How to Select a Coin Dealer for Your Coin Collection

Why do I Need a Coin Dealer?

It is very difficult to build a collection of rare coins

without a connection to a good coin dealer. If you are an

investor hoping to make a profit with your collection of rare

coins, building relationships with good coin dealers is vital

to your success. If you are interested in making the highest

profits possible with your coin collection, you will need to

find a merchant partner who is experienced in the specific rare

coins that interest you, and who will sell them to you at a good

price. Most coin dealers will charge a lower premium on the sale

of coins to their best customers. After all, it makes good

business sense to get the most profit possible from a person

who will do business with you only once. If you have a

long-term relationship, however, the margin does not need to be

as high for the coin dealer to make a good profit.

Because coin dealers are experts in their chosen fields, they

will also have better connections than individuals who buy

coins on their own will. Finding the right vendor or wholesaler

can be a long and difficult task for someone new to the coin

collecting trade. Coin dealers will also be more likely to

recognize a counterfeit coin, have a higher chance of hearing

about the sale of the specific rare coins that interest you,

and will recognize an asking price that is over- or

undervalued. As an investor, these are all critically important

points for your success.

Building a long-term relationship with a knowledgeable coin

dealer is the best way to protect the money that you invest

into rare coins. All too often, new coin collectors who try to

go it on their own without professional help end up being

scammed out of hundreds or thousands of dollars.

What Do I Look For in a Coin Dealer?

All coin dealers are not created equal, and it is nearly

impossible to specialize in every area when it comes to

collecting rare coins. Therefore, it's important to know what

to look for before you select a professional for your coin

collecting needs.

The first vital piece of information that you'll need when

considering coin dealers is his or her professional

qualifications. Some important questions to ask include, does

the coin dealer belong to any professional groups? How long has

he or she been in business? Can the coin merchant provide

references from other satisfied customers? One of the best

indications that a vendor has a high level of professionalism

is a membership in the Professional Numismatists Guild (PNG).

This group includes the most reputable coin dealers in the

business thanks to an emphasis on ethics.

The second most important question to put to a prospective coin

dealer is the area in which he or she specializes. There are so

many different kinds of rare coins to collect, ranging from

gold bullion coins to ancient Roman coins, that it is

impossible to be a true expert in all of them. You'll want to

find a merchant that specializes in the particular area that is

of interest to you. A trader might be able to recognize every

rare American coin at a glance, but that won't do you a lot of

good if you really want to collect legal tender from medieval

times.

Finally, you should consider the motivation of the coin dealers

you are considering. A highly motivated coin merchant will go to

shows and retailer auctions, keep abreast of current prices and

trends, and will generally keep up-to-date with the current

coin market. Any investor will recognize the impact of current

information on profit levels. A coin trader who is highly

motivated will also be more likely to provide you with

excellent service and the best rare coins.

Once you have selected a coin dealer, it is important to reward

him or her with your loyalty. You are likely to get the best

prices and service from coin dealers who know that you are

working exclusively with them.