How Much Money Should I Start Out With?

BigJeff375 · December 16, 2003 12:52PM

I'm thinking about becoming a part-time coin dealer to supplement my Disabliity income. Any advice on how much inventory I should acquire before selling at coin shows?

Placid · December 16, 2003 12:54PM

$1,000,000

coinguy1 · December 16, 2003 1:17PM

BigJeff,

I'd recommend starting out on a very small scale, so that you can find out, before you put too much time and money into it, whether you can re-sell the coins you buy.

There is nothing wrong with starting out small and slowly and carefully building the business up, if things go ok for you. Initially, at least, I wouldn't be as concerned with the particular amount of capital, as I would with learning the ropes, making connections, finding the area(s) you want to deal in, etc.

DaveG · December 16, 2003 1:18PM

I would think it would depend on the kind of shows you go to and the kind of dealer you want to be.

There's not much point in having a case full of $1,000+ coins if you go to smaller (say about 35 dealers) where the average price point of the coins being offered is about $50-$75, and vice versa.

I'd say that you should be familiar with what's usually offered at the shows you go to and try to find out what's in demand at those shows. Once you've done a few shows, you can adjust your inventory up or down to meet local tastes.

Other than that, if you're sharing a table, you should have enough material to fill a display case. If you have a table to yourself, you can fill two display cases!

coppercoins · December 16, 2003 1:53PM

I don't think it's really as much a matter of how much you start out with, but what you start out with. If you took $100K and tossed it away on a bunch of junk, you'd be a lot less likely to succeed than if you very carefully invested $20K to start off. To do show dealing I would think you would need no more than $10-$15K and a LOT of knowledge in your skull. If you don't have the second, no sense in getting into the first.

sinin1 · December 16, 2003 2:10PM

what do you like?

a couple small local shoes I go to have some people that sell their interests (and some spend more time talking about what they like then selling)

there is the foreign coin man, the english shilling man, the Canadian coin guy, the currency guy, the slabbed Morgan person, the cival war token man, the lady with the state quarters (rolls, individual quarters, books) the guy with most dimes from bust to current, the man with the gold slabs, and the other half that has some of everything

some guys seem to buy from people walking in more than they sell

relayer · December 16, 2003 5:15PM

How Much Money Should I Start Out With?

That all depends on how much you want to have left when you are done.

MrEureka · December 16, 2003 11:28PM

Any advice on how much inventory I should acquire before selling at coin shows?

I wouldn't spend more than 10% of my available funds just to fill a showcase. On the other hand, I'd put every penny into inventory if a good opportunity presented itself.

BillJones · December 16, 2003 11:36PM

Money is important, but you had better know how to grade, spot played with and bad coins and learn how to put values on things BIG TIME or you will fail. Being in back of the counter is lot different that being in front of it. You have also got to get used to less mark-up on your sales than you might expect. And you have got to get used to cheap customers who will not pay fair money.

I love this hobby and I've collected nice coins for over 30 years. That's why I know as much as I do, but I don't know everything and I learn that every day. Some guys seem to be naturals in this business and pick up fast. Others, like me, need years. Ah well...

As for capital, $10 grand in inventory is not much at all. You will need another $10 grand in cash or credit line at least. The net worth of my business hovers in the $100 grand area, and I'm a small time guy.

But like I said at first knowledge and a love of the hobby are more important to success than money.

Veep · December 17, 2003 12:47AM

Q: How do you make a small fortune in the coin business?

A: Start with a LARGE fortune.

agentjim007 · December 17, 2003 12:47AM

Its just as important to be able to buy at a show as to sell (thats where you should try and pick up inventory) so keep some bucks handy.
Put a sign on your table, BUYING US coins (plus whatever else your interested in)

DeepCoin · December 17, 2003 2:39AM

The points being made are all very good. I would like to agree with the person who said to specialize in an area. You cannot know everything, so don't get involved with areas where you lack knowledge as it can be too dangerous financially.

If you specialize you can slowly grow a following in that area and it will drive others to look at those and getting you buyer exposure for the rest of your inventory.

Good luck!

How Much Money Should I Start Out With?

Comments

Leave a Comment