Do coin dealers make good money?

It's so good that even the Secret Service can't tell the difference.

Chris

 

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Sounds like your real agenda is to become a dealer on eBay. If this is the case, tell us why you think you will survive. Then we can see how thorough your business plan is.

 

I sell at a local antique store. I make over $100 a month. While not something I can do full time, it's a fun way to help support my coin collecting hobby.

 

I'm at the bottom of Mt. Everest staring up. Although not a dealer, I do sell coins. I am paid $10 an hour plus 2% sales commission.

 

How do you get Internet access at mt Everest????

 

Nepal has some internet access.

 

No not really.

 

I know a few who are millionaires many times over. I know a few who are struggling to make ends meet. Like most vocations, the difference between the the haves and have-nots is typically personality, skill, work ethic, and a good bit of luck/circumstance.

The coin business is not an easy-money business, if that's what you're after.

IMO, of course.

 

One key is not giving in to the temptation of taking advantage of people. Our local guy is honest with everyone that'd I've personally seen. That little 'ol lady with her late husbands collection just might know a thing or two about numismatics -- and there is always KARMA... In the long run you develop a good reputation which brings people in...

 

Like anything else in life, it's all about what you put into your endevour. Thomas Edison said it best "Genius (or work ethic) is 1% inspiration, 99% perspiration".

The ones who work at it and put their all into it (in short,do their homework) prosper, mature and become successful......

 

Reminds me of going to Hutchinson, MN. Someone there tried to start a coin shop and ended up with a Coin and Magic Shop that also printed t-shirts.

 

What I don't understand about the coin business is there doesn't seem to be a true "wholesale" market... I mean how much less is a dealer paying for that common Peace dollar than myself? My guess is that it wouldn't be half, as would be required by most 'retail' type establishments...

I've been confused about this since I started collecting...

 

Volume helps. And buying at the right time. If a dealer buys large collections, he works out the price so he is paying less because he is buying quantity.

 

But still where are you going to get the coins from? It is hard getting any bargain buys from online auctions.

 

Try estate / local auctions. Many a good deals there and at wholesale prices. I haven't seen many peace/morgan dollars at less than melt, or any gold, but I have seen them sell for a lot less than their numismatic value, especially gold pieces! Those seem to sell around melt prices where I go, unfortunately it's still too expensive for me! lol I did get a George Washington silver half dollar for $6 when the silver content was around $13! Damn good deal there.

 

Spot on !

 

IMO, it's one of those businesses where you only make money from (1) volume (low margins), (2) people who don't know better (again, low bid/ask spread if both parties have full knowledge), (3) chance (usually disguised as #2) and (4) accessories.

 

The ones I mostly deal with were wealthy before they were coin dealers and are selling coins as something to keep them busy in their retirement years. However, one dealer I know has a private jet and a multi-million dollar home, all from selling coins. But, even though his shop is in a city of over 2 million, that wouldn't support what he earns. He has clients all over the world. And even his small clients, like myself, are treated like kings. He has my want list and calls me personally when he finds something on it. Of course, that dealer works about 16 hours a day seven days a week, so what you get out of the business depends on what you put into it.
Guy

 

Don't be fooled, you are still working your butt off in the business for a good living. I know Jekyll and Hyde dealers who are super nice and friendly early in the morning or week, and after a full day of transactions, they turn into the opposite. Most dealers I've known for years have since become more bullion buyers & sellers as a result of the market. They don't have the time to go through their collectible coin inventory and do clean up, a lot of that is done at home after closing time. So sure, the ethical and hard working dealers make money and a name for themselves in the community, however, they dedicate a lot of their life and free time maintaining their business. With big money comes big responsibility, and it can be mentally & physically taxing on the body.