Wholesale Coin Questions!!!!!

is there any place where you can buy large quantities of average circulated early 20th century coins for a good bargain???

 

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I'm gonna go off on a tangent here...I'm not sure if this is what the OP wanted to know but it's late and I'm all coffee'd up and feel like typing.

I often get asked where I get my coins. Sometimes new collectors think there's a magical wholesale source for anything you want. Still others want to become coin dealers and want to know where to go to buy coins wholesale.
Sorry but there's no such place.
I work hard and attend many shows and auctions to find inventory. I travel a good bit and always try to hit coin shops along the way. I purchase private collections... sometimes very small collections... sometimes entire estates. But I buy stuff virtually every day. This is not something that just anyone can do. It's taken me years and years of learning how to grade, detecting counterfeits, cultivating contacts and establishing customers. I've always been told that one of the main keys to success in this business is being able to buy every single coin in any collection. I mean this in two ways.

1. Being able to afford to buy whatever is put in front of you. 6 digit deals are not uncommon. If you are a full time numismatist you will see large numbers...usually bullion...but not always. Money goes to where money is. If you're known to be able to handle large deals you'll get MUCH more business than if you have to turn away large collections.

2. Having a very broad range of numismatic knowledge. I pride myself on being able to "buy it all". Many dealers try to cherrypick collections. Some only want certain types of coins...or even worse...DON'T want certain types of coins. In my experience many collections that come on the market are sold to a single buyer. The more you know how to buy and sell, the more you can buy and sell.
Sure there's some things I don't like as much as others...and certainly there's a LOT that I don't know thoroughly (ancients, overton varieties, newcomb varieties, to name a few) but nonetheless I try to buy it all.

Another key point is knowing who buys what in the world of dealers. Sometimes when collections come into the shop I take what I want or need for inventory or want lists, decide what (if any) I want to ebay, then just flip the rest to other dealers for a nominal profit. But I didn't get to this point overnight...and I'm always looking for new buyers for stuff. Some buyers tend to come and go so having backups and staying in touch with everyone regularly is a good idea.

Remember there is just no substitute for experience. The absolute best advice for anyone that wants experience in the coin business is to try to land a part time job in a local coin shop. If that doesn't work, VOLUNTEER to work a few hours here and there. It will be time well spent. Joining a local coin club is another way to learn. Don't have a local coin club? Start one! Surround yourself with people of similiar interests at every opportunity. ASK questions. WRITE emails. LOOK at a lot of coins.

I hope this doesn't sound preachy. I don't want to seem like I know it all. The fact is I'm still learning....after decades of collecting and dealing I still see coins I've never seen before. I still call friends to ask questions. I still attend local club meetings. I still read and learn more every year...and I hope that none of this ever changes.

Nick

 

Thanks for taking the time to lay out some things that will help collectors understand a little of how a dealer operates. Dealers have to contend with the view of some collectors that buying to resell at a profit is a shady occupation.

If there was no profit in dealing in coins, nobody would do it. If there was a huge markup on every coin and it took no more effort to assemble an inventory than that required in ordinary retailing, everyone would do it. Without collectors, the market in coins would be limited to bullion trading, and without dealers the hobby of collecting would be inaccessible to most due to the time required to acquire specimens.

You definitely don't come across as one who thinks he knows it all.

 

tradernick, are you telling me that there is no such thing as The Coin Fairy who visits coin dealers every night? Just kidding. Good post. It is interesting to here the other side of the market.

My philosophy on bargains is that I have never had a problem with paying a little more from a dealer if he is knowledgeable, honest and a good guy.

Good deals are nice but a good dealer who you don't have to worry about is better.

--
Stujoe

 

Great post sir. I would add that most transactions that take place are dealer to dealer. I sometimes wish the coin fairy would visit one of our offices. It would make things so much easier.