B&M Coin Dealer Story

[jerseycat10]

About a month ago, I happened to be in the vicinity of a South Jersey coin dealer who is an authorized NGC dealer, so I decided to pop in.

 

The cases he had were filled with complete junk (e.g. 82-83 lincoln sets, gold plated state quarters, 3 generations of nickels, etc).

 

He was working with a couple who appeared to be trying to liquidate an estate.

 

They asked him, would you take $4000.

 

He says, I would need to evaluate them to determine their worth.

 

They say, ok, lets do it.

 

He says, sorry, but that would be an abuse of my knowledge.

 

They leave angry, expectedly so. He never offered to even appraise them for a fee.

 

So I proceed to talk to him, and ask him if he has any Peace toners or slabbed Peace dollars in general.

 

He says, 'Sorry, I can't help you. You should go to a show.'

 

Seriously? Why does this guy have a storefront.

[coinman_23885]

I live in a suburb and all of my local brick and mortar coin shops are jokes; I have more inventory than they do and most of their stuff is junk (low grade proof modern coins, etc.). I end up traveling to Richmond if I want to go to a decent shop, but I now buy most of my stuff online with liberal return privileges. Sometimes, I wonder if some of them have "hidden" businesses running in the same building. I can only speculate; I cannot imagine someone being able to maintain a shop on common widgets and junk.

[BKW]

 

I'm from Jersey. This dealer doesn't happen to be located in Mercer County, does he? He sounds like someone from down there with a less than stellar reputation.

 

Did you happen to overhear anything the couple wanted this guy to look at? Maybe you should have jumped in and offered to look at some of what they had.

[Raisethis2]

Brick and Mortar shops pay the rent by buying Grandpa's coin collection from those who inherit it not knowing it's true value at all. They either buy the entire collection paying a higher price for just the better material or if someone walks in asking "what's this silver or gold worth" they get melt minus 30% or so. The importance of grades and dates is determined after the fact.

 

Shops typically buy silver flatware and the like also at a reduced price that's still above the crooks at those "Cash for Gold" joints.

 

The stuff in display cases is rarely the coins brought to shows. That's just an invitation to get robbed. At best they have better coins available "in the back" if you ask.

 

EVERYONE should create an inventory list of everything they own with thorough descriptions and inventory numbers or slab numbers along with a particular value for the coin at any single point in time. Their heirs can take it from there. My wife already knows WHERE TO AUCTION my stuff to get the best value.

 

[jerseycat10]

I'm from Jersey. This dealer doesn't happen to be located in Mercer County, does he? He sounds like someone from down there with a less than stellar reputation.

 

Did you happen to overhear anything the couple wanted this guy to look at? Maybe you should have jumped in and offered to look at some of what they had.

 

Nope... this is in Gloucester County.

 

I was very curious about what they were selling... they appeared to have a few Danscos full.

 

I was trying to remain ethically intact, but in hindsight, I should've inquired, .

[michael]

Seriously? Why does this guy have a storefront.

 

TO BUY CHEAP

 

 

they aint there to sell and when you asked why he doesnot have this or that he was surly and rude as he doesnot want you back unless you got some stuff to sell CHEAP

 

IT IS A BUYING SETUP NOT A SELLING SET UP

 

yes he might be selling something BUT THERE MOSTLY TO BUY CHEAP

 

he wants the couple to walk in and say oh we need monry or we want to get rid of this mess or whatever and they say can i get 500 out of these coind?? if he can buy them for 500 or less and sell for 2x-50x or more somewhere else

 

he aint there to give knowledge or free appraisals or fair buying prices he is there to buy cheap

 

many times he does sometimes he doesnot if he is still there year after year he is able to buy lots of items cheap to make it worth his while

 

 

 

[HCumberdale]

At any B&M I have become friendly with the owner always tells me that the reason to own a storefront is to buy and that's it. Sure they will sell bullion, and yeah they'll sell me common stuff that I can flip quickly but they are not there to sell nicer material. At least the ones I have established a relationship with are fair to their customers (at least in front of my eyes) and encouraging to beginning collectors.

 

There is one store local to me that I can't stand but I do go from time to time to pick through their foreign junk box. I see them at shows and again they have in their cases...so I assume they are at the show to buy as well. What I don't get is that the owner and his partner *look* like the stereotypical greasy crooked people, so I imagine they are not the first people that sellers go to at a show...I guess it works for them though!

[PerryHall]

You guys nailed it---many coin shops are there to rip off the selling public and then wholesale to real coin dealers. Fortunately, not every coin shop works with this business model.

[mkman123]

I just wonder how many get suckered to sell something at the B&M store the OP mentioned as they are still opened....

[Buffalo Head]

Make ya wonder how he stays afloat?

[JOBESSI]

There's a B&M coin shop near me where the owner openly admits he just bought and sold based on melt. I found that out after I bought a 95-s xf Morgan (which graded ngc xf45 eventually)from him for $40. I immediately told him the value after I paid. I now check any new arrivals for him for a finder's fee & 1st dibbs, .

[MercuryMan]

I found that out after I bought a 95-s xf Morgan (which graded ngc xf45 eventually)from him for $40. I immediately told him the value after I paid.

 

 

You guys nailed it---many coin shops are there to rip off the selling public and then wholesale to real coin dealers. Fortunately, not every coin shop works with this business model.

 

 

I find if funny that in the same topic where people are bashing B&M's for buying low that we also have a post talking about the same type of deal buy it's happening to the B&M but from one of us.

I'm not really complaining about either deal as I have had my fair share of cherry picks and love them but I don't rip on the B&M's for buying low unless they are lying and such. Just buying super low is not enough to me.

[mtnstyne]

Make ya wonder how he stays afloat?

 

They stay afloat by being the middle man for bullion transactions and taking the difference between buy and sell prices. I should stop and take a picture of one of the shops here that they just has old ice cream buckets on the counter with pre-1964 silver coins for sale at $1 above melt.

 

While I was there last time (several months ago) he was buying a huge lot from an old couple and he was paying 10% below melt so about $27-$28 that day. He asked what he could help me with and I asked about slabbed coins coins and he pretty much told me he didn't have time for that. I have talked to him before when he wasn't busy and he said he has been turning over about $1million a month in bullion and no one cares about "collecting" right now with silver and gold prices so high. His words not mine.

 

I do see him at all the SC shows where he brings out some slabbed coins that are nice, but even at the shows he is mostly about grinding out bullions transactions.

[Walkerfan]

There is one clown like that near where I live.

 

He's there to just rip off the unsuspecting. He has alot of overgraded, overpriced junk in his case, too.

 

The guy is a real @$$hole. I gave him my want list once, when I found out he was going to a major show (this was YEARS ago). He rudely stated "I'll buy these coins for ME and only if I like them!" What sort of tells a customer that??

 

In the last 15-20 years he has never once made me a reasonable offer on ANY of my coins that I had for sale over the years. I sold them all to happy customers in the end.

 

He's been there since the mid 70's, so he must be ripping off just enough people to stay afloat.

[copper toning]

There is one clown like that near where I live.

 

He's been there since the mid 70's, so he must be ripping off just enough people to stay afloat.

 

Amen to that.

 

Same here. Every time I go in he is crying about the government, wining about not having health insurance. Upset he can not catch a break. Yet then he talks to me like he forgot I could here his conversation and tells me how great things are.

 

Ask him about shows. Ha they are all just a bunch of collectors selling overpriced, why bother. Major auction? Ha they are a scam full of shill bidders waiting for you. Ebay? Keep messing with that you will lose every thing. Just come see me I will take good care of you!!!

 

Fortunately about 40min away I do have one wonderful dealer.

[Mirrored Morgan]

B&M's are a front to take people to the cleaners that do not know what they have in coins. I quit going to them years ago when I saw first hand what a rip they were.

 

 

[VictoryLane-migration]

 

 

Do B&M's generally offer spot price when buying gold bullion?

[coinman_23885]

 

Do B&M's generally offer spot price when buying gold bullion?

 

My local brick and mortars usually offer 60-65% of melt. I sincerely hope that they don't have sellers at these prices.

[VictoryLane-migration]

 

Do B&M's generally offer spot price when buying gold bullion?

 

My local brick and mortars usually offer 60-65% of melt. I sincerely hope that they don't have sellers at these prices.

 

You're saying if the gold spot is $,1650 they only offer 65%?

 

 

[coinman_23885]

 

Do B&M's generally offer spot price when buying gold bullion?

 

My local brick and mortars usually offer 60-65% of melt. I sincerely hope that they don't have sellers at these prices.

 

You're saying if the gold spot is $,1650 they only offer 65%?

 

 

Yes, and we're talking about classic gold coins and modern gold bullion - it's not like jewelry or bars or what not (where there may be a reason to doubt the precious metal content or where there are larger fees for smelting, etc.).