| Whether you want to buy or sell coins, you can | | | | likely to give you the most for your coins |
| gain a big advantage if you know how the | | | | because it does not have to pass through two |
| system works. When dealing with coin dealers, | | | | sets of hands. But unfortunately, this crowd can |
| there is a big difference in what the consumer | | | | also be one of the biggest cheats in the coin |
| expects of the coin dealer and what the dealer | | | | buying and selling process. The wholesalers will |
| believes he should provide the seller. The major | | | | normally belong to organizations within the |
| factor in determining the whole process is trust. | | | | industry that require them to work under a code |
| The coin seller trusts the average coin dealer to | | | | of ethics which helps keep them more honest |
| give them the best possible value while the dealer | | | | than individual retail coin dealers. |
| believes it is ethical for him to offer the lowest | | | | A great way to defend yourself against a shady |
| possible value so he can turn a profit and that it is | | | | coin dealer is to know what he is paying for his |
| up to the coin seller to have done their research | | | | wholesale coins. This information is made public in |
| on the coins value. | | | | the Coin Dealer Newsletter which comes out |
| When dealing in the collectible coin market | | | | weekly. It lists the bid and ask price of every |
| whether you sell coins or buy them as a hobby | | | | major US coin in existence. The ask price is the |
| or a onetime thing, understanding the two major | | | | price a dealer is paying if another dealers comes |
| categories of dealers can be helpful. There are | | | | to them to sell coins. The bid price is what a |
| basically coin wholesalers and retailers. The | | | | dealer would be offered if he wanted to sell coins. |
| wholesaler wants to bring new inventory into the | | | | So really it depends on who wants to sell coins |
| marketplace. To do so they normally attend the | | | | and who wants to buy coins. Basically if I wanted |
| collectible coin shows, auctions, and run advertising | | | | to buy 100 coins I would be quoted the ask price, |
| offering to buy coins. They will then sell their coins | | | | but if I called and wanted to sell 100 coins I would |
| in bulk to the individual retailers for a profit. | | | | be given the bid price. The thing to remember is |
| The retailers on the other hand, get most of their | | | | that these prices are based on the wholesale |
| stock from the bigger wholesalers. They will also | | | | market. |
| attend shows and auctions but the majority of | | | | Knowing this information can be helpful when you |
| their purchases come in bulk from the wholesaler. | | | | want to buy or sell coins. It helps to realize that |
| The retail-based dealer makes most of his profit | | | | for most coins, the profit margins are pretty |
| selling to a client base of individual coin buyers and | | | | narrow so a dealer has a fine line to walk in |
| collectors. This is the type of dealer that is most | | | | making or losing money. |