Paul and I left New Hampshire early on Tuesday, January 8thfor the show. We arrived and stayed for a week of 80 degree temperatures and no rain with a nice breeze too! On Tuesday we traveled to various hotels in the area to view fresh dealer inventory and show some of our coins. As usual, our coins were eagerly sought after and acquired. So our selling was consistent but buying was brutal. It’s one thing to price a nice coin for strong money but virtually anything halfway decent was being offered at double bid or more.
A pretty toned Barber Dime in Proof-65 PCGS with a large scratch was offered to me at over Proof-67+ money. Although the coin was technically a 64 PCGS also gave the coin an extra point for color! Many nice original coins, such as what we sell, were being offered at huge premiums and they were few and far between. I am contemplating our pricing because we can’t replace anything! Dealers we haven’t heard from for years are calling us to ask if they can come by see our coins before the show starts. I often hear that our coins are “over priced” and “too expensive” to which I reply that nice original coins cost money. Here are a couple of examples of why our coins are very reasonably priced. A major dealer offered us $71 each for all of our 1878-S $1 in MS-64, we have them priced at $75, when was the last time you were able to buy a nice coin at 5% over wholesale? In the most glaring example of how our coins are priced we sold an MS-64 Barber Quarter for more than our retail price to a dealer! Because of the number of “retail” crowd that attended and the need for original material the show itself had a nice hum.
The auction was not great except for truly original eye-appealing nice coins. Some of our old client coins sold in the auction for incredible money! In a few instances, 5 times or more what they paid for the coins from us! The auction house was stunned at how strong the demand and the prices realized on our coins were, but that made two of us. Always buy the coin…not the holder, please!
I had great compliments from dealers that took the advanced ANA grading courses. They said that the coins we supply for them to learn grading on are unmatched; to which I said “thank you.”
A nice but impatient client came by a few times to show me key coins he bought for his set. All were marginally graded, dipped or worse. I tried to reinforce that patience is its’ own reward and when he sells, he will learn a hard lesson unless he combines technical grade and originality. You must appeal to the educated buyer, not the bargain hunter. Bargain hunters only make out in red hot market when a high tide floats all boats which may occur every 15 years. However, the knowledgeable buyers are always looking for top quality.
The new PCGS deal sounds a bit ominous to me. If they weren’t paying out such large dividends to shareholders would they have to surcharges in addition to grading fees for crossing or upgrades? And make no mistake about it, there are less and less coins out there to submit unless the world coin markets start taking up the submission slack. Beware of the fine print! A re-sub coin to PCGS in-holder doesn’t mean it will stay that way. If there is a problem you do not know about, the coin will not be re-holdered but body-bagged and then you negotiate with PCGS at a price they determine to compensate you. It could be half of what you paid.
Now, more than ever, deal with a knowledgeable, experienced, dealer. You’ll be glad you did! Give us a call to discuss your areas of interest.