At What Point Does a Collector Become a Dealer?

braddick

I always refer to myself as a Collector. I guess I do so as I don't derive a living out of selling coins. I was told I'm wrong. Anyone who sells coins, pretty consistently over a period of time should then be considered a "Dealer".

Who's right?

Are you no long a Collector when you buy coins for resell?

dbldie55

When does a druggie cross the line according to the law?

RKKay

Have you ever uttered the words "Done Deal"?

Prethen

For the time being, I intend to do both. I have a 7070 Type set I don't plan on breaking up soon (and might even upgrade), as well as a nice XF/AU 2-3-20 cent collection I'm still trying to complete. If I have duplicates in early proofs, I'll probably sell those but the rest I'll hold onto for awhile. Other items from my personal collection will probably make its way to my dealer's table in the coming months.

kieferscoins

When you ask for free flips you have become a dealer.

Cameron Kiefer

ER

A dealer (real or wannabe) buys and sells coins primarily or partially to make a living. My definition.

dthigpen

When his/her collection all becomes inventory.

RYK

When you spend more energy buying coins to sell and selling coins than you spend buying coins to keep for your collection. I have had a DONE DEAL, and I have had some free flips (they have come with coins inside), but I do not fancy myself as a dealer.

relayer

When you start buying coins that you have no interest in for your collection, but for the sole purpose of reselling them at a profit.

ajc

I get free flips all the time without coins in them but I don't sell anything...I would hate to know what I am:S

haletj

I don't want to be a dealer, but I buy original rolls so I can find nice coins for my collection, and so it only makes sense to sell duplicates as to have more money to buy yet more rolls... and on and on and on....

keets

collector----someone who's focus is on building a collection, though that may entail selling coins on occasion. me
dealer----someone who makes buying/selling coins a primary source of income. coinguy1
collector/dealer----someone who still collects, but the primary focus is on making money. MadMarty
dealer/collector----someone who acknowledges being a dealer, but they still have an interest in forming a collection. BillJones

sorry if i picked on anyone!!

al h.

Prethen

<< <i>When his/her collection all becomes inventory. >>



Eh? No way! I know a number of dealers who have a specialized collections they have no intent on selling in the near future. I believe at some point I might break up some of my stuff for resale but probably not everything.

And, as far as purchasing coins just for resale....I've been doing all I can for the past couple of months. Like I noted in my other thread, finding material for resale is easier said than done. Hopefully, I'll start finding new sources in the months to come. Right now, it's a bit flustering.

This will be a part-time gig. I'm going to do it because I enjoy the hobby, the people, the material, the learning, and making a few bucks at something I love. I'll keep my full-time job thank you very much. Full time dealers, especially if they're a single income earner for the family, probably need to turn one half to one million dollars of inventory per year for a decent income. That's a ballpark I don't envision for myself. If you have much higher profit margins you probably need to turn less inventory, so I'm being somewhat conservative.

Smittys

I was a Vest pocket dealer, helping put myself through College, however I
had a regular job. I consider anyone who sets up at shows with a regular job
a Vest Pocket dealer, a true full fleged dealer is someone who's primary income
is from the sale of coins.


Smitty

Bochiman

My opinion (not usually worth enough to buy a cup of free coffee in the morning) is that you are "dealer-class" when you buy to resell and do it frequently.
Not talking the "buy a bag of halves and resell on ebay for twice face" or "buy a set of WI extra leaf quarters, see the value go up 400% and sell", but rather someone who sees a coin, says, "I can make some money off that" and then buys/flips it.

Set up at a coin show to sell. Dealer.
Constantly buy to sell. Dealer
Sell parts of your collection because you upgraded. Collector
Buy large bulk of something (say, a tube of SAEs), keep some. Sell the rest. Collector.
Buy proof/mint sets on ebay because you see a coin that could be submitted and sold for $$$. Dealer
Buy items on ebay just to take better pics or dip/sell. Dealer.

RYK

Keets,

Great illustration of the spectrum that exists from pure collector to pure dealer.

grip

Cameron,got it right

JrGMan2004

<< <i>A dealer (real or wannabe) buys and sells coins primarily or partially to make a living. My definition. >>

And buys solely with the intention to sell for a profit...

LanLord

Is your first sale the one that makes you a dealer?

I don't think so, unless it's with the intent to be a regular in the buying and selling of coins.

If you occasionally sell coins, you are simply selling your "chaff" .

Arguably these are very narrow differences, but I think there is intent that needs to be considered.

coynclecter

<< <i>Are you no long a Collector when you buy coins for resell? >>



My definition exactly. This doesn't require that it be your sole source of income. A professional makes thier living at it. A semi-pro makes money but has other income or another job. I would believe that anyone who bought a coin they didn't intend to keep in thier collection or for an investment would be classified as a dealer/collector.

BTW it also doesn't require that you actually MAKE money, only that you purchase with the intent to resell and make money. Now if you bought to resell later and intended to make money as a function of the value increasing over time due to market forces then that would make you an Investor, which also does not require that you actually MAKE money at it.

Bear

When a collector sells coins to raise money to increase his collection

rather then to make a living, they are still collectors and not dealers.

Being a dealer and collecting coin in the same series as your clients

is a conflict of interest in most cases.

TUMUSS

You become a dealer when you file the appropriate tax forms.

monsterman

tumuss

>>>>You become a dealer when you file the appropriate tax forms.>>

bingo!!!!!!!


i closely watch myself with all acid tests uncle sam uses....at ngc and pcgs i wouldnt even submitt in the begining as the form said " dealer name ".........also the area where it says dealer #....until they came up with the collector society..i used someone elses

so the next question is...what do you do with your coins show travel expenses...capitalize them or deduct them.....since i own a vending business i have to go to shows and see what the mint is doing next as their changes ( which a often now a days ) effect me and my profits....evry time they change the bills it costs me bigs bucks for new chips in my machines....so far in the last 10 years there has been 3 changes to paper money...not fun i can assure you

monsterman

SMS

Where do hoarders fall in all this?

carl

Nothing personal to the possibly honest dealers on this forum but if you just wnat to see how much you can steal honestly from people, then you may be becoming a dealer. If you sell used cars and now want to expand to selling coins, you are a dealer. I have met some dealers that are collectors but most just are in it for the almighty buck.

Prethen

I get the feeling from this thread that I missed out on the "dealer" fraternity initiation meeting and the special handshake.

parkave

There have been some collectors in the past like Elliot Goldman, Allstate Coins, Larry Shepard of Simco, to name just a few that were originally collectors that turned to full time dealers.

I was a collector years ago until I sold my collection to buy my first house. I could not beleive the values had gone up so much. Seemed like a good time to make a career change in the early 80's anyhow. After 20+ years as a dealer I gotta say it's been quote a ride and I am witnessing more and more collectors turned vestpocket dealer then ultimately full time dealers. I know because now they give me the correct resale info!

EJB

If you sell one coin for a profit, your a dealer, One or a thousand, it makes no difference...

Proof

When you go o the next coin show and Laura says " Hi Wannabe ".