Do coin dealers make good money?

Just curious

 

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The "one" we have in this city of 350k is wealthy... The old saying applies, "takes money to make money" --- when someone comes to his store with 100 grand of graded coins this dealer can pony up. The small stores outlying the city couldn't do that.

 

To read most posters on this board, you become a coin dealer out of love for the subject and then are subjected to a life of austerity --- kind of like being a monk

 

what is good money??? :devil:

 

If I were a coin dealer, I'd probably go bankrupt because I'd want to keep one of every type of coin that came in lol

 

All depends really. Some that put in the effort to strive at being not only good at their job but also learn to do is smart likely are okay. I'm sure there are plenty who just barely squeeze by and then others that are likely in the red (or debt) for the most part. You can apply this type of question to any business, there are winners and losers.

 

I would imagine they don't make nearly as much as they used to.

 

The key is staying at it long enough to get the $$$ collections. Good storefront, good location, good relationship to locals, etc.. In some parts you would need 250K to open a shop, according to a NH dealer I was talking to, with rental, insurance, security, ability to buy collections, etc..

I would say the top 10% of dealers in the CDN directory make over $100K a year net, most started with bucks and got lucky. All it takes is one undervalued collection to hit the jackpot.

 

It's like any business. You have overhead to take care of, stock to replenish, insurance, etc.. When a dealer makes a big buy, he usually has a line of credit he can dip into but he also tries to pay that off as soon as possible.

 

Depends how greedy they get. Some who have good business standards will make more than the glutton who keeps everything for himself and becomes a second rate dealer. Also market conditions, location, etc.

 

Enough to pay the overhead.

 

In that case they start to lose customers; most dealers with tight buy/sell spreads and good business sense have done great. The shady ones with selective recall run into problems. Would you honestly be the dealer who ripped off dozens of people and they later found out about how much they got them for? Money only buys so much. Madoff is a lot safer in jail than out...

 

That's what i meant by greed, and business standards. Both intertwine to determine your book of business.

 

I've never been to a coin dealer... I'm afraid I'll be disappointed in the prices or convinced to buy something that's not remotely a fair deal.

 

keep your day job

 

Every business needs financing,KNOWLEDGE, a local or regional need, connections in the business, and a lot of time, and even then it fails.

I would suggest many areas would be better suited for a gun shop or a jewelery store. They have much association with coin dealing, in the you need the above traits, and firearms and jewels have to be graded, authenticized, and priced by desirability and demand. You could also sell bullion on the side. Buy a Sig or HK and get a silver eagle for half spot.

 

Depends where you are. If you were in a small town you probably wouldn`t make it. Most coin dealers also sell bullion and jewellery too. If there were in a city like New York City with many coin collectors and you have good deals and rare coins you will make it and probably make good money.

 

What about a purely online business? Minimal overhead and a much larger audience

 

Well the one store I go to in NYC seems to be doing pretty well. The dealer goes to most major shows to replenish stock and have many repeat customers. The other store I go to not in the city is always buying and selling consistently. Overall I would say they are making decent money to be doing business for all those years.

 

With the current state of the economy, it seems they might all be hurting a bit. The last show I attended, I noticed that none of the dealers were anxious to buy anything. One even told my son "We came here to sell". That message speaks volumes. A shop making "good money" needs to constantly refresh their inventory. These guys didn't seem to be doing that. I even saw a collector with a complete Mercury Dime set that none of the dealers were making any offers at all on. I took a peak and they were certainly in great condition as an ungraded set. But beyond my budget too !

But as in any business, those with expertise, acumen and devotion should fare well monetarily. You get out generally in proportion what you put in.

Just sayin'

gary