How do I make a living doing this?

I tell you what LD, if economically I could, doing what you described seems like a dream job. I am sure it gets old for you, but being on the other side of the fence it seems wonderful.

 

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Oh no. Like Charmy I LOVE my job! Sometimes I feel like a bartender... and sometimes I feel like a commodities trader on the floor of the COMEX.

It does get stressful from time to time... more lately with our volumes going through the roof, but I have done a lot of other jobs in the past and I can never see myself doing anything else again.

 

I have a question that I often wondered about coin dealers moreso than pawn shops, since dealers always seem to offer fair prices when buying buillon coins in my experience.

How long do you hold onto them?

I realize that if you believe the market is going to continue to climb, you may hold onto them or hold onto some percentage of them because you think you'll make more money later. However, I would expect that some of them would be sold fairly quickly to recover some of your operating capital and so you're not left 'holding the bag' if the market does in fact take a hit. Lately, with the prices of silver and gold it seems that everyone at the shops around here is talking about the incredible volume they're seeing, much as you described in your previous post. I would think that it would be fairly easy to buy large volumes of PMs and turn them around quickly to make a profit. In times like these - is that how it typically works. You spend 20k on silver and gold buillon coins in 1 day - is it typically turned around and sold to your buyer quickly or does everything vary?

I appreciate any insight you're willing to share - it's just something I've really been wondering lately

 

Every state and sometimes every site is different.

Some places require you to hold anything you buy for 3, 5, 7, or even 30 days before you are allowed to do anything with it. In our area it's only gold and silver jewelry that we are required to hold. With the market being so crazy lately it's usually in and out very quickly. There have been several occasions where the person who buys the bullion passes the person who just sold it on the way out the door.

 

Can I ask you a question sir? Do you still collect coins, or does all of them passing through your fingers every day either bore you with it, or does having access to them every day fill your desire to be around coins? My fear would be I would simply tire of coins, and then it would turn into a job.

It seems to be split between dealers still collecting, and dealers who no longer collect. I really don't care if my dealer collects, I just think they shouldn't talk about it. I had one dealer I used to buy from brag to me one day about a group of coins he bought and kept all for himself, the exact coins that I had bought from him repeatedly, (XF-AU SL halves), and he just kept going on about how wonderful they were, and how he can never find this quality for sale, etc. etc. I never bought from him again, figuring that I should not give money to a man who is keeping all of the coins I am pursuing off of the marketplace. Better to buy from a dealer who will buy coins and turn around and offer them to me.

Chris

 

Thanks for the responses guys.

That's what I love about this board. Seems to be a mature group of well seasoned numismatic veterans. I think I got a good opinion from every angle.

 

Chris,

I collect things that I never see just walk in the shop. I collect obverse die caps. Very specialized but I have also been working on an 1909 VDB grading set from AG-MS67RD lately as well.

Reason behind this is if I did collect what I see all day... I would be broke because I would constantly be buying everything.

 

My suggestion is keep your day job and sell your coins on the side. The biggest expense in owning a business is renting a store front and keeping inventory that doesn't move quickly. And I speak from experience. These days online business is the cheapest and fastest way to reach a wide clientele. And lastly, marketing is a very key to a successful business...I hope I didn't rain on your parade :rollling: ...

Whatever you do I wish you the best of luck...

 

I work for a coin dealer. I am a happy but very broke person. Its hard to work around coins all day and not want to buy buy buy!

 

Stayed single, had kids, have had and do have pets, can tell you that you will have lots more money without either, but the enjoyment of both can be worth the drain on your wallet. That being said, maybe you could start advertising that you buy silver (jewelery and coins) and get involved in being a presence at the shows--- first by apprenticing yourself to someone who is already going to the shows and selling there. Also, 1st thing to do is get a seller's license from the city....go downtown to do so, it's free, but you will need that.

 

Starting a shop is a major investment for an experienced dealer which requires big money - I mean a good six figure sum. I dont believe as a student you have that unless its inherited.

If your getting an MBA go for a real job that pays money - you can do coins part time at shows. To make the equivalent in the coin business of say a $75,000 a year job assuming you can even make a 15% ROI You will need an inventory probably around half a million assuming you can turn it quickly. A smaller one will do if you can turn it real quickly like multiple times.

If you have at least $10,000 in inventory you can start taking tables at shows which have low fees. Your goal is to get enough inventory to fill up two cases. Its going to be tough but will give you a taste of what its like and to see if you have the skills to succeed in the business. As you make money in your job you can add to your inventory. Avoid setting up at the expensive out of town shows and leave being buried in $1000 show costs before you sold a coin to the big people. You will be competing with people who have shops where it walks in at 60% of Bid and they will undersell you by wholesaling to the public. Many shows give out greysheets to the public for free (really hacks me off) so you can kiss retail at those goodbye. I worked in financial (am MS Acctg) and as a part time dealer at shows before taking over a shop near retirement and only then it was due to corporate downsizing with a hefty package. To make it in the coin business it takes buying low and selling high. Unfortunately it can be tough to buy it right without a shop. Work your day job during the week and take shows on weekends - you can use the coin business as a schedule C Tax deduction / tax shelter. You can gain the experience buying and selling plus dealing with all the BS that will come your way then if the finance career is not working out and you have ample funds then you might make a go of it. Gold and silver are on their way into the stratosphere but many Numismatic coins have been stagnant for decades.

If setting up at a show I have the following policies:
1. I expect cash or will take coins in trade at melt or below bid. If they have the money for it they know where to get it or find an ATM.
2. It takes cost plus at least 40% to make it in the coin biz.
3. I dont allow any item of merchandise to leave my table unless bought. All sight seen transactions at a show are final. In over twenty years of doing shows I have had only person at a show challenge this and when I confronted him with some rather firm language he backed down.
4. I dont ship anything mailorder unless payment has cleared. I dont send out approvals - thats for dummies.
5. At a show I am there to buy and sell at my price and dont owe some other dealer anything like selling to him at wholesale. I dont take checks from anyone. If they dont have the money to pay me I will take their gold and silver bullion related coins at melt or their numismatic coins at say 60 - 80% of CDN Bid. Afterall its a money show. Otherwise they can get lost. Deselect non serious buyer / sellers - when their BS starts at your table (bashing dealers, your price, the coin, etc.) its time for them to leave. If a guy at a show is some big icon in numismatics doesn't mean squat to me - I am there to make money, not kiss someones rear end LOL.
6. Back at the shop I am not a buyer of numismatic coins unless I can flip them on the Bay, shop, or at a show for an instant profit. I avoid big ticket coins unless in them way below bid. Nothing will break you like some big ticket coin you cant sell unless taking a large loss. Many of the dealers who have these on their website or shows dont really own them - the coins are on consignment! Gold coins near melt ok. I am an agressive buyer of bullion and USM products but will back off when I start to exceed my position I am comfortable with or market vibes just aren't right. I wont be the bank for rare coins and bullion.

I have made profits in Bullion material over the years and banked big time. It paid for my condo on Hollywood Beach and leisure activities. I have also made many super deals buying low and selling high on numismatic coins. Florida is an inexpensive place to live vs New York or California and is a coin show mecca with many super deals walking in the door. Also lots of big money here which means good retail. With its beaches, beautiful girls, and over 200 strip clubs, casinos, Florida has been a great place for me to relax.

Would suggest you get Bowers Book on becoming a Coin Dealer.