How to Make Money as a Professional Coin Dealer
BNBAnalytics
Posts: 400
I always wonder(And I will post this under the currency section too)
How do dealers make money at what they do?
Are there places to buy coins wholesale?
Or, do dealers just deal hunt on ebay?
I always wonder how a lot of these dealers at shows do it. How/where they buy, etc.
I know this is valuable information and I'm not asking for any dealers to reveal all their secrets, but just a little something would help.
bnb
How do dealers make money at what they do?
Are there places to buy coins wholesale?
Or, do dealers just deal hunt on ebay?
I always wonder how a lot of these dealers at shows do it. How/where they buy, etc.
I know this is valuable information and I'm not asking for any dealers to reveal all their secrets, but just a little something would help.
bnb
0
Comments
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I think some were born to be dealers (like traders)
others were born into it - parents
I am not a dealer, but I suspect they frequently sell items for more than they buy
as an exercise, figure the cost to fly to 30 big shows around the country in 1 year
i'm sorry for laughing, i couldn't help myself!!
Wondercoin
I once had a customer ask about returning a coin he bought six months before, taken out of my holder, submitted to PCGS and got back a BB. I told him no problem, I know I sold him the coin (didn't know of the issue), and asked him how much he paid. He gave me the number. I told him it sounded about right, and asked him to bring it back. He ran out of the show, astonded, wanting to get back before I changed my mind. When he got back an hour later, I reached for my wallet, he said hold on, let me take a look at what you have. He spent another $400 and has subsequently sold me a lot of coins. The point. I was within my rights to tell him to go pound sand. I treated him fairly and got a nice side benefit from doing the right thing.
I'm rambling. Not sure I answered you questions.
All the best,
Andrew
Please visit my website Millcitynumismatics.com
Having coins coming in "over the counter" is a concept that is way overrated by collectors. Occurrences of special coins showing up in that manner is few and far in between. 99% of the stuff that walks in is junk unworthy of much attention.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
One has to make the distinction between a B&M shop vs. a traveling show dealer with no store. The successful B&M shops I know rely nearly 100% on what comes in over the counter (other than buying large bullion deals from wholesalers to fill big orders). And on that stuff that comes in over the counter they typically work on buying at around 50% of retail. While they often pay 65-85% for much material, they get in a lot of worthwhile stuff at 20-35% as well...hence the 50% average. Some of these shops have become successful through decades of hard work. This allows the same coins to eventually come back for repurchase and resale.
I also find that the more successful shops have a way of making sellers feel like they are being treated fairly when they are offering as little as 30-60 cents on the dollar for very desireable material. Fwiw it's usually the lowballers that get the best collections that fall out of the woodwork (estates, grandpa died, etc.). If you try to offer a fair price it seems the owners usually walk, thinking that if it's worth that much money to this dealer, it must be worth a whole lot more.
roadrunner
<< <i>Having coins coming in "over the counter" is a concept that is way overrated by collectors. Occurrences of special coins showing up in that manner is few and far in between. 99% of the stuff that walks in is junk unworthy of much attention.
One has to make the distinction between a B&M shop vs. a traveling show dealer with no store. The successful B&M shops I know rely nearly 100% on what comes in over the counter (other than buying large bullion deals from wholesalers to fill big orders). And on that stuff that comes in over the counter they typically work on buying at around 50% of retail. While they often pay 65-85% for much material, they get in a lot of worthwhile stuff at 20-35% as well...hence the 50% average. Some of these shops have become successful through decades of hard work. This allows the same coins to eventually come back for repurchase and resale.
I also find that the more successful shops have a way of making sellers feel like they are being treated fairly when they are offering as little as 30-60 cents on the dollar for very desireable material. Fwiw it's usually the lowballers that get the best collections that fall out of the woodwork (estates, grandpa died, etc.). If you try to offer a fair price it seems the owners usually walk, thinking that if it's worth that much money to this dealer, it must be worth a whole lot more.
roadrunner >>
The margins are much better at Keets' shop.
How to make a million in the coin biz
start with 2 mil
<< <i>It has been said that all you need is a magnifying glass and 20 years experience.
Wondercoin >>
No, that is to become a grader.
<< <i>I think that what they are trying to tell you is that there is no one specific place. With experience, hard work, and talent, you must use your superior knowledge and access to buy a coin from one entity and sell it to another, no matter what the venue, for more money. Absent experience, hard work, and talent, this is not a winning proposition. >>
RYK summed it up the best.
BNB, I continue to see you on this forum looking for a fast way to make easy money. Ive seen your posts on the BST looking for a STEAL of a deal, I saw you just a week or so ago saying you were going to go join the currency forums and leave coins. Coin dealing is not some over night million dollar buisness. You need to get to know people, you need to put in work, you need to set up at shows, spend lots of money buying and learning about what you are buying. Get over it BNB this is not something you are going to jump into over night and be the best at or even good at.
he tells how to make fortunes in the coin business
gives an example of a kid who bought a coin and within an hour sold it for a $25,000 profit
Steps to get a MILLION $$ COIN INVENTORY.
step 1- Buy $2,000,000 worth of coins.
--------T O M---------
-------------------------
<< <i>I think that what they are trying to tell you is that there is no one specific place. With experience, hard work, and talent, you must use your superior knowledge and access to buy a coin from one entity and sell it to another, no matter what the venue, for more money. Absent experience, hard work, and talent, this is not a winning proposition. >>
Excellent answer.
<< <i>how does that go..
Steps to get a MILLION $$ COIN INVENTORY.
step 1- Buy $2,000,000 worth of coins. >>
Excellent answer.
Start with a large fortune
To support LordM's European Trip, click here!
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
EAC 6024
<< <i>BNB - Surely, you can come up with a couple dozen ways to make money with coins without having it all spelled out for you. So I wonder, are you just looking for an easy path? >>
No, just ideas to answer my internal questions.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
<< <i>Here comes the old lady with her late husband's collection ... >>
As I stated before, non-dealers always believe that all the stars will align as soon as you open a B/M store and buy from the public. When those old ladies bring in the inherited collection to sell, chances are that collection will contain nothing more than a few worn silver coins and coins that are only worth a notch over face value. Very rarely will anything of consequence show up unannounced.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
https://www.smallcopperguy.com
so you are one of the best in that area in the world
and can walk into almost any coin shop, show, auction, pawn shop, internet auction
and cherrypick (buy something for less than you can sell it within a week) from their inventory of your specialty
and also know when the asking price is too high
find what you like, your niche, and how to buy/sell in enough volume to cover your lifestyle
it takes years of experience and is much easier in a bear market than a bull market
I remember about 8 years ago meeting a member who posted in this thread at a small coin auction in Minnesota - where he bought over 10% of the lots and spent over $100K
no show, not a coin auction house, publicized but not as much as the big guys, and mostly raw stuff
I was truly impressed and am still learning how to turn that much volume - and learning what lots/areas
still have room for profit -
you know risk/reward
I think this is a 62 - worth $100 in 60 $200 in 62 $300 in 63 $400 in 64
how much do I bid?
if I bid $150 and it is actually a 58, I lost
if I pass and sells for $240 - I still might have lost, but feel better passing
same idea can apply to any of the above sources
and problem coins - they are crap and always sell at a discount - and unless a key date, a deep discount
you need to be able how to determine if they problems
if you emerse yourself totally in this, you maybe able to learn enough in the time it takes to get a college degree
edited to add - I remember HRH once stating that it takes about $1 million in sales, before most dealers get a handle on making money dealing coins
The collective sentiment, was that whenever they tried to make a fair offer on a pricy coin, the sellers usually got scared and backed out.
The thread explored I think what was a hypothetical, where an old lady came in with 20 common date XF Morgans, but with one XF '95 thrown in the lot. Do you offer her a fair price for the lot that reflects the value of the '95? Do you just try to buy the '95?
>>>My Collection
<< <i>I see a lot of buy low sell highs here, but where do you do this mostly??? Wholesale places? Ebay? Auctions?? Specifically, where? >>
I have no idea, I always seem to buy high and sell low.
HH
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
<< <i>
<< <i>It has been said that all you need is a magnifying glass and 20 years experience.
Wondercoin >>
No, that is to become a grader. >>
I've heard that expression used to desctibe becoming an expert authenticator.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Fwiw it's usually the lowballers that get the best collections that fall out of the woodwork (estates, grandpa died, etc.). If you try to offer a fair price it seems the owners usually walk, thinking that if it's worth that much money to this dealer, it must be worth a whole lot more. >>
So, the more you offer, the less likely they are to sell? I don't buy it. Sounds like dealer rationalization for their low ball offers to unknowledgeable sellers.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>Fwiw it's usually the lowballers that get the best collections that fall out of the woodwork (estates, grandpa died, etc.). If you try to offer a fair price it seems the owners usually walk, thinking that if it's worth that much money to this dealer, it must be worth a whole lot more. >>
So, the more you offer, the less likely they are to sell? I don't buy it. Sounds like dealer rationalization for their low ball offers to unknowledgeable sellers. >>
From what others have said here in the past, that seems to be a generally true statement.
Firstly, when I as a stranger walk into your store you have no idea if I know what I have or not and am just testing your integrity. Secondly, if you tell me that coin X could be worth $10K then I know it is worth more than that since you will no doubt mark it up. If you would buy it for your personal collection, you might show me some price guides that say you are paying top dollar. If I am truly a novice you will no doubt have a better idea of where to sell the coin than I would.
It's not about screwing little old ladies out of their husband's estate holdings. Just FYI.
I knew it would happen.
<< <i>
<< <i>Fwiw it's usually the lowballers that get the best collections that fall out of the woodwork (estates, grandpa died, etc.). If you try to offer a fair price it seems the owners usually walk, thinking that if it's worth that much money to this dealer, it must be worth a whole lot more. >>
So, the more you offer, the less likely they are to sell? I don't buy it. Sounds like dealer rationalization for their low ball offers to unknowledgeable sellers. >>
Just curious, would you be willing to pay $10K CASH for a coin and mum's the word?
mea culpa...................will i ever hear the end of this??
Here are some ways that I have made money in coins
1. Selling coins for a commission
2. Cherry Picking at shows, stores, and online
3. Buying quantity deals (be careful with this one it can be a lot of work)
Knowing the market and knowing where to buy it and sell it are very important.
Steve
I do make money on some deals, but all the junk that you have to buy sits in inventory just eating up money(profit), that no one wants.
On the up side I have been told it takes 5 or more years to get established. 2 years down and only 3 more to go.
And I haven't lost money either to this point.
I'm also relatively surprised anyone answered seriously all things considered..
<< <i>my fav is the answer to your question
How to make a million in the coin biz
start with 2 mil >>
The saying used in the markets is:
How do you make a small fortune in the stock market?
Start with a large one.
And, yes, people are trying to tell you that there is no easy way. The stumble upon a fortune for cheap stories people tell are few and far between for a reason.
<< <i>Buy low, sell high
Modification:
Buy China, sell Ebay