I will let it be known that I would like to be a coin dealer.... Of course, having been collecting for less than a year, and only having read a handful of books, I'm obviously not even close. But I was wondering on two things. What should one who aspires to be a coin dealer begin. Most of the dealers I've been to have thousands of coins in their inventories, and are able to get coins their customers want pretty easily. How are they able to do it. I don't mean looong establed dealers who have been in the coin business for generations. I mean first generation businessmen who want to open a dealership. Where do they get inventory that will sell for a profit. And my second question ties in with the first: do dealers use sites like this to bulk up their stock from time to time? http://www.collectorsinternet.com/wholesalebulklots.htm I was considering picking up the 100 coins for $185 offer to test some of my grading capabilities and boost my collection. I realize that the coins you get are random making it something of a crap-shoot, but is the $1.85/coin price point realistic wholesale. Or retail? Good deal, bad deal, terrible deal? Trying to do my best to learn. All comments appreicated!
ANA offers a course entitled 'The Business of Being a Coin Dealer' at its annual Summer Seminar in Colorado Springs. (I took the course a few years ago when it was called 'So You Want To Be A Coin Dealer'.) That course will give you the information you need to get started in the business. I would also recommend that you talk to other dealers and ask how they got started, what worked and what didn't work, where they get their inventory, etc. A good place to do that is at coin shows. Speaking of coin shows, you should attend as many as you can so you can see how the dealers operate and so you can get your hands on as many coins as possible. The more coins you handle the better you will be at grading and spotting counterfeit and altered coins. You should consider starting out as a vest pocket dealer. Make the rounds at coin shows and coin shops looking for the coins your buyers want. You won't have to buy a table at a coin show if you are a vest pocket dealer (but don't let them catch you doing a lot of deals in their aisles). You have only been collecting for a year so you probably have a lot to learn. I would recommend that you concentrate on your grading skills and your counterfeit detection skills. (ANA offers excellent grading courses - Beginner, Intermediate and Advanced - and excellent counterfeit detection courses every year at Summer Seminar.) I would also suggest that you pick a general area in which you wish to specialize (e.g., Morgan Dollars, Lincoln Cents, IHCs, Seated Liberty coins, Barber coins, etc.); you cannot be an expert in everything (especially when you are new to coins) so limiting the coins you primarily deal in will allow you to become an "expert" in that series quicker. You can always expand your area of expertise later. (Your customers may steer you in the direction of other series. Go with the flow.) Good luck and keep us posted on your progress.
Sorry tbone i'll go a little off topic here but do you think the wholesale bulk lots worth buying for $168. I'm intrested in buying it but looks like im better off buying it on silver junk? I am guessing they will through in some common dates and coins in there Oo. Either way PM if you ever do buy it. Good Luck and hopfully you make your shop where i live since theres none. I will gladly be your #1 customer
I am seriously considering purchasing the 100 coin lot for $185. The website gives a description of a 'random' assortment of 100 coins they pulled (which I'm sure is over-hyped and not average) but it seems like a solid arrangement of different coins. My main hope for purchasing this type of lot is too get several different series of coins, in various grades. I want to grade them and hopefully sell them. I'm not terribly concerned with profit per se. My goal would be to break even, just to get the experience. CoinTalk has steered me away from making a crappy purchase before, so before I dropped any money on this lot I wanted the forums opinion. Since the coins are 'random' it is impossible to make a solid guess as to actual value of what you'll recieve but at $1.95/coin (shipping cost included) I figured it wouldn't be too hard to grade, package and sell the best coins. I'm merely interested in the experience this would provide me. What do think CoinTalk. Go for if, or find something better?
Just looking at the pics of the buckets it is very obvious the placed the silver coins over a bed of cents. I would be a little leary of buying lots like that not knowing what you are getting. It could be a good lesson on how to lose money.
I would not buy the 100 coin lot. I agree with everyone that has answered your opening post. The reply from Hobo was quite informative & this is what CT is all about. When there is a good informative post, are we still supposed to send a PM to Peter to nominate it?
Hello again T-Bone0804, I am not a dealer but my advice would be to not buy those coins in bulk. One of the members here once said that a dealer should not buy coins in bulk unless they intend to sell them in bulk & are still able to show a profit by doing so.
If you are going to buy in bulk, buy from someone who is well known or a member of the ANA or PNG, or from a well known wholesaler. I think L&C coins do a lot of wholesale business if you're interested.
Thank you for all the replies, especially Hobo for an exceptional post. I am going to take the advice of the group and pass on the coin lot. As always, CT seems to have excellent judgement.
I would go to Wensy.com to start buying up inventory. Lot of low grade stuff but I have gotten some pretty good deals there.
To the OP, I would suggest what others have, you start as a vest pocket dealer and not worry about "inventory" The biggest thing is knowledge. You need lots and lots of it. Concentrate in an area, buy and study all of the good books pertaining to that area, and then try to cherrypick deals from other dealers for resale. Knowledge is money, bottom line.
I guess i would call my self a "vest pocket dealer" i get alot of my inventory from roll searching cents. I keep all the wheats and the nice "MS" cent up to to '70's
Well ,that site bought A LOT of my junk .... If its my junk then they are passing off to others for more than what I sold it for, It was junk when I sold it to them & it will be junk when you buy it from them. Now I know I'm not thier only supplier of low end coins & I dont know how they actually mix & sell their items but, I'd pass if you are looking for any quality pieces.
100.... Peices of Junk. not to be confused with peices of eight. You can get assortment of coins like that anywhere. Notice how the dates are hidden in the photo. That is your first and only clue that you need to stay away... Do they still call them grab bags? Or they used to put in little pots and miniture treasure chests. Why not just buy a low grade near complete sets from eBay. go for the Morgan sets because there is sure to be counterfeits in them and then you learn that way! j/k... sort of .
I have gotten bulk Wheat Cents and "unsearched" rolls off eBay. I have never gotten anything that I could turn for a profit. As a hobbyist, you expect to spend a bit on your collection. But as a businessman, profit is absolutely necessary. Knowledge of coins, knowledge of retail sales, knowledge of labor law, contract law, etc are all useful tools to succeed in business. The current economic climate is going to present a lot of challenges to a start up. I wish you all the luck and know that just by you're asking here that you will learn all the things you need. Good luck, gary
