kleraudio

Besides buying from walk in customers how do dealers acquire their coins for resale? And how do they get them cheaper than they sell them?

Im new at this whole hobby but this question has been bugging me.

Thanks in advance!

Jim

mark_h

Other dealers, buying estate coin collections, and coin shows. At least that is some of the places where my local coin shop gets coins - or so they told me.

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stitch45457

giant lots on ebay.
example- http://cgi.ebay.com/Coin-Collection-...QQcmdZViewItem

Shortgapbob

Purchases from walk-in customers, buying from auctions, buying entire collections and estates, and very often from other dealers at shows.

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kleraudio

Thanks for all the quick replies guys! So are they buying from other dealers based off of the "greysheet"??

And why would one dealer sell a coin to another dealer at greysheet price when they can sell it to a customers for retail??

Thanks again guys for all the help, I want to understand this whole dealer process once and for all! :-)

Jim

Troodon

If you had a large volume of coins to sell and needed to sell them reasonably quickly, thus were more concerned about profit per time than profit per coin.

Concentrating on profit per time rather than profit per item is why Wal-Mart is so successful of a retailer.

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kleraudio

Im not sure I understand Troodon, "Profit per time"?? Can you elaborate...

Are you saying they are making a small amount on each individual item (coin), but selling many times per day/week/year, etc.... that they are making a profit?

They make their money off quantity is what your basically saying right? (Coin dealers, and even Wal mart as in your example)

Thanks again for the help!

Jim

GDJMSP

Yes they buy them based on the Grey Sheet, but it may well be above or below what you find in the Grey Sheet. Most collectors don't realize it, but the majority of all coins out there being bought and sold are just moving from one dealer to another. Ask coin dealer's, they'll you. About 75% - 80% of their business is buying or selling to another dealer.

Sure, eventually the coins will find their way into the hands of a collector. But that collector turns around and sells them yet another dealer - or the same one. Often in a short period of time. Individual coins get bought and sold dozens of times.

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stitch45457

a candy bar say cost 50 cents
say you could sell a thousand candy bars for 1 dollar a piece in a month =1000$ (500profit) year profit =6000
say you could sell a thousand candy bars for 2 dollars but it takes 4 months= 2000 (profit 1500) year profit= 4500

clembo

I really doubt too many real dealers are using this route. Never know what you'll get and most of the coins (in this example anyway) are very common.

Dealers want to see coins in person - not just take a chance. This is what they do for a living.

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kleraudio

Man, thanks for the info everyone!

So how would a small time guy like me get involved in buying and selling coins? How would I take the first step?

Im not looking to make alot of money here, just trying to get more involved in the hobby and I like the trading aspect of it all!

Thanks!

Jim

GDJMSP

Go get a part time job at a coin shop first. The coin business isn't what most folks think it is. Having the job will show you that. After a year or so and if you still want to do it - you'll know what to do by then. But just don't go out and try and it on your own - unless you need to lose a lot of weight

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clembo

Step One. Decide what you want to collect.

Step Two. Read about them.

Step Three. Ask a lot of questons before buying.

Step Four. ENJOY!

Then you can get on to the other stuff.

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budgood

Not on my own but....Lose alot of weight .... In the 2 years I have been dealing/working for a dealer I have gained 15 lbs. !

In addition to having a pregnant wife & then a son did add to it Im sure. All of that good wholesome family time & simpathy weight ... At least thats my excuse

kleraudio

Clembo, GDJMSP, thanks for the advice, I will definitely take it to heart!

I still have much reading to do! I just thought it would be fun to buy and sell coins while collecting for myself at the same time, seems like a really good way to be more involved in this new found hobby of mine!

Jim

PS. Clembo, on deciding what I want to collect, it seems so hard to choose! I like em all! Im drawn to the Morgans as Im sure EVERYONE is, but theyre fairly common from what Ive been reading.

How did you guys decide on what you wanted to collect??

Jim