I need input and help about a big collection buy...

[CoinPulsive PCM]

Recently I came into money from a family member passing away of old age. The death was unexpected and I didn't expect that I was the person who was to inherit most of this family members valueables and most of the estate money.

 

I am scheduled to open my coin store in July, and I have been trying to get the funds to buy my friends dad's business since last August when he announced his plans to retire. He owned a coins and collectibles shop.

I honestly am stuck in tought spot when it comes to what I should do becuase I have a couple options that I have been thinking about since all that stuff happened.

I would appreciate input from anyone who owns a coin shop or has been collecting for many years. But any opinions are worth hearing. The cash limit for all these options is $185,000.00. I am looking at the benefits and risks of the options like is it a good investment? That sort of thing.

 

1- An Ebay seller lists auctions like this one every so often. I have contemplated buying one of the collections offered in the past but I passed on it. Many of the items in this auction would be great for my business. But I have never sold some of the items included. Collection on Ebay

 

Do you think all that is worth the money? Does anyone know about the art and antiques?

 

2- This is a 50/50 split between inventory and personal collection. Spend $50,000- $100,000 over 1-3 years buying certified key date coins in high grades and certified pre-1933 US gold.

 

3- Spend up to $100,000 on buying coins to fill and complete albums. I would focus on everything from seated dimes to trade dollars and everything in between. All the coins would be in grades higher than XF and be put in Dansco albums. This option would go for several years.

 

Any input, opinions and personal experience comments are greatly appreciated.

I don't want to waste money and time, so anything from anyone who can help I am open to hear.

 

Thanks

-Dave

 

 

[MarkFeld]

Dave, I am confused by your post. Do you want to use funds to buy coins as a collector or to operate a coin shop?

 

If your answer is both, I think that is probably a bad idea, at least until your coin business has been well established.

[TomB]

The way this is worded I am not certain if you are buying all of these for a shop, for a collection, for a collection that will later be sold or all of the above. Regardless, I do not think you are ready to open a shop.

[Dcoin]

Sounds like you are looking for one stop shopping in putting together a successful business. Then to chance your inventory on an unknown ebay auction? Sorry dude, not a great plan.

 

Figure out who will be walking into your store.

Find a known, steady supply of the needed product.

Use 1/4 of your funds to buy that product.

Use 1/4 of your funds to bankroll overhead for X months

Use 1/2 to sit in a bank account to bail you out of any trouble.

 

Tried and true.

 

[wheat'swheats]

Having collected many of the type items in that sale fore over 50 years, all I can say is with your inexperience of those type items, you are about to get your rear end burned and burned bad. If you don't know them leave them alone.

wheat

[mkman123]

If Ive read, those type of lots are not good

[Keigwin]

Dave, I would sit on the inheritance for a couple of years in hopes your interests and directions solidify.

 

I think opening a shop at this point is not a great idea, assuming you are talking about a B&M.

Lance.

[CoinPulsive PCM]

Dave, I am confused by your post. Do you want to use funds to buy coins as a collector or to operate a coin shop?

 

If your answer is both, I think that is probably a bad idea, at least until your coin business has been well established.

 

#'s 1 and 2 were ideas for my coin shop inventory.

 

I would rather have the coins for my store and what ever doesn't seller when I retire will be my collection .

 

-Dave

[CoinPulsive PCM]

The way this is worded I am not certain if you are buying all of these for a shop, for a collection, for a collection that will later be sold or all of the above. Regardless, I do not think you are ready to open a shop.

 

I would be buying them for my shop's inventory.

 

What you think about if I am ready to open a shop or not doesn't matter. I am not trying to be hostile, but you don't know me outside of the forum.

I worked for my friends father at his coin shop for 6 years and I've done business myself on Ebay on and off since 2009 with excellent returns. I am not jumping into a coin business, I have been planning and preparing to open my own for a while. I do alot of ads on various sites and local venues which, when silver was at the peak last year, provided me with a great inventory that went on ebay. and with my sales record on ebay from just 2011 (when I sold coins on there full time), my experience working for another dealer and practically running it with his son while he was recovering from Bipass surgery, I know what I am getting into.

 

I will admit that I have not an expert on everything coins, but I am not a novice, and I am young enough where I can take the time to educate myself further to become very successful in the business.

 

-Dave

[CoinPulsive PCM]

Having collected many of the type items in that sale fore over 50 years, all I can say is with your inexperience of those type items, you are about to get your rear end burned and burned bad. If you don't know them leave them alone.

wheat

 

I appreciate your insight on that ebay lot. My main concern was that some of the items in that lot are not "for me." Yea, they would be good inventory only if I have the right person to sell to. I was thinking about collections like that, but I wasn't 100% set serious about buying something like that because I really don't deal with art or anything other than coins, currency and collectibles.

 

I will cross that option off and play it safe.

 

Thanks!

 

-Dave

[wheat'swheats]

Dave, I am confused by your post. Do you want to use funds to buy coins as a collector or to operate a coin shop?

 

If your answer is both, I think that is probably a bad idea, at least until your coin business has been well established.

 

#'s 1 and 2 were ideas for my coin shop inventory.

 

I would rather have the coins for my store and what ever doesn't seller when I retire will be my collection .

 

-Dave

I've spent over your budget in the last couple of years for keys and semi-keys and have not even gotten out of the coins I personally collect. I think you need to hold back and go a lot slower than you appear to be going now. I think all you need is the right nudge and you will make a tremendous mistake.

Wheat

[James_OldeTowne]

If I understand your OP correctly... DON'T buy the eBay stuff, and don't even think of considering eBay as a source of inventory.

 

To me, much more important than your startup funding is the LOCATION of your proposed store. Honestly, I think the location is 75% of the equation. The rest is experience, hard work and luck, along with good startup capital.

 

 

[MarkFeld]

Dave, for all I know, you might be extremely well qualified and prepared to run a coin shop successfully.

 

But if that is the case, it certainly isn't apparent, based on your first post to this thread. And apparently, a number of other posters had the same reaction that I did. That should tell you something.

[L1ncolnF4n]

IF you're convinced you want to do a B&M store, then you have to understand that anything you own is for sale. Many shops start by selling parts of personal collections, and the lines become blurred while you're a dealer. That's the single best piece of advice I got from asking a few of my trusted dealers for advice when I was considering a B&M. If you're looking to do it, you have to know that you won't be profitable for probably 2 good years.

[RWB]

Just an impression - the original posting sounds a little "impulsive." Operating a full-time, for profit coin business deserves very careful examination. Financial/human capital decisions made before opening the doors will affect the potential for a successful business.

 

Suggestion: Prepare a detailed business plan (templates are available on-line), then discuss this with knowledgeable friends and your regular banker. Do the homework and write it ALL down.

 

This won't guarantee success, but it will make failure less of a likelihood