First sale to a local coin dealer

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Likezeippo
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First sale to a local coin dealer

#1 Unread post by Likezeippo »

This is my first real post here besides my intro post. I'm posting in this forum because the coins were Austrian.
I sold a gold 100 Corona and a gold 4 Ducat.
I called one local dealer and he did not even want them so he referred me to another.
I thought that was strange but, whatever.
I called the other guy and got a price that seemed like more than the 90% of spot the "we buy gold" places were offering for these.
The place I called appears to be a well established operation that's been around for years - purportedly a Rare Coin dealer.
I got there and it turns out they were only going to buy for 90% spot and were going to melt the coins down. That was annoying because I could have sold to a local "we buy gold" place for 90% and saved an hour drive. At least it was a scenic drive.
I know they are "bullion coins" but they seem far too interesting just to be melted down. That makes me sad.
But I don't think I ended up getting only 90% of spot.
How they arrive at what spot is and what 90% of spot is and how they calculate the final amount is quite a mystery even though it was done right in front of me.
First, what is spot? I was looking at the online price through JMB at the time just to have an idea of what I might get. I saw that the dealer had a ticker running - quite cool actually - big screen with multiple tickers and individual screens at each desk. I was watching the ticker and was seeing around 1803. There was a tick that was at 1802 and change. That translated into my spot price being 1802. At least that's what it looked like to me. What JMB listed was higher but was probably delayed data rather than real-time.
So anyway, my spot price was 1802. So 90% of spot should be 1621.80
A 100 Corona should be .9802 troy oz of .900 gold. a simple calculator says this should be 1589.69 at spot or 1430.72 at 90% spot
A 4 Ducat is .4430 troy oz of .986 gold. - a simple calculator says this should be 787.11 at spot or 708.40 at 90% spot
I'm happy to say that I got more than that but I don't know why.
Their invoice lists Quantity, Ducat: 8.9 and Corona: 21.8, Unit Price of Ducat: 86.17 and Corona: 78.66 (upped that to 79.47 for the Corona because they are nice and I was wrong - that's another story)
766.91 for the Ducat
1732.45 for the Corona
What are the Quantity and Unit Prices? Where do these even come from?
I seemed to have received more than 90% spot but I have no idea why or how that was calculated.
Next time I go, I'll ask more questions.
Overall, I'd say, not knowing any better, I was happy with the amount and the coin dealer but couldn't believe that it was "hard" to sell Austrian gold coins.
Ducat.jpg

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CaptJohn2
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Re: First sale to a local coin dealer

#2 Unread post by CaptJohn2 »

It is easy to see what the melt value is. Just go to NGC website.

Here is you 1915 restrike Ducat

https://www.ngccoin.com/price-guide/wor ... id-1220384

Likezeippo
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Re: First sale to a local coin dealer

#3 Unread post by Likezeippo »

Thank you CaptJohn2. I looked up the 1915 Restrike 4 Ducat on the NGC site and the melt is listed today as 806.44. OK, that still does not really tell me much about how they arrived at their price. The calculator I used says at the spot today of 1828.44 its worth 798.68. How is melt value calculated? Is that what I should actually sell it for? How do I know it is not one of the MS60 valued at 871.05 or MS63 valued at 1425.00 according to the site you provided (4 Ducat rather than 1 Ducat). I thought these has no numismatic value but if NGC is showing grades, maybe I should get my gold coins graded? From what the dealers indicated, they are only buying them for melt. When they say they are paying "melt", I'm assuming that is actually below "melt" because they have margins or premiums or whatever. If I sell something else. I'll check the melt value for that specifically the day I go in.

Thank you again.

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