Dealing in coins and precious metals can be a rewarding career. It can also be one of the toughest professions you can enter into. There are so many different things to learn when you start out in this industry in order to properly evaluate coins and gems. But once you learn the tricks of the trade, it is easy to make money dealing bullion as well as precious stones and metals.
Gold bullion and rare coins are some of the most beautiful treasures in the world. They are made up of precious metals such as gold, silver, palladium, and platinum, which makes them a convenient and secure way to invest in gold and other precious metals. These items have a monetary value as well as a collectible value. Many of the collectibles you will see not only have a monetary value, but are also priceless due to their place amongst other striking pieces from antiquity.
Here are the simple steps on how to become a dealer in bullion coins.
- Initially, look for your target clients. You will never become a dealer if you do not have clients. Know your clients by becoming informed about their desires and standards when it comes to collecting coins. Some investors buy only rare coins. They are very particular about denomination, type, date, and how coins are made.
Getting to know your consumer is an invaluable asset. The types of items they are looking for will include gold bars, coins, gems, and precious metals. While you can buy and sell all of these items, it may be more profitable to choose a niche in the bullion market.
- Write out a plan for your business. Within this plan you will identify the type of items that you will sell, a plan for your storefront or Internet store, and the amount of funds needed to get your business started. Having an organized list of the items and capital needed to get started will help you to succeed.
- Register yourself in ANACS and the other coin certification/authentication organizations. They will keep you informed as to which coins are genuine and current market bullion prices, which will boost your confidence in dealing with your clients.
- A license is not really a requirement to become a dealer in bullion coins. Just make sure that your business is securely registered in the state and get a sales tax number. But secure yourself as mentioned earlier. Be a member of an association that deals with bullion coins. It will help you to become a better dealer.
- Just like any other business, you must put together a marketing plan. A marketing plan is important in order to attract new clientele. It will be your guide on what strategies you're going to use to become successful. You will need to make a list of the ways you plan to market the business. This can include pamphlets, Internet sites, and newsletters that will attract customers and increase profits.
- Before engaging with this hobby or business, gather information and get familiarized with the different kind of coins, like ancient coins rich in history. This is one area of the bullion industry that can be quite complicated even for the most seasoned bullion dealer. Coins can retain value for a variety of reasons. Commemorative proof coins are also good to collect. They are made to commemorate a special event or special person. Recently, America issued their American Silver Eagle in celebrating the 20th anniversary of the American Eagle Coin Program, for instance.
Also familiarize yourself with the world's bullion coins like Canadian Coins, Chinese Coins, and others. Attend some seminars given by the Numismatic Association in your area. It will give you more information about bullion coins as well as information on the latest coin updates. Buying bullion coins is like buying gold bars or silver bars, so take note of how much investors have to invest in collecting bullion coins.
- Purchase the merchandise for your business at wholesale prices. This is one of the basic principles to running a business. Buy your inventory at the lowest price possible. In doing so you will increase the amount of profit for your store. This may mean contacting many suppliers until you find the right one.
- Sell your bullion. Create a professional website and/or set up a storefront that will bring in new customers. Advertise the different items that are available to purchase through the business. You can even create coupons for your grand opening to disperse throughout your town or via email. This will entice consumers to buy bullion from you and not your competitors.
Starting a business as a bullion dealer or coin dealer will be challenging work, with the numerous tasks of studying your clients, studying a variety of coins, keeping track of precious metal prices, and general business dealings from marketing strategies to daily decision-making. Engaging in a collecting business is not as easy as selling basic goods. But don't get discouraged. Just follow the guide and take it seriously and it will lead you to your success. Establish yourself as an honest and reputable precious metals dealer and soon you will find out that you have already become a successful bullion coin dealer.