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SilverTrainRollin
New Member
USA
8 Posts |
 Posted - 04/13/2010 : 18:28:37
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Hey guys,
I know this is probably a really stupid question..This is not a joke and I was hoping some of you guys and gals could enlighten me.. I got into collecting Silver and some small amounts of Gold and also Copper Pennies etc. Just within the last year..I have bought exclusively online because I am from a small community and there are no coin shops or anywhere to buy around me..Pawn shops here dont carry Silver and only gold in the form of jewery..Bla bla bla..Anyway, From buying online and checking buy and sell prices I do not see any room for profit..Not enough to run a viable business..I mean, Im sure there are a few folks that turn a few bucks on ebay etc.But to have a Brick and Mortar store and the overhead I am just perplexed..Somebody show me the light please...
How do Coin shops/dealers make any money?
Thanks
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Nickelmeister
Penny Hoarding Member
Canada
588 Posts |
Posted - 04/13/2010 : 18:32:27
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| After opening my own shop about six month ago, I sometimes wonder the same question... :) |
www.WinnipegGoldBuyer.com
Standing offer for sale of quality, second-hand solid gold jewellery:
<$100 USD worth - spot +25%, plus actual shipping
$101-500 worth - spot +20%, plus actual shipping
$501-1,000 worth - spot +15%, plus actual shipping
$1,001+ worth - spot +10%, plus actual shipping |
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SilverTrainRollin
New Member
USA
8 Posts |
Posted - 04/13/2010 : 18:43:42
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| What all do you sell Nickel, I mean other than ase Eagles etc..Tell me something that would suprise me..I HAVE NEVER BEEN IN A COIN SHOP...LOL.. |
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fasTTcar
Penny Hoarding Member
Canada
573 Posts |
Posted - 04/13/2010 : 19:07:20
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quote:
Originally posted by Nickelmeister
After opening my own shop about six month ago, I sometimes wonder the same question... :)
Not often I bet  |
www.londongoldbuyer.com |
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wheeler_dealer
Penny Collector Member
USA
402 Posts |
Posted - 04/13/2010 : 20:24:45
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Coin shops make money on the spread. the difference between buy/sell price. Dealers(successful ones) never pay spot always buying a point or two under. They always sell at a point or two over.
Some will only keep a minimal amount of inventory out to make it look scarce. Making you ask (show him your interested) then he quotes you a price. Some will hoard inventory if they aren't making enough to cover the margin waiting for higher prices or an upcoming coin show.
Some shop are just a brick/mortar for "buying" many dealers have long lists of preffered buyers who will be called when a special piece of interest comes in. Most dealers make profit on volume.
Last week I watched my dealer buy a collection for $22,000 and pull out the key date pieces(put away for someone) then break the collection up and had it flipped by the next day at a profit that makes me want to quit my day job and open a shop. Volume and client base seem to be key.
Dealers can't sell what they don't have(inventory) so they need to buy and they won't sell if they are too high. win/win.
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JWRAY
Penny Collector Member
USA
378 Posts |
Posted - 04/13/2010 : 20:44:31
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I went to the closest coin shop to where I live last week, about 40 minutes away. While there the owners were discussing a purchase they had made on a collection of Indian Head pennies that apparently contained multiples of all keys, like 77 and 09s. And it sounded like they got it cheap enough to make a few months profit right there. I would guess that just a few key purchases a year can pad the bad months pretty well.
On another note they had good prices on silver. They were selling silver rounds at spot + 1.25, which is cheaper then I see that stuff on ebay, not counting shipping even. |
MOVING SALE!!! Selling Copper Cents 1.4 shipped - in limited quantities PM me and we'll talk. |
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zerocd
Penny Hoarding Member
555 Posts |
Posted - 04/14/2010 : 04:26:43
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Most serious coin shops near me buy coins/collections from dead people.
0CD |
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Mikep2020
Penny Collector Member
USA
402 Posts |
Posted - 04/14/2010 : 07:52:34
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| The coin shop nearest me sells other stuff in additional to coins, like jewelry, stamps and some other collectible items. He buys almost anything with metal value off the street, then either puts in his store to sell to people walking in, or lists it on ebay if its not popular with the locals, or has some other avenue to get rid of it like a refiner or scrap dealer if the item is in bad shape. He charges way to much for ASE's but I get good deals on morgans & peace dollars. |
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SilverTrainRollin
New Member
USA
8 Posts |
Posted - 04/14/2010 : 08:16:18
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Thanks guys, that helps me understand a lot better..I didnt think about someone passing and selling a lump sum..
Also I just thought about them maybe GRADING coins and getting money for that service? I dont know..Thanks |
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fasTTcar
Penny Hoarding Member
Canada
573 Posts |
Posted - 04/14/2010 : 08:35:40
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I can expand a little.
Dealers work on a spread. As an example, I buy gold ounces at 5% off spot and sell them for 5% over spot. I usually try and turn it quickly so I do not risk the price changing significantly on me. I have a few outlets for certain items that I have consistent buyers for and the other items I have a pretty good idea on where I can move them and for how much. Some of the items even get offered up here.
You have two levels of dealers, big ones and little ones. The big guys keep a hedge book. If they buy 200 ounces of gold in a day, they sell the equivalent on paper to lock in the margin.
The saying that "you make money when you buy, not when you sell" is very much true in the coin business. |
www.londongoldbuyer.com |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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Nickelmeister
Penny Hoarding Member
Canada
588 Posts |
Posted - 04/14/2010 : 10:20:36
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quote:
Originally posted by beauanderos
quote:
Originally posted by zerocd
Most serious coin shops near me buy coins/collections from dead people.
0CD
Sounds like a line from that Bruce Willis movie "The Six Cents" 
I love buying collections from dead people - they almost never cash the cheque! |
www.WinnipegGoldBuyer.com
Standing offer for sale of quality, second-hand solid gold jewellery:
<$100 USD worth - spot +25%, plus actual shipping
$101-500 worth - spot +20%, plus actual shipping
$501-1,000 worth - spot +15%, plus actual shipping
$1,001+ worth - spot +10%, plus actual shipping |
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myfundsarelow
Penny Collector Member
USA
388 Posts |
Posted - 04/14/2010 : 17:03:06
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| SIMPLE , they buy low sell high, some one is always looking for a bargin PEACE!! |
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myfundsarelow
Penny Collector Member
USA
388 Posts |
Posted - 04/14/2010 : 17:05:59
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| testing |
Edited by - myfundsarelow on 04/14/2010 17:16:00 |
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How do coin shops make money
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