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 Replies: 20 / Views: 6,076 |
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New Member
United States
14 Posts |
Hello,
After reading alot of the forum topics, this seems to be the place to go for information. I'd possibly like to become a coin dealer. Heres my questions...With a limited budget and inventory, how do I get started? How do I accumulate inventory, (with no dealers anywhere near me),preferably at dealer to dealer cost? The inventory I have now has been from very extensive searching and not always at the best price. I spend way too much time just locating deals, to put any time into building a business.
Anyone that can help...dealers, shop owners, collectors, anyone that can help a guy out, will be greatly appreciated.
Thanks ahead of time and God Bless you all.
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Pillar of the Community
Australia
3831 Posts |
I think you would need a lot of experience to start out with. You wouldn't particularly want to get stung by counterfeits with you first start out as a dealer.  |
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Valued Member
United States
236 Posts |
simple_man.. I would say your are a very brave person- First consideration is- Are you contemplating full-time dealer or do you have supplemental income? I am not being facitious-- And here is why- There are many many dealers out here- There are suit-case dealers, vest pocket dealers and internet dealers- and all kinds of people who have (Rare Coins)- But the answer to your question is - how badly do you want to do this? Are you in an area where there is a lot of exposure? Are you a member of any coin clubs? When you say- "Limited Income and inventory to start- that means a very long hard pull for you--however, If you have other income for your living expenses- who knows? Now when you say "Dealer" does this mean you plan on having a store? Or are you planning on operating out of your home and on the internet-like so many are doing these days. I live near a city of over 1/2 million- There are 3 advertised dealers with shops in this city. Yet, I venture to say from what I have learned at the local coin show- there are 25-dealers who operate out of their homes and from pocket pagers or cell phones. --Now if this was back in the 50's, and you came to me as one man did- asking the same question with a 2,000 dollar inventory in Lincoln pennies- and not much else- But the man had a fantastic outgoing personality- and a burning desire. At the time, he had a 100.00 per week job that he hated- I said to him. "You will hate your self the rest of your life if you don't try it- So go for it.-and further, all of us here in our town (not my current town) will support you. In a little over ten years this man was a millionaire- and I wrote of him in Member Articles- in my "Riding Shotgun story. So my friend, the odds are only against those who are too timid to venture out- (nothing ventured- nothing gained) but take a good loooooong look at all the facets- Do a survey in your area and see what kind of support you can get-from your local coin club etc; Now I may not have been a bit of help- but from long observation, I have tried to give you the straight of it. Dewey-- Knight#28
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Rest in Peace
United States
2668 Posts |
A rule of thumb, work in a business for someone else, first. Yes, I read what you stated about no dealers near-by. If you are going to risk time and/or money, maybe it is worthwhile to you to find a dealer and do some understudy.
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Pillar of the Community
United States
756 Posts |
I would just like to say "Good Luck". That has to be a very HARD profession to step into!
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Pillar of the Community
Belgium
2078 Posts |
My friend was a coindealer
He says apart from knowledge you need a few other things
A network of other dealers ( for inventary control )
An honesty towards your clients so they allways feel they came out ahead
And an orphul lot of capital to be able to outbid other dealers at estate sales and to pay widows and divorcees walking in with expensive coins
These last three sources are big money getters if you have the capital and know what you are doing
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Moderator
 United States
23528 Posts |
Before you take this giant step
Contact one of our forum members
Bigfella
He has recently gone through this adjustment he can tell you of all of the pitfalls and joys associated with working for yourself in the world of coins.
rggoodie
aka Richard
"catch em doing something right"
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Pillar of the Community
United States
2365 Posts |
Once you meet all of the minimum posts on the CCF you can begin trades, sells and buys right here. It's a small but, relatively inexpensive way to get your feet wet - so to speak.
You will definitely (and already have) received some great advice and I'm sure will receive more from dealers and experts right on this forum.
Good luck!
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Pillar of the Community
United States
986 Posts |
You'll need a lot of contacts to get certain coins if you have customers that would be interested in buying them. If you go to a small, local coin show try talking to some of the dealers there, and perhaps making a few purchases. They'd be an excellent source of information.
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Pillar of the Community
United States
1327 Posts |
to go along with habiru001. If you are doing it as your main source of income it may be hard. I have as well thought of this same thing. But after talking to my local coin dealer a very honest dealer. He said it is very hard to make a lot of money in coin. He said most dealer who do make a lot ussally ripe people off. so if you are honest you can make a living at it but not alot. so if you have a second income then go for it. make sure to do your home work. Also talk to Susan forum mom about this and also Bigfella.
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Pillar of the Community
United States
2365 Posts |
djluster - I am impressed by you more and more everyday! You have a wonderful future with your knowledge and maturity. If you were a coin dealer I wouldn't think twice about making a purchase from you - you know why? Your honesty! Thanks!
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Pillar of the Community
Belgium
2078 Posts |
For five years me and my wife have held an Haute Couture Boutique ( French clothes only ) We were attrackted by the high margins which were like 700% My wife did the sales and I did accounting and taxes etc Now there are two killers One is fixed cost , like rent, lighting, heating etc The other is unsellable inventory After the sales season this years clothes cannot be given away next year and yet depreciation in Belgium is max 20% per year So you have a fortune in inventory that is no longer saleble and eats your capital We went into voluntary receivership with 30 000 dollars in inventory on the books that was worth nothing because of the tax laws Nowadays with the internet one can get around the fixed cost by having a virtual shop only How you get around the dead inventory I would not know If you want to make money at coins you need some pretty good ideas that are not bled to dead by the competition yet Like our coindealers in Brussels get entire busloads of English and American vendors all looking for gradeble coins at ungraded prices Take a look at what this Brussel shop will pay for american gold I phoned a few times to buy and got the same story An american came by and bought the whole consignment Of course when the shop buys it is the shop that grades the coin  http://www.gold4ex.be/servlet/javap...or_new&lg=nl |
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Pillar of the Community
United States
7123 Posts |
The above posts contain some very good info ,, and the thoughts presented are well worth the time needed to consider.
One other small point !! Full time coin dealers are seldom also collectors !!
Its just another one of those anomolies like the village Mechanic rarely drives the best running car !!
Rick
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Moderator
United States
23522 Posts |
quote:
Originally posted by Metalman
The above posts contain some very good info ,, and the thoughts presented are well worth the time needed to consider.
One other small point !! Full time coin dealers are seldom also collectors !!
Its just another one of those anomolies like the village Mechanic rarely drives the best running car !!
Rick
Dealers shouldn't collect for the same reason bartenders shouldn't drink. Margins in coin dealing are not large. If you want to make $30,000 per year profit selling coins, be ready to have $100,000 tied up in inventory at all times. |
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Pillar of the Community
Australia
1091 Posts |
quote:
Originally posted by Metalman
...Full time coin dealers are seldom also collectors !!
It definitely takes a different mindset to sell coins if your a collector. The only way that anyone can make money in tradeing coins is to buy at a low price and sell at a higher price. The difference is what you get to live on, pay bills and buy more coins. Sure would take the "Fun" out of the hobby.  There is a fixed number of older coins and no wholesale manufacturer producing them now more cheaply. Getting a cheap supply of coins would have to be the biggest problem. Collectors are also on the look out for a cheap supply of coins at "dealer prices". I'd say this is a hard industry to make money in, unless you are in the slabbing business. My impression is there is a lot of money being spent for opinions. |
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Pillar Of The Community
3147 Posts |
Anyone can sell coins! Buying them and keeping inventory is the problem. I tried for a couple of years and enjoyed every minute of it. Finding quality, affordable inventory was a huge time consumming task. Most importantly coin collectors DON'T want to sell their coins as they are buyers. You are then dealing with other dealers or the unknowledgable who think every coin they own is worth thousands. Buying is REALLY tough and having deep pockets is also tremendous help as you never know what may walk into your door next! Quite honestly selling and shooting the bull with other collectors is a dream come true but the flip side can be a financial nightmare! Lots of obstacles involved but if you have the heart and the capital to start I would wish you nothing but the best!
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Replies: 20 / Views: 6,076 |
Posted 08/04/2006 02:14 am
