Ethical Concerns

[libertycoins-migration]

Just recently I saw a beautiful coin on a dealers website. To me, the price seemed somewhat low for the coin (however still out of my price range). So, I put a 1 day hold on the coin and then made a few phone calls. In fact, I found another dealer who is going to pay $250 over the price that I am purchasing the coin at. So, I charged the coin to my credit card and then sold it to the higher dealer. I do not think that this would be considered an unethical practice, however, I may be wrong. I am paying for the item, then simply selling it quickly. How do you feel about this?

[gmarguli]

There is nothing wrong with this at all. It's called capitalism. Just make sure the second dealer comes thru.

[CTcollector]

Just recently I saw a beautiful coin on a dealers website. To me, the price seemed somewhat low for the coin (however still out of my price range). So, I put a 1 day hold on the coin and then made a few phone calls. In fact, I found another dealer who is going to pay $250 over the price that I am purchasing the coin at. So, I charged the coin to my credit card and then sold it to the higher dealer. I do not think that this would be considered an unethical practice, however, I may be wrong. I am paying for the item, then simply selling it quickly. How do you feel about this?

 

You have just burned a bridge with the dealer you acquired the coin from. Its a small world amongst coin dealers so the chances of the first dealer seeing the coin for sale in the second dealers inventory is pretty high. I am sure he/she will inquire into it and figure out you flipped it at a higher price within a day or two. Maybe you care or maybe you don't, but if you plan to be long term in the hobby, eventually you will need the assistance of some professional dealers to help you find coins on your want list, provide a payment plan on the piece you stretched for, assist you in getting out of a bad purchase, or for just some plain old business advice. So although there is nothing legally or ethically wrong with you did, it could come at a price later down the road. Its a personal choice between $ in your pocket vs relationship building within the industry.

[Hoot]

Just recently I saw a beautiful coin on a dealers website. To me, the price seemed somewhat low for the coin (however still out of my price range). So, I put a 1 day hold on the coin and then made a few phone calls. In fact, I found another dealer who is going to pay $250 over the price that I am purchasing the coin at. So, I charged the coin to my credit card and then sold it to the higher dealer. I do not think that this would be considered an unethical practice, however, I may be wrong. I am paying for the item, then simply selling it quickly. How do you feel about this?

 

You have just burned a bridge with the dealer you acquired the coin from. Its a small world amongst coin dealers so the chances of the first dealer seeing the coin for sale in the second dealers inventory is pretty high. I am sure he/she will inquire into it and figure out you flipped it at a higher price within a day or two. Maybe you care or maybe you don't, but if you plan to be long term in the hobby, eventually you will need the assistance of some professional dealers to help you find coins on your want list, provide a payment plan on the piece you stretched for, assist you in getting out of a bad purchase, or for just some plain old business advice. So although there is nothing legally or ethically wrong with you did, it could come at a price later down the road. Its a personal choice between $ in your pocket vs relationship building within the industry.

 

I want to politely disagree. This type of action is commonplace in the hobby. I doubt seriously that the dealer from whom the coin was purchased cares in the least. Besides, he/she has business to attend to and keeping track of coins he's sold would be highly burdensome.

 

Hoot

[Techno_mike-migration]

I agree with Hoot for the following reasons:

 

1. The first dealer got his/her asking price.

 

2. The second dealer paid the price he/she was willing to pay.

3. As noted, this is the basis of our capitalist system.

 

4. You don't think the second dealer didn't have a buyer already lined up at some marked up level above purchase price?

5. As noted, this is the basis of our capitalist system.

 

6. How many times have you been low-balled by a dealer knowing he/she would have no problem getting a huge markup on a coin or coins?

 

7. See why EBay/Internet is such a growth area for numismatics?

8. As noted, this is the basis for our capitalist system.

 

Mike

[GP_]

I agree with Greg and Hoot, sounds like business to me.

[CTcollector]

Looks like I am the oddball. I appreciate the disagreement and counter points. However I stick to the premise of my comment that dealer relationships are crucial to building great collections, mentoring, liquidating, etc... Once a dealer realizes you are flipping coins on them same day, you run the risk of the relationship between you and that dealer changing in their eyes. Or in fairness to Hoots point, maybe they just don't care or notice. For the record, I am referring to the dealers you want in your corner, not the slime balls of the industry.

 

As I already mentioned its a personal choice. If you are into coins primarily for "capitalistic" reasons I can understand how you may not appreciate my point.

[libertycoins-migration]

I see where you are coming from. But again, the dealer could have asked for more for this coin. He got what he wanted, and made money most likely. And again, the second dealer will most likely make money off of the coin. If i had purchased the coin and then tried selling it back to the same dealer, I would most likely have taken a loss. How is that ethical? Thanks for all your responses.

[CTcollector]

No problem. Its healthy to see differing positions on the same topic. It makes the boards worthwhile. By the way, this was a nice thought provoking question.

[cpm9ball]

Looks like I am the oddball. I appreciate the disagreement and counter points. However I stick to the premise of my comment that dealer relationships are crucial to building great collections, mentoring, liquidating, etc... Once a dealer realizes you are flipping coins on them same day, you run the risk of the relationship between you and that dealer changing in their eyes. Or in fairness to Hoots point, maybe they just don't care or notice. For the record, I am referring to the dealers you want in your corner, not the slime balls of the industry.

 

As I already mentioned its a personal choice. If you are into coins primarily for "capitalistic" reasons I can understand how you may not appreciate my point.

 

I agree with Hoot and Greg, too! You have done nothing that millions of other people don't do every day and it applies to ALL goods and services in the marketplace, not just coins. You acted as a "middle man" and were able to make it worthwhile for all three of you. If the dealer you bought from is smart he will recognize that as an asset. If the time should ever come when he needs to "move" something, he may have a possible source to fulfill his needs.

 

Chris

[Leothelion]

Looks like I am the oddball. I appreciate the disagreement and counter points. However I stick to the premise of my comment that dealer relationships are crucial to building great collections, mentoring, liquidating, etc... Once a dealer realizes you are flipping coins on them same day, you run the risk of the relationship between you and that dealer changing in their eyes. Or in fairness to Hoots point, maybe they just don't care or notice. For the record, I am referring to the dealers you want in your corner, not the slime balls of the industry.

 

As I already mentioned its a personal choice. If you are into coins primarily for "capitalistic" reasons I can understand how you may not appreciate my point.

 

I do this to buy coins for my collection. If I know something more than the other guy, is it my responsibiity to educate the guy? Not in this case. If I'm selling something, I believe it is, to a certain point! But there are folks who are slow learners and many times it boils down to a live and learn situation for those buyers. And I have been wrong but I do try to throw some hints out there but most don't really care or do they take the moment to really think about it.

I learned something along these lines years ago when a number of mint sets sold at a local coin auction. Some bidders only want the mint set for a birth year, as a gift for someone so instead of bidding against them, I'll let them have it and later, make a trade with a similar set. There was an instance when I was asked why I wanted to trade mint sets and I said that I collect full step nickels and your set has such a coin. To my surprise the lady said to her hubby, we better keep it, it might be worth some money!

It certainly doesn't make any sense to tell the guy that the coin is worth 2x or 3x his asking price. All he's going to say is, well then give me that much for it!

I could list all my coins as MS68s and I'm still going to have buyers!

So now, with tongue in cheek, the bartering goes on, to whatever satisfaction both parties agree to and that's how most deals are done.

Years later, a coin sale may come back to haunt me but what do you say, what will the market be like then? These are thing that buyers and sellers should always be aware of when buying and selling and that's life!

 

Leo

[truthteller]

From my experience, making a profit before actually receiving the coin is OK, so long as it is not gloated upon or opening exposed on a regular basis. In the coin business, often a coin is taken on the arm, offered and sold, and the first dealer is the last to get paid This is regular business practice and perfectly ethical.

 

 

 

TRUTH