The costs of the coin dealer

Well the greysheet is online also. But tradernick is right, most dealers in the country have coinnet on their computer running all day long. For all day use, it runs $125 a month paid yearly in advance. You must have two industry referrences and be a licensed dealer.

The greysheet is published weekly and has a web page that is up to date. These bid/ask prices allow the dealers to buy and sell coins to each other at given prices.

My firm often attends shows in order to buy only. Without coins, we would have nothing to sell. Traveling expenses are just part of the equation. Like we have tried to tell you, being a coin dealer is not cheap. The more money you spend wisely, the more money you make.
Profits are made in buying.

Now as far as determining retail, it is based on each coin in particular. No set rules apply. If you are at a show, the coins are sold at tighter margins. This is because every dealer in the room has the same material. We are directly competing with each other for customers. We sell coins based on what others are priced at. Sometimes we raise them, and sometimes lower them.

Most dealers that I know attend at least 3 shows a year. I would guess that some never attend shows. It is up to the owner of the business. Shows are nice in a lot of ways. You get to see your customers, old friends, other dealers, and new friends. It is great for buying. Most of the shows I attend have 400 dealers or more in attendance. If you can't find the coin you need there, it probably isn't available. Most of the larger shows also have auctions. These are quite a bit different from online auctions.

http://www.bowersandmerena.com/auctions/listings.chtml?passkey=&catid=494&auctid=11747

Now this is a good auction for dealers.

Now back to shows. There are many shows we attend that we lose money on. Some shows we attend are strictly for buying. It all balances out in the end. For the show you lose money on, the coins bought once sold makes you money.

 

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Do you know any good website for coin shows in Minnesota? United States? Is ebay good for buying coins? To go to coin shows to buy/sell do you need to be a dealer?
thank you all for all your help!!!!!!!!!

 

http://www.coinshows.com

there is a thread about Ebay. Take a glance at that. I think my opinion about Ebay has been made already too many times. I do however suggest if you must go to Ebay, take a look at tradernick.

 

To set up a table at most shows: Yes you have to be a licensed dealer. If the show promoter does not know you, he will look up the company name in the dealers directory and ask for two referrences.

 

On www.coinshows.com they don't say any info about where the coin show is held.
thanks

 

Sorry, that was the best I could come up with. Try contacting a local dealer and asking about shows.

 

Do you recomend buying a coin store? Then starting your own?
thanks

 

How do you start your inventory? Are there dealers that sell coins in lots?
thanks

 

There are plenty of dealers selling in group lots. But as I have said before, they are bulk price. Lots start at a minimum of $5000.00

Whether you buy an existing store or start one fresh, the same things apply. I know of two stores available currently. Both are priced at just over a million.
Both have around $300,000.00 in inventory.
You start your inventory by buying as much as you can. When I got started, I bought the firm I was working for. That gave me working inventory and a few employees.

 

Could you tell me some dealers that sell lots? Do they make you pay more then the coins are worth? When you start a store should you buy coins that are worth very little money?
thanks

 

Just about any large dealer will have large lots for sale. These lots are sold at wholesale prices. When you call them, ask to speak to the owner or manager and inform them that you are making a large offer on large lots. Do not waste their time for anything less than $5000. at a time.

Now as far as cheap coins or expensive coins, well that depends on what your customer wants. Some dealers have inventory that ranges from cents to thousands of dollars. That is something that you will have to learn.

 

I just looked at the become a silver bullion dealer fourem and I wanted to know how you would be a silver bullion dealer? Who would you sell to?
thanks

 

To be a bullion dealer would require serious capital, on top of convincing the refiners or the Mint to deal with you. Currently the Mint does not accept any applications for bullion sales. The major refiners will not deal with you until you have a few years under your belt along with serious financial standings.
The average is five years in business with 1 million is current assets.
All of that is based on the fact that you could sweet talk a refiner into dealing with you.
Now with that said, you can still purchase from an authorized dealer, and they are listed in that thread, on the bulk plan and still resell.
Bullion dealing is the least profitable of all. Bullion is sold pennies on the dollar. For silver, the average is 60 cents per ounce. Gold is about 25 dollars on the ounce. Platinum is around 50 dollars an ounce.
When you are putting out thousands of dollars, you have to have the ability to move this material fast. I only deal in bullion because customers want it. For the time and effort, it is not the best.

 

Who would you sell to if you bought from an authorized dealer?

 

Anybody that you wanted to

 

You don't have a store so would you sell to coins stores ,etc.?
thanks

 

Selling to dealers is a very difficult process. One the profit margins are quite a bit smaller. It does have its benefits also. The turn over is fast.

If you are truly serious about buying and selling coins, start at a local level with a job at someone elses coin shop. Because with your limited experience, you will lose a hundred grand quick. Believe me, it is not hard at all.

 

Back to the silver bullion. Do you know any suppliers that sell silver bars, rounds, etc? On ebay there are stores and they sell silver bars and I want to know where they get them? Sadly they won't tell. Do they just buy a lot when silver is cheep?
thanks

 

They buy silver in bulk no matter the price. When you buy in bulk, you get a small percentage near melt. Then you add a dollar to your price and sell it.

 

So do they buy direct from the mint? How about when the price of silver was up at 8.00 an oz? Did they pay 7.00 an oz? If so the price yesterday was 5.00? They sell it at 6.00 and loose 1.00.
thanks