Coins on Cosignment

[leeg]

Looking to get some thoughts on this subject.

 

A dealer has coins on consignment, you buy the coin.  Later you ask to return the coin. Dealer said coin was on consignment and said he will take the coin back and try to sell it again, but will not give you money for a return.

Is this standard practice? I feel the listing should note this coin is on consignment.

[World Colonial]

I don't buy from dealers often (and never from a B&M at the shop at all) but have never seen this disclosed on a website.

Seems to me that if the dealer's terms and conditions provide a generic return period, shouldn't matter whether the coin is consigned or not.  For whatever reason, I suspect the dealer already paid the consignor and doesn't want the coin for inventory.  Or maybe, they're just trying to "weasel out" of accepting a return.

Have you dealt with them before?

[Conder101]

3 hours ago, leeg said:

Later you ask to return the coin. Dealer said coin was on consignment and said he will take the coin back and try to sell it again, but will not give you money for a return.

Is this standard practice? I feel the listing should note this coin is on consignment.

Was the return attempt during the normal return period?  Was the purchase made without being able to view the coin first?

 

If it was within the normal return period and/or the coin had not been previously viewed in hand, it should have been treated as a simple return like with any other coin.  If it was after the return period and the coin had been seen in hand then it should be treated like a "done deal" and the dealer could either offer to take it on consignment, make an outright purchase offer, or just pass on the coin completely.  The status of the deal with the previous owner is immaterial.  What the dealer is doing in the case you described is just offering to take the coin on consignment.  The fact that he had it on consignment before doesn't matter.  Frankly I would suspect that for some reason he is not willing to put his own money into the coin.  It could be an undisclosed problem, or it could just be he doesn't have much of a client base for that material and he would rather not tie up his capital in something that he may be holding a long time.

[coinman1794]

Are you talking about an actual return, taking place during the stated return period, or are you talking about asking a dealer to reacquire a coin from you at some point after the return period has ended? This makes a big difference. As others have said, it is not necessary to state that something is on consignment if a fair return period is offered.

As for consignments, in general:

Some coins are too unstable in the marketplace to make a fair offer to purchase outright, and consignment makes better sense for you and the dealer. If the dealer judged the coin to be best as a consignment before, it is likely he will feel the same way upon reacquiring it.

[leeg]

All good points.

It was after the normal return time.

[bstrauss3]

Then the deal was done, the dealer is extending you a courtesy and offering the additional information that it was on consignment (meaning originally his capital wasn't tied up in the coin and if he accepts the return, it will be). If he was a smart(er) cookie, he would have offered to sell it for you on consignment...

[Conder101]

1 hour ago, bstrauss3 said:

If he was a smart(er) cookie, he would have offered to sell it for you on consignment...

He did.

 

On 6/13/2017 at 6:01 AM, leeg said:

said he will take the coin back and try to sell it again, but will not give you money for a return.

That sounds like "I'll take it on consignment." to me.

[leeg]

You're correct.

He did say he'd put it on consignment.

[numisport]

Sounds fair to me if you missed return time. Dealer wouldn't have much to lose since he's already listed it. Additionally I have no problem purchasing consigned coins if they are handled in a similar manner to normal inventory. I recently paid 10 times NGC price guide for a consigned proof cent that was the most beautiful coin of its type I have ever seen. Original owner probably thought auction couldn't do it justice. I'll never part with this one !

[leeg]

Thanks all.

[coinman_23885]

On 6/17/2017 at 5:33 PM, numisport said:

Sounds fair to me if you missed return time. Dealer wouldn't have much to lose since he's already listed it. Additionally I have no problem purchasing consigned coins if they are handled in a similar manner to normal inventory. I recently paid 10 times NGC price guide for a consigned proof cent that was the most beautiful coin of its type I have ever seen. Original owner probably thought auction couldn't do it justice. I'll never part with this one !

+1