Local Coin Shops or the Internet - that is the ? posted by TD Henson

[CSJournals-migration]

Are coin shops a thing of the past?

 

Anyone else get frustrated by prices?!? I stopped at the local coin shop to browse and perhaps buy a coin or two, but I couldn't bring myself to pay the prices they wanted. I know they were most likely negotiable and I know the price of silver is sky high, but... BU Morgans $70-100, I know they had them "graded" as MS 64, but for common dates it seemed rather excessive to me.

 

It's getting harder and harder to find cheap coins that are astetically pleasing and affordable for buying on a whim. I left the shop without buying anything. I went home later and bought a Silver 2011 ATB quarter to add to my set off eBay. I hate that I resort to the Bay and TT for so much, but when they have what you want and generally the prices are right maybe it's the best way?!

 

The best coin shops seem to be the whole in the wall in nowhereville, as they have an eclectic sort of hodge podge that peeks the interest, at least for me anyway. I like sorting and perusing through boxes of coins and selecting those one or two special coins to take with me. That's perhaps why I like coin shows so much, thousands of coins and nothing but time seperating them from me and my collection, but that's a whole seperate post for a later date.

 

Have a great evening!

 

Todd

 

See more journals by TD Henson

[coinsbygary]

I don't think local coin shops are a thing of the past, at least not yet. The real advantage of the internet is the ability to shop internationally for coins to fill the holes in your collection. This can work to the advantage of the dealers also as they search for the right coins for their clients. My local dealer makes use of the internet for his own on line auction and e-bay store. This also has the effect to expand the dealer's clientele base beyond their local community. The internet is also a great resource in which to expand their stock, whether it is a dealer to dealer network or finding coins on the cheap on e-bay. I know I have had dealers in the past buy coin from my e-bay listings. The key to all this is for dealers to adapt to changes in the marketplace. In the end those that adapt will survive, whilst those that don't will go out of business.

Gary

[TD Henson]

I would tend to agree with your assessment. I also have had dealers buy from my listings on Ebay. I hadn't thought about it quite like that and I guess like everything else - prices keep going up. Who am I to complain because theoretically that should mean our coins are worth more! Thanks for the reply.

 

Todd

[brg5658]

I have had a very similar experience Todd. I live in a city of about 100,000 people, and we have one very small coin shop. The owner is not exactly what I would call a professional numismatist. On several occasions he has given me not only misleading information, but wrong information.

 

Sadly, the last time I was in his shop (about 1.5 years ago now) he was in the process of "dipping" a set of Morgan Dollars and photographing them for sale online. He had no qualms openly chatting with one of his buddies in the shop about how no one would suspect this -- essentially bragging up this practice while potential customers were browsing. I haven't returned since.

 

However, I will say, within one hour's drive is a coin dealer who frequents shows and has similar interests to my own. He is one of the best and most honest proponents of the hobby I have met. He is a collector and a seller. This seems to be the common thread with all good sellers that sets them apart -- they also collect. If you are just in it for the money, you will be obviously ignorant to anyone who has anything beyond a beginner's knowledge of collecting.

 

I have had really good luck on eBay and TT. I feel sorry for those newer or oblivious collectors who get duped into paying ridiculous prices for coins, particularly on eBay. And, to some extent, there is obvious "price-fixing" that goes on on eBay. It's no coincidence that every dealer offering the same item (especially on ultra-moderns) are essentially priced at exactly the same range. EVEN when that range is 300, 400, or 700% of PCGS book value or Numismedia FMV.

 

Basically, I have bookmarked the eBay sellers who I have developed relationships with, and I try to give them my business whenever I can. I think of them as my "local coin shop" in our ever-shrinking world -- and I know many of them by first name. TT is a great place to research the pulse of the market, and their "Mr. Wantlist" emails keep me focused when items to my fancy are on the docket.

 

Happy collecting Todd! Look forward to your next post.

 

-Brandon

[Mokiechan]

Todd,

My experience has been a little bit different. I have a couple of local dealers, Carlsbad Coins, and California Numismatic Funding, that I frequent. Both do the bulk of there business with bullion purchase/sales so it seems much easier to get good deals from them as they treat the non-bullion coins as an exotic side business for which they seem to have limited expertise. I kind of use the American Pickers technique and pile my wants in one big pile and offer a set (fair) price for the pile. Usually works.

 

Malcolm

[Kenneth F]

Todd,

I can see your point. The neighboring town has three shops and only one has great prices. The other two, not so.

The internet has its upsides and downsides... an upside is that you can do research right there on the spot and you have more of a selection. The downside is that anybody can doctor a photo. You always accept risk when shopping on the internet. The downside to the Bay...is the price gouging union who ask 70%+ over FMV.

When in a coin shop, all you have to deal with is the tricky lights.. ha ha ha.. Luckily for me, the coin shop I do all my shopping at will beat any internet price I bring. Works out for me!! Good coin shops are like the coins we seek... they are out there somewhere, just got to find them.

 

Happy Hunting

[nunfa0]

In my town we had 4 coin shops and I only trusted one of the dealers. Most of the coin trade in NZ is on a site called trademe, which is like ebay but with less trust worthy dealers. I avoid it like the plague. For me, I have to buy from ebay because my focus is now certified coins. I too have developed a very good rapport with a few dealers and seem to be able to get great coins for a good price.

[James_OldeTowne]

Are coin shops a thing of the past?

On the contrary, I think coin shows may be on the upswing in recent years, at least in larger cities. Here in St. Louis, we've seen the opening of no fewer than three new shops in the last five years, and all are doing remarkably well. I think the internet had a detrimental effect on B&M shops over the course of about fifteen years, but that effect dissipated some time ago. Now, B&Ms themselves are becoming more internet savvy, and using technology to bolster their revenue streams. I believe every shop in St. Louis now has at least some internet presence, and takes advantage of virtual sales.

 

So in short, I disagree with your premise, and believe that coin shops are actually increasing in number and accessibility over recent years.

[jackson64]

Are coin shops a thing of the past?...I hope not.

 

Our local shop, when I was growing up, was probably one of the reasons I still collect today. I remember taking the money I earned from cutting lawns, shoveling snow etc etc..and buying pennies and dimes for my thumbusters. The shop would have 3-ring binders with pages of 2x2's of the series you wanted to look at. I remember the patience and respect of the guys behind the counter as I perused page after page looking for a $5 purchase ( which to me was a lot of money but probably not worth his time--yet he was always gracious and patient).

 

I also love the internet availability--but in some ways it detracts. It used to be exciting to find that the coin shop had in stock a hole-filler for my albums--now I am uber-picky since with just a few clicks I can find almost any date with multiple of listings...However as a more advanced collector in my middle years, I get a different thrill from acquiring condition rarities and top-quality coins. Most coin shops don't have cases of MS67 Walkers or top notch FB Mercs.

 

I also find security with ebay and the internet. I only buy if companies have a return policy and also there is Paypal buyer protection-- so I have never had a problem getting back my money on an unsatisfactory coin. Try going back to some dealers/shoppes after 3-5 days and telling them you aren't happy with the coin and want a return/refund...

 

Very good post Todd..good thread e1