Question about coin broker

I am thinking of become a coin broker. Is there any book or website out there that can give some points to be a coin broker?

 

Log in or Sign up to hide this ad.

Is that a buyer's agent?

 

whats a coin broker

 

It's like a person who buy and sell for a customers who don't want to deal with eBay, paypal, transaction, etc. For example, a customer have few coins and want to know how much it worth. I can check it for them and apprise them. After finding the information and a customer want to sell it. I will find a potential buyers for a fee. Does it make sense?

 

Yes it makes sense. But I think coin dealers already
do something similar to that when take coins on
consignment.

 

Who pays the commission? What if the buyer of the coin is also using a broker? Who is responsible for deals gone bad?

 

First things first... do you have the necessary knowledge and/or experience to offer potential customers any benefit for using your services? What can you do that will set you apart from anyone else? Can you grade all types (even just US) consistently and correctly, especially to a or either TPG standards (including identifying coins that would most likely be genied)? There are countless questions you need ask yourself, and to be totally honest, the fact you are looking for information on how to become a "coin broker" (dealer) implies that you probably are not at the necessary level to do so profitably and successfully. No offense as I do admire someone willing to spend to learn, but after viewing your thread of ANACS submissions, it seems you've a long way to go. Had you submitted such coins for a client, to put it bluntly, you would have buried them.

Buying for clients is rarely as easy as some seem to think... when someone is paying up they tend to be very picky. Do you have options (connections) for acquiring coins that will set you apart from the next guy? What can you do that Joe Schmoe cannot do himself? As for selling on consignment - other than having an ebay account - what benefits can you offer a potential customer? Do you have wide and varied numismatic-related connections that would/could allow for a quick liquidation of a collection? What other venues do you have to sell coins? Are you willing to go through the hassle of professionally imagining (not scanning but properly photographing) coins to list? Why should someone trust you with their coins... do you have reputable and trustworthy references? Do you have the money to buy collections if someone is unwilling to have you sell for them? You mentioned appraisals... have you ever done this before? Do you have the necessary references to properly attribute coins - i.e. maximize value and profit? How will you appraise? Book value or a realistic retail estimate? Can you - with an extremely high degree of accuracy - identify counterfeits, alterations, AT, recoloring, etc, etc? Again, there are countless questions you must ask - and honestly answer - yourself.

If dealing coins (on whatever level) is something you seriously want to pursue, I highly advise to you start SLOWLY and with your own inventory. This will at least allow you to get your feet wet while learning. IMO, many fail to realize that collecting and dealing are two totally different beasts and I've seen a lot of guys who jumped in head first, only to later realize the pool was empty... there is a lot more to it than simply buying low and selling high.

 

longnine009 and Doug: I agree that there are plenty of dealers out there. However, in my case, the opportunity are little different. Since I am deaf and many deaf people that I know doesn't feel conformable to sell their coins to dealers because they can't communicate with them except write on piece of paper. That is my marketing focus. I have been learning a lot relate to coins and know many deaf people still hold coins in their safebox or storage. They are my target in this aspect of dealing. I want to know what's fair percent of fees in transaction. Deaf people is hard head when it come to fees.

blaubart: That's why I want to know more about coin broker and how to protect both parties if deal goes wrong. For me, paypal and ebay have protection that will ensure the transaction between two parties goes smooth. However, to deal with people outside ebay and paypal is sticky situation. I want to earn customers' trust by deal the transaction fairly.

 

booksb4coins: I absolute agree with you. I am not going to be a coin broker any time soon, but gathering more information and train myself to become more knowledge in grading and dealing. I was hoping to become a coin broker in few years from now. It's good time to start learning now.

 

I know these are just posts between comrades in coins but I have a hard time taking people seriously when their grammar, spelling and syntax are lacking. Being deaf doesn't impact your writing skills.

 

Finding a nitch market such as the deaf might be a
good edge but then isn't it a limited market?

You might want to check some state government
web sites and find out what the requirements and regulations
are going to be. You may need a broker's license,
or other licenses, insurance, bonding etc. You
need to find out what it is going to cost you and
can you make enough in a nitch market to cover it
and make a profit that is acceptable for the risk your
taking and for what sounds like a diminishing matket. Each
deal you broker for a deaf person reduces the pool.
You might want to find a web site or book on how
to write a business plan and write one right now so
you can see before putting a lot of effort into this
just how economically feasible is it.

 

I can't stand the idea of having to pay real estate agents during a property transaction, I'm definitely not going to pay middle men to buy and sell my coins.

The type of service that you want to provide (beyond what a typical coin dealer does) would only appeal to two types of people: "The Rich" and/or "The Ignorant". As for the ignorant, buying and selling coins for people that don't know any better seems morally ambiguous at best. As for the rich, they will seek out professionals based on knowledge and reputation. In short, if you have to ask the question "How do I become a coin broker?", then you probably won't make for a successful coin broker.

 

It's easy to go broke buying coins.

 

H8 modern: It's difficult to master in secondary language, but it's not an excuse. I am still learning to write English proper as my primary language is American Sign Language. I am sure your whatever secondary language ins't perfect?

longnine009: Thank you for your tips, I appreciate it. The pool may be small, but doable. I am not looking to become a king coin broker as others.

cherd:Yo, I always stick to this quote, "It's better to ask stupid question than stupid mistake." That's why I am here.

Kentucky: Lol.

 

ignorant comment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Rare Profits From High Coin Investments is
all it takes. :3three:

 

Yes it does.

People who are born deaf, do lack basic syntax when writing their communication as opposed to signing, and being born deaf is not the same as losing your hearing from damage to the inner ear.

Since you're not deaf, you would not, nor could not know that, but I'm sure your insensitive remark will pass.

 

Yes, profits are rare from high coin investments!

 

Sorry but I do not have a quick answer/solution for you. I don't think you can become an expert (broker) by reviewing books or the Internet.

There are only a few very (very) experienced dealers that I would trust to broker coins for me. In order to be valuable to me, they would need to be much more experienced and knowledgeable than me. That experience & knowledge could only come from years of experience and study.

Are you a member of the ANA, ANS, PNG, or any other numismatic organizations?