Coin Market – Deals Made the Old Fashioned Way

Posted on March 2, 2011 by

In the coin market a lot of deals are made the old fashioned way, verbally. This is unlike many other markets where you usually have to have cash in hand and sometimes even the terms in writing.

In the coin market, I’ve seen million dollar coins trade in a matter of seconds verbally. Even on CCE, the largest coin dealers in the world trade coins every day, either verbally or through a short note sent electronically.

 1c coin show 2

At coin shows, there are no hidden fees or contracts that need to be reviewed when buying or selling a coin. Usually a dealer will offer a coin to a customer at certain price or vice versa. If they both agree, it’s a done deal. A dealer or customer can’t come 30 minutes later and say, I saw a cheaper one somewhere else and I want to return it. 

I was watching a Pawn Shop t.v. series recently. A customer brings in a doll that he wants to sell. The customer agrees to the offer made by the Shop owner. The Shop owner tells the customer to go to the cashier so he can get paid. So, the deal’s done, right. Not necessarily.

1c pawn shop

A Pawn Shop employee tells the Shop owner, “You can buy that same doll online for less.” Shortly after, the Shop owner walks to the cashier and tells the customer there’s no deal. In the end, the Shop owner indicates, it’s not a done deal until the customer actually has the money in his hand.

The Shop owner is obviously not a novice at making deals and has probably done more transactions than most of us will ever do in our lifetime. Are most markets exempt from honroing verbal deals, or is the coin market one of the few remaining markets where many deals are still honored when their made verbally?

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