How to profit in coins?

Simple, at least in theory. You must have an edge over other people. The term comes from poker, but it applies here as well. Your edge could be in grading coins, in knowing a series and finding rarities (both variety and conditional), your edge could be a large network of collectors willing to buy from you, or your edge could be a massive inventory. Point is, there are as many different ways to get an edge as there are people. But you have to have an edge over the person you are buying the coins from in order to add value and make money. If you don't know what your edge is, most likely they have the edge on you, this is a zero sum game.

 

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or you can buy high and sell higher.

 

It states on his "about me", occupation, ... "coin dealer"

 

I could put Abrams Tank as my occupation...that doesn't make it true.

 

i completely agree. thats why i bought ancient uncleand coins for 93 cents each.

 

Scott Travers is an author that writes quite a bit about Numismatic investment methodology. Whether folks agree with him or not, they generally agree they have a clearer insight into coin investment after reading his books.

In a nutshell, he suggests buying the highest quality key date coins you can afford. Deciding on which key dates is a bit more problematic.

The coin market is like any other; it waxes and wanes. I found all sorts of good deals 7-10 years ago. Today, coins seem mighty picked over...you have to pay top dollar for quality coins.

If I were going to get into coins as a money making venture, I would begin by getting a job with an established estate liquidator...and learn the market from the bottom up.

 

You are correct and it has become clear, in this case, not to be true.

 

Being new to hunting and collecting, I can express my opinion. I hunt for collecting. I have never sold anything on ebay, but have bought a few items. Im in it for collecting only. But, if I was to sell items, ex. silver, I would search something worth the money. Searching 100 in halves is the same of searching 100 in quarters as time is concerned. Only problem is if you find a half its worth about $9-$11 per 90% vs about $6 for a quarter. I would thing searching halves will yeild more money if thats what you are in to. I would suggest getting a job at a bank. All access to coins and you get paid to get there. Depends on what you think your time is worth.

 

Dealing's too foreign for this old sod. His Christian upbringing negated it a long time ago. My Jewish friends would laugh at me now but they were brought up differently. The hobby, as I see it, is an enjoyment indeed and I need not sully it with attempts at capitalizing on capital adventures. Still, I must admit, I have scored a few coups in the past but I always plowed the proceeds back into the passion of collecting what I enjoy......I never used the proceeds for wanton lust of money (too strong?).

My advice to OP is, if you want to make money selling coins then play the lottery. You've a better chance of scoring 'big', though I daresay the dear fellow (OP) is too young to buy a ticket.........

 

And now, a bit of music and lore from my younger days.......

[video=youtube;NRe42BDK_R4]http://www.youtube.com/watch?v=NRe42BDK_R4[/video]

 

In principle, yes, but the problem is that unless/until one knows the/their market, buying low and selling high is not always as easy as it sounds, and there are countless failed wannabe dealers out there who can attest to this.

 

That was sorta my point. The OP asked for a way to make an "easy profit" and there simply isn't one in this business. Period, end of story.

 

To take the OP's opening question seriously, though, I think he is wanting more detailed information than the vague answers we have supplied him with. Of course dealers buy low and sell high, have to know the market, have to edge out their competition, etc. But those are basic business principles in any profit venture. If I were asking his question, I have to think what he meant is where do dealers score their inventory than then allows them to turn it for a profit? Having operated a retail (non-coin) business myself, each industry has its own way of procuring product at wholesale. Perhaps he was asking what methods coin dealers use? I am pretty new to coins, but if I apply the same lessons from my previous business experience, my guess is coin dealers buy at auction--preferably auctions the general public tends to not attend, maybe also have relationships with estate liquidators, have the purchasing power to buy large collections at a discount and do the hard work of marketing the coins themselves, and buy the slag from other dealers who deal in certain coins and not so much in others. There's also CoinNet and Certified Coin Exchange that may facilitate wholesale purchasing of coins. I don't know I'm not a member of either, but I think that's their purpose. Like in any business, if you're not specialized, you may need to move alot of product at low margins to make a buck. But as your knowledge increases and you develop certain relationships and edges in your business, you can move less product at higher margins as you specialize in an aspect of the market. This is all speculation on my part as I am not a coin dealer. But I thought the OP's question was intriguing. I would also enjoy hearing more about how the wholesale coin market functions and where dealers procure product they can resell at a profit. Wholesale markets surprise me sometimes. In some goods, wholesale markets are very transparent and predictable, in others (precious gems), the wholesale market is very complicated, nuanced and secretive. I have no idea where the wholesale coin market stands on that, but sounds like an interesting read if any of our dealers want to weigh in on it.

 

OP needs a 'nose' and a feel for what he attempts to endeavor. It's not something that you can 'teach'. If it were, then we'd all be rich..........

 

The OP isn't even in junior high school yet. He wants a magic bullet and one simply does not exist. Hence, the replies.

 

Classic! :thumb:

 

Has the 'auntique' dealer he's been squeezing caught onto his trick?

 

And then destroyed them by improperly cleaning them?

 

Probably not, because it's a multilevel deception. The antique dealer is giving him a good deal because he thinks he is encouraging a young person to enter the hobby...

 

Antique dealers do that? Saints be praised.........