Does dealer longevity necessarily equate to having the best connections in the market?

Longacre

I think that experience matters a great deal in viewing coins and determining if they are choice, market acceptable, or dogs. However, I am not sure about a dealer's connections in the marketplace. Does anyone think that longevity in the market by a dealer necessarily equates to having the best connections? Is it possible for a dealer to be dealing coins for say, 20 years, but not have very deep market connections? Or by default, does being around for that long almost assume that you have made (and kept) some really good connections? Or can a newbie dealer, know simply knows a few of the right people, have just as effective a connection network than a 20+ year guy.

Julian

I do not believe that a new coin dealer can have the same experience or connections as one that has been in business for a longer period of time. It is just common sense, Michael.

Coinosaurus

No way. Folks who have the "knack" for networking and dealmaking will outrun their peers quickly - not different from any other business, as far as that goes.

curly

If a dealer has been making a living at coins for twenty years then I imagine he (or she) has a ton of connections.

NHSBaseball

I remember reading (maybe in a Scott Travers book-or not) about the difficulty a young dealer had in penetrating the "inner circle" of dealers who make markets. I found it somewhat fascinating.

pmac

<< <i>No way. Folks who have the "knack" for networking and dealmaking will outrun their peers quickly - not different from any other business, as far as that goes. >>


I agree with this. Honesty goes a long way in dealing with people also.

nicetoning42107

<< <i>I remember reading (maybe in a Scott Travers book-or not) about the difficulty a young dealer had in penetrating the "inner circle" of dealers who make markets. I found it somewhat fascinating. >>



"How To Make Money In Coins Right Now" by Scott Travers, I don't know what edition. He was talking about , or maybe it was someone he was interviewing, the coin dealing before there was TPG. If he had a Gem and knew it was a Gem he could only sell it for Choice money because he wasn't in the inner circle. It took many years of pounding the pavement to get into that inner circle. The TPG have sort of levelled the playing field for everyone in this way. Same with online venues now and the relationship between dealer and collector. Now collectors can find other collectors to sell their coins to.

To address the original questions a bit, of course connections help. But just because you are a newbie doesn't mean you don't have good connections and just because you are a veteran doesn't mean you have good connections, but in most cases these are the exceptions. Yes, most newbies won't have as good of connections as veterans.

roadrunner

Don't think for a minute that longevity in coin dealers is a guarantee that they know how to grade or accurately value coins. I've run across plenty that even after 30 years in the business still knew very little about technical grading and were accidents waiting to happen to you.

roadrunner

Elcontador

Somene could be in the business for 20 + years and have filed bankruptcy numerous times. Not unheard of in numismatics.

BECOKA

Not necessarily for reasons already mentioned.

Could also be that the dealer is in a house that was paid for generations and has low over head. vs. someone who lives in the Santa Clara Valley and has an 800K mortgage for a 1300 sq ft house.

pheh

A lot of long time dealers...


... make lots of money ...


... in a lot of different ways.

-AND-

A lot of long time dealers...

... just get by ...

... in a lot of different ways.


A "successful dealer" that has been in business for a long time is a dealer that generally pays his bills on time. Does that equate to "market connections"? Of course it does. If you are reliable then the deals will come looking for you. Over time that gives the dealer a wider range of influence. A newer dealer can still make good deals. A newer dealer can still meet and network with "the right people" (whoever they are). However, I find it highly unlikely that a "newer dealer" can know just a few of the right people and have as "effective" a network as a successful 20+ year dealer. Which still isn't to say that if they have a natch for the business that they can't turn a pretty penny. But let the new guy get behind on his bills to some other dealers once or twice... sorry, that crap just doesn't get put up with for very long.

TwoSides2aCoin

Reputation, service, honesty and integrity. The coin world probably takes longer than most business to establish rapport and camaraderie plus that level of trust with other players (best connections). I don't know if it is longevity which equates to having the best connections or if it is the reputation. I suppose they go hand in hand.

Bear

I am always amazed how the best of the dealers, seem to be able

to remember all of the major coins that they have ever handled or seen.

Further, they seem to know where the coins reside at any given time. This

long term memory, web of personal contacts as well as excellent reputations,

allow these dealers to do the big deals year after year. The same goes for the major

auction houses. They take the long term view of staying in touch with the really big

collectors as well as middle collectors. When it is time to auction their collections, they

will go thru the auction houses that they know and trust.