Author Topic: "Both Sides Now" — The China-USA Coin Trade  (Read 429 times)

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Online PandaCollector

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"Both Sides Now" — The China-USA Coin Trade
« on: January 22, 2019, 02:45:12 AM »
What differences are there in the coin business between China and the USA? "Both Sides Now" looks at two sides of the coin trade.

https://www.ngccoin.com/news/article/7092/Chinese-coins-marketplaces/

Best wishes,
Peter Anthony
NGC Consultant
China Pricepedia — Chinese Coin Prices and More
The Gold & Silver Panda Coin Buyer’s Guide 3
www.pandacollector.com

Offline pandamonium

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Re: "Both Sides Now" — The China-USA Coin Trade
« Reply #1 on: January 22, 2019, 06:44:02 AM »
Good article but it says "amazingly new stream of publications in Chinese".     Why can't we read those new publications here w/ translation?       What do the new publications have to say?......

Offline KeepOnTrying!

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Re: "Both Sides Now" — The China-USA Coin Trade
« Reply #2 on: January 22, 2019, 08:55:35 AM »
One point that your story illustrates is that the coin collection business is strong in China and the future seems to be rosy.

I like the multiple-dealer-in-a-place format of the physical shops. It allows buyers the opportunity to shop around for good specimens but I don’t know if it is price advantageous because of the speed of communication you mentioned in such markets.

Something I did not pick up in the story is if the dealers also buy directly from the public in those physical markets; i.e. can I walk into the coin market and sell my coins to the dealers?

Another informative piece. Thanks!
KeepOnTrying and Never Give Up!
That lion is also after you!

Offline KeyDate1/2ozPandas

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Re: "Both Sides Now" — The China-USA Coin Trade
« Reply #3 on: January 22, 2019, 11:57:28 PM »
Dealers are eager to buy from the public just like anywhere else in the world if the price is right.  My first time at the Shanghai market, I bought coins from one store, walked 40 feet and sold it to another store for 30% mark up, because the first store didn't know the difference between SD and LD.  The best part of the story is I had to borrow the money from another store to buy the coins. 

It is nice to have many stores clustered together and most shopkeepers are friendly, some of the really old ones don't care to deal with foreigners, but those under 50 are easy to work with and they are looking for new customers aggressively. 

The US coin market is going through a transition, shows used to be where dealers primarily sold/bought to retail customers, today dealers primarily sell/buy to/from other dealers as most retail customers prefer to buy from auctions, internet or mail order from the comfort of their home.  Going to shows is too expensive and provides little opportunity to buy fresh material as most of it is bought up by other dealers prior to the show start.  China has it right with online auctions, electronic payments, and shipping as the ideal process to buy and sell coins.  We have Ebay in the US, but the platform is too onerous for dealers to use as the risk of fraud and fees are too high to make it a safe platform for coins above $300.  In the next 5 years we will see a major coin trading platform similar to what we see in China.

The biggest difference between China and the US is, in the US collectors are dying faster than new collectors are entering the market, which leads to a shrinking market and a generational bear market, while in the China collectors are entering the market at multiples of rate collectors are dying, which leads to an expanding market and a generational bull market.  Both markets will have counter cycles, we are in one right now for Chinese coins as the Chinese economy is slowing and currency depreciating due to a trade war and a bear market in the metals.  One day gold will shine again and China middle class will grow by the millions each month, till then hold on to your numismatic coins tightly and only sell bullion type coins if you need to sell. 

Online PandaCollector

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Re: "Both Sides Now" — The China-USA Coin Trade
« Reply #4 on: January 23, 2019, 01:08:53 AM »
Dealers are eager to buy from the public just like anywhere else in the world if the price is right.  My first time at the Shanghai market, I bought coins from one store, walked 40 feet and sold it to another store for 30% mark up, because the first store didn't know the difference between SD and LD.  The best part of the story is I had to borrow the money from another store to buy the coins. 


Nice story, Arif. Yes, dealers in China's coin markets buy as well as sell.

Best wishes,
Peter Anthony
NGC Consultant
China Pricepedia — Chinese Coin Prices and More
The Gold & Silver Panda Coin Buyer’s Guide 3
www.pandacollector.com


Offline pandamonium

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Re: "Both Sides Now" — The China-USA Coin Trade
« Reply #5 on: January 23, 2019, 06:18:37 AM »
Dealers are eager to buy from the public just like anywhere else in the world if the price is right.  My first time at the Shanghai market, I bought coins from one store, walked 40 feet and sold it to another store for 30% mark up, because the first store didn't know the difference between SD and LD.  The best part of the story is I had to borrow the money from another store to buy the coins. 

It is nice to have many stores clustered together and most shopkeepers are friendly, some of the really old ones don't care to deal with foreigners, but those under 50 are easy to work with and they are looking for new customers aggressively. 

The US coin market is going through a transition, shows used to be where dealers primarily sold/bought to retail customers, today dealers primarily sell/buy to/from other dealers as most retail customers prefer to buy from auctions, internet or mail order from the comfort of their home.  Going to shows is too expensive and provides little opportunity to buy fresh material as most of it is bought up by other dealers prior to the show start.  China has it right with online auctions, electronic payments, and shipping as the ideal process to buy and sell coins.  We have Ebay in the US, but the platform is too onerous for dealers to use as the risk of fraud and fees are too high to make it a safe platform for coins above $300.  In the next 5 years we will see a major coin trading platform similar to what we see in China.

The biggest difference between China and the US is, in the US collectors are dying faster than new collectors are entering the market, which leads to a shrinking market and a generational bear market, while in the China collectors are entering the market at multiples of rate collectors are dying, which leads to an expanding market and a generational bull market.  Both markets will have counter cycles, we are in one right now for Chinese coins as the Chinese economy is slowing and currency depreciating due to a trade war and a bear market in the metals.  One day gold will shine again and China middle class will grow by the millions each month, till then hold on to your numismatic coins tightly and only sell bullion type coins if you need to sell. 




I agree, the future for Chinese collectibles is very bright but many dealers/collectors must sell today to pay bills.     This could be the year it all changes....