Five Tips for Young Coin Dealers

Five Tips for Young Coin Dealers: The coin industry is changing rapidly. With the retirement of big name dealers, a new generation of coin collectors is entering the field, one that is tech savvy and adaptable to the digital age. This shift has the potential to completely reshape the coin market.

I witnessed the third-party grading revolution as a young collector and have covered the evolution of the sector for the past 15 years. But the changes are never as big as they are today. New dealers have a tremendous opportunity to make this industry exciting and innovative. In this article, I share five important tips for emerging coin dealers that will help them succeed. >

1. Avoid Overreliance on Grades and Pop Reports

Many new dealers assume grades and pop reports are the be-all and end-all, but they only paint a partial picture. Rare coins cannot be valued based on recent auction results and statistics alone. Instead, it is essential to compare historical data and understand market trends. >

Check old sales on major auction platforms and see how often coins have been sold, in what grades and in which auctions. Also, it is important to know how the popularity of a particular coin is changing over time. >

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2. Be a generalist and customer-centric in the beginning

New dealers should start with generalist trading before becoming experts in a particular area. A successful business requires not only a deep understanding of coins but also the right customer base and contacts.

Let’s take the example of a young dealer who focused on giving his customers a great experience. When I bought some old books from him, the package contained not only the books but also a business card, a wooden coin and a personal message. These little things leave a deep impression on customers and increase brand credibility. >

3. Don’t sell coins you believe in

The best coins often disappear into the cold market and come back for a greater profit when the time is right. But new dealers don’t always have the luxury of holding on to them. However, for coins you really believe in, check the market thoroughly before selling and try to sell at your desired price.

It may take time for some coins to find the right buyer, but it is important to be patient. Many experienced dealers make huge profits by buying these rare coins at a low price, so set your price correctly and don’t rush to sell good coins at a low price.

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4. Don’t share your strategy with others

The coin industry is like a small community, where networking is very important. It is important to learn from experienced dealers, but it is not advisable to share your successful strategies with everyone. Many people will try to copy your success.

Today’s new dealers are making the best use of social media, video marketing and digital platforms. It is certain that people will try to copy your strategy, but you should keep your “secret sauce” to yourself and let others learn on their own.

5. Avoid high-risk deals initially

When you are new and have limited capital, it is best to avoid risky deals. Sometimes a deal may look very attractive, but on deeper investigation it may turn out to be a loss.

As an example, a friend of mine decided to invest in Peace dollar coins. We contacted a specialist dealer who offered us some high-grade coins. At first the deal seemed profitable, but on deeper analysis we realized that these coins were actually of low quality and we could have incurred losses. We cancelled the deal and avoided a big loss.

It is important to take risks, but only as much as you can bear. It is important to learn from every loss, so that better decisions can be made in the future.

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Conclusion

Success in the coin industry requires not only knowledge but also the right strategy and patience. It is important for new dealers to not rely solely on grades and pop reports, be customer-centric, not sell their best coins without thinking, keep their strategies secret, and avoid risky deals in the beginning.

If you keep these things in mind, not only will your brand be strong, but you will also be successful in the coin industry for a long time.