Dealer Etiquette?

[Chet-Lemon]

I'm not sure how to proceed in this situation.... looking to tap the minds of the coin gods here for any advice.

I recently inherited a coin collection as the result of an estate settlement. I did some basic research to educate myself on the collection, and last Fall I took several of the coins to a local dealer to thin out the collection.
At that time, the dealer purchased several of the coins I brought in, and made me an offer of $2200 for an 1893-S Morgan that I also had brought in that day. Mind you the dealer took his time and looked over all the coins I had, including the Morgan, before making me any offers. I was very honest and up front that this collection was an inheritance, I knew nothing about the coins, and that I trusted the opinion of the dealer to also be fair an honest. He advised me that if I didn't want to sell the Morgan, I should send it in for grading (he had concerns that it might have been cleaned). I sold the dealer several coins that day, but I did not sell the Morgan at that time.

A few months later in mid-December, I had decided that I was ready to part with the Morgan. I never did explore getting it graded. I went back to the same dealer, who remembered me from before. He took his time looking over the Morgan again, doing his due diligence. He said the offer of $2200 still stood, so I parted with the coin.

Fast forward to a week ago, where I receive a letter in the mail from that dealer. He had written to let me know that he sent the Morgan to PCGS for grading, and they had determined it has an altered mint mark and "is therefore nearly worthless." The dealer is "hoping I do the right thing and return the $2200."

I don't think I have any legal obligation to reverse the sale, but I'm looking for opinions.

 

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[OZARKS]

He looked at it TWICE... any issues with it, are his problem and his baby. He looked it over not once, but twice, even went as fas as to say it may have been cleaned... and he bought it anyway, it's his.

 

[Tpmetal]

yeah thats a rough one, not sure what I would do.

 

[BuffaloHunter]

Easy, flee the country and never look back!

 

[jeff of pa]

when it comes to dealers especially, he should have done his due diligence at the beginning.
he's supposed to be the pro. at least compared to you.

I say his loss (education)

as long as you know you didn't alter it.
and he had time to inspect it.
and there was no agreement to give him a 2nd. chance.

Move on & find a new dealer for the future.

 

[DeepseekerADS]

Yes, the dealer did his due diligence inspecting the coin twice, and was honest with you by keeping his offer the same.

Neither of you are guilty.

It's all about what your own conscience will accept. I personally would refund his money and would walk away with my integrity intact.

 

[OZARKS]

Did YOU alter the date on the coin OP? Did you try to get over on the dealer in any way shape or form? If not, then your integrity is in tact, don't stress that!!!

 

[Chet-Lemon]

Appreciate the continued input, but I have issues with simply handing him $2200 to fulfill a moral obligation.
In the first place, the coin was sold to cover some expenses, so the cash is long gone.
Also, how will I even know that the coin he returns to me is the coin I sold him? I have to take him on his word for that I suppose.

However I am able to continue to bring him business, and have other items that I had planned to bring in and sell that I would be willing to give him a better deal on moving forward to help him recoup some of the loss.
This dealer seems like a young, decent business owner but I don't feel that I should be blindly reversing the sale just because it didn't turn out the way he expected.

*An no, I did not alter the coin in any way. Everything I brought to him was still sealed up in individual coin cases - just as they were when we received the collection. I was very up front with him about what I had and what little I knew about it.

 

[lookingharder]

He looked at it TWICE... any issues with it, are his problem and his baby. He looked it over not once, but twice, even went as fas as to say it may have been cleaned... and he bought it anyway, it's his.

I would have to say "he owns it" You admitted you didn't know anything about the coins, you gave him 2 chances to opt out, so In my opinion you did nothing morally or ethically wrong. One word of advise going forward is always get a couple different appraisers to find the value of something. I had my entire baseball card collection I wanted to sell one time and the "dealer" offered my $20 for a couple of my cards. I took the collection to 2 other dealers and both said the same cards was worth over $250.

 

[RW]

I was reading the story expecting a different ending, the usual, you uneducated seller getting screwed by shady dealer. I agree with most others, his problem. If you sold it yesterday, if you still had the money, if you had detailed photos to prove same coin, if, if, if... You seem to have been as upfront as possible, sucks for both parties involved, but I would try not to sweat it. And I would no go back to him making deals on other coins. So sorry, find a new guy and move on.

 

[Twitch]

If it came back as uncleaned and higher grade than expected, and the dealer sold it for $15k, would he offer you a slice because he under paid for it? I see no ethical question at all here. Dealers price their buys by factoring in risk. Sometimes you win, sometimes you lose, no hard feelings either way.

 

[RW]

If it came back as uncleaned and higher grade than expected, and the dealer sold it for $15k, would he offer you a slice because he under paid for it? I see no ethical question at all here. Dealers price their buys by factoring in risk. Sometimes you win, sometimes you lose, no hard feelings either way.

Exactly. Dealer bought coin HOPING to make a profit. Way it goes...

 

[Treasure_Hunter]

Trolls comment deleted and troll banned.

 

[TwistedT]

Its his problem now.
he is the coin dealer, the supposed "expert".
he had 2 opportunities to look it over and didnt see any problems.
Its on him - you have a clear conscience on this.

 

[Honest Samuel]

It is his problem and not yours. Next time, get your coins graded for a better price.

 

[TwoYewts]

I actually find it odd that the dealer went out of his way to send you a letter. Seems to me like the dealer is the inexperienced one in this situation. Like others have said, I wouldn't have this weigh on your conscience or your integrity. I am sure he has already made back his $2200 by bumping up the prices on some of his items or by getting better deals on other people that have sold to him. Its part of the business model, win some and lose some. I think that its very shady of him to contact you after the fact with that letter. If it were me, at minimum the next time you were to walk into my shop I would be wary of the coins you were selling. I would then tell you that a previous coin you sold was not what I believed it to be and that if I were to buy more from you I would need to have someone else (business partner/colleague) check the coins after I looked at them OR if you were looking to sell another high value coin that we would setup some sort of agreement or proxy where once the coin was verified then I would pay the full price agreed upon.

Don't sweet this one and as others have said if you are still uncomfortable sell to another dealer.

-TwoYewts

 

[Honest Samuel]

Get all coins graded to get better prices. Good luck.

 

[rebbel31]

If it came back as uncleaned and higher grade than expected, and the dealer sold it for $15k, would he offer you a slice because he under paid for it? I see no ethical question at all here. Dealers price their buys by factoring in risk. Sometimes you win, sometimes you lose, no hard feelings either way.

This exactly

 

[Chet-Lemon]

I just don't want the next letter he sends my way to be an invitation to small-claims court if I don't agree to his refund request (which I have no intention of granting).
Perhaps I should just move...

 

[releventchair]

I just don't want the next letter he sends my way to be an invitation to small-claims court if I don't agree to his refund request (which I have no intention of granting).
Perhaps I should just move...

A strange deal all around , but he bought it.
Should have had it graded first....( and better you do that with a reputable company to cover your own backside as to actual grade and value) but he had hopes of turning a profit....
How would he prove in court that it was your coin that was graded/ found altered?
Or more, prove that your intent was to defraud him?

I feel for the guy if he is being truthful ,but his goal is to turn a greater profit . A gamble did not pay off.