Dealer Buy-Back Prices
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I had an emergency that required me to sell a coin back to the coin dealer I bought it from. I didn't feel he gave me a fair shake on the coin. Cost me over 2K.

 

Mark Feld was always fair on his buy-back prices.

 

What do feel is a fair percentage when selling back to the coin dealer of purchase?

 

TIA.

 

:)

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Depends on lots of things.

 

1) Liquidity of the coin.

2) What the market for the coin has done in the interval

3) Cash position of the dealer

4) The dealer's current inventory situation

5) How buried you were in it to start with

 

Sorry to hear about the emergency. Needing to sell a coin quickly is almost always the surest way to realize the smallest possible amount.

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I agree with all of the above. I would say that unless it is a bullion-related product and the market has moved significantly, I would expect 100% within 30 days. Also, if the coin were counterfeit, I would expect a lifetime guarantee.

 

Is the $2000 a big percentage? If this is a couple months later and it's a $50K coin, the difference seems quite reasonable.

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Depends on lots of things.

 

1) Liquidity of the coin.

2) What the market for the coin has done in the interval

3) Cash position of the dealer

4) The dealer's current inventory situation

5) How buried you were in it to start with

 

Sorry to hear about the emergency. Needing to sell a coin quickly is almost always the surest way to realize the smallest possible amount.

 

This.

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I agree with all of the above. I would say that unless it is a bullion-related product and the market has moved significantly, I would expect 100% within 30 days. Also, if the coin were counterfeit, I would expect a lifetime guarantee.

 

Is the $2000 a big percentage? If this is a couple months later and it's a $50K coin, the difference seems quite reasonable.

 

I can see why you interpreted it the way you did, but I interpreted his sentence to mean that he paid over $2,000 for the coin, and was offered an undisclosed, heavily discounted buy back price.

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All comes down to dealer ethics, the margins they want to deal in, and the liquidity of the coin.....at least, to me.

 

I had purchased an early half-cent some years back. I saw a better graded example I wanted not long after. I lost some money going back to that dealer, but I thought it was fair. I believe that dealer also lost some of their profit as the timing wasn't that great for the coin/series.

 

If you didn't have an agreement ahead of time, maybe you should have shopped it around quickly to see if there was more interest. If you did, and there wasn't, then maybe that explains the haircut you believe you got.

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I think 100% is reasonable within a short return period that is spelled out BEFORE purchase. After that it depends and should be subject to an agreement before hand as well.

 

The dealer/seller can incur some loss with postage etc. each time a customer gets buyer's remorse...which to me seems unfair if time has passed beyond the return period.

 

jom

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Yep, but the timeline is missing in the OP and, in the follow-ups, what is that "short period of time" that people want 100% for?

 

I am not a dealer, and would love it if every dealer would be expected to pay me 100% back if I changed my mind, or circumstances changed, but what is that timeline?

 

I know my favorite online dealers usually give me 3-7 days and I get 100% back.

 

Somehow, I don't think the OP is about a week or less.

 

So, how long should a dealer be expected, without prior agreement, to take back a coin at 100% (or even 100% - actual shipping costs)?

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Well, so far no one has answered my question?

 

What do feel is a fair percentage when selling back to the coin dealer of purchase?

 

90%

 

80%

 

70%

 

60%

 

50%

 

 

 

I don't buy junk, so just let me say it is a very nice coin in a difficult series to find nice.

 

 

:)

 

 

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You haven't answered other people's questions..

 

What is the timeline?

Is the coin liquid? A coin can be very nice in a difficult series to find nice but may not be that liquid given certain grades/prices.

Did you have a prior agreement to sell it back to that dealer?

Did you even try to shop it around after his, what you obviously consider a low ball, offer?

 

And, it depends on what type of mark up the dealer has. Mark Feld was one of the most fair, imho, dealers with a very fair mark up that he passed on to us collectors. Some, however, have higher mark ups.

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Fair enough.

 

I purchased the coin September of 2014.

 

The coin is an 1812 Large Cent, Large Date, in PCGS VF35/CAC.

 

No prior agreements to sell to anyone.

 

I did not shop it around due to my personal situation of needing cash quickly.

 

I think I should have called CAC to get an offer. They have always been fair with me.

 

 

I may be wrong in the percentage I was given, it may be fair? I am just looking for input from fellow coin collectors.

 

:)

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hmmmmmmmmmmmmm

 

let me assume a few things before I give you my nutty wild guesstimate

 

a---you bought the coin within the last 2 years and most coins have gone down in value

 

b---the coin is pcgs slabbed and average for the grade and eye appeal

 

c---the dealer has customers for the coin and it can be sold within 30 days or less and the coin was not a consignment coin or trade in coin but a coin a dealer bought with his own money for resale because he liked it

 

now I can give you my guesstimate within reason

 

80% of what the dealer would currently sell it for as per the above a, b, c

 

 

 

 

 

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Fair enough.

 

I purchased the coin September of 2014.

 

The coin is an 1812 Large Cent, Large Date, in PCGS VF35/CAC.

 

No prior agreements to sell to anyone.

 

I did not shop it around due to my personal situation of needing cash quickly.

 

I think I should have called CAC to get an offer. They have always been fair with me.

 

 

I may be wrong in the percentage I was given, it may be fair? I am just looking for input from fellow coin collectors.

 

:)

 

ah so...............................................

 

now I can give a better answer

 

90% buy back of what the dealer can sell it for in 30 days or less

 

and hindsight being 20/20 yes you should have given cac a call for their quote

 

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Not a bad guess michael. :)

 

I don't think Classic Head Large Cents have decreased in price. But you may not have known the coin series in question. I think you and I were typing at the same time.

 

:)

 

 

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leeg I have been in similar situations myself and I totally understand we don't think too clearly when we need money fast

 

the 1812 has actually increased in value since you bought it in sept 2014 also coin was pcgs and cac

 

I bet the selling price can be 10%+ more than you paid retail for the coin

 

so actually 90% of what the dealer can sell it for is most likely close to 94% of what you paid for the coin maybe a little more

 

and I think the coin would instantly sell in less than 1 day if put out at a major coin show or on a website of a major copper dealer copper dealer might get more

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1812 is actually a MUCH better date

 

than the 1814 which everybody uses for type as it is the most available 1814 that is of any classic head large cent

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CAC would probably be top dollar sight unseen; I hear Harry Laibstein will make strong offers and pay for shipping costs if you don't want to sell at his offer.

 

Heritage; Stacks will make good offers for most rare coins. If the dealer offered less than CAC or others they should give their rationale. Cash flow issues? Not some bs argument that the market has softened or they have "nowhere to go with it".

 

If someone contacted me about a coin I had sold them a while back I would do everything I could to satisfy them, not to lose money but to break even on the assistance.

 

Around 15 years ago I got an SOS from a family in northern New England that I knew that were hoping I would help with a property purchase they needed to stay in during winter. I tried to raise the money, contacting a dealer to get a buyback offer on a couple coins, the guy is a "big shot" expert in this business and first he did not respond then his offer was 30-40% less than what I paid. The market had not changed for the coins. I actually went over his head with a complaint; but ended up getting the money by selling some US silver eagles instead.

 

A reasonable profit margin in this business is 10-20% absolute maximum, many dealers make a lot less than that.

 

 

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leeg yes you were correct lol

 

I was typing when you were typing

 

 

:)

 

Plus, this was the rarer of the two varieties.

 

 

It's ok, we don't need to go on and on about this.

 

 

I got 76% buy back from this particular coin dealer. Based on the type, I felt it should have been better.

 

 

Just make it a habit of asking about buy back policy's.

 

 

:)

 

 

 

Henry_Laibstain_1812_1C_ComboB.jpg

 

 

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That's a nice coin! It is a good date! It has blessing from the sticker company. I just have a feeling that if you had posted that on the BST/MoneyMarketplace etc, you could have done better. I understand you were in a time crunch but I think there were a couple of other quick sale opportunities that were not explored and the dealer took advantage of you.

 

Good luck! I hope you can bounce back from the money crunch quickly.

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Nice coin.

Agree that you took a bath if you got shaved 24% as it will be re-marked back up. If said dealer had ready customers, I think 90-95% would have been fair and in keeping you happy as a return-likely customer.

 

I also agree that CAC should have been a quick call, just to see. I would also have likely asked CRO and Laibstain as they seem pretty fair. Once the dealer told me I was going to eat 24%, and it is a nice, better date, coin like that, I would have said I'll get back to you in a few and then made the calls.

 

You must have told the dealer you NEEDED to sell and he smelled blood. Not my type of dealer.

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Nice coin.

Agree that you took a bath if you got shaved 24% as it will be re-marked back up. If said dealer had ready customers, I think 90-95% would have been fair and in keeping you happy as a return-likely customer.

 

I also agree that CAC should have been a quick call, just to see. I would also have likely asked CRO and Laibstain as they seem pretty fair. Once the dealer told me I was going to eat 24%, and it is a nice, better date, coin like that, I would have said I'll get back to you in a few and then made the calls.

 

You must have told the dealer you NEEDED to sell and he smelled blood. Not my type of dealer.

 

I agree with you. I would also be interested in knowing who the dealer is, the exact purchase price, and the exact price quote (in dollars and cents). Speaking in percentages still leaves out part of the story. Was it a case that the dealer overpriced the coin initially but does not have a general habit of doing so?

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If you have/had a relationship with the dealer you originally purchased it from, other than the 1 coin, I would have expected him to give you at least 90% or a full refund on the coin.

 

If this was the first time you purchased from him, I could see it going a little lower, because he doesn't know if you're going to make a habit of this behavior. I'm not saying you will, but the seller doesn't know you from "adam".

 

Now, would I buy from this dealer again? It really would depend on the conversation I had when returning the coin. There are too many possibilities to list. In general, if I felt the dealer did not have my best interest at heart, than I would not be buying from him in the future.

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In regards to that 1812 large cent, the early copper guys might not like this comment, but it's been my experience that the mark-ups for early copper are a lot higher than they are for some other coin series. It was one of the reasons why I couldn't buy and sell much early copper when I was a dealer. As a collector, I've generally "paid through the nose" for most of the nice pieces I have. I knew it when I was buying the coin, but there was really no choice if I wanted it in my collection.

 

The retail early copper market is controlled by three or four dealers on the show circuit. If you really want a nice piece that is generally hard to find, chances are you going to have to deal with them. Your only alternative is to wait for the rare instances when a more generalist dealer gets something, which can be a long wait, or the auction route. Prices tend to be very strong in the specialist early copper auctions as well.

 

One of the big problems with the early copper market is that the Gray Sheet prices are WAY TOO LOW. I don't know who buys and sells at those prices, unless they are pricing coins that are corroded, spotted or damaged. The Gray Sheet prices are totally wrong for smooth, attractive coins. The dealer who buys and sells at those prices must live in The Land of Oz. ???

 

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I had a better date NGC certified large cent in the 1820s, I think they graded it XF45 or so though it was nice high end and no problem. I should have done more research because going by GS caused me to lose money.

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I had a better date NGC certified large cent in the 1820s

 

There is no way you are that old, is there? (:

 

 

 

 

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It was an 1824 large cent in xf45. Check out the GS XF/AU prices vs. HA actual auction results. It shows a huge difference. GS is supposedly active dealer bids, and if no one is bidding coins in short supply the prices do not usually change.

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It was an 1824 large cent in xf45. Check out the GS XF/AU prices vs. HA actual auction results. It shows a huge difference. GS is supposedly active dealer bids, and if no one is bidding coins in short supply the prices do not usually change.

 

This still does not explain how the Gray Sheet has been WAY TOO LOW on early and middle date large cents and half cents for well over 20 years. Could be that no one in the Gray Sheet dealer network who supplies information has bought or sold an early or middle date copper coin over that entire time? :P;)

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That's a nice coin! It is a good date! It has blessing from the sticker company. I just have a feeling that if you had posted that on the BST/MoneyMarketplace etc, you could have done better. I understand you were in a time crunch but I think there were a couple of other quick sale opportunities that were not explored and the dealer took advantage of you.

 

Good luck! I hope you can bounce back from the money crunch quickly.

 

The coin WAS posted on the BST here...

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