Request: Advice On Becoming A Rare Coin Dealer

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thecoindude New Member United States 4 Posts	Posted 07/08/2012 7:23 pm Before I made this post I was sure to search the archives of this forum for any related topics. The most relevant topic was from 2007, and while it contained some great advice, I'm hoping to get an updated view on things. Of course, if I missed a more recent topic please feel free to point me in the right direction. A little background; I've been buying and selling coins for about a year and a half now. The majority of coins I dealt with are 90% silver coins as they are the easiest to turn over in the shortest amount of time. Things were pretty easy last year when it seemed like everyone was both selling and buying - I could put an ad up to buy coins and within a couple hours I'd have a few interested sellers. Margins were never very high for this, as I would usually pay 12% under spot and sell for 2% under spot (going for quickest turnover to free up funds for more buying). I always tried to follow sound ethical practices and was happy to have repeat customers (on both the buy and sell side of things). This year, however, people are much more reluctant to buy and sell coins for their silver content. It seems like sellers are waiting for the price to go up and buyers are waiting for the price to drop further. I'd like to expand my little part-time venture into rare coins, as the market seems much more stable for them. I've been collecting coins for most of my life, but only in the past 18 months have I really begun to do in-depth research on them. I recognize I still have a ways to go before I become a seasoned collector (let alone a seasoned dealer), but I have a good foundation of knowledge. I feel that while I do have quite a bit of business sense, I am lacking some key information to make this type of business work. The selling side is strait forward enough, but the buying side is still a mystery for me. I've tried tapping in to some local dealers with whom I have built a rapport with, but everyone seems to be a bit tight lipped on the subject - perhaps they don't want any additional competition. So here I am, asking any current or former coin dealers on this forum for any advice or stories about how they started their coin business and any mistakes they made along the way. I'd also be interested in the answers to these more specific questions: 1. Where do you purchase your inventory of rare / graded coins? 2. Where do you purchase your inventory of bullion? 3. What sort of profit margins do you expect to get on rare coins? Bullion? 4. What are some common mistakes people in this industry make? 5. Are there any words of wisdom / insight that you would give to an individual just starting in this business? Sorry this became a bit wordy, but thank you to those who have read this all the way through! -Nick Report this Post to the Staff

basebal21 Bedrock of the Community 13014 Posts	Posted 07/08/2012 7:31 pm I wasnt a rare coin dealer but the 1 think the big successful ones seem to have in common is bankroll. You will have A LOT of overhead with these coins and need to be able to afford it. Profit margins will also depend on how long you are willing to sit on a coin. I've dealt with dealers that would sit on a coin forever to get what they want in their margins and dealers who you can work with as far as price so they can make the profit and move on. It you are willing to sit on things long enough you will eventually have a buyer and higher margins, that said though you need to be able to have youre money tied up for a while. The easiest way to buy would be if people came to you, not everyone is lucky enough to have that. Sometimes you can find deals online and flip it for more if you have an established customer base and know what they are willing pay. The more contacts you have the better, coin shows would be good too I would imagine for older coins. For newer ones I think most put in large orders with the mint then send them off in the bulk grading lots to resell. In the end it seems the most important part is to just have the money to put in large enough orders for new coins to make sure you get enough 70s to make money, or to be able to get all the older rarer coins you need and not have to worry about moving them right away to pay the bills Report this Post to the Staff
just carl Bedrock of the Community United States 20753 Posts	Posted 07/09/2012 08:31 am Going to coin shows frequently I've met numerous coin dealers. Most are barely making a profit of any substantial amounts. Some tell me they barely make enough to pay for table rentals and the cost of getting there. The ones that actually brag about great successses have several sources to buy and sell. By that I mean owning a coin store, having a web site, selling on ebay and attemding as many coin shows as possible. One dealer I've known for many years usually has 4 tables at all coin shows. He is so busy he had to hire someone to help him. AND it is odd that he sells so many coins since his prices are a bit on the high side. He marks the prices on all his flips which are usually about 20 to 25% over what they should be and tells everyone that he will give them a 20 to 25% off due to: nice weather, he likes you, his Son made the school's baseball team, his wife made a great breakfast, etc. People just seam to fall for all his stories and he does sell, sell, sell. That dealer and seveal others tell me they buy most of their inventory from their stores. People like to walk in with coins to sell at a coin store. So for a few words of wisdom, be prepared to attempt to have a coin store, a web site, selling on ebay and find and go to as many coin shows as possible. Report this Post to the Staff
basebal21 Bedrock of the Community 13014 Posts	Posted 07/09/2012 5:57 pm Carl I know a dealer like that too where everything is overpriced but everything has a discount. Plays into psycology where people are more likely to buy even if it just ends up at market price because they think theyre saving money or getting a great deal by getting the discount Report this Post to the Staff
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