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 Replies: 28 / Views: 3,142 |
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Pillar of the Community
United States
1490 Posts |
I am considering getting involved in coin dealing and therefore am seeking any advise. Now I realize this is a topic with a wide range so I will start by posting a question I have and hopefully it will open the door to other questions.
My first question is what is the best way to acquire an inventory?
Thanks,
Jim
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Pillar of the Community
United States
1984 Posts |
I'm afraid my answer will have to come in the form of a question: what is the best way to acquire an inventory of what?
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Pillar of the Community
 United States
1490 Posts |
Sorry, What is the best way to acquire an inventory of coins.
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Pillar of the Community
United States
1984 Posts |
What is your approximate start up budget?
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Pillar of the Community
United States
668 Posts |
Just an opinion I have no idea though, but I would say to buy from people who are selling their collection on ebay. Edited by zacharycash
12/03/2007 8:55 pm
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Pillar of the Community
United States
1984 Posts |
Other questions: what kind of dealer are you planning to be? Brick and mortar? Internet? Show-to-show? Some combination? What are your areas of strength and weakness as far as collecting? If you are planning to open an actual store, you can get people to bring in their coins/collections to you.
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Pillar of the Community
United States
3234 Posts |
Jim, I personally went down this path before. Now, I just do stuff from time to time when the opportunity avails itself. I was too picky as a dealer. I only wanted to deal in decent type material in the under $100 price range and stuff with no problems. Well, it turns out that my inventory was too limited and not enough collectors seemed to care about what I had to sell. It all depends on how you want to go about it. Most dealers seem to do pretty well by taking the shotgun approach. Buy everything they can in all series and all dates, especially modern stuff. I had no desire to deal in modern material. That also hurt.
I know one dealer that exclusively buys estates and from auctions and has a very nice inventory now. Most other dealers cannabalize other dealers inventories. Also, you'll need to find out who the wholesalers are and deal with them. One thing I learned the hard way (and I know this sounds like I'm repeating myself) but you shouldn't be too picky. Wholesalers hate that! I ticked off more than one that way. Don't take a lot of drek, though.
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Pillar of the Community
United States
1490 Posts |
Halfabustisbetter & Prethen,
My start up budget is relatively small right now. Probably $3,500-$5,000.00. I am in no hurry and as I read in an article somewhere I am content for the time being on being a CDAF-Coin Dealer After Five. Having my own store would be a dream of mine one day but that remains to be seen.
My strengths-I have been collecting for about four years now and feel that I have a decent handle on grading and identifying good quality coins versus cleaned or problem coins.
Weaknesses-Paying too much for a coin that I really like. I recognize as a dealer you got to keep that in check because you are not buying a coin for your personal collection.
For the foreseeable future I see myself as trying to build my inventory however I will try and sell along the way. I will go too shows but until I feel I have a decent inventory I will not set-up a table. In the meantime I will mostly internet sell.
Halfabust-What do you mean by brick & mortar dealer?
Prethen- I too do not have a real desire to deal in modern coins. However I assume you would recommend that eh? Also can you expand on "finding the wholesalers and not being too picky." I interpret this as when you find a wholesaler you need to buy what he offers or you take the chance of jepordizing the relationship.
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Moderator
 United States
23487 Posts |
rggoodie
aka Richard
"catch em doing something right"
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Pillar of the Community
United States
3234 Posts |
Yes, if you find a wholesaler you like, you might have to put up with buying some stuff you'd rather not. Essentially what you do is you go quickly through his inventory and make a gut guess on the spot if you want it or not. Don't spend forever on each coin. You can select all you want, but he won't like it if you spend forever trying to select various pieces or you buy too little. He has a lot of people to see. Of course, if you're spending a lot of money with him, the more patient he'll be. You just have to get a good eye for making quick decisions and pulling the trigger.
And, it's not a bad idea to have a selection of various modern material, such as Proof and Mint sets and commemoratives. My local dealers are doing very well with bullion sales, especially anything in gold. You just have to be careful buying too much bullion material unless you have an active market. Without that active market, your business can be toast if the market moves to quickly in the downward direction.
If you have at least $10K in material, that should fill at least 2 cases and be a good start for you.
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Pillar of the Community
United States
1490 Posts |
Thanks Prethen and thanks rggoodie for the link to the previous thread. There is a wealth of info to digest.
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Pillar of the Community
United States
2764 Posts |
Hi Jim,
Probably I am the least experiences in this thread so far. However, I have to say that your allocated fun is no where near a "sufficient" level to give you a decent inventory. I did buy bulk twice and that took about 1500 out of my fun, which gave me may be 20-50 decent coins that can be consider "resalable". I have no intention of selling them (not all of them at least). So, with 5K of funding, you may have about 100-150 decent coins.... weather or not you think that number is sufficient enough to consider it's an inventory for a dealer is up to you, I personally don't think so. However, you are definitely can always deal online.
There are different way of buying bulk coins. Search the local ad pages for estate sale/auction or local listing/ads other dealers' inventory. Usually they all want to sell the whole lot, so you can not pick and choose - you need to pay for all the trashes and treasures that they have to offer. In both of my case, half of the coins that I bought from the lot were junks.
B&M = Brick & Mortar dealer is referring to dealer with ordinary shop (to my understanding) as oppose to Internet Dealer or "CDAF" dealer ....
One last thing, you can't be too attached to the coins you buy. If your intention is to buy and resale, then you can not love the coins; otherwise, you will just accumulate all the coins you bought (you are in turn, building a collection).... if that's the case, you become a collector/dealer and no longer a "dealer".
Just a few thought. Good luck.
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Pillar of the Community
United States
4867 Posts |
I wouldn't mind being an ebay coin dealer of Canadian coins. Right now I am really turned off on US coinage. Just seems a bit drab to me anymore. |
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Pillar of the Community
United States
1490 Posts |
Silent-Good points-Thank you.
Between you and Prethen I agree that $3,500-$5,000 is low to start an inventory. Thats why I realize that I won't be setting up at the coin shows any time soon. In the meantime I plan to internet sell.
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Valued Member
United States
314 Posts |
I know this sounds nuts but you may try this before you start buying coins. If I had 10000 to spend on coins and wanted to build an coin shop . This what I would do first. 1. 10k worth pennies from Bank is 1 million pennies to search from banks. Pull all good stuff out that large amount. 2. I would buy an Ry dale machine to run the coins the machine to remove all copper coins from 83 and up zinc. People these days are buying pre 82 copper coins in bulk since it is becoming an bullion market. The machine cost 250 to 1000 dollars. Its an new market that still starting out. 3. I would the buy an used coin rolling machine like what the banks use to count and roll coins to build fedboxs. You need it to dump the remains of coins that cant be sold to collectors. 4. I would open an second bank account to dump coins into cash. Try find one with machines that will take coins free after searching them. I have 3 bank accounts so far to buy and sell coins. 5. I know banks dont like selling large amounts of coins like I try to buy at times. You may try to buy large amounts coins from Armor truck companies like Bink's cash service company for your store. 6. Try buying Half dollar boxes from Federal reserve . You can still find silver in those. One company in Ohio bought and sold 14 million worth Half dollar coins in last year to pull silver coins from them. Same company is trying get Us government to lifht the penny melt ban the us mint . I am excited if they do. I may buy an smelter to start melting down 1959 thru 1981 cents to be sold as scrap metal as number 2 copper if they do it. 7. Search nickel boxes to pull all pre 1964 coins from them. 8. Example I paid 350 for intire roll set of 1959 Thur 2007 penny's. They were all bu coins in set. With roll sets you break them down and sell the sets like 59 thru 2007 bu set for 20 bucks on ebay. If I sold all 50 sets like that. Your looking at 650 profit after I pay ebay fees. 50 x 20 is $1000 after its sold. So buy roll sets of coins if you find them. 9. You need find an wholesaler on proof sets and mint sets to buy to tear them up to sell each coin out the set to make money. 10. Run ads in coin mag or newspaper. Cash for coins on stuff you cant find in bank boxes you get at face value from banks. 11. Its very hard to buy collections of coins on ebay and still turn an profit I learned . Example its hard to make an profit buying another coin dealer. Try to buy from collectors or complete penny books to strip out coins for ebay. I know this is long post but its going to take an lot time and labor to search those bank boxes from banks like I am talking about. If you work 40 to 80 hours per week going Thur bank boxes I think it will work to help you you get the coins needed to open your store at face value to get you started where you can start buying the coins over face value for you store. It may take serval months to go thru lots of those bank boxes to get the coins needed. I do all time the buying those bank boxes looking for coins. Good luck building your store of your dreams. Chevrolet454ss |
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Valued Member
United States
83 Posts |
I think you are better off buying inventory rather than stealing it.... ok that was my funny answer.... seriously Scarsdale Coin, https://www.coinhelp.com drop a line.... wholesale to many dealers and can hook you up with what you need.... Good Luck |
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Replies: 28 / Views: 3,142 |
Posted 12/03/2007 5:48 pm
