Some predictions coming true on high grade commems.

[truthteller]

About two years ago, several dealers who consistently sold me nice colored commems at fair prices began to sell to newcomers(registry folks) at substantially higher prices. While not particularly annoyed, eventually, those dealers began to sell every nice coins to the highest buyer. As time went on, I had to struggle with the dealers to even get to look at a new nicely toned commems. The vast majority were sold immediately without a chance for an offering. Last year I had several serious conversations with several of these dealers and asked them. "Wouldn't it be better to sell to a long term collector( at the same price) who has purchased colored commems for 15 years and will continue to buy them for another 30 years?" The responses were unanimous, these dealers decided that selling to registry folks was better business than to sell to long term collectors. Now, 4 of the major commem registry folks have sold off their collections. The moon money sellers now have fewer buyers. This wouldn't have really mattered much, but I recently offered some nice colored commems for sale, only to be told that the dealers were not interested. That was a substantial change from last year, whereby these coins would have been snapped up. I come to realize, that those registry guys are transitory collectors, for the most part, and not long term collectors. They affect the market for only a very short period of time.

 

So here's the question. Would it not be in the best interest of dealers to remember the long term collector? I, for one, will remember those dealers who failed to keep me in mind.

 

 

 

TRUTH

[the_Thing ®]

You have to go with the flow and the market. If you don't adjust to the current trends and 'habits" of the market, you'll be left behind. Many local coin shops who swore off the internet 15 years ago are no longer in business.

[the_Thing ®]

Also TT, I don't quite understand. Are you saying they should sell to you even if they can sell it for a higher profit to someone else?

[gmarguli]

So here's the question. Would it not be in the best interest of dealers to remember the long term collector? I, for one, will remember those dealers who failed to keep me in mind.

 

Nope. The average coin dealer is a whore. They look for the lowest price to buy and sell to the highest bidder. I can't say I find fault with this, but it's not the way to build long term relationships. However, the number of dealers that honestly look to build long term relationships is probably fewer than 1% of all the dealers out there.

 

I'd still do business with these dealers, but when buying, be sure to remind them that the market is very soft right now and make lowball offers. Feel free to talk about the good old days when the registry set buyers were snapping these coins up.

[the_Thing ®]

So here's the question. Would it not be in the best interest of dealers to remember the long term collector? I, for one, will remember those dealers who failed to keep me in mind.

 

Nope. The average coin dealer is a whore. They look for the lowest price to buy and sell to the highest bidder. I can't say I find fault with this, but it's not the way to build long term relationships. However, the number of dealers that honestly look to build long term relationships is probably fewer than 1% of all the dealers out there.

 

I'd still do business with these dealers, but when buying, be sure to remind them that the market is very soft right now and make lowball offers. Feel free to talk about the good old days when the registry set buyers were snapping these coins up.

 

[truthteller]

" Are you saying they should sell to you even if they can sell it for a higher profit to someone else?"

 

 

What I am saying is, for the same price, why not offer the coins to long time customers instead of registry folks. I am not alone on this one. This phenomenon occurred back in 1988-89 when the market was red hot, and the dealers could care less about the long time collector, but went for the easy money from so called wall street investors. Well, the investors went away and the dealers turned off so many collectors, the collector refused to buy. Many dealers went bamkrupt. By the mid 1990's dealers were pleading for the same collector's to come back. The cycle continues, yet the marketplace hasn't learned. The registry folks will go bye-bye, but the true collector will stay.

 

 

 

TRUTH

[the_Thing ®]

What I am saying is, for the same price, why not offer the coins to long time customers instead of registry folks

 

I think they should have their price, and whoever takes if first gets it. BUT, you are right. If you are a customer, and you, as the customrer specialize in a certain area, and you have done a considerable amount of business with the person who is selling the coin, you most certainly should have the coin offered to you first. I just find it hard to believe the dealer would do that. Seems like the only logical reason to sell it to the registry collector is a higher profit.

[jom]

Yeah, I'd think that dealers would want to cater to those who they know will be around after the market tanks and the registry goes the way of the doh-doh bird. It just makes sense....doesn't it? Of course, then again, the registry may be around for a LONG time.

 

jom

[the_Thing ®]

jom, do you think it is likely the registry will tank?

[michael]

one of the better threads on here as usual by truth with much food for thought

 

michael

[Oldtrader3]

IMHO, some registry set builders are not collectors. They are acquirers who build a top set for fleeting notice and profit and move on. My dad was an acquirer. He put together one of the only MS complete large Canadian Cent collections (with all the varieties) ever assembled. It took him several years to assemble it. Then, when completed, he got bored with it and sold it. He was willing to pay more and obtained the coins but he was not a collector. I believe that he lost money on the set when he sold it.

 

Now I am the antithesis of my father. I am an accumulator and almost never sell anything. This is not particularly good behavior either. I should be turning over profitable coins that I no longer collect so that I could buy coins in series that interest me now.

 

I think that smart dealers should weigh selling to registry acquirers as a factor against regular repeat customers that are the dealer's living. There has to be a balance somewhere.

[cpm9ball]

Some dealers are just like any other small businessperson who can't see the forest for the trees. All they care about is paying their monthly bills. They're in it for the short-term profit, not the long term gain. It's exasperating when you've had occasional dealings with a local business over a period of years, and they can't even remember your name. It makes you feel kind of insignificant, doesn't it!

 

Have you ever noticed that the proprietor who loves what they are doing has a tendency to remember all of the small things that make you feel so big?

 

Chris