7 Questions You’ve Wanted to Ask Your Coin Dealer
Out of a number of potential professions that an person may pursue, a coin dealer or numismatist is probable one that isn ’ thymine top of mind. It ’ s surely a recess industry and one that many people aren ’ triiodothyronine conversant with, particularly the inner workings. As a resultant role, we frequently receive questions from customers who are curious about how we operate .
Clients are even concerned to know where the coins and bullion go after we acquire them. Our owner most often gets asked how a “ hobby ” can be turned into a full-time business .
The purpose of this article is to address a tilt of seven questions that we regularly receive from the public. We thought that this information would be of interest to many of our readers and customers. furthermore, in some cases, it may provide some peace of mind as to what ultimately happens when we purchase coins, bullion, and coin collections .
What Do You Do with the Coins When You Buy Them?
inescapably, the first question that we receive from person selling their coins or coin collection is what we do with the items once we purchase them. This is sometimes asked out of curiosity, but in many cases, because there ’ s a sentimental attachment to the coins, as they belonged to a sleep together one .
We often joke with customers that we operate much like an adoption agency. Our finish is to find a good home for the coins. All coins, bullion, and newspaper currentness have different markets, so much of our meter is spent identifying the proper market for the respective items that we purchase .
This is a childlike process if we purchase a single item or type of detail, such as gold coins. however, it can become a piece more complicate when we acquire a large total of different types of items. While it ’ s a more involved procedure with a divers mint collection, it ’ sulfur constantly a welcome challenge and one that keeps our job interesting and stimulate .
Do You Melt Down the Coins?
Another doubt that we receive daily is if we melt down the coins. This is a valid question and makes sense since the terms “ debris silver ” and “ melt value ” are frequently used in the diligence .
Our readers will be glad to know that we don ’ thymine melt down the coins and bullion that we purchase. not entirely would it be a shame to do then, since we ’ re mint collectors ourselves, but in a sense, it destroys a objet d’art of history. Furthermore, it would besides be extremely expensive to do then .
The reason being is that most refineries pay a much smaller share of spot or the melt rate of the items than what we offer our customers. second, in many cases, it ’ sulfur illegal to melt, deface or damage U.S. neologism and newspaper currentness .
Who Buys Your Coins?
If we don ’ triiodothyronine melt down the coins that we purchase, who ultimately do we sell our coins to ? After all, coin collecting international relations and security network ’ t a democratic as it once was and many individuals that are avid mint collectors are aging or passing on .
Granted, coin collecting international relations and security network ’ thyroxine quite arsenic popular as it once was, but there are still a number of interest investors and collectors. This, in separate, is evidenced by the attendance of national mint shows and the continue force of late mint auctions .
We find that many individuals concern in the field of numismatics or coin collecting tend to work in specify fields. Many of the avid coin collectors that we see these days work in the medical, dental, and engineering professions, but that ’ s not constantly the case .
While true there are fewer coin collectors these days, many individuals are interested in purchasing cute metals as an investment or a hedge against inflation. While most fiscal advisors may be reluctant to admit it, the addition of gold and argent to a portfolio helps to reduce uncertainty and increase security .
not only does aureate and silver medal offer benefits as extra assets, but it historically has served as an excellent hedge against ostentation. At the time of this writing, the year-over-year inflation rate is 6.2 %, which is about three times the normal rate. As a result, we ’ ve seen many new investors taking steps to preserve their wealth and maintain their buy ability .
Where Do You Sell Your Coins?
While our intent is to sell as many coins and bullion as possible to our local customers, not all the items that we acquire are desirable for local sales. additionally, as a high-volume mint dealer, we will occasionally purchase coins and bullion in big amounts that may exceed local demand for these items .
In summation to local sales, we sell coins through the mail to customers outside the metro Atlanta sphere, including those individuals who are located out of state of matter. We ’ ll besides occasionally use auction services when we have more obscure items that require a larger potential audience .
last, we ’ ll sell items through the versatile networks of which we ’ rhenium members. Coin dealer networks are extremely active, with thousands of trades being conducted daily. inescapably, we ’ ll have excess inventory that another coin trader needs. On the early hand, we regularly fill orders through these networks and our suppliers when we ’ re curtly of specific items that are requested by our local customers .
Where Do You Get your Coins From?
As we noted above, we occasionally beginning our inventory through our networks and suppliers, but this is typically alone when we need to fill a specific order. As a share, this accounts for 10 % or less of our provision .
We receive a bombastic helping of our coins and bullion from individual investors. With the explosion and popularity of alternate investments, such as Bitcoin, many individuals are cashing out their precious metals holdings to invest in Bitcoin or Ethereum. While there ’ s no doubt that potential gains are higher than those typically realized in the cute metals marketplace, the downside risk is besides a lot greater.
In addition to individual investors and collectors, we regularly purchase estate mint collections. In fact, we specialize in big and diverse collections that may take hours or days to evaluate. These collections are always interest, as many are decades honest-to-god, and in fact, are frequently passed down through the generations .
We love hearing the stories of coin collections that were first started in the 1800 ’ second by a aloof ancestor. It ’ s not rare to hear of tales of the owner of a convenience memory or humble grocery shop assembling their solicitation by plucking coins from the day ’ s sales. In fact, the stories behind coin collections are credibly what intrigues us the most about our job .
Do You Speculate on the Price of Gold & Silver?
As a coin trader that has a reputation for paying competitive prices, we ’ ra frequently asked if we speculate on the price of gold, argent, platinum, or palladium. After all, if we ’ rhenium paying close to or above the spot price of gold and argent, how can we afford not to ?
You may be surprised to hear that we rarely speculate on the future monetary value of gold and silver. In our industry, it ’ s impossible to know where gold and silver prices are heading ( at least in the abruptly term ). Factors, such as ball-shaped political issues, GDP, jobs reports, CPI, PPI, trade wind deficits, etc. all can have a substantial short-run impact on prices. Of naturally, we would love to have a crystal ball, but the reality is that economic reports frequently evening surprise the experts .
The only prison term we may speculate on the price of gold and silver is following a flash crash. This is a site where prices on the spur of the moment and drastically drop without a valid reason. In other words, if it appears as though the markets are being controlled, we may take a pause until the markets settle down and right themselves .
How Do You Make Your Money?
All of the above questions ultimately boil down to how we make our money. Our clientele model is based on low margins and large volume. This means that we don ’ t make our money on individual transactions, but quite the aggregate sum of business that we conduct throughout the year .
We have target margins ( buy/sell spreads ) for diverse types of items that we buy and sell. Our lowest margins are for the most liquid and stable coins and bullion that we deal in. We have higher established margins for less liquid items and those that are subjugate to larger monetary value swings .
For case, our smallest spreads are for United States gold coins ; specially for those that are among the most popular, such as american gold eagles and buffaloes. Margins are a bite higher for silver bullion and platinum bullion since silver and platinum are more volatile metallic element than gold .
last, rare coins, which are normally referred to as collectible or numismatic coins have the highest margins. This is specially the event with coins that are a act more obscure, as there is a reasonably limited market with fewer potential buyers for these items .
As you would expect, we have more sellers when amber and silver medal prices are up and more buyers when gold and silver prices are down. This can occasionally create a snatch of a challenge, and in a smell, is a bite of a balance act. We need to be mindful of our footing in the items sol that we ’ re sell at a profit and meeting our minimum established margins .
We thoroughly enjoyed writing this article and sharing with our readers how a coin dealer operates. Hopefully, this answers many of the questions that you ’ ve always had but have always hesitated to ask. We realize that not everyone operates the like, but this should provide you with some insight as to how dealers generally operate .
Sharing this information is consistent with our mission of engage with foil. We would love to hear from you if you have any promote questions about our operations. We are besides felicitous to answer any questions that you might have regarding buying or selling gold bullion, argent coins, rare coins, or a mint solicitation.
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not only are we guileless, but we offer among the most competitive rates in the diligence. additionally, we provide a concierge degree of customer service that is unparalleled in the industry. additionally. we are a gallant life member of American Numismatic Association, among other leading third-party organizations .
Contact us today through our web site or give us a call option at 404-236-9744 .