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<p>[QUOTE=&quot;GDJMSP, post: 1711086, member: 112&quot;]Kinda sorta but not really. Coin dealers are no different than any other business. They buy at wholesale, and they sell, or try to sell, at retail. If you sell vegetables, furniture, clothes, whatever - that is how you make your living.</p><p><br /></p><p>Now I said try to sell at retail above because probably 80% or more of all coins that a dealer sells are sold to another dealer. So rather obviously most of his coins are sold at wholesale - not retail. So in that regard your comments are accurate. But if a guy is selling vegetables to make his living, you wouldn&#039;t say that he was investing in vegetables. You would say he bought and sold vegetables.</p><p><br /></p><p>The point is you can&#039;t equate collectors to coin dealers because they are not the same thing. Even when a collector buys a coin saying to himself if I hold onto this for 10 or 20 years I can sell it and make a profit - they are not the same thing. No coin dealer buys a coin telling himself he&#039;s going to hold onto to it for 10 years before he sells it. If he did, he&#039;d quickly be out of business. </p><p><br /></p><p>Coin dealers buy coins because they plan to sell them right away, they often have the coin already sold even before they buy it. Collectors do not do this. Collectors buy a coin with the intention of that coin staying in their collection for years if not decades.</p><p><br /></p><p>Any coin dealer out there worth his salt knows for an absolute fact that the majority of all collectors will lose money on their coins. That is after all what keeps coin dealers in business. And that is where the problem with using the term &quot;investment&quot; arises if and when a dealer uses the term investment when he is trying to sell a coin to a collector. </p><p><br /></p><p>And investment implies that you are going to get a return on your principle, that you will make money on the deal. So when a coin dealer uses the term investment to hype his wares and help him make a sale to a collector, knowing full well before he ever says a word that the collector is going to lose money on that coin 9 out 10 times, then that dealer is intentionally misleading his customer in order to make the sale by saying that the coin would be a great investment.</p><p><br /></p><p>That is the problem. That is exactly why the FTC and the courts have stepped in numerous times over the years to curb the activity of unscrupulous coin dealers. That is why when coin dealers use the term investment in their sales pitches that the authorities take a long, hard look at them.[/QUOTE]</p><p><br /></p>

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