Discussion in ‘ Coin Chat ‘ started by HarryjFeb 4, Log in or Sign up. Coin Talk. How do coin dealers make a living? I’ve contemplated on opening a coin shop or website, but quite frankly I don’t know how coin dealers make a living. If delers are secrets of the trade then let them be.
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Generally speaking, nothing could be further from the truth. Gold dealers are highly risk averse given the volatility of the metals market, and so they are very unlikely to speculate on future spot price. Review: Spot price is the over-the-counter commodities exchange price for a oz good delivery gold bar. Some operate hybrid operations, stocking some products, and drop shipping others. Gold brokers are unaffected by the spot price at all, because the spot price they charge to the customer is roughly identical to the spot price they buy from the wholesaler. In this way, they essentially pass along hedging responsibility to the wholesaler, while making money on the premium. In either case, the system is not fool proof. Unfortunately, many investors think buying bullion is no different than buying a book online; that the vendor is in no way impacted for an order cancellation. On the contrary, a non-paying customer poses a serious problem for dealers.
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Gold and silver are commodities. This means that any one ounce of gold is equal to any other ounce of gold, in terms of its metal content, and the same is true of silver. But as they are commodities, the question then becomes, how can bullion dealers make money selling them? Well, although the metals are commodities, coins, and other bullion products are not, strictly speaking.
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You will get a verification code: it will be send in a text message and recorded to your account History. Just so we are clear, I am not talking about someone that decides to «dabble» or make it a part time venture Include your email address to get a message when this question is answered. Come to the place, show your ID, tell the verification code, amount of the transfer, its currency, and sender’s full name. I save money. Yes, mostly a hobby. I thought 10 years ago e-bay would kill off most of the small and medium dealers. Co-authored by wikiHow Staff Updated: April 25, Co-Authored By:. I’m surprised we have as many coin dealers as we do. Collect coins. You cannot say the same about a teacher, nurse, judge, or Fortune CEO, all of which require a significant investment of time, as well as some combination of degree programs, licensure, working up ladders, political connections, luck, etc. I don’t like how this feature works.
Co-Authored By:. In other words, I can decide tomorrow that I want to be a coin dealer and be up on running by the end of the day with an ebay store, an internet site, some ads on the BST, table reservations at local coin shows. The «average» dealer makes money when buying coins. Problem Solving. Specify the recipient: you need to provide the name as in the passport. No Yes. Join a professional organization in your area. I saw a lot of these this past week in St. You can dealer coins from a lot of different sources.
My Philly Mint Set. Toggle navigation. Categories Discussions Activity Best Of Sign In. Coin Forum. August 1, AM in U. We all know that the superstar coin dealers make a ton of money. But what about the average dealer?
I saw a lot of these this past week in St. Not many except the dude selling Chinese modern bullion gave off the vibe of being very successful. Does the average coin dealer make money? Is coin dealing a hobby for a lot of these folks?
August 1, AM. Otherwise they wouldnt be in business very long! Next Question. What we’ve got here is failure to communicate I always assumed that people went into business to lose money, and that businesses that have been in opperation the longest have lost the most money.
I think it is a serious question. There are no barriers to entry in this business. Some folks in the hobby do consider it fun to set up at shows and deal coins. If you actually figure out the volume of sales that a dealer has to do each year to make a living, I know some people would be quite surprised. Shocked. John Agre Coin Rarities Online. RedTiger Posts: 5, Coins are like some other industries, such as real estate, or acting. Those that report «coin dealer» or similar as their occupation on their tax return make reasonable money.
Those that have a day job, make some money, some more than others, but all these part-time dealers bring the average income numbers way down it is similar with part-time or aspiring actors, part-time or aspiring real estate agents.
Investment blog: gold, stocks and. Small town America for the most part is all on well fare if not completely on a personal level they most certainly on a community level. Many of the brick and mortar dealers in my area have been in business for decades.
The collector coin markets for them still make them money but revenue comes in waves, peaks and valleys and really cannot be relied upon to make the rent. With government tax people as partners, selling anything for a living is not easy, and it can take years of hard work to succeed. But it does beat working for someone else for a lifetime. As an»average» dealer, I can attest to the bread and butter market currently being supported by «junk» silver, bullion coin trading, and bulk wholesale deals of the «chaff» bags of Lincoln wheats, Warnicks, average circ.
Coin-coins, as the slang goes, are not in big demand among the Joe Sixpacks. It has no money of it’s.
And people tell me I am a snob. Seriously, I always did think only cultured people should collect coin-coins, so if Joe Sixpack is not buying them, perhaps that is as it should be. They can’t appreciate them. RobTom Posts: All make the bulk of their money buying and selling bullion and bullion related items.
These shops have been around for many years, so I assume the owners are turning a profit. There is a regularly scheduled coin show by me that hold 2 bourses per month. The dealers there are clearly part-timers.
The items offered range from junk silver and gold bullion coins, to stamps and FDCs, and to common and some really nice numismatic items. Many are covering their table fee and making maybe a few bucks in net profit. Many of the dealers there enjoy schmoozing with the other dealers and the regular show-goers like me. I manage money. I earn money.
I save money. I give away money. I collect money. I do love the Lord God. Then again it might be equally surprising how much volume some dealers. I believe that many small dealers make a living, but for the really big money, you have to hustle for and have an effective up to date website to bring in the truly necessary volume of business, as well as the cash flow. There once was a place called Camelot. From that all the expenses of the business must be taken. Every week. Not easy. Yes, mostly a hobby.
Many small dealers like to think of themselves as big time businessmen. It depends on how you define «average». Hey, it’s not like money is rare. I’d like to hear from the «above average» dealers as to how long it took them to build their businesses.
Developing a client base that trusts you is probably the biggest «barrier to entry». I tell them and they are in awe at my stupidity. I find it hard to believe that he Trump rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world.
No barriers to entry??? Wow, we have a serious diifference of opinion. In fact, I can’t think of many businesses that have a higher barrier of entry than does the coin business.
Just so we are clear, I am not talking about somemone that decides to «dabble» or make it a part time venture Besides all that, no problem! In other words, I can decide tomorrow that I want to be a coin dealer and be up on running by the end of the day with an ebay store, an internet site, some ads on the BST, table reservations at local coin shows.
However, you cannot decide to be an interventional radiologist tomorrow and be up and running in practice. And neither of us can decide to be automobile manufacturers tomorrow and be up and running by the end of the day. However, at the end of the day I can become all of those things you mention if I have the desire, time, intelligence, and reasonable amount of money for education. You are correct in that anyone can set up a coin dealership in a day but Dave did not say that anyone can be successful as a coin dealer—just that anyone, with minimal effort, can give it a shot on ebay, with a website, at local shows, etc and quite a few seem to do so.
You cannot say the same about a teacher, nurse, judge, or Fortune CEO, all of which require a significant investment of time, as well as some combination of degree programs, licensure, working up ladders, political connections, luck. In other words, I can give it a shot as a coin dealer tomorrow, but I cannot become CEO of GE or a municipal judge tomorrow, and perhaps time becomes one of the major barriers to doing all of these things.
What about being a coin broker IE bringing deals together? No real money invested I only wanted to add, also to JM’s point, that when I looked around the bourse at the coin show this weekend, I saw quite a few tables staffed by people and displaying inventory that gave the impression that: 1. The «average» dealer does not do as well as the Yaffees. Anybody with a few crummy coins and a few hundred bucks can set up at a show which really supports the «no barrier» argument.
There are some expenses associated with this business that don’t always come to mind for folks who think about the hobby-industry, but they add up. Michael E. What about the small time dealer who searchs for days and weeks to find raw top pop 50’s to 80’s modern type coins, has them graded and sells hem on the net? No, he does not. The «average» dealer makes money when buying coins.
Time and talent apply to all professions. Great thread! I think everyone is right so far I’m surprised we have as many coin dealers as we. I thought 10 years ago e-bay would kill off most of the small and medium dealers. Because most collectors want retail money not dealer money for coins.
Leaving just the high end dealers Boy was I wrong
Dealer Secrets Tips How To Buy Coins For Investment To Make Money Resale Resell On Ebay
Whether you are buying or selling coins, you can increase your advantage when negotiating with coin dealers by understanding how the coin market works behind the scenes. The average consumer thinks he can trust the coin dealer to give him an honest appraisal and pay a fair price for the coins he is selling. The average dealer feels it is right to pay the lowest price he can for the coins, to maximize his profit, and that it is up to the consumer to do his homework.
How Do Gold Dealers Make Money
Fortunately, by finding this article, you will be on a much better footing when dealing with coin dealers. There are two major categories of coin dealers—the wholesaler and the retailer. The wholesaler aggressively seeks to bring new material into the marketplace, and often attends coin shows, local auctions, and runs advertising offering to buy coins. Most of this material is sold in bulk lots to retail-based dealers. The retail coin dealer gets most of his stock from the wholesalers. A dealer of this type is more likely to pay you higher prices for your coins since they don’t have to pass through two sets of hands before being sold. This is because the larger dealers are more likely to belong to organizations that require them to subscribe to a Code of Ethics, such as the American Numismatic Association or the Professional Numismatists Guild. What kind of recourse when do coin dealers make money you have if things go bad? One of the best ways to arm yourself against the savvy coin dealer is knowing the wholesale prices he pays for his coins. A very widely-used standard in U. Most professional coin dealers subscribe to this publication, which lists the wholesale values for every major type of U. Two things characterize this market: 1 Most deals for bulk quantities, so the prices don’t refer to single coins, and 2 Deals are minimal service transactions. You can’t go up to a coin dealer who has to appraise and grade your collection for you and expect him to pay Grey Sheet «bid» prices. As a general rule, the more common a coin is, and the lower grade the coin is, the higher the profit margin expressed as a percentage of the selling price for the dealer must be. The reason for this is that low-grade, common coins are harder to sell.
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