How do coin dealers make so much money?

Question

They all seem to have millions...

Answer 1

US Coin dealers?

Buy really common & circulated silver coins at melt/bullion or 30-50% of book value.

Buy common non-silver coins for 25-50% of book value.

Buy moderate value coins (of any metal) at +/-50% of book value.

Buy desirable coins at 60-80% of their book value, often with a buyer in mind who has a "want list".

Buy rare coins with a buyer already set up who has wanted that coin for a long time and collect a percentage like 10, 20 or 30%.

Sell everything for 90% to 200% of it's book value.

That is the money end, the other is have really good people skills.

Coin collectors collect coins, coin dealers collect friends, friends who like to buy coins.

Ancient & World coin dealers?

Sorry, that answer requires a secret handshake ;-)

Jim

a coin dealer

PS - We don't all have millions, that is a myth.

Answer 2

Actually you will find the Ancient and World coin dealers to be about the honest, as well as having a great knowledge of the coins, as well as the market. Your high volume wheeler and dealer coin dealers, know the dealer bid and all the money making tricks, but have no idea about a lot of the coins they sell. They make few friends and sooner or later, collects see they are not much help.They also have a tendency to over grade.The high class dealers sell the million dollar coins, so one sale can set them up for a long time. Say buy a $800,000 coin and sell it for $4.2 million in a year or so. Most home town dealers make about a 40% profit or so. Only the real big high stakes dealers have millions. They are usually a company anyway, of more than just one person. One way a collector can beat a dealer, is to know more than he does about what you collect. I have quite a few times bought a rare variety of a coin, for the common prices, for the dealer did not know what he had. Some are also sloppy with there so called junk boxes, I have pick up some rare coins for the dealer did not know what the coin was and didn't want to take the time to find out. More than once going through a box of so called common Mercury ( Winged Liberty) dimes I have found 1921 and 1921-D. They are semi keys and well worth more than $1. Don't worry about the dealers, just have fun and it is fun, staying one step ahead of them.

Answer 3

i've got constantly concept using mail order coin sellers and likewise figuring out to purchase for the duration of daytime at coin exhibits have been the ideal. ensure you have insurance on each and every thing you very own and be careful which you're actually not open approximately your accumulating behavior or you would be robbed.

Answer 4

here's a link to Coins on ebay.