Becoming a NGC Authorized Dealer

[Deerefan8420]

"I was just wondering what requirements I would need to meet in order to become a NGC Authorized Dealer. I live in Alexandria, LA and our closest NGC Dealer is in Kenner, La, which is about 5 hours southeast of Alexandria. We have a few local pawn shops and a local coin shop in my area but they are not Authorized Dealers. I was thinking that it would be a good opportunity for both NGC and collectors in my area to have a NGC Authorized Dealer location more centrally located in our state(Alexandria is in the central most part of the state). I am already a Collector's Society member and have direct submission privileges. But I would like to be able to offer other collectors, who do not have that same privilege, the chance to have their coins sent in to NGC for grading. Do I need to have a business location or could I do this out of my home? I am not a commercial buyer or seller of coins but I have been collecting for many years. This venture would strictly be for the submission of coins to NGC for grading and encapsulation and not for the commercial buying or selling of raw or graded coins. Any help and information regarding this matter is greatly appreciated! Thank you for your time."

 

This is the email I sent to NGC about becoming an Authorized Dealer. At this time, I do not have the necessary credentials for becoming an Authorized Dealer, so I thought I would come to the forums to see if I could get some help from some of the Authroized Dealers and other knowledgable members to work with me over the next couple of years and help develop my knowledge and necessary skills regarding the numismatic requirements of becoming an Authorized Dealer. I already have a great, and rewarding, career on my family's cotton farm but I also have a passion for coins and collecting that's almost equal to my passion for farming. Any and all help is greatly appreciated!

[Conder101]

From NGC's website

 

Q. I am a coin dealer. How can I become an NGC Authorized Dealer?

A. Contact NGC Customer Service (1-800-NGC-COIN) and request a dealer application. It is required that you have been in the business of numismatics for at least one year and can provide at least four numismatic references.

[Deerefan8420]

Yes, I read that. I guess I should have been a bit clearer in my first message. I emailed NGC and received a response from them. My post here is not on how to become an Authorized Dealer, as that question has been answered. I guess my question should have been, "Are there any volunteers out there who would be willing to help me build up my knowledge and reputation in the numismatic community?".

[Dudley the 1st]

I think the best way to accomplish that goal is to make yourself available to participate in shows and getting to know other dealers in your local area. Often times there is a local coin club that you may join and get to know a few dealers who attend.

[kryptonitecomics]

If you are already a coin dealer you should be working on that with each sale. If you are not yet a coin dealer then that's certainly a good place to start and you don't have to be a NGC authorized dealer to sell NGC and PCGS coins (thumbs u

[coinman_23885]

My understanding is that there are certain financial requirements required to become an authorized dealer that put it outside of the reach of most collectors. In any event, I wouldn't want to accept the legal liability to handle bulk TPG submissions. As was pointed out, collectors can submit their own coins by joining the collector's club.

[Deerefan8420]

Well, Im not what some people would call or consider a coin dealer. I dont commercially buy and resale coins in large quantities. And I dont have a brick and mortar location. When I do sell coins, it's usually just coins from collections that I have no desire for anymore. I'll then use those funds from the sales to update my current sets. Would that small scale of dealing, buying ad selling, still be considered as "being a coin dealer"? We have a few local shops around here but it's mostly pawn shops. We do have one shop that sells coins but he is not an authorized dealer for any of the TPGs. He sells mostly firearms but has a display case with some coins. Not the largest selection or variety of coins either. And way overpriced. At any rate, my ultimate goal is to become an Authorized Dealer just so I can offer other collectors in my area the opportunity to submit their coins for grading.

[Conder101]

I would say no you are not a dealer. You are just a collector selling coins from your collection to finance other coins for your collection. A dealer buys coins primarily for resale at a profit so he can use that money to buy more coins to resell, hopefully while drawing off some money for personal use. I would not say that having a brick and mortar location would be a requirement to be a dealer.

[RWB]

Maybe the OP could be an "Unauthorized Dealer" and skulk around behind the concession stand at coin shows, or hide in the shadows of alleyways near coin show entrances, wearing a trench coat and Fedora. You could whip open the coat to reveal sample slabs and application forms pinned to the lining. "Psst. Hey, buddy! Wanna get youz coin graded? Eazy, ad cheap, too...."

 

Do people take classes to become “amateur plumbers” rather than “professional plumbers?” How about “amateur coin dealers” vs the same “professional coin dealers?”

 

[Deerefan8420]

I don't want to hide in the shadows! And yes, I am an amateur right now. But weren't we all amateurs when we first started out collecting or becoming a dealer? You don't become a professional of anything overnight and I have no expectation of that. This venture will take a few years to accomplish, as I have my own skills and knowledge that need honing first before I can help others.

[RWB]

Many amateur's in the coin hobby vastly outshine many of the self-styled professionals.

 

In coins, the only divider seems to be consistently earning a profit from the business. Because of the OP's desire to learn, you'll more likely end up as one of the minority of coin delares who is also a numismatist.

 

Just some opinions....

[AstroTrain]

...weren't we all amateurs when we first started out collecting or becoming a dealer?...

 

I disagree. I started as a professional and have become more of an amateur every day!

 

It's a joke, but kinda true at the same time. The more time I spend on the boards learning, the more I realize I don't know much.

[Deerefan8420]

I'm always looking for opinions and I appreciate all the feedback I've received so far. This is my ultimate goal though. I don't want to be a dealer who only buys and sells coins based on what kind of profit I can make. I already have a great and rewarding career so profits are not my concern. I don't want to be a dealer who does not have, or has very limited, numismatic knowledge. I want to be able to help a collector in determining what kind of coin he/she has, its rarity, if it has a particular variety or other attribute or other things of tha nature. I don't want the decision of certification to be based solely on the market value of a coin. Instead, I would rather it be based on the preservation of the coin so that others can enjoy it's beauty and can appreciate it's hstory.

[jpcienkus]

Deerefan,

 

Don't let some of the disparaging remarks deter you from your goal of becoming a numismatic adviser/dealer.

 

One of the deterrents to entering into the hobby of coin collecting for me was finding dealers I could trust as I learned about coins.

 

I wish you well in your endeavor.

 

Joe

[Deerefan8420]

Thank you for your encouragement Joe. I don't really find the suggestions and opinions that I've received so far to be disparaging. I think that the comments are geared more towards helping me understand the necessary risks associated with becoming a dealer. I do plan to start attending coin shows and other events soon to become known by others and to start build my reputation in the numismatic community.

[coinman_23885]

One of the most important functions of an authorized dealer, at least in my opinion, is helping clients screen coins and to chose the appropriate tiers. This requires a lot of knowledge. My recommendation would be to arrange a business relationship with another well established dealer, and see if he or she will show you the ropes.

[Deerefan8420]

Thanks for the info Kenny. I find that it has been easy to use the online submission forms and if you take your time, the submission process is somewhat simple. I will admit that I was a little confused with my first submission, but with some great help from a Service Rep at NGC, I was able to get a better understanding of the submission process and filling out the forms properly. And you are right, screening the coins for possible varieties and other attributions beforehand is quite a task in itself. I have submitted 54 of my own coins for grading and so far have not made any mistakes with the paperwork. But with each submission I've made, I've been sure to take my time to go over the coins for submission thoroughly. I know that the value of a coin also plays a major role in selecting the proper tier. Since I've started submitting, I've been keeping a journal of what coins I've submitted, what I think they will grade and why I think they will make that grade, what possible varieties exist, and so on. And once I get those coins back, I go over my journal and record the NGC given grades and make notes of why that particular coin was graded higher or lower than my estimate.