View Full Version : A dealer's views on "churning"

23rd June 2010, 03:33 AM
This is is taken from a blog written by Doug Winters. Doug is widely recognized as the preeminent expert on early US Gold coinage alive today. He has a pretty cool website I visit often. He has an amazing inventory but even more importantly he frequently posts a blog that is very informative. If you have an interest in Classic US Gold this is a must visit website.

As an aside, I have done business with him on several occasions and found him to be a reasonable person to deal with. You can be highly assured you are getting the real deal when you do business with him.

One of the mistakes that many collectors make is allowing themselves to be “churned;” either by their dealer/adviser or by themselves. Churning is an expression that means too much buying and selling from an account (or in this case a collection) by a salesperson in order to generate profits for the company and commissions for the broker.

Many of the big marketing firms in the coin business (and some of the better known boutique retail firms) are notorious churners. They will sell a collector a coin and then, a few months later, encourage him to upgrade it.

What many new (and even old) collectors fail to realize is that there are hidden transaction costs involved in any numismatic transaction.


I hope some of you find this informative.

23rd June 2010, 07:13 AM
Very good article, thanks. One of my relatives is currently caught up in the "churning" game. He never touched gold in his life, but jumped on the bandwagon after it started hitting record highs after the recession started. He's called me a couple times to get my opinions on the "upgrades" his dealers are offering him, and I've always told him not to. They charge ridiculous prices for slabbed bullion coins, and I've told him not to buy them, but he does anyway.