The costs of the coin dealer

A few years ago it was said the Japanese treasury had several million of them which came by way of trade during the years when the price of silver made them a good purchase for bullion purposes.​

Road trip to Japan, anyone?

Joe

 

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Silver art bars, do I think a book is good for starting a coin business? NO!

Now as far as Bowers and Merena auctions. Why do lots not sell? All auctions, have some lots that do not sell. This is because of many reasons. Some lots have too high of a reserve. Some the owners pull early. Some because people assume that they are going to bring ridiculous prices and we give up on the lot. Some fail to sell because of market changes. Some fail to sell because of the type of coin being offered. Some fail to sell because of the grade.

I could go on and on.

Why this is the best auction? GDJMSP is correct. I have a stack of want lists on my desk. These customers are not asking for run of the mill coins. While on occasion some other auctions will showcase a nice rare coin, it is not often. Bowers and Merena has a long and distinguished reputation for offering the best of the best.

I don't say they are the best because of how many coins they sell. They are the best because of what they sell.

I attend many other auction houses throughout the year. They all have nice coins. When my firm sends a coin to auction, Bowers and Merena have always been first choice. Now as many of you know, Spectrum has bought the famous auction firm. How will this affect the firm? We all have to wait and see.

 

Lets say you get a want list that wants a $10,000 coin. You are at an auction and you see the coin. Do you buy it and hope the person still wants it or do you call them and ask if they still want it?

 

Also a few weeks ago you told me that if you buy a lot from the us mint they give you a discount. Do you just call the main phone #?
thanks

 

Customers who buy $10,000 coins do not back out of their wantlists. They are very sure of their purchases.
The mint has a form that must be filled out and submitted. I added a link to that form a while back.

 

Here is the link for the mint program.

http://cointalk.org/showthread.php?t=1115

 

"I added a link to that form a while back"
Where on this forum? I looked back at every post.
thanks

 

When you can get the coin someone wants do you just buy the coin and hope they have not found it or do you call them and then ask if they still want it?
thanks

 

Look at this one. http://www.bowersandmerena.com/auct...rchbidderid=&psearch=&frompage=listings.chtml
This is one of the many auctions I see that are over priced.

 

Where did you come up with overpriced? Current wholesale dealer bid is $120 on this coin. Ask is $130. If this was on our website I would have a $145 price tag on it.

 

In my redbook it is priced under $20.

 

First the Red Book only lists Indian cents in grades to MS-60. Second, as Peter has said, and many of us before, the Red Book should only be used as a referrence guide. Never, ever a price guide.

 

When is a good guide for graded coins? What is a good guide for the value of coins?
thanks

 

Silver art bars

I don't think you are getting ND is saying at ALL.
You can't buy silver bars from the mint--silver bars are not made by the mint--other places melt silver (I guess coins) and make bars.
I don't even think that I could tell you what the best safe is cause you could sue me if I was wroung.

DON'T USE THE RED BOOK
When I'm buying a coin I look at price guides and then think what I might be willing to pay--if its over the book price TOUGH...If I think its worth it I buy it.

If I were you I wouldn't even try to start any kind of coin/ silver bars store.

One more thing--if you start a store..you invest you don't collect or you'll be in the poor house sooner than you want.

Speedy

 

Let me say this about guides. In the end, they are nice to have, but in reality, they are but a starting point. Collectors have the option of buying. As a dealer, I do not. I have to have the inventory regardless of what any price guide says. Now common coins are bought at 10 to 15% below greysheet bid. Keys and rare coins are bought at near retail these days. You have to buy what is available and when it is available. If not, your customers are shopping elsewhere.

 

Resurrected

I've searched way back and found this (excerpted) quote, but still have several questions. What's involved in getting the Federal and state tax IDs? Could someone just get these numbers even if they do little selling (part-time on weekends when available)? Is there a minimum amount of sales required?
Or are there penalties for not actively "dealing"?

Also, what's required/involved in getting one's name in the NDD? Is there a charge and/or other requirements (Fed./state #s, etc.)? How do other dealers recognize you as a dealer and not a retail customer (assuming they're never done business with you); do they look you up in the NDD?

Finally, I'm curious as to whether a dealer would sell a coin that costs them, say, $1000 (Following are hypothetical #s for argument - not indicative of actual margins) to another dealer for $1100 when that coin can easily be sold at retail for $1500? Or would they? I'm sure I'm missing a lot of what actually happens, but I'm curious as to how this would work.

Any info would be appreciated.

Thanks.

 

The EIN and state permits a nd liscences are only necessary if you plan on doing it for a living. Anything you earn on a part time basis in cash sales can be reported on your tax return as other income.

As far as the sales aspect you also have to keep in mind that good cash flow is just as important and good margins. The deal also helps create good relations between dealers. You may need something in the future.

 

Good read ND...Thanks TraderNick