What's My Dealer Worth?

Okay, now it is time to talk about dealers. Dealers come in all shapes and sizes, from the small guy setting up at the local coin club to the international dealers. According to the 2005 Numismatic Dealers Directory, http://greysheet.com/cdn/numdd.asp there are roughly 3500 dealers in the U.S.
Becoming a coin dealer in most states is not that difficult a proposition. Simply applying for the tax license will make you a dealer. Add to this that vast number of sellers in the online auctions and your possibilities are endless. So how do you rate a dealer?
When choosing a dealer, you should first think about your collection. Many dealers specialize in specific areas, and they can have a much better impact on your collection. You should also check their affiliations. The PNG http://www.pngdealers.com/Public/In...KEN=32726943 and ANA http://www.money.org are good places to start. However, member dealers should not be judged solely on this membership. Some larger dealers are also listed on the Dunn and Bradsheet exchange. Check other smaller associations like charity organizations. Often dealers will become associated with their community in outreach programs.
There is an old addage to buy the book before the coin. This should also apply to your dealer. Start out talking with your dealer before purchasing from them. Too often collectors get into a hurry to make a purchase. This is not always the best technique to use. With few exceptions, most coins can be found at anytime.
The internet has made the life of the collector a bit easier. Now using google searching for "coin dealer" results in Results 1 - 10 of about 3,070,000 for coin dealers. Granted most are repeated several hundred times, but should show that no one needs to be general in their search.
Your dealer should picked based solely on your collecting habits. If you collect circulated Indian cents, you will not require the services of a nationally recognized dealer.
Your dealer should treat you with respect. I know all too well that many find dealing with new customers with the same joy as having teeth pulled. While anyone can have a bad day, no one should be stuck with a bad dealer.
Now that you have done a basic check on a prospective dealer, contact them either by phone or email. Ask a few basic questions like what price guide do they use, which certification services do they use, what grading standards do they use. What return and guarantee policies do they use.
(HINT) All dealers should guarantee authenticity for the life of the coin.
You and your dealer should have a basic standard by which you are comfortable with. If you would never consider a lousy third party grading service, your dealer should not be selling them. If they tell you that grading company X is horrible, yet they offer them, well time to shop for another dealer.
Ask about their payment plans. Do they accept all forms of payments that you may utilize. Do they offer pre-payments? Do they offer pre-sale items such as Mint and Proof Sets?
Today there are fewer and fewer dealers who still operate a coin shop. Coin shops are expensive, dangerous, time consuming, and overall tough to operate effectively. Since you won't be able to see them face to face on a regular basis, you should take great care in examining their return policy, along shipping prices.
It will not take long to determine if the dealer grades coins the same way that you do. If they sell you a coin in the grade of XF, it should meet YOUR expectation of what an XF coin needs to be. Remember that this is your money. NEVER settle for a coin that doesn't meet or exceed your expectations.
Ask if your dealer offers a wantlist program. Be sure to note if they charge for this service if you do not purchase the coin. (They should not). Ask about their show schedule. Ask about auction representation. Despite what some think, there are many coin auction houses.
Lastly, when looking for a dealer, do not go into the search with preconceived perceptions. Not all dealers are bad or crooks. Not all are searching to rob you of your money or collection. Don't assume that pay less than auction prices. Leave your assumptions at the door and find yourself a good quality dealer.
A good dealer is like any good professional. They can offer you insight into the hobby that you will not learn on your own. They see many thousands of coins and deal with many different people every day. Anytime you do something long enough, you learn little tricks to the trade. This can only be learned from experience.
You can use your dealer for more than just coins. Take the time to learn about the coins that you like. Learn about what makes that coin popular or not popular. Learn what makes the coin valuable. Learn what factors make the market move. Learn about what makes the grade. Learn about the hobby as a whole.
While there are short answers to all these questions, there are also deep answers that most overlook. A good dealer will help guide you through the hobby. They can assist in many ways that most do not realize.
As with each coin, each dealer must be judged by their own merit. No two coins will be exactly alike, and no two dealers will be exactly alike. If you follow these simple rules, you will learn to enjoy the hobby a great deal more, along with protecting yourself from the pitfalls.