How do I become a coin dealer

Hiya everyone,

I was just wondering if anyone is a coin dealer and how they started their business and how they get their coins (eBay, auctions, collectors)? I have recently become a collector as I am on maternity leave but am finding it hard to get coins as they re solo expensive on eBay and you never knw whether they are genuine until they arrive.

Kind regards,

Lisa

 

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Same way you get to Carnegie Hall: practice, practice, practice. With all due respect, if you have only recently become a collector and with the kinds of questions you have, I would try to discourage you from trying to become a dealer. I have been in the business for 50 years and it is difficult to find fresh material at the right prices, and you absolutely do have to know for yourself how to distinguish counterfeits, both raw and in counterfeit slabs, from the real deal. Unless you are 100% confident in your ability to distinguish counterfeits, one mistake can cost you dearly. And think about it, do you really have the kind of cash needed to make a successful go of it? After all expenses if you have a 10% profit margin you are doing well. That means to make $20,000/yr you need to sell $200K worth of coins per year. Do you have that kind of money to put in coins? If so, then why not put it in something a bit safer?

And please, no flame wars, guys and gals, contrary to a lot of opinions I have read here, most dealers cannot sustain 30% profit margins and stay in business. That is not reality.

I buy coins from eBay, from estates and friends, various collector and dealer sources, networks, etc. All these contacts and skills take much time and effort to develop. Best regards to you and congratulations on your new family addition.

George

 

You need a bankroll to get started.

Get a couple of decades of knowledge under your belt before you start.

Then you have to begin advertising. This is going to cost you as well.

You need the education to know what you are buying so you don't get taken for a ride by buying grandpa's collection of coins that went down on the Titanic.

Buy low, sell high.

You have to know the difference between a fake and the real mccoy. (eg. you should be able to tell the difference between a replica Continental curency coin and a real one.)

Become associated with other dealers. Some dealers specialize in certain areas and you'll be able to recoup some of your investment immediately and make a small profit.

Buy and sell at shows. You'll meet collectors and dealers and you'll get yourself known.

 

Another way is, to collect for 30-40 years, then sell it off in retirement. You'll hopefully have a decent amount of coins to start you off in your inventory.

 

How do you become a coin dealer?

Open up a store and put _____ coin's on it.

How do you become a good coin dealer?

learn as much about the hobby as possible, and possibly specalize in a area. If you're hiring people, get a diverse croud such as world coins, u.s. coins, etc. That way if you dont know what a specific coin is, you have other resources.

Also remember it's a business and that you can't overpay just because you like it. And dont be a second-rate dealer.

Also if you want to be more professional, get certified with the ANA, Dealer certified with ICG, NGC, PCGS, and certified with the PNG.

 

You need the following:

5 Hawaiian shirts with mustard stains.
Sandles with white socks.
Unruly nose hair.
This would be a good start.

 

lol!!! Lmao!!!

 

or get a outfit like this guy

 

Ex dealer. The best way to get coins on the cheap is to sit and wait for someone to walk into your store who was a collector(usually one type of coin) but needs money fast and now. Because of the economy it happens often in a big city and 20-30 % margins grow to 50-60% easily because you usually take advantage of their need and rip em off. You current dealers know what I am talking about I am no longer a dealer but I had one of these guys monthly. Also the best coins are usually traded amongst dealers before after and durring shows

 

And a BMI of at least 30

 

First, find yourself somewhere around $250k, at a minimum.... Unless you just want to be a small-scale online dealer. Then I'd just set up at local shows and watch the auction sites for flippable material.

 

There are two options I would recommend choosing from:
A) I would start a small on-line shop and specialize in one category. It's the easiest and requires the smallest start-up investment.
B) Or, I would see if I could get a job working for a coin dealer locally to see how to get started as well as getting pointers for everyday business.

I would strongly advise against just renting store space downtown and taking the plunge blindly. I would also personally start out specializing in one area of the coin market such as Lincoln Cents, proof sets, modern commemoratives, etc.

 

Learn the market. Learn whats selling and for how much and to who. Best way to do this is buy a lot of cheaper coins and then list them on Ebay and see what happens. This will show you your spreads, where you'll make money and also where you'll lose money. Thats the best practice I can think of.
Guy

 

Good luck.

 

For any business you want to start you have to ask yourself a few questions:
-Is there need, are there collectors in the neighbourhood and will i make profit as coindealer
-Where is the competition, am i the only one in town, howmuch coindealers are there in the neighbourhood, can i compete with them
-Howmuch do i need to invest, howlong wil i give myself to let the investment pay of
-....

You have to do lmots of research and to my opninion you cant start as a coindealer without the knowledge about coins.
In the state where i live there is 1coin dealer, to my opninion a bad one, so if i want i could easely start a business of my own.
I would like to be a coin dealer to...




... In about 20 years or so.
First study, learn, experience,..... and then take the step

 

I.e. write a business plan!

 

Watch a couple episodes of Coin Vault TV to see what a bad example of pricing and marketing is. Knowing the market and the competition is very key in being successful, because you can take advantage of one dealer's shortcomings and use it to your advantage.

 

yes, did not know how it was called

 

My advice if you are serious is to work at a coin dealer for a year or two. You need to see firsthand how to buy, buy prices versus sell prices, cost of overhead, and 100 other things. This is above and beyond numismatic knowledge.

If you have the knowledge but not the ability to work at a dealer, then I would suggest buying large lots and breaking them down for individual sale on Ebay and the like.

If you have neither the knowledge nor the ability to work at a dealer, I highly discourage you from being a dealer.

I might sound harsh, but its the truth. If you are new, and cannot work at a dealer, I don't think its a good idea until you improve your knowledge greatly.

Chris

 

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