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 Replies: 16 / Views: 4,068 |
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Pillar of the Community
United States
723 Posts |
Anyone willing to share just what it takes to be considered a "coin dealer"? Are there any legal considerations, memberships, or can just any ol' body simply build a webpage and start wheeling and dealing? I would think that the latter would be the case, but are ther any "coin police"  that will need to be satisfied? |
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Bedrock of the Community
United States
17884 Posts |
Anyone can set up and start buying and selling but at a minimum I would recommend getting a tax resale license. As you become more established you will be doing more dealer to dealer trade and they will usually require a tax number so they don't have to collect or pay the sales taxes on the deals. And sooner or later you will probably come to the attention of the tax collectors, especially if you have someone help with your accounting.
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Pillar of the Community
Canada
3692 Posts |
If I were the coin police I would've already arrested 2 counterfeiters and many utterers. Largely the laws aren't enforced and largely people are ignorant anyways.
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Pillar of the Community
United States
1388 Posts |
I think the "coin Police" would have shut down ebay-China by now  |
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Pillar of the Community
 United States
723 Posts |
Good answers, all.
I hadn't really considered the dynamic between dealers, the tax number does make sense.
Not that I would actually do this, but the possibility is intriguing.
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Bedrock of the Community
United States
12437 Posts |
What kind of dealer are you talking about? ebay, internet site, B&M, show? Is this a side project or something to actually generate an income? Each of those types of dealers have different "requirements". |
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Pillar of the Community
United States
723 Posts |
My thoughts are running toward a webpage. To sell online. Something like CheapSlabs.com.
Just dreaming though, working capital might be a challenge.
Probably 50K to even start ....
Yeah, I got that laying around!!
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Valued Member
United States
186 Posts |
I have found that the Dealer Community IS the coin police.
Bad apples get "X'd" out of the better deals, connections, credit, and dealer confidence.
The coin Dealer world is pretty small, you can only screw a couple people before they X-communicate you.
I'm talking about the professional dealers that are at major coin shows and such. Small dealers can usually stay under the radar... Which leads to, if you are a buyer, stick with the "known" better dealers.
50K to start... and up to 500K if you want to be a "player". But I started with a small amount, it can be done. Just stay with it (20+) years, for me, and you can do it too.
Do what you Love, and you will succeed.
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Valued Member
India
265 Posts |
i am trying to become a coin dealer. But it takes time, investment, knowledge, luck, and opportunities to become a successful coin dealer.
warm wishes.
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Pillar of the Community
United States
3592 Posts |
Not sure I go with "cheapslabs.com"..the basement slabbers are under fire now and that name would be all I'd need to see.
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Valued Member
United States
155 Posts |
All it takes is the first step.
This step is usually the most difficult
no matter what you are going to do.
I agree that online is the way to go
your biggest expense (other than inventory) in
my opinion would be advertising. But if your honest and
people can see that, you'll go far. Dream big buddy and go for it!
Edited by Timmy30
02/22/2011 9:27 pm
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Pillar of the Community
United States
4420 Posts |
As a starting strategy, I'd humbly suggest getting involved in an area club that sponsors coin shows. Volunteer your services in the club and at the show. Get to know members and dealers alike - network! Build relationships with a knowledgeable and enthusiastic base of collectors. The next show, rent or share a table and get your feet wet. Meanwhile, soak up as much knowledge as you can ... from books, club members, dealers, periodicals, etc. As states vary with regard to taxes, talk with your area dealers about that aspect. For example, when PA dropped taxes on coins some years ago, Ohio began taxing. Ask collectors in the local clubs what coins they want to locate but can't. Follow area auctions both inside the club and in the surrounding area. Anyone can post coins on a webpage or in ebay, but there's a lot more involved when it comes to being a successful dealer. Just a few humble thoughts from an oldtime collector .... |
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Pillar of the Community
United States
723 Posts |
Maineman,
Cheapslabs.com is an actual website. I sorta like their layout, and was using them as an example.
My thoughts are running toward "Shadetree Numismatics".
Really! So if you see that name in the future, that's me!!
Anyhow, as suggested, I have a LOT of homework to do.
Thank you all for the considered responses.
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New Member
United States
37 Posts |
If your planning on getting into buying/selling bullion silver and gold you might want to check local ordinances. I just found out that Indiana requires a gold buying license or permit of some type...and your scales have to be certified by the weights & measures inspector. I know that my local dealer has a record book of all silver purchases and does ask for a photo ID. I don't know if he's doing that to keep the accountants happy or to stay in compliance with a law of some kind.
Regards,
DFPS
Edited by Dirty Finger Penny Sorter
02/22/2011 11:34 pm
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New Member
United States
14 Posts |
Good luck with your business if you do decide to pursue it, I would recommend a different name though. Would you want to go to a "Shade tree Mechanic" or a " shad tree bakery" It just seems like that name implies that you are not a professional. I understand that as of now this would be a fun side project for you, but think of where you are dreaming for this to go in the future and name it something that sounds legit. Just my 2cents
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Pillar of the Community
United States
759 Posts |
prorider() beat me to it and has a very good point. With my initial glance, I read the first 5 letters as Shady.
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Replies: 16 / Views: 4,068 |
Posted 02/21/2011 10:14 am
