Hi Again Paul,

I know you and I have shared our opinions on this a little in the past. I wanted to post this to the board to see what veteran collectors think.

When I first started in the hobby, I was bound and determined that I was going to trade only and trade face value for face value. I live in Iowa and had access to about 8 Casinos. At first I did make many trades at face value. Looking back I know I made trades with people that traded me chips worth much more than the ones I was trading. Maybe they were just trying to get me started. I made a lot of trades and accumulated a lot of chips (for a novice) very quickly. The best situation for trading face for face is current chips of equal denominations. There comes a time however, when you already have many of the current chips that are being offered. You then start trying to trade for some chips that are obsolete, but in decent supply. You find that no one really wants to trade face for face, unless you have a chip of equal value, or possibly are willing to trade 2 or 3 of your current chips for it.

I have found that trading face to face works great to get started, but after a while you need to start trading on more of a value based system. Now this is not all bad either. A general system that I have seen a lot of people use is a value system based on the followng guidelines:

Current Chips from an Open Casino: $1 denom. = $2.50-$4.00 Value
Current Chips from an Open Casino: $5 denom. = $7.00-$8.50 Value
Obsolete Chips from an Open Casino: $1 denom. = $3.50-$6.50 Value
Obs. Chips from an Open Casino: $5 denom. = $8.00-$12.50 Value
Obs. Chips from an Closed Casino (Ample supply): $1 denom. = $4.50-$8.50 Value
Obs. Chips from an Closed Casino (Ample supply): $5 denom. = $9.00-$15 Value
And Values go up from there, according to rarity and demand.

The thing to keep in mind is that things are still relative. Yes, you will be trading for chips that may have a value of $3 on up, but your current chips are also worth $3 using this system too. So you can still trade face for face, but this value based system gives you much more flexibility. If someone has a $10 chip that I want and I can trade 3 of my current chips (with a trade value of $3 each) for it, thats fine with me, I still feel like I got a $10 item for only $3 (The amount I paid for my chips at face value). It allows you to trade for chips that you cannot drive to the casino and pick up at the cage.

When I first started, I made many long chip runs. I don't do that anymore. My goal was to increase my trader stock. My strategy for the past year or so is to also trade for my traders. I offer 5 of each of the $1 chips from the 5 casinos that I have easy access to, for up to 5 of each $1 chip from other areas of the country. Both partners in effect get trading stock at face value without driving 800 miles in a weekend to do the same thing! It has worked great.

In a nutshell here is my point. I think trading face for face is a great way to get started, but you do reach a point where you beging to find it difficult to trade for chips you need. The value system works well from there on.

As far as the dealers go, sure you will find many that are not that interested in trading for the common chips. Why should they, they already have them and probably don't need more. Just as you and I would not be interested in trading for more of the chips we already have. I have also found that dealers will negotiate, and sure some are easier to deal with than others, but thats true in life too. Many of the items that are sold and traded by veteran collectors and dealers were obtained when the value of them was lower. We have that same opportunity. Even in the short year and a half I have been collecting, I have seen chips in my collection go up in value for one reason or another.

A person can still be selective about what they want to trade for, and sometimes a trade just can't be worked out. I have told many collectors that a proposed trade just won't work for me, maybe we can try again in the future. I also have been told the same thing many times, it really is no big deal. What I am saying is that more doors will be open to you trading on a value based system.

For example Paul, in our last trade we made a few weeks ago, we traded face for face. I know you traded me some chips that were worth more than face value and I did the same, that trade would have worked for both of us regardless whether we were trading for face or value.

The other problem arrises when trying to trade Non-Cash value chips or roulettes. I like to trade roulettes for chips, so i just place a value on my roulettes and will trade for a like value of chips. Easy as Pie!

Also a value based system allows for someone to buy chips from you even if they don't have anything to trade, or maybe part cash part trade. Heck, I even trade dice for chips!

FLEXIBILITY! FLEXIBILITY! FLEXIBILITY! ..... Thats the key word in my book!

Comments welcome, either here on the board or private email.

Steve Brock
Storm Lake, Iowa 50588
CC&GT CC # R3200