Lots of questions relating to making money buying and selling coins.

Making a few bucks on one's interests is fine, but that's not what this (and most like questions) appear to be about. Nothing in this young man's post shows he has a desire to "hoard, research, or collect" as with your kids andcomics example, and goes to the very point I tried to make. Where is the interest in researching the coins themselves and not what profits they could put into his pocket? Perhaps he has, but I've yet to read a post by this young man that does not seem rooted in learning in anything other than making money off of this hobby and those who participate in it.

 

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Highly predictable, typical Step 2 -- some collectors eventually lose big bucks on a deal, then badmouth the hobby for the next decade...

 

@Sullysullinburg I wasn't trying to give you a hard time or anything. In fact, it's nice to know that there are teenagers in America who want to do something with their lives rather than sit around whining and playing warcraft. It's just that your conducting business as a minor and your parents may be responsible for your actions. So, they need to be aware of what your doing.

There is nothing wrong with the profit motive. I think that's really how most coin collectors get started in the first place. Q. David Bowers was dealing coins, part-time, when he was 15. Since he publishes a book, seemingly every other week, I doubt the profit motive has dampened his quest for numismatic knowledge. So...

Live long and prosper.

 

I am glad to see a young person in the hobby and see no problem with trying to sell coins for profit for whatever reason, to upgrade your own collection or cash to buy that special investment coin that may present itself.Some advice, learn as much as you can and specialize in a certain area and become a recognized authority in that area and you will do ok.talk to others in the hobby and learn from their mistakes, I made many in the beginning.Study past trends with coins and precious metals and there are always changes in any hobby.Recognize these changes and adapt tomeet demand.Just my opinion to help you out.

 

Thanks for all the info so far. I didn't think it would come into question, but here is my coin collecting history that shows coins come before money! I started collecting coins when my family got displaced because of Hurricane Sandy. We got moved to Philadelphia and while we were their I went to the U.S. Mint. I fell in love with coins and as soon as I got back home I started coin roll hunting. About three months later my friend's Dad was driving me and his son to get sandwiches. We were talking about what we wanted to be when we grow up and my friend said he wanted to be a cop. I said he shouldn't be because they don't make much money. And his Dad said "If you love what you do, you'll never work a day in your life.". In October of last year my Dad was going to a job interview and he saw a billboard for a coin club. At the first meeting I found out they had auctions every meeting. And this is when I stated wanting to make money off coins. Thanks for all the help so far!

 

Have fun!

 

If you haven't found it already, Coinweek is a great site with lots of
articles and videos.

https://www.google.com/url?q=http:/...LpeWqg&usg=AFQjCNEg5hjVxxIsWa1QLtUgLhz2YKlAhg

 

There really is no easy way to make money in coins. What you need to do is read reference books, read numismatic articles, and study the coins that interest you; and then look at auction catalogs, look at the illustrations in the reference books and examine those coins in hand at coin club meetings, auctions and shows. Your knowledge will eventually pay off because you will be able to cherry pick the coins in the area of your interest. It doesn't matter if you love Lincoln Cents, National Bank Notes, or Roman Imperial copper coins. Your profit will be a measure of your acquired expertise.

 

I would give one bit of advice. Be careful when buying higher dollar coins that are not certified. Their is usually a reason they are not certified. They are cleaned, fake, altered, hole filled and the list goes on and on. You may think you found a great deal but end up loosing your shirt.

 

I would pay attention to the lady. She knows how to move coins, and she doesn't even have to rely on her smile or her lady charms...

 

1. Where do you buy coins to make a profit off of?

Wherever you can find them

2. How do I know what to pay?

Experience

3. What should I buy?

Whatever you are fairly sure you can resell in a short amount of time.

4. What's a reasonable amount of money I should expect to make off of coin flipping?

Hopefully at least expenses. Rollover any excess back into inventory. It will probably be quite awhile before you are able to draw off an income to live on off the business. You don't have to make a lot of money off any given sale but you do have to make expenses and keep the money turning. Don't fall on love with a coin so you can't sell it, and if you make a bad buy take you loss and keep the money turning. Refusal to sell because you would lose money only means that eventually all of your capital eventually ends up locked up in those mistake pieces.

 

I think conder nailed it. I would also say learn about varieties - IE something like Cherry Pickers Guide. There are still a lot of those out there that can be picked and sold for a profit.

 

Thanks all for the info so far. Been a great help. Just I heads up I'm heading to the Colts Neck Coin Show over the weekend (Any of you guys going?) and I was wondering what you guys think is a hot buy now. I'm thinking silver because it's getting pretty low and it can't hurt to pick some up.

 

Out of curiosity, when you say you should pick up some silver, because it is relatively low (something I pretty much agree with), how much silver are we talking about picking up at this coin show? When and to whom do you plan on selling said silver?

I do have a reason I ask. It may help put into perspective how many and how large of a transaction machine you need to keep fueling. Let's say you were making a bullion play. 1000 oz. One big hunkin' bar. You know something; something we don't, something that is going to happen in the next week. Silver is going up, for sure. And it does. Let's say $1. And you sell it right back to the j'moke that sold it to you. We are assuming you both gave each other the "dealer special" price. Same amount above or below spot to one another each way. You make $1000. Minus your expenses to and from the show, show costs, whatever. Call it 900. In a week, on a lucky bullion guess, you invested just under let's say 20k, and you made 900. I can't live on 900/week. So at best, you keep churning the 20k and making 900. Subtract out the weeks it went down. I'm not even saying you lost on those weeks, just that your little bullion j'moke at the show exchange couldn't occur because you predicted this particular week, it was going down. Your profit, and zero growth, stink. And by "your", I do honestly mean "one". This is just a bullion example with simple, communicable numbers because you said something about buying silver. Now, factor numismatics without much experience, and I am pretty sure every member will agree that would be an uphill, craggy, slippery, windblasted, hill-mountain to climb....blind, deaf and frostbitten. I am saying it is unlikely. Not impossible, humans are amazing creatures when they focus, but unlikely.

Let me suggest something. It can apply outside numismatics too. Find some coin, some series, some time period, some year or period specific thing, and collect THAT. Read about it first, ALOT. Buy the highest quality coins you can comfortably afford. Buy them right. Don't get attached. Flip them as frequently as you can at a decent and fair profit. Go the extra mile for people that buy from you. Sell and buy cleanly, no games. Aside from the occasional setback, you will do fine. But more importantly, you will be doing something you are passionate about, and at the least, will have enjoyed your time.

 

That was not meant to sound all preachy. That was just a suggestion. My suggestion, for what it's worth.

 

You don't buy silver to trade it, where volatility almost certainly guarantees an eventual loss.

You buy silver to HOLD, to preserve the purchasing power of your assets. Those who have ALL of their assets in dollars bear a sizeable risk. Today, a silver dime buys a loaf of bread. Hyperinflation comes, and considering that gold and silver as money have no counter-party risk, a silver dime still buys a loaf of bread. You've protected your liquid assets with an alternative to the dollar.

If the dollar loses its status as the world's reserve currency, then dollars presently held as a hedge will flow back to the U.S., vastly increasing the money supply, with the same result for any currency whose supply suddenly surges. This is a chart of the M2 money supply since 1980; does this look sustainable to you?

 

Let me make a few things clear. 1. I'm not a stacker of silver I'm a coin collector. 2. A 1000oz bar is way out of my price range but I don't think you were suggesting buying it just using it as an example. 3. At the time in focusing on Mercury Dimes and I know a fair bit about the series. 4. Maybe I'm naive but I don't see the US dollar collapsing any time soon.

 

My opinion is that anyone who got into this just to flip coins, becomes a true collector when they like a coin so much they can't bear to sell it. I've got a number of those.

I've always enjoyed doing both, collecting and flipping, however there are some of my coins that I would never sell, even at a higher than market value price. They always say "You can't take it with you" but I'm going to try - LOL

 

OP...the best advice? Read, read, read. Get some books and read through these forums for awhile to get a better understanding of the hobby. Then start to ask questions that you cannot Google or find on your own. Some are being harsh but that's life...the unknowledgeable get eaten alive in this hobby.
Also go visit a few coin shows in your area and look around. Ask questions. If you got a LCS (local coin shop) in your area chat them up as well if they accept it. I got some of my best advice and then deals from my local coin dealer. Some are more than happy to help a young guy as yourself and build a relationship.