How do I make a living doing this?

Off subject a little but I've seen your name here and there. Do you have a store front or are you strictly an out of your house operation?

 

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I sell off my website and I attend numerous coin shows around the country.

 

My advice to you is to pick the brain of the dealers on this site. Sounds like Charmy and LostDutchman have already weighed in. Probably the best post from a dealer perspective I've seen on this forum came from Player11 in the following thread:

http://www.cointalk.com/t172427/

 

This coming from a guy who just got married and who also owns a dog.....

[not really sure about the dog.......]

 

Maybe not a bad idea - they make a ton of money. I posted in the roll searchers thread about an experience I had in one yesterday just listening to what they were paying. $4 bucks for walking liberties, 2 bucks for barber quarters and under a buck for dimes and 40% halves. They have buckets of the stuff and the people are packing the place to sell. Granted this was in a larger city and I had to wonder how much of the stuff that comes in doesn't actually belong to the people selling it. If you can live with that kind of thing (ripping people off) - it seems there must be a ton of money to be made

 

I have to sleep at nite. Then be able to wake up the next day and look at myself in the mirror......

A line of business [MHO] most deceptive and unsavory indeed.......

 

One hard part might be separating collection from stock. It might be difficult to let go of coins that you would want for yourself. For that matter, can collecting and selling coexist, at least in the beginning?

 

Ask Charmy. She seems to do pretty good......

 

I wouldn't want to be a dealer, but I wouldn't mind working for one. I think that would make me one happy person!

 

My small part of the world (western NY state) has so few "regular"coin shops-in fact the only dealers within an hour-and-a-half drive of me are the "classic rarities" guys and the "we buy gold and silver" shops which are mainly jewelry but they looove this high dollar coins. So many old coin shops are gone because of security reasons and internet sales. If you have the money to invest in good security as well as quality coins, then replace some of those guys leaving the business! I agree with starting out small with a table at some shows to get your feet wet. Research what areas have a need (like here hint hint) for a shop.

 

You know, as soon as I'd posted my original comment, I thought about you, and thought to myself, "...with some exceptions."

There are some people who can make a living doing what they love, and still love it. I'm glad for your sake that you're one of them. Any tips on how to keep the parts that aren't fun from spoiling it for you?

 

I once asked a longtime dealer that very question. Well, actually I asked him “How do I become a coin dealer”. His response was “If you have to ask, you’re not ready”. I will admit that at the time I found it insulting and it ****ed me off. However, over the last few years I have realized that he was absolutely right! I was in the military then (I got out this April) and was hoping he was going to give me that one secret that “all successful coin dealers know”; to make that an easy career transition. Over time my pride got out of the way and I made a deal to work for that dealer on the weekends and every afternoon I could make. I told him I would work for free if he would teach me the business. That turned out to be one of the best moves I have ever made. I started going to every show that Uncle Sam would give me time off for and my dealer friend even gave me a case so I could test the waters. By the end of the first year there were months that I was making more selling coins and currency then what the army was paying me as a Staff Sergeant at the 8 year mark. I learned a lot from that dealer and we are good friends. In fact I will still be going to shows with him when I return from Afghanistan. The main thing I have learned is that you have to buy right! You make your money when you buy your inventory not when you sell it. If I were you, I would start to accumulate inventory now. It takes a lot of money to get started. I have roughly 15K in inventory and will have a decent amount of capital when I return from this deployment but it will not be enough. I was small time “vest pocket” and routinely spent 5-6K on collections. Luckily for me, my dealer gave me a blank check for a loan. I would borrow the money, buy the collection, and take it back to him. I would let him have what he wanted until the debt was paid and then the rest was mine. It was a great way to build inventory for me and to learn how to “buy right”. This ended up being a little more scatter brained then I had intended it to be so I will sum it up with this:
1. Find a dealer that will let you apprentice! Work for free if you have to, offer to run his table when he is on the bourse floor. Or take a job stapling 2x2’s. Anything to get your foot in the door! The experience will be worth more than any pay check, though this might not be an option for some!
2. Learn how to BUY RIGHT! That’s how you make your money and pay your bills. You need at least a 30% margin. Something’s you can’t do this on due to competition and demand, but turnover can make up for this. I don’t mind if I only make 10%, if I know I will only have it for a day or two. There will also be times when you can make 100% or more! They tend to even themselves out but the goal is at least 30%!
3. Learn the scrap gold game! I know dealers who are making their overhead just buying scrap gold! Don’t cheat people, but buy it right!
4. You will sell more $100 coins than you will $1000 coins. Don’t tie up all your capital in a few coins. It could take months to move them (or longer) and you don’t want to have to wholesale one of those.
5. Buy the book before the coin! This isn’t just for collectors. I have bought items for a few buck and learned later that they were actually worth a few hundred. I didn’t try and cheat anyone, but neither myself nor my customer knew the value. I have a library of over 100 books and plan to keep adding them until well… my kids get stuck with them. Some of them are expensive but worth the money in the long run.
6. Learn the difference between “hoarders” and “collectors”. I also might add “investors” to that list. Each one will have different goals and priorities. You sometimes need to “steer” them into the right direction.

That is all I can think of right now. There are some great dealers on here and I would say coin experts. Don’t hesitate to ask questions.

 

I would think a couple of million would keep you afloat for a year or two. After that you will probaly have to go to work for the man.

 

Jhinton? Get home safe man. We love ya, and thank you for the service that you provide in protecting our country.

Would love to meet up with you one day........

 

Yup. Been there...in fact, there now. Not coins. Different hobby. I'm making a nice living but I killed the passion I had for the hobby. It's a business now.

Would I do it over? Yes, in a heartbeat. There's nothing like running your own business, and if you have a good head and decent people skills, and your product/service is in demand, it's very rewarding. Go for it.
Lance.

 

Yes, I definitely still maintain my collection and I actually feel it is a bonus to be a dealer AND a collector because I get to see a lot more coins than the average person, and then get to pick coins for my collection from the "cream of the crop." I do have standards that keep my collection limited which makes it less difficult to separate coins for my collection from coins for my inventory. So I do not keep all coins for my collection just because I like them - I have specific criteria that I look for in coins for my personal collection, and if I come across one that fits nicely, that's where it goes first. And if I already have one of that date, then I compare the two, keep the one I like the best, and sell the other one. For me, it has not been difficult at all.

Also, if anyone is interested, I wrote an article a while back about how I got started in the coin business and it may be helpful to some of you. I can understand why the guy that told JHinton that if you had to ask, you weren't ready. If one was interested in starting their own business, I believe that person should have taken it upon him/herself to do their own research on exactly what it would take, how much it would cost, what licenses you might need, how much inventory to start with, etc. If you want to own your own business, you definitely need to think outside the box, have lots of initiative, be innovative, have especially have lots of perseverance.

Anyway, here's a link to The Penny Lady™ Story: http://thepennylady.com/thepennyladystory.html

 

+1 :hail:

 

The parts that I don't like are the paperwork: keeping track of inventory, taxes, expenses, sales, purchases, etc. But that goes with almost any business, even when I was working as a litigation paralegal - you just can't get away from paperwork.

The only other part that can be off-putting is working with difficult personalities, both dealers and collectors. Patience is not my strong suit but I sure have developed thicker skin owning my own business, but fortunately these difficult personalities are far and few between! And again, there are difficult people in any business, it's just that it is even more important to be professional when your mortgage is on the line!

 

Get a great CPA and work seven days a week, 12 hours a day, for most of your life. Thats what I did and now at age 52 I am retired and so crippled up I could work if I wanted too. Also buy your own health care and plan your own retirement as you have no employer to help you pay for all that. But truthfully I would not change a thing, what a ride it was, GO FOR IT!

 

Your'e going to know how to grade if you start a shop. You could buy a coin for 18,000 and see that's it's worth 15,000 because of one grade being one grade higher.