Figuring things out

[alcmaeon-migration]

Hey There!

 

So, I've been reading everything I can, trying to get a handle on coin collecting from every angle. One thing that I have not quite understood yet is how dealers get inventory. I understand the concept of the Greysheet (have yet to see one) and assume it is average dealer wholesale prices. Also, I realize that different dealers probably do many different things, but: How do most stores get inventory. Do enough people sell off their entire collections/or Dear Old Dad's collections to keep new material flowing in? Are there wholesale only companies that only sell to dealers or facilitate dealer-to-dealer purchases?

 

I'm not asking this because I'm hoping to jump out there and make a bazillion dollars from coins, I'm just trying to figure out how the coin world works.

 

Thanks!

 

Rich

 

[dakra]

My local dealer gets coins from other dealers. Coins that might be on a customers "Want List" or coins one dealer cannot sell but the other believes he can sell.

 

From the public... I know one lady who owns some "coin op" machines. She is always bringing the silver coins into my dealer.... in turn, my dealer calls me and I check out the goodies! Other times people bring in coins that they might have picked up, accululated or inherited, they sell to my dealer to get some money in their pockets.

 

My dealer also got another dealers inventory pretty cheap recently. The other dealer was going out of business. My dealer past some of the savings off to me. A good deal of it was junk but it will be treasure for my 19- month old when he is older.

 

I'm not a dealer but hopefully we can hear some wisdom from the other side of the hobby

 

-Dave

[TomB]

It depends what type of material you are writing about.

 

For truly high end and special coins oftentimes you will have to buy at open auction or through private treaty. If it is for nice coins or coins simply bought to flip for a profit then the dealer-to-dealer venue of a show or through electronic bulletin boards is quite good. Common and low grade coins are usually bought directly from the public when someone either approaches a table at a show or, more commonly, when someone walks in off the street into a shop. This material may get dispersed to other dealers who specialize in it, will be sold to the larger coins houses that sell via mail order or will sit in inventory. There are also many people who sell to dealers after they inherit a collection and these people many times sell for cents on the dollar because they do not take the time to learn what they have and they might deal with someone who is less than ethical.

 

I buy essentially all my coins from either public auctions at major coin shows or through other dealers on the bourse floor.