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e-bay is setting market value — or is it?

12th May 2008

Browsing the listings of ebay you get a sense of a coin frenzy. The collector grade coins seems to be drying up and the prices of higher grade coins have skyrocketed above the Red Book value. I ask my self "what is going on here?". So I do a little comparative shopping. I have noticed that the coins dealers in our local community are much lower than the ones found on e-bay, and the quality is just as good although the selection is limited. But, that is to be expected from a local shop. They don’t have the resources that e-bay does.

So then what is the deal? Why are the prices on e-bay going so high? A 1909 S V.D.B is not any rarer than it was 10 years ago. I think a couple of things are happening; I believe that sellers are becoming angry at e-bay for it’s last round of price increases, and people are listing fewer coins. I am also seeing more "power sellers" and fewer collectors and dealers listing their coins. E-bay is loosing it’s "rummage sale" feel and it looks more and more like big business trying to make big profits. They are loosing the small shops that have a few, but , very nice coins to offer. This is causing your selection of good quality coins to diminish, loss to the mass market frenzy that is the new e-bay. Buyers are also getting cought up in this, because they are seeing fewer high end coins, so a feeding frenzy starts to develop that causes the price to skyrocket.

Everyone shopping e-bay needs to take a step back and take a reality check. I believe e-bay is creating a market "bubble" in coin collecting. Similar to the housing market or stocks. These bubbles have a nasty habit of popping. My advice to anyone shopping for coins; Look beyond e-bay, go to a local dealer or coin show and see what is happening in the real world. We can get caught up with on-line buying because it is so simple and easy to do. Many of us also look to e-bay for the current value of our coins which can give us a false sense of value. Between e-bay, and it’s power sellers and it’s high fees. e-bay is shaping the market this is a dangerous president. Do you really want one company and the way it does it’s business shape the way we look at the value of our coins?

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This entry was posted on Monday, May 12th, 2008 at 8:18 am and is filed under Other. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Comments to “e-bay is setting market value — or is it?”

Coin Database Says:
May 25th, 2008 at 7:31 pm

Hey,

As an active eBay PowerSeller, I thought I’d offer my 2 cents on this.

I can confirm that the last set of fee increases was upsetting to the majority of sellers. At least those who post on the PowerSeller only boards as well as “Seller Central.” I don’t believe though that they alone have the power to influence changes in market prices. At least not for auctions. With auctions, the price ends at the amount the buyer was willing to pay. For those items that are fixed price, sellers can up the price but only so much otherwise their items will be unsold.

I think part of the price increases too is the precious metals value increase over the past few years as well as the nature of people who hoard when there is talk of recession.

As you say though, it’s very likely a bubble. The coin that was worth $10 yesterday that sells for $20 today could be $25 tomorrow, or $10 tomorrow!

John DeBrosky Says:
September 26th, 2008 at 7:54 am

I have to agree more than ever now days. i buy very little on e-bay now, what i am seeing is the lose of
the high end registry coins. its like the bubble has poped and sellers are offering mid to low grade coins for the high values. and the few high end coins with fixed prices are going unsold by useing pcgs value chart.
for none pcgs graded coins. as to the little sellers ,e-bay has just price them out. they just cant aford to sell there and even brake even if they are lucky. e-bay needs to bring back the compation.seller are moveing the high end coins to like teletrade and bigger auction houses.e-bay is loseing money in the long run.

Silver coins on eBuy, Why? Says:
November 13th, 2008 at 9:10 am

[...] e-bay is setting market value — or is it? Tags: ancient coins, coin dealer, coin seller, coins on [...]

Jim Archibald Says:
November 19th, 2008 at 1:02 pm

I occasionally look for lower grade pieces for a friend in India who collects specific grades in the Barber series. I find that many sellers do not grade by the ANA standards or even photograde. I’ve even seen a handfull of AG Barbers listed as VG, so if your not looking to buy certified coins, know your grading first. Don’t look for bargain prices either, you end up getting a coin that, if your lucky, will be worth what you paid for it. There’s a old saying in coin collecting….”There’s no Santa Claus in Numismatics” ~ Jim

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e-bay is setting market value — or is it?