Whether you’re buying or selling the coins, you may increase your benefit when negotiating with the coin dealers just by understanding how this coin market works from behind. The biggest problems that I see is a wide gulf of an average consumer expectation from the greysheet coin dealer, or what an average coin dealer thinks he must offer to their consumer. Most of the differences come down to trust.
An average consumer thinks that he may trust a coin dealer for giving him the honest appraisal & pay fair price for these coins he’s selling. An average dealer feels that it’s fine to pay lowest cost possible for these coins, to improve his profit, and it is on a consumer to do proper homework.
More About the Coin Business
There’re two primary categories of the coin dealers—wholesaler and retailer. Wholesaler aggressively looks to bring the new material in a marketplace, and attends the coin shows, the local auctions, and also runs advertising for buying coins. Majority of the material gets sold in bulk to the retail-based dealers. Thus, they can buy the coins from about anyone but sell the coins only to other dealers. Sadly, these dealers should pay lower rates to make the profit on sales.
Retail coin dealer generally gets most of their stock from wholesalers. Even though retail coin dealers might attend coin shows or buy locally, majority of their business income comes from servicing the clientele of the single-coin buyers. The dealer of this kind is likely to pay higher prices for the coins as they do not need to pass through 2 sets of the hands before getting sold. However, be careful a few local dealers are often worst of cheats! It is because larger dealers are possible to belong to some organizations that need them to subscribe for Code of Ethics, like some association.
There is nothing like all coin dealers might be thieves or crooks. On a contrary, majority of the coin dealers have the series of moralities and ethics to ensure about their future business. But, there is no wonder; there are some bad apples that may destroy your faith in coin collecting hobby.