If you're in a pinch for cash, don't sell your treasure coins!!!

[truthteller]

I just read about Barberlover's 77CC selling for $16,000 when he was paid $4750. It breaks my heart to hear a dealer made that much money, especially when the sale was under duress. Many collectors do not know this, but there are some companies that will loan you money on your slabbed coins when you are in a pinch for cash. Usually the company will charge 18% per annum and a small carrying fee, usually $50 for the duration of the loan, and usually for amounts of $5000 or more. They loan you about 60% of blue sheet. I have done this in the past when in a big pinch, but only in tough and short term situations(less than 1 year). Coin dealers do this all the time and it helps the cash flow. I highly recommend this over selling a beloved and valuable coin for too little. AMARK of Santa Monica, Ca, will do this transaction, they are the best at that.

 

TRUTH

[Dermott]

If I have to choose between selling a few coins or paying 18%+ on a loan with my coins as collateral, I think I'd rather sell the coins.

 

Why would I in essence sell my coins only to buy them back from the person I sold them to for 18% more tahn I sold them in the first place?

[TomB]

In the scenario that Truth has outlined, above, the seller would have been better off with a short-term loan at 18% and getting more for his coins, if he had to sell them, than by selling them for 30% of retail value.

[truthteller]

In hard numbers:

 

Sold coin: $11,275 potential lost in two months

Loan coin: $900 potential lost in one year and $10,000 gain when properly sold

 

Hmmm?

 

TRUTH

[Android]

Fascinating. I never knew such places existed. I could see how this scenario would work well if a spectacular coin at a spectacular price became available to buy, and I didn't have the cash to buy it. I could get a "loan" on some of my existing coins, purchase the new spectacular coin, sell the new coin for a profit if I had to, and pay of the loan and get my collateral back. That's pretty cool! Not to mention that 18% is less than a good number of credit cards....

 

Andy

[msmhappy]

 

I dont sell coins, I buy coins. And I buy them to keep!!!!

 

But your right about the coin dealers!

 

I cant remember who ( a person on this board ) that said it best:

 

"Dealers are the only ones who can buy a 10 dollar coin for 2 dollars and sell it for 30 dollars!!!!"

 

mike

 

-------------------------------

 

dont forget! collect proof sets!!!!!!!!!!!!!!

[michael]

wow did this coin sell at auction for this amount??

 

i wonder why he did not offer it to a board member first? as there are many advanced seated members on the boards that have the capital to purchase such and item for i am sure more lots more than the 4750??

 

i am sure barberlover would have done better???

 

 

sincerely michael

 

 

[barberlover-migration]

O.k. here is what actually happened,

 

Due to health reasons i was fired from my 17 year job at the end of march. At that time i had 2 years left on a 401 k loan and was told i had 90 days from the date of default to pat it all at once in full r the tax and pnalty for not being 59 and a half years old would apply to next years taxes also i had some sudden financial problems due to what my employer did. The coin among others was mentioned for sale on the other board in the buy/sell/trade section, but no serious inquiries were made about this coin

 

As was said i didn't have time to shop it around and asked heritage to buy it back and there offer of 4275 was not beaten by anyone else including another major coin firm that was offered the coin.

 

As i said on the other forum, my guess as to what happened since the bid on the coin was at 4300 dollars the day before the auction closed is that at least 2 floor bidders with more money then sense got into a bidding war over a top/pop CC seated quarter and bid it up untill someone quit. Les

[Elcontador]

While the situation is not pretty, I have to wonder aloud why $16,000 was paid for a coin that soon after only received $4,300 when he re-sold it.

 

Yes, you're going to get less for ANYTHING that you have to sell on a liquidation basis, but this seems rather extreme.

[TomB]

I think the actual case is that he sold the coin for approximately $4,300 and then after he sold it the coin subsequently sold for approximately $16,000.

[Elcontador]

Thanks for that, Tom.

 

I am a CPA and I am very methodical about pretty much everything in my life. If something important is going on, I either do my homework and / or check with people I know that can help me make the important decision at hand.

 

Last year, one of my investments went for what I thought was stupid money. I unloaded it immediately. Sure enough, it dropped 25% within several months.

 

If you allow circumstances to dictate that you sell assets in a liquidation mode, you will be looking at a piranha feeding-frenzy; especially in numismatics.