What is a fair commission rate for a coin buyer?

HKstrongside

Hi all, just curious, what would be a fair commission for an individual that is researching, finding, procuring and delivering around $1k a month in coins for someone else?
Thanks in advance.

SamByrd

20% to 30% imo

HKstrongside

Sam, thanks for the input.

Anyone else care to chime in? Your opinions are greatly appreciated.

Goldbully

<< <i>20% to 30% imo >>



To me, 20% dealer margin on everyday traded coins in this rotten business climate is more than reasonable.
Be happy with 15% to 20% on coins over $100 and under $1,000.
Anything over $1,000 and under $10k...12% to 15%
Rarites??? You are on your own as always.

Again, this is JMHO....I sell woodworking tools, and I am applying those criteria in this analysis.

Flame on dealers.

MercLovin

Uh, if someone is looking for coins and they're willing to drop $1k a month, and I get to do the shopping for them, I'd do it for 10%, easy. I enjoy doing that for myself for free, let alone doing it for money... awesome.

ianrussell

Is the $1000 a month made up for 1000 coins or 1-3 coins?

HKstrongside

<< <i>Is the $1000 a month made up for 1000 coins or 1-3 coins? >>



Will mostly be for bullion. I imagine possibly a rarity or two here and there.

ianrussell

For straight bullion, 20-30% is too high in my opinion.

- Ian

MercLovin

Too high? It's a straight-out ripoff.

If someone wanted me to buy bullion for them, I'd do that for 5%.

BaseballAbs

Why would you need someone to buy bullion for you?

pennyannie

How many hours a month do you spend doing this type of work?

BigE

Dont buy coins/bullion this way, too many variables and it never works----------------BigE

Bochiman

How much work and risk will there actually be?
That would dictate my commission.

SamByrd

my response is based on coins as per a want list or collection goal. 20-30 percent is a good value for a savy dealer to fill a want list or collection goal imo.

Bullion one can buy on the open market many B and M stores will be happy to sell you bullion at such a level often at very competitive prices. If you buy on a regular basis you can get 5 or 8% over spot with out issue sometimes a bit less. In addition you have the advantage of picking it up. Add sales tax if it applies where you live to the dealer markup.

7Jaguars

I pay 5% commission to be represented at auction - usually for 2-4 coins...

MrEureka

If the buyer is a professional, the range should be 5-10% on deals of this size. 10% is very high for bullion, but $50 isn't much compensation to a professional that could be using his time more profitably on larger deals.

On the other hand, if the buyer is a friend or family member, I'd say 5% is plenty.

Frankcoins

10% on most items. I used to buy rarities from the late Robert Astrich for my clients ($5K to $50K) When working with a supplier of problem free
premium coins, and a serious client, we were glad to work for 1% or 2%.

wondercoin

3% tops on the bullion related stuff.
10% -15% tops on the numismatic stuff

Wondercoin

09sVDB

Depending on the value, high for lower value coins lower for higher value. 20% under 1K and gradually increasing as the value goes up.

HKstrongside

Thanks you guys, this has been very helpful!

pursuitofliberty

Interesting slew of answers. Of course, it all depends.

If it's 1.K every month, and a dealer is buying you bullion, even 5% (50.) probably isn't much worth the time to find you good solid deals (which I would expect is what you want to pay for), but it sort of negates the good deal to a large extent. Although if he is a regular bullion dealer, and just picking off the top of his inventory, that's probably a no-brainer, and as Mitch (wondercoin) alluded, 3% over normal is probably more than sufficient in that case.

If it's an average of four/five purchases (mixed anyway you like), then surely even 10-15% might not be worth the time of a dealer, although depending on what you are looking for, the volume of the dealer and those types of coins, the agreements in place, and how the dealer handles it, it certainly could be.

Again, it depends.

If an associate wanted me to buy for them to add to their PM stack, and piggy back on my purchases, I could not charge them more than 3-5% (depending on the amount) and feel okay with it. Probably less for purchases in the 1,000. range, or even free if it helped my ability to stack at a lowwer premium or if there was something more than just association. Of course, I am not a dealer, and so an earned ounce of silver here and there for something I already keep up on wouldn't hurt my feelings.

Coins are much more personal to me, so I'm not sure I could blindly ask a dealer to pick up $nnn. in coins for me, no matter how generic they might be. Okay, maybe for really generic pieces we could work something out if I wanted to go that way, but that isn't my thing.