Start A Coin Dealer Business Online
A traditional coin dealer business works out of a store. With an internet connection and your own website, you can build an online business buying and selling coins at a fraction of the cost.
Many coin dealers began as a coin collector. If you are a coin collector, you have an advantage over someone starting without experience. You understand that a coin's value is dependent on its physical condition, its rarity, and its precious metal content.
The biggest barrier to starting a coin business is the cost of inventory. A well stocked store requires an inventory worth hundreds of thousands of dollars. Add in the cost of owning or renting store space and the cost of store fixtures, the cost of insurance, plus operating capital prohibits a lot of people from ever starting a coin business.
With the advent of the Internet, you can reduce your costs significantly. You don't need a physical store front. You can build a virtual store online, that is, a coin website.
They are very cheap. You can own a
high quality website
(new window) for as low as $29.99 per month or $299 per year if paid in advance. Add on a shopping cart like e-junkie for as little as $5 per month. I have used both and I recommend both.
You don't need a huge and costly inventory to start your coin dealer business, you can begin with only a few coins. Sell your coins online and use the profit to expand your inventory. This way, you can start small, and build your hobby into a full time business.
Most coin dealers not only sell coins, they also appraise and buy coins from walk-in customers, estates sales, and coin shows. You will need some expertise in grading coins. A mistake can be very costly.
Fraud does exists. So protect yourself by becoming an expert in coins. You will need the tools and ability to spot counterfeit coins.
If you are limited in coin grading skills, don't despair. You can limit your trading to certified coins. Certified coins have been graded by trusted companies such as PCGS, NGC, and ANACS. These companies are the leaders in the independent coin grading services.
When starting your online coin dealer business, you may wish to specialize in an area where you have expertise or a passion. You could specialize in numismatic coins in hobby grade, or in investment grade. Coins in circulated grades will cost less than mint state uncirculated grades or proofs.
You could specialize in bullion coins. American gold and silver eagles are very popular with not only coin collectors, but gold and silver investors. The US mint sells new bullion coins through coin dealers. You could become one if you meet their requirements.
With foreign countries such as China buying gold as fast as they can, you can expect gold prices to rise. Add in the dollar woes caused by poor government policies, you have more people now than ever wanting to hedge their portfolios with gold and silver coins and bars.
If you are going to start a coin dealer business, you will need an inventory of coins to sell. Build your inventory by buying at dealer wholesale value. You can find coins at private estate sales, individuals, coin auctions, coin shows, and of course online at the certified coin exchange or even eBay®.
Be sure to store your inventory in a bolted down safe or at your bank in a safe deposit box. If you can store them in your bank's vault, better yet. Be sure to have business insurance to cover any loss from theft.
Get Your Website
Selling your coins online, requires you to use a third party seller such as eBay® or own your own website. I recommend that you own your own website.
Why? Because you own the traffic that comes to your website, If you sell on eBay, they own the traffic. You can encourage customer retention by offering a free newsletter to online subscribers.
Offer valuable tips on coin collecting on your website and in your newsletter. You don't want just a sales catalog of your latest inventory. By sending a simple newsletter each month, you keep your name in front of your customer. When they are ready to buy, they will remember your coin dealer business.
You don't have to be a computer wizard to build a website that works. I have used
Site Build It!
to create several websites. They provide you with all the tools and knowledge to succeed online. No other company, that I know of, offers what SiteSell does. They give you a complete set of tools to brainstorm, create, analyze, and publish your website on the major search engines.
They will teach you how to reach the top 1% of all websites on the web. It worked for me. It can for you too. Just follow their Action Guide.
Don't have the time to build a website? Then
hire a certified SBI webmaster.
These folks are the experts, and know how to create a website that works! I have seen their work. It is better than mine!
Starting a coin dealer business online can be a rewarding experience. Start small, add passion, and work your way up to prosperity. It is worth the effort!
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