Where do coin dealers get their coins?

tomvdb

I know this may seem like a stupid question, but I'm new to collecting coins and I'm trying to learn as much as possible.

Where do the coin retailers get their coins from? I mean, how is it that all at once a dealer has dozens and dozen's of the Adams error coins? When I read about how things like that are discovered, etc. it would seem that it would be months before dealers would have them in the quanities they do. But, there they are all over the internet, ebay, etc. Seems more like a set up job to me. :-) LOL!

Or, they have dozens and dozens' of "hard to find" and "rare" Silver Eagles that are MS69/70 Cameo's,(well you get the hype). Yet, they have plenty for sale and it is obviously not hard to find or I would not be reading their add.

Is there one source or several centralized sources that these dealers go to? Because I know they have to make a profit. Then, when I look in the Blue Book by Yeoman's, the prices he list for these items are much much cheaper than what this stuff is selling for.

Given this I wonder if there are really any honest retail coin dealers out there. ANyway, this is my question and the basis for it. Thanks,

Tom

FLBuffaloHunter

For presidential dollar error coins, the main source is sealed bricks of 1,000 coins. These individuals are able to obtain many of the coins because they have researched where the errors are showing up and know where to look. For ASE's the main source for dealers are 'green monster boxes' which are bought for a small premium over spot price directly from the mint by authorized dealers.
'Rare' has a different meaning from one person to another so it should only be taken as an opinion. The blue book prices are only a guideline are a frequently outdated and they usually do not reflect the pricing fluctuations the coin market is subject to.

ilikebuffaloes

The dealers who have been in business for a while have built up a network of sources. When the average Joe finds several error coins in a roll that he or she got from the bank, they might sell them to a dealer they know rather than go through the hassel of selling them on eBay (for example). Dealers buy from other dealers, estates and collectors who want or need to sell their coins. It is a full time job for most dealers. (I know because I tried to do it part time and it was difficult to stay on top of the market that way.)

I have sold items to dealers because it was easier to sell a quantity of items to them. It is important to remember that these dealers are in business to make money, so they are not going to offer full retail for your coins. But if you sell on eBay, you pay fees so you don't get the full price either way.

With the new dollar error coins, the price has been fluctiating because it is not known how may exist.