So you wanna be a COIN DEALER !!!!
topstuf
Posts: 14,803 ✭✭✭✭✭
I don't think I've ever known a coin dealer who became a coin dealer by asking how to make
money with coins.
It's either a "calling" or an epiphany or pure natural evolution. Maybe some got lucky on a
bullion or numismatic "TIMING phase." However, if that's the case, it doesn't last too long
without more effort.
Most I know including myself were "interested" in coins at a very young age. Curiosity sparks
more interest and so it goes.
Without real (and natural) ...interest... forget it.
Most are voracious and varied READERS. Most also have a knowledge of history that is more
than the average person. They'll read things not only on coins, but also economic principles,
international trends and habits. In short...almost everything that could affect a government
or a financial institution.
Most are very familiar with ALMOST EVERY factor of monetary policies worldwide and historic.
That means UNDERSTANDING the financial markets.
They'll REMEMBER what they read. Or at the very least some idea of WHERE they read it. It will
help to have a nearly photographic or eidetic memory. A book of any advantage at all will
be kept and treasured. The subjects will run from theory to human nature. Human nature will
be especially retained.
When I "learned" counterfeits, it was not from a book.
A coin dealer will seek and find a PERSON who knows what he doesn't. He will ask an EXPERT
how, why and wherefore the expert knows what he does. He won't take a lesson without confirming
it with or by another PERSON.
Many ignorant people think that success in a coin business involves ripping off widows and heirs.
In a few cases, that's true because the field is not widely understood. However, the rippemdippem
shops will close when they've exhausted their "territory" or wound up in jail.
Many also think that a ton of money is required. In that instance, the money required IS
substantial but nowhere near impossible. And there is ALWAYS that "contact" they've made who
has unlimited funds and will co-op on large amounts as a "partner" in deals.
A great deal of money is made from the deals you'll have to ....SHARE !!!
THE ONE AND ETERNAL REQUIREMENT: Keeping your word!
NOTHING will spell doom faster than reneging on a deal or changing any PART of an agreement
that they've made. Even if it entails losing money, a lasting coin business will HONOR
every single commitment. Bad checks fall into this chasm, too. ONE bad check is permanently
remembered.
Second would have to be speed of action. Dilly dallying just doesn't fly. If a mistake is
made, it's MADE. Learn and don't repeat. But you'll have to do it ...FAST! If there's an
opportunity in front of you, chances are it doesn't have much of a half life.
What a neophyte should know is that for every coin business in a given area, there are
a dozen or more "conventional" businesses like mini marts and pizza parlors and the requirements
are far simpler. It is NOT an EASY business. Don't let your collecting factors relate
to coin BUSINESS as the example to expect. It won't.
Realize also that in the coin business you will have to make BOTH the buy and the sell price
and do so profitably. There will be no warehouse with stable price sheets that you can order
from and have a standard retail price that will be consistent with the competition.
A complete coin business will....probably... also encompass dealing in bullion product.
TAKE CARE! NOBODY knows what bullion will do and that better be foremost in the mind of anyone
considering it. The only SURE way to make money in bullion is to establish a ..level...that
you MAINTAIN. Keep the inventory at that level and rake off the money from buying and
selling within that predetermined level.
Be a realist. An honest one. If you can't sell a coin without a loss, then ADMIT to yourself
that you are running an ever dustier museum. And KNOW that you are.
Coins MUST TURN !! There's doom in stale merchandise and it should be turned relentlessly.
The successful coin dealer will also be aggressive. Maybe even to the point of alienating
some people. This is a factor to be considered by EVERYONE who is considering this as a
career. Coins don't go well with Facebook. 
And that's about all I can think of right offhand.
Any questions... post em. I might even add stuff myself that I've forgotten in this post. 
Comments
I have a hard time reading lengthy article ...... please give bullets
Quite a prescient and accurate post. Bravo . . . . . and my nominee for POTD.
Drunner
Scroll slooowwwllllyyyy.....
KK ...... swim sloooooowwwwwwlllllllyyyyyyyy ......
RED ........ my Rhode Island Pet chicken
Hmmm
OldEastside's Used Coins..............where you'll never get a Lemon at OldEastside's Used Coins
(Use Cal Worthingtons Voice)
or
OldEastside's Prestigious Classic Pre Owned Coinage for those with discriminating tastes
(Use Johnathon Higgens Voice from Magnum PI)
I just never could decide on a Name or catchy slogan, so I just collect em
Steve
Wannabe here.
``https://ebay.us/m/KxolR5
I have to comment that I agree 100% with the OP. As a collector that can't afford his habit, I have been forced to turn to reselling as a means to accumulate.
I have been able to add to my collection by selling the coins I can not keep by being truthful about the quality of what I offer. Sometimes I take a small loss, these are more than made up for by those that I do profit from.
I feel the key to this is knowledge. I know very little about many denominations, so I don't try to work with those coins. I have tried to learn about Lincolns, and 90% of my speculative buys have been in that series.
Patience is a very important factor, both in buying and selling. You can't buy everything that is potentially undervalued, you can't sell a special piece to the first offer. You have to wait for the right buy and be willing to hold it until the person that appreciates what you see in a piece comes along.
One important thing that my wife helped me realize when I sell a coin at a price that is a great deal for the buyer, is just how happy that buyer is that they got a great deal.
Some things ARE more important than money.
Ed
http://www.silverstocker.com
Anyone can PM me Any Time about Any thing.
Oh-good...I just glanced at the video and thought to myself...
That poor duck...Something is wrong with it.
My Saint Set
@topstuf....Well stated... and within that text are most of the reasons I do not sell coins...However, I was dynamite in aerospace electronics.
Cheers, RickO
I don't expect that. Having dealers to blame for all the ills in the coin market is a comfortable thing for some.
Good post @topstuf . I agree very much with what you have said.
I will just add one thing. 10 to 20 years ago it was much easier to get into and to maintain a coin business. It is much more of a challenge now.
True. Other endeavors also.
Everything ran better before the banks forgave the deadbeats.