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<p>[QUOTE=&quot;GDJMSP, post: 1390309, member: 112&quot;]The subject has been discussed many times but like any other subject it always comes back up. In a nutshell what it comes down to is that people don&#039;t understand how dealers stay in business. The answer is quite simple. It is the same answer that any business has - they sell things for more than they paid for them.</p><p><br /></p><p>You say you don&#039;t understand how they can do that, and you say that partially because you see auctions as being one of the primary sources of inventory for dealers. Yes, dealers buy coins at auctions. But auctions are not their primary source. The primary source of inventory for dealers are other dealers. The majority of those transactions take place at coin shows where there are no shipping and insurance fees to pay. A secondary source for dealers are the electronic dealer trading networks. There are several of these networks and they bustle with activity every day.</p><p><br /></p><p>Dealers buy far more coins from these two sources than they ever do from auctions. And even with those coins that they do buy at auction, they buy a lot of them in person, where again there are no shipping and insurance fees to pay. And if they do buy a coin via an on-line auction, odds are they already have buyer for that coin at a price that is higher than they paid. The buyer might be another dealer, or it might be a collector. And dealers who buy coins at auction are often merely acting as an agent for somebody else. They aren&#039;t even buying the coin for themselves, but for somebody else.[/QUOTE]</p><p><br /></p>

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