been banned from every Coin Show and/or Coin Club in the area as well as some of the bigger ones up to a couple of hundred miles. Next time you sell some Silver Coins, shop around as others have stated. Heck, sometimes you can get more for Silver and Gold coins and jewelry from someone one who posts Ads on Craigslist. If you find one of these and agree to meet, make sure you do so in a Public place such as a McDonald's restaurant, have a companion with you if possible and make sure you are not followed home. Be safe!


Frank

 

[Nitric]

There was no increasing their offer. They were firm on the price they'd pay.

Look, I get what people are saying...a coin shop has to turn a profit. I suppose that the idea that they were ripping people of was a bit harsh. I guess I just have a problem with them advertising the best prices in town when they clearly are not.

Ok, Having been in the business for a short time in the past? I might see what has happened here. Or a possibility........If you called? and did not actually show up in person? You may have been given a different price. The reason for this sometimes.....People like me would call around to other dealers to see what they were buying and selling at, locally. So, that you can buy or sell at a competitive price. So, we (few of us local dealers) kind of...threw different numbers around so no one could figure out the exact "formula" of what the other guy is doing. That and you are selling to each other at times too.

And all of the above explanations are a possibility, in previous posts. There is a lot that depends on some of this. And he may not be false advertising, he may pay the highest in town on other items. Or depending on the times. ORRRRR? He may be a crook too!

I've seen dealers way way over pay at auctions just so the other local dealer couldn't have the stuff. There are a lot of games played. It's all fair. Just like mentioned in an above post, It takes 2 for a transaction, you don't have to sell and they don't have to buy. It's all fair! Unless just flat out scammers or liars.

You can negotiate the price with anyone, dealer or pawn shop. Tell them what you want! If they feel they have room to make a buck? They will buy it.

 

[Owassokie]

I am not much of a silver stacker. I like to search rolls for collectable coins. I recently came upon some silver Kennedys and a Walker, yet only kept the Walker, for example.

Anyway, I wanted to sell some of the common silver I have come across lately...halves, dimes, war nickels, etc., so I called the local coin shop to see what they were offering. I know it's not much, but they offered me what would be about $70 for the coins I had. I got to the shop and it was closed. On a whim, I called a local pawn shop with a great reputation. They said they were paying spot. I went there and they offered $110 for the coins...spot. I have always been told that the local coin dealer would be the place to sell, but obviously that isn't the case. I have to wonder why I was offered so much less. They are only open six hours a day, five days a week, so is their business not doing so well and they need every profit point they can get? Is he greedy? Not a clue. It's amusing that he has flyers posted around saying he pays more than anyone in town, too. All in all, though, I guess I am lucky I found the shop closed.

Has anyone else found this to be true as well, that the local pawn shop is a better place to sell silver than a coin shop?

You have to remember that most places that deal in quantities of stackable silver have buyers and it's not always a mega company. I've heard of stacker's making deals with a Pawn shop to buy all their silver coin at $X per ounce. If the pawn shop knows they can turn it immediately, they may be offering a higher price than the coin shops. Like others have said, it pays to call all the local buyers before selling.

Side note- You should also check reputable online dealers. I didn't love the idea of mailing my coins but it worked out well. I found that MY best option was a reputable online dealer, even after shipping and insurance. I ended up with an 8 to 10% more money than I would have received locally. If I remember correctly, it took 1 week to get the check.

OO

 

[FormerTeller]

I was looking for Yinzi to weigh in...

My LCS buys for 80-90% of spot and sells for 105-110%. Some other places will buy for up to 95% of spot, but not 100%. I'd say you got a great deal from the pawn store, but the dealers isn't necessarily screwing anyone. The coin shop may well pay more than anyone in town for numismatic coins. I doubt you'd get as good an offer from the pawn store for high quality Indian heads or Shield nickels.

 

[49er4ever44]

My lcs wouldn't even make me an offer when I called about selling a few 999 half lb silver coins. Said nobody would buy em and he'd have to put em in his personal stash. Must be a slow winter for him because ebay gobbled em up!