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<p>[QUOTE=&quot;GDJMSP, post: 1378531, member: 112&quot;]It&#039;s the same answer for both of you. And the reason you don&#039;t already know the answer is because you have some preconceived notions about how things work.</p><p><br /></p><p>Yes there absolutely is a wholesale market in coins. And here&#039;s the part you don&#039;t realize - that wholesale market is probably 400-500% bigger than the retail market.</p><p><br /></p><p>You see, probably 80% or more of all the coins that a dealer sells, he sells to another dealer. He has to just to stay in business. A dealer has to turn his money over, he has to keep cash flow moving so he can continue to buy more coins. And he&#039;ll do that any way he can. His goal of course is to sell as many coins as he can to retail customers, collectors. But the only coins he can sell to retail customers are the coins the collectors want. And the coins the collectors want are the ones they don&#039;t have.</p><p><br /></p><p>Now think for a minute, what are the coins you don&#039;t have ? Almost always it&#039;s either expensive ones or the hard to find ones. Sometimes those two are the same thing but not always. And of course because they are expensive or hard to find then a coin dealer isn&#039;t going to have a lot of them. So he can&#039;t make enough money to live and keep the business going by selling something he doesn&#039;t have. So to make up for that he sells what there is a lot of - common date, common grade coins. Coins that almost everybody, meaning collectors, already has.</p><p><br /></p><p>So who&#039;s he gonna sell them to if not collectors ? Rather obviously - other dealers. You see, each coin that is out there has probably been sold a hundred times, a thousand times, maybe 10 thousand times. And along the way of that journey that coin has made a stop with this collector or that collector, but only for a while. For eventually that collector either sells his coin to upgrade, because he needs the money, or because he dies. And then that coin goes right back into the circle again. </p><p><br /></p><p>It&#039;ll go from this dealer to that dealer until it finally lands at one where a retail customer comes along and eventually buys it. But for every retail sale there&#039;s 4 or 5 wholesale sales. And that&#039;s what keeps the wheels turning. There isn&#039;t anything else.[/QUOTE]</p><p><br /></p>

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