What Is A Coin Dealer

I don't think I'd like to be a coin dealer to depend on a living.

I couldn't afford the coins I want...:kewl:

 

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Well for me it would be secondary to my real job/jobs. Think of it as a selling hobby to fund my buying hobby

 

That's exactly my plan, and I have some ideas about implementing it, but right now I'm just doing a lot of research by observing the market.

 

I don't think I would want to become a dealer because there are too many crazy desparate people out there looking to steal to feed their habits.

 

Ive been tossing some ideas around too. Like photography, its no use selling this stuff if you cant take the right picture needed for the buyer to purchase it and feel comfortable. Or like you said, observing what sells and what doesnt and getting a general feel for the market.

Im really leaning on starting out with Beginners Kits as I had fun assembling the one i sold at Christmas. So much so, that i had to make another one for a buddy of mine as his Christmas present

 

I think it's a good idea, at least on paper. But you've got to buy product in bulk, to lower your costs. I've been going through entire rolls of BU and PR Kennedy's which I got for a discount, for my own learning purposes. But it occurred to me that I could assemble a few Kennedy type sets, package them nicely, and offer them for auction. Customers would actually save money over buying all the pieces separately, and I would make a few bucks to throw back into my collecting.

Even if I only made 50 a month, that could go a long way in this inexpensive series. But I'd like to do something with numismatic integrity, above all else, even if I don't make a dime. We've got enough shysters on eBay selling hyped up refuse.

 

Thats why I want to talk to my Local guy. He has TONS of coinage that I could use, and it would help both of us out. Helps clear the clutter in his shop and gets me the lower end stuff I want to use. As of right now though, I am just pulling items i dont want out of my collection and putting them together for resale once it fills a cigar box or so. Like right now I am working on a box to see what I can get for it. Im happy with just recovering close to total face value in most cases.

 

There's a coin shop in Helena, MT that is much like the one you described. The first time I went in there it took a few minutes for one of the 6 or 7 people sitting at computers to come to the counter. I asked them if they do a lot of business on FeeBay and he said no, 99% of their business is through Coinnet.

I find that odd since they have a storefront on the walking mall downtown. If they are just doing business through Coinnet, rent would be much cheaper elsewhere.

But, any time I'm in Helena I stop in because they have the best prices on ASE's in the state at spot + $3. :thumb:

 

I've had dealers ask me for a list of wants, but I personally just like to browse their inventory. I've impulsed buy numerous coins as they "spoke to me" if you will. I collect a wide array of coins, so I'm not opposed to getting a 2 cent piece versus a Peace dollar that I need. I guess I'm lucky in that there are several coin shops within a hour's drive that have a nice inventory of stock on the floor that I don't run into these types of problems that are present in this thread.

I also sell on the side. I rent a booth from a local "flea market" type of store for $25 a month. I buy from local estate / consignment auctions and then resell for at least 2x to 5x amount I paid for them. I keep the prices lower than their "red book" price as to look like I'm giving people really good deals but still make enough for profit. I've done alright in this aspect. I do this as 1) supplement my hobby income and 2) to learn how the public around here buys coins. My step-dad is opening up a gun shop in a few years and I have talked to him about wanting to sell coins within his store. I've been getting him into numismatics as he has gotten me into guns. So eventually I'll be selling coins through his store and using the knowledge I've learned from the "flea market" selling.

 

GDJMSP - how do they make money if 80% is selling wholesale to other dealers?

 

Social Security checks.

 

I believe you meant welfare checks, Social Security checks would be the dollar store.

 

My view on this is they buy back of prices on dealer to dealer transaction. That will vary from coin to coin. Just an example - a coin retails for 120. The local shop buys at 80, sells to another dealer at 100, this dealer sells at retail of 120. Now not every coin is done this way, but I have seen my local dealer do it. Now I sold some graded large cents to my local dealer - using just the grey sheet I nailed the price on every coin except for maybe 3 or 4. I know 1 they offered more than expecedt and 2 were back a little bit of what was expected. They then sold them on ebay - they did not sell as high as I expected, but they still made good money. What is even funnier is at least 2 of the coins were bought off ebay and immediately relisted at twice what they sold for. I never did see them sell the second time.

 

I'm not into shopping by "want list" either. The closest I get to that is one of my local dealers will shoot me an email whenever he gets some foreign government silver in (Kookaburas, Libertads, Brittanias, etc), which doesn't happen too often in the sleepy little town of Bozeman.

 

Two comments on this thread--first, what is a coin dealer? Anybody who sells coins. The internet has changed the game from a "brick and mortar" coin shop and show game to one that has more global implications. Anybody who does not have a presence online, as well as a physical location is losing a huge amount of business to competitors. This is why there are so many threads on e-bay and grading by photograph, as online unseen buying has become more the rule than the exception. Of course, there are still folks who do coin business the old way, walking the bourse, and stopping at tables, but probably 75% of the business is online now. This makes education far more crucial, and knowledge of what you're collecting to be essential.

Second, giving a dealer a "want" list allows him/her to do the selection for YOU. If you browse, that puts the selection in your ballpark. That way, you can cherrypick, as opposed to the dealer giving you coins that he/she wants to divest themselves of, and reduce their inventory of slow selling coins.

 

Think you are a bit stuck in the past, Doug. Coin dealers have changed with the times, and anybody can be a coin dealer nowadays with online auctions. The "want list" only matters if you have an "established" relationship with a dealer. Most folks who buy today use many different sources, so that obviates a want list.