All Coin
Dealers are not Created Equal
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All Coin Dealers are Not Created Equal
By: Charles Roman
How to Select a Coin Dealer for Your Coin Collection
Why do I Need a Coin Dealer?
It is very difficult to build a collection of rare coins without a
connection to a good coin dealer. If you are an investor hoping to make
a profit with your collection of rare coins, building relationships with
good coin dealers is vital to your success. If you are interested in
making the highest profits possible with your coin collection, you will
need to find a merchant partner who is experienced in the specific rare
coins that interest you, and who will sell them to you at a good price.
Most coin dealers will charge a lower premium on the sale of coins to
their best customers. After all, it makes good business sense to get the
most profit possible from a person who will do business with you only
once. If you have a long-term relationship, however, the margin does not
need to be as high for the coin dealer to make a good profit.
Because coin dealers are experts in their chosen fields, they will
also have better connections than individuals who buy coins on their own
will. Finding the right vendor or wholesaler can be a long and difficult
task for someone new to the coin collecting trade. Coin dealers will
also be more likely to recognize a counterfeit coin, have a higher
chance of hearing about the sale of the specific rare coins that
interest you, and will recognize an asking price that is over- or
undervalued. As an investor, these are all critically important points
for your success.
Building a long-term relationship with a knowledgeable coin dealer is
the best way to protect the money that you invest into rare coins. All
too often, new coin collectors who try to go it on their own without
professional help end up being scammed out of hundreds or thousands of
dollars.
What Do I Look For in a Coin Dealer?
All coin dealers are not created equal, and it is nearly impossible
to specialize in every area when it comes to collecting rare coins.
Therefore, it’s important to know what to look for before you select a
professional for your coin collecting needs.
The first vital piece of information that you’ll need when
considering coin dealers is his or her professional qualifications. Some
important questions to ask include, does the coin dealer belong to any
professional groups? How long has he or she been in business? Can the
coin merchant provide references from other satisfied customers? One of
the best indications that a vendor has a high level of professionalism
is a membership in the Professional Numismatists Guild (PNG). This group
includes the most reputable coin dealers in the business thanks to an
emphasis on ethics.
The second most important question to put to a prospective coin
dealer is the area in which he or she specializes. There are so many
different kinds of rare coins to collect, ranging from gold bullion
coins to ancient Roman coins, that it is impossible to be a true expert
in all of them. You’ll want to find a merchant that specializes in the
particular area that is of interest to you. A trader might be able to
recognize every rare American coin at a glance, but that won’t do you a
lot of good if you really want to collect legal tender from medieval
times.
Finally, you should consider the motivation of the coin dealers you
are considering. A highly motivated coin merchant will go to shows and
retailer auctions, keep abreast of current prices and trends, and will
generally keep up-to-date with the current coin market. Any investor
will recognize the impact of current information on profit levels. A
coin trader who is highly motivated will also be more likely to provide
you with excellent service and the best rare coins.
Once you have selected a coin dealer, it is important to reward him
or her with your loyalty. You are likely to get the best prices and
service from coin dealers who know that you are working exclusively with
them.
This article was posted on December 22, 2005
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