How to profit in coins?

Discussion in 'Coin Chat' started by xGAJx, Mar 24, 2013.

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  1. xGAJx

    xGAJx Happy

    Hi there guys, this is xGAJx.

    Im wondering how coin dealers make profits from buying or selling coins without the use of oniline sales, such as Feebay.
    And also without opening a coin store. My coin shops hardly buy anything besides silver for only its bullion value, they dont buy large cents, and if you offer them a 1916 d mercury dime, they saw would you like to sell it for 2.50 $? You get the point.

    So, what is the most reccomended way to make a profit easily, this is probably the hardest question to ask, but as Doug said once about in the high 90's coin collectors lose on there coin investment. Count me out of that precentage. So, any advice or tips? I think I should start coin roll hunting much more, by the boxes. Usually I just get 5 or 10 here or there. Thanks, :high5:
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  3. Tom B

    Tom B TomB Everywhere Else

    Know what you are doing.
  4. jloring

    jloring Senior Citizen

  5. xGAJx

    xGAJx Happy

  6. BooksB4Coins

    BooksB4Coins Newbieus Sempiterna


    One might expect that a dealer would already know how a dealer makes money...
  7. gbroke

    gbroke Naturally Toned

    I can't possibly answer better than those two already did.
    I suspect most dealers will tell you not to even try it. You have to be extremely knowledgeable, know the right resources to get stock, be confident in grading raw coins/already graded coins, and prepare to be disappointed.
  8. 19Lyds

    19Lyds Member of the United States of Confusion

    The simple answer is: Buy Low and Sell High

    The not so simple answer is look at a LOT of different coins and KNOW what you are looking at.

    Buying coins in BULK can make hidden treasures available but its really a hit of miss proposition. So, you have to do it a lot.
  9. CamaroDMD

    CamaroDMD Supporter! Supporter

    This is the key Buy in bulk to get better prices and then sell individually. You need a place to sell them as well...which requires an investment. So, you need to either sell online (such as eBay) or open a coin shop.

    Frankly...there is no easy way to make a profit. That is why so few people succeed in doing so and those that do don't appear to be getting rich. I would say enjoy coins for a hobby and make money elsewhere.
  10. jensenbay

    jensenbay Well-Known Member

    I thought you were a "dealer".
  11. CamaroDMD

    CamaroDMD Supporter! Supporter

    I think he's pretty young.
  12. tdogchristy90

    tdogchristy90 Dieu et les Dames

    "Enjoy coins as a hobby and make money elsewhere" I couldn't agree more, there are easier way to make money and make more of it. For me personally I've never seen coins as a business and haven't tried. For me it's a hobby. With that said I'd say I've done fairly well, I've always lost money but it's never been the money pit people make it out to be. I'd say every coin I've resold I've made 90% of what I had in it. The extra 10% I chalk up to a fee for enjoying what is a hobby and a love, nothing more.

    Besides, what other hobbies, sports, movies, eating ect have a tangible asset that allows you to at least make back some money instead of having it lost forever?
  13. Morgandude11

    Morgandude11 As long as it's Silver, I'm listening

    Buy low/ sell high is the only answer.
  14. medjoy

    medjoy Supporter! Supporter

    My preferred dealer has a low overhead shop, grades conservatively, describes coins honestly, uses the Greysheet for pricing. His prices are firm.

    He’s not trying to make a killing on any particular coin. Rather, he understands the value of a small, recurrent stream of revenue.

    He has many loyal customers and sleeps well at night.

    Without a storefront or online presence your audience is limited.
  15. CBJesse

    CBJesse Capped Bust Fanactic

    For what its worth I've noticed that problem free quality coins do much better when its time to sell.
  16. Pi man

    Pi man Well-Known Member

    I'd like to have a dealer like that. I think we all would. Consider yourself lucky.
  17. cpm9ball

    cpm9ball Cannot Re-Member

    When asked a similar question on another forum, one dealer replied, "If you want to make a million dollars selling coins, be prepared to spend two million dollars."

  18. Blaubart

    Blaubart Melt Value = 4.50

    This is what it all boils down to. Buy low, sell high. But, it requries expert knowledge to know what low and high is, since being off by one grade on high value coins can result in a large loss.

    Buying and selling bullion is easy. Calculate the melt value and offer a low but fair price when buying, and sell at the highest price you can move your inventory at.

    But, of course it isn't that simple. A business owner also has to be mindful of other costs: Rent, utilities, insurance, advertising, payroll, etc. A startup has even more expenses: Furniture, fixtures, building up inventory, security, legal, licensing, etc. They have to move enough inventory at a decent enough profit to cover these expenses, and also take some money home at the end of the month. I haven't started up my own retail business, but I know others who have. It's extremely challenging for the first couple of years.

    But, if you're not old enough to actually start your own brick and mortar business, you'll probably be buying and selling via the Internet, coin shows, craigslist face to face, etc. You won't have as many expenses, but you won't get the good deals that walk into coin stores every day either.
  19. Kirkuleez

    Kirkuleez 80 proof

    Most successful dealers have become successful by really knowing what they are doing and have many years of trust built between themselves and an always leery customer base. Not to mention a few tricks up their sleeves. If you really want to be a professional dealer, go work for someone who already is and learn the ropes. Good luck to you.
  20. Danr

    Danr Numismatist

    I have said this before but it can be repeated here- my brother likes cars- he likes to work on them he likes to talk about them he likes to buy and sell them... he makes money off of cars because it is his passion. If I tried to make money off of cars it simply would not work. If my brother tried to make money off of coins that would not work either.
    I am not a dealer really at all but I do make a little money by going in big on the "sure things". People will say there are no "sure things" but they are wrong- if you pay attention and are into it you will spot the "sure thing" now and then.
  21. Hobo

    Hobo Squirrel Hater

    My advice would be to start off as a vestpocket dealer; make a want list for your customers and look for those coins at coin shops and coin shows. At the same time you could build an on-line presence where you can buy and sell other coins.

    But before you start you need to educate yourself on many aspects of coins - grading, pricing, authenticating, spotting varieties, etc.
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