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Many people who become coin dealers do not have specialized training. Instead, they are enthusiastic collectors with a great deal of knowledge about coins. If you want to become a dealer without a collecting background, you can start small with internet auctions or coin shows. Once you’re more comfortable, you can open a coin store. Making sure you have the correct skills is important to being a successful dealer.
Steps
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Collect coins. Most coin dealers start as collectors because it’s a great way to learn about different types of coins, how to recognize valuable coins, and learn the ins and outs of the coin industry.
- You can collect coins from a lot of different sources. Coin dealers will have coins of varying prices that can help you build your collection. You can also get coins from internet dealers, which are great if you’re looking for a specific coin.
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Learn to grade coins. Grading coins is the process by which you determine certain qualities of the coin that affect the coin’s worth. Where you’re planning on being a dealer will affect the grading system you use, but you should be familiar with your country’s grading system. [1] X Research source
- For example, the American Numismatic Association has Grading Standards that include 16 grades. Each grade corresponds to the coin’s circulation status, quality, and wear and tear.
- One of the best ways to learn how to grade coins is by working for an established dealer, even if you can only work there part-time.
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Learn to negotiate. When you become a coin dealer, you’ll need to negotiate the prices of your coins with customers. You’ll have to learn to be fair but confident to make sure you get the price you want for your coin while retaining your customers.
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Hone your communication skills. As a coin dealer, you’ll need to communicate with other dealers to replenish your inventory, with customers about their particular needs, and with the public to advertise your business.
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Build your inventory. There are a lot of ways to build your inventory. You can attend coin shows, work with established coin dealers, or check out coin shops. Let the people you're working with know that you're building an inventory and see if they have any suggestions for you.
- You’ll want to make sure that the dealer you purchase your coins from is reputable. Ask for proof of membership in a professional coin dealing organization, or look for reviews of their business.
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Begin with internet auctions. Internet auctions are a great way to start coin dealing because they don’t require a huge inventory. Choose a few coins from your inventory that you want to sell and set up an internet auction on a website like eBay.
- Internet auctions can also help you build a reputation for having good inventory without the financial investment that an actual shop will take.
- You'll need to set up a seller's account on whatever website you use, and you might also want to set up a PayPal account to make getting paid for the coins easier. Don't leave your coins up for too long - get a good price but don't leave your inventory out there for too long.
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Work tables at weekend coin shows. Once you’ve had a few successful internet auctions and you’re more comfortable with selling coins, rent table space at weekend coin shows. These also don’t require a lot of inventory or overhead capital but give you a chance to build your presence in the coin dealing world.
- The requirements for renting a table at a weekend show will vary from show to show. Search for shows happening near you, and then contact the show organizers to find out the details of renting a table.
- Renting a table will cost some money, but it's cheaper than setting up a whole store.
- Don't forget display cases for your coins!
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Become an authorized dealer. Different states and countries have different authorizing organizations. Becoming an authorized dealer lends you even more legitimacy because it tells your customers you’ve been in business for a certain amount of time and met certain requirements. [2] X Research source
- For example, to become an authorized Professional Coin Grading Service dealer, you’ll need to demonstrate you’ve been a full-time dealer for three years, have capital worth at least $100,00, and show three credit references and three references from other PCGS authorized dealers.
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Create a business plan. You should know what your hours will be, whether you’ll run the store on your own or need a staff, what your budget looks like, and what your customer base is. [3] X Research source
- If you don’t have a lot of business experience, you can hire a consultant or accountant to help you work out a business plan.
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Rent or buy space for your business. Start with a small space. If your business really grows, you’ll have the capital to move into a bigger place. Starting small ensures you can afford your expenses and stay within your budget. [4] X Research source
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File the appropriate paperwork. Where you live will affect what sort of paperwork you need to file. Contact your city’s business bureau to find out where you need to start. [5] X Research source
- Paperwork you may need to file includes business zoning permits, a personal-business tax form, and a certificate of resale.
- There are costs for filing this paperwork, so make sure you know how much you might expect to pay in your city and list it as an early business expense in your budget.
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Get your Employer Identification Number. If you are opening your business in the United States, you’ll need an EIN – which acts as a sort of Social Security Number for your business. The IRS website has the application available, and it only takes a few minutes to fill out. [6] X Research source
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Register your business’s name. You’ll have to do this at the offices of your locality. The exact department where you need to register this information will vary depending on where you live. You can check your locality’s website, or call the main number for the administrative offices to see where you need to go. [7] X Research source
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Market your business. Building a website and creating advertising materials are a great way to get some attention for your business. Print up flyers and business cards to pass out at your store or shows you attend. All of your advertising should include your business’s contact information (the address of your store, your phone number, and your business hours). [8] X Research source
- You can build a website on a free host website like WordPress, or pay a little more for your own domain through other website hosts.
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Cultivate a social media presence. Social media accounts for your business allow you to advertise new inventory, specials, or general information. Facebook and Twitter both allow "business" accounts, so they're a great way to start.
- If you have personal social media accounts, be sure to advertise your business accounts!
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Join a professional organization in your area. Each state and country has their own professional organization for coin dealers. Joining one gives your business more legitimacy and tells your customers that you’re the real deal. [9] X Research source
- For example, if you’re a coin dealer in the United States, you might consider joining the American Numismatic Association.
- Coin dealers in the United Kingdom can look into professional organizations sanctioned by the Royal Mint.
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Tips
- Don’t expect immediate profit. Coins appreciate in value over time, but you may not turn a profit during the course of your business for several years.Thanks
- Consider advertising your business in a trade journal.Thanks
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Warnings
- Make sure to adequate insure your inventory so that you don’t lose money in the event of loss or theft.Thanks
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References
- ↑ https://coins.thefuntimesguide.com/how_to_grade_a_coin_grades/
- ↑ https://www.pcgs.com/becomedealer/
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
- ↑ https://www.londonmintoffice.org
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