Coin Shop = Money Machine?

[shinnosuke]

Just throwing this out there...

Have you ever seen a coin shop go out of business?

Can they almost always buy low and sell high?

Of the coin shops I have known, they were all owned by a single proprietor. What happens when they get old and want to retire, although they can usually do that kind of work beyond the typical 65-year old retirement age?

Based on a discussion of the answers above: Is now a good time to start a coin shop business? Or buy out an existing one?

[Nickelmeister]

I thought a year and a half ago was a good time to start a coin/PM business... and I did! (and I was right)

[shinnosuke]

I thought a year and a half ago was a good time to start a coin/PM business... and I did! (and I was right)

When I grow up, I want to be just like you.

[97guns]

of the 8 or so shops that i frequent 6 of them have been in business for over 20 years. that alone says something about the business model.

[psi]

Of the coin shops I have known, they were all owned by a single proprietor. What happens when they get old and want to retire, although they can usually do that kind of work beyond the typical 65-year old retirement age?

Makes me think of this older guy who ran the only coin shop in a small town I lived in for awhile, he was probably in his 70's or so and only opened the shop by appointment. I guess he must have owned the building.

[neilgin1]

Shinno,
this is just me....but two things in my personality would NEVER allow me to own a coin store.

first, i'm an absolute nut about OPSEC, thats operational security, and you have these clear glass windows, with all sorts of inventory
behind it and my question is, how do you secure all that? Windows, bars, steel shutters are just a speed bump for mobs of frenzied whatevers.

second, i have no qualms about carrying firearms, but its not something i do casually. My adrenalin glands start pumping, because when i feel that weight, its a mighty hefty responsibility. I truly believe that civilians that conceal carry, have NO IDEA, what they are getting into, meaning, the way i was raised, God forbid, that firearm comes out.....your next split second thought, what are my first, second, and third targets, because i will be firing. And brother...this is just me....back home, i dont want to live like that. I see too many wannabe rambo's packing, that really have no idea what they're doing. They'll take out a firearm to what?...wave it around?

That's just a recipe for disaster. Firearms are tools, pray to God you NEVER have to use one. So for me, i just like to stack and stash, live small, and somewhat radio silent. But blessings and good fortune to you, if you decide to retail sell, respectfully, n.

[toomuchcopper]

What is the point of a coin shop? If it is to buy coins than there may be a valid argument to paying rent and utilities for a brick and mortar storefront......in the internet age why bother with all those expenses, you can buy and sell coins at your own house in your underwear( if you want) with a lot less overhead. Seems silly to spend hunreds or thousands of dollars each month to have a storefront. The power of the internet is ever increasing....I would not waste my money on a store that I had to be at 7 days a week...with internet sales you can make money selling coins while you are sleeping or getting drunk or diddling with your girlfreind or whatever you want to do being tied down to a store seems silly to me.

[AFModell]

In the town that I attended college in there was one coin dealer/high end jeweler. He was about 50 or a little under. One day he stepped on something on his driveway, got a wicked blood infection, and passed away in less than a week. His family sold the contents of his shop to a big dealer in Houston about an hour away. There was only one other very small coin dealer in the town and they would not discuss selling to him. So, thats what happened to one small town coin deal. RIP John D. Huntley.

[Nickelmeister]

What is the point of a coin shop? If it is to buy coins than there may be a valid argument to paying rent and utilities for a brick and mortar storefront......in the internet age why bother with all those expenses, you can buy and sell coins at your own house in your underwear( if you want) with a lot less overhead. Seems silly to spend hunreds or thousands of dollars each month to have a storefront. The power of the internet is ever increasing....I would not waste my money on a store that I had to be at 7 days a week...with internet sales you can make money selling coins while you are sleeping or getting drunk or diddling with your girlfreind or whatever you want to do being tied down to a store seems silly to me.

"Well, why go to a fine restaurant, when you can just stick something in the microwave? Why go to the park and fly a kite, when you can just pop a pill?" - Cosmo Kramer (Seinfeld)

I did buy and sell coins and scrap PMs online for a while before deciding to open a legitimate store-front operation. The difference was astronomical. In the first twelve months I brought in nearly $2M in scrap gold jewellery alone. I am only open banker's hours and take off two days a week.

[toomuchcopper]

My friend has a storefront....he uses it almost exclusively for buying gold and silver and does very well at that..... He has a lot of coins but moves most all of them over the internet. Perhaps I am a bit scewed as in my area there is almost no market for numismatic coins. My friend keeps barely anything in the store anymore as nobody ever bought anything and he was constantly being broken into.....so now he just buys stuff at the store and uses it as an office area to sell on the internet...
personally I love going into coin shops....but couldn't sit there all day long every day. Although I would love to have a place to buy silver........

[NotABigDeal]

Shinno,
this is just me....but two things in my personality would NEVER allow me to own a coin store.

first, i'm an absolute nut about OPSEC, thats operational security, and you have these clear glass windows, with all sorts of inventory
behind it and my question is, how do you secure all that? Windows, bars, steel shutters are just a speed bump for mobs of frenzied whatevers.

second, i have no qualms about carrying firearms, but its not something i do casually. My adrenalin glands start pumping, because when i feel that weight, its a mighty hefty responsibility. I truly believe that civilians that conceal carry, have NO IDEA, what they are getting into, meaning, the way i was raised, God forbid, that firearm comes out.....your next split second thought, what are my first, second, and third targets, because i will be firing. And brother...this is just me....back home, i dont want to live like that. I see too many wannabe rambo's packing, that really have no idea what they're doing. They'll take out a firearm to what?...wave it around?

That's just a recipe for disaster. Firearms are tools, pray to God you NEVER have to use one. So for me, i just like to stack and stash, live small, and somewhat radio silent. But blessings and good fortune to you, if you decide to retail sell, respectfully, n.

I tried SO hard not to say anything about your post. I haven't been on much at all untill now. And this.... In fact I left the thread but your comments were just getting to me.

Just because you have anger/emotion issues and can't control your anger if you armed, doesn't mean everyone that carries is the same as you. I for one am not. I'm not a wannabe Rambo or even close. If you want to be an unarmed victim-in-waiting, that's on you. Don't group me, and almost everyone I associate with, into your "Rambo" catagory. Some people, believe it or not, are responsible enough to ALWAYS carry and never even think about "waiving it around". I never leave the house without at least two weapons. I guess I'm double crazy in your eyes. I see it as prepared....

Guns are not to be waived around. If my gun(s) come out there is a major situation where, hold your breath, deadly force may be necessary. I do not want to shoot anybody. Do you know how expensive that is? Not to mention the mess....

You are correct in at least one aspect. Guns are tools. Tools of self preservation. But, they are useless without people. Same as a hammer or wrench. All, if used incorrectly can be a weapon. But, the gun is also an equalizer. It makes the 5' tall, 100lb woman equal to the 6' 5" 250lb man. What's the other option? Mace? Not for my loved ones....

Sorry to everyone for the rant. Be happy I cut it short, hehe.

Deal

p.s. I'm back. Again.... I think....

[oktyabyr]

Shinno,
this is just me....but two things in my personality would NEVER allow me to own a coin store.

first, i'm an absolute nut about OPSEC, thats operational security, and you have these clear glass windows, with all sorts of inventory
behind it and my question is, how do you secure all that? Windows, bars, steel shutters are just a speed bump for mobs of frenzied whatevers.

second, i have no qualms about carrying firearms, but its not something i do casually. My adrenalin glands start pumping, because when i feel that weight, its a mighty hefty responsibility. I truly believe that civilians that conceal carry, have NO IDEA, what they are getting into, meaning, the way i was raised, God forbid, that firearm comes out.....your next split second thought, what are my first, second, and third targets, because i will be firing. And brother...this is just me....back home, i dont want to live like that. I see too many wannabe rambo's packing, that really have no idea what they're doing. They'll take out a firearm to what?...wave it around?

That's just a recipe for disaster. Firearms are tools, pray to God you NEVER have to use one. So for me, i just like to stack and stash, live small, and somewhat radio silent. But blessings and good fortune to you, if you decide to retail sell, respectfully, n.

I've gotten to know the guys that run my local store pretty well. They've even let me behind the counter a time or two. They have a veritable arsenal. Multiple guns within easy reach. Hidden from plain sight, but still easy to get to. Electronic controlled doors. More cameras than a bank. And a very good relationship with the local police and SWAT team. Overall they are pretty safe. They limit the amount of customers in the store. Always aware. Usually at least 1 more person in the back, behind 1-way glass. And they've been at the same location over 20 years. They won't tell me the size of their personal stashes, but from what I've gathered, they've accumulated a decent amount. So there is a lot to be said for the storefront operation.

[PreservingThePast]

Shinno,
this is just me....but two things in my personality would NEVER allow me to own a coin store.

first, i'm an absolute nut about OPSEC, thats operational security, and you have these clear glass windows, with all sorts of inventory
behind it and my question is, how do you secure all that? Windows, bars, steel shutters are just a speed bump for mobs of frenzied whatevers.

second, i have no qualms about carrying firearms, but its not something i do casually. My adrenalin glands start pumping, because when i feel that weight, its a mighty hefty responsibility. I truly believe that civilians that conceal carry, have NO IDEA, what they are getting into, meaning, the way i was raised, God forbid, that firearm comes out.....your next split second thought, what are my first, second, and third targets, because i will be firing. And brother...this is just me....back home, i dont want to live like that. I see too many wannabe rambo's packing, that really have no idea what they're doing. They'll take out a firearm to what?...wave it around?

That's just a recipe for disaster. Firearms are tools, pray to God you NEVER have to use one. So for me, i just like to stack and stash, live small, and somewhat radio silent. But blessings and good fortune to you, if you decide to retail sell, respectfully, n.

I've gotten to know the guys that run my local store pretty well. They've even let me behind the counter a time or two. They have a veritable arsenal. Multiple guns within easy reach. Hidden from plain sight, but still easy to get to. Electronic controlled doors. More cameras than a bank. And a very good relationship with the local police and SWAT team. Overall they are pretty safe. They limit the amount of customers in the store. Always aware. Usually at least 1 more person in the back, behind 1-way glass. And they've been at the same location over 20 years. They won't tell me the size of their personal stashes, but from what I've gathered, they've accumulated a decent amount. So there is a lot to be said for the storefront operation.

Being able to accumulate a personal stash in a storefront operation is nice. But nicer still is being able to sell enough to keep your doors open. One dollar sold does not equate to one dollar of profit. You have to pay the operational expenses, etc. or the doors will not stay open. Numismatic coins have slacked off big time right now and PMs seem to be carrying most of the shops that I am currently familiar with.

Good luck, if you choose to pursue such an endeavor.

On a side note: Deal, it is good to see you back!

[Mossy]

Shinno,
this is just me....but two things in my personality would NEVER allow me to own a coin store.
....
second, i have no qualms about carrying firearms, but its not something i do casually. My adrenalin glands start pumping, because when i feel that weight, its a mighty hefty responsibility. I truly believe that civilians that conceal carry, have NO IDEA, what they are getting into, meaning, the way i was raised, God forbid, that firearm comes out.....your next split second thought, what are my first, second, and third targets, because i will be firing. And brother...this is just me....back home, i dont want to live like that. I see too many wannabe rambo's packing, that really have no idea what they're doing. They'll take out a firearm to what?...wave it around?

I've carried for years, used for self protection twice. You are right, it is just you.

You say it is just you twice, then try to paint the rest of us with your personal brush? No, man, that's reaching too far.

I got over the "flash it so people can go Ooooo" back when I was a teenager. Took about a half hour for me to grow up.

[Mossy]

Sorry to everyone for the rant. Be happy I cut it short, hehe.

My tongue got tooth marks.

[neilgin1]

to Deal and the forum,
i didnt mean to offend you or anybody with my post. Wasn't my intention at all.

i'm pro 2nd amendment, and have no problem with any fellow citizen carrying firearms, sorry if there was any misunderstanding.

maybe i wasnt able to convey what i meant clearly, thats the problem with cyber communication.

respectfully, neil

[misteroman]

I just closed on another small plaza this afternoon and there is an open spot in it that I was thinking about opening a "play shop" where I could bring a few ryedales and sort and if anyone stops in then I stop and play coin shop.

[NotABigDeal]

to Deal and the forum,
i didnt mean to offend you or anybody with my post. Wasn't my intention at all.

i'm pro 2nd amendment, and have no problem with any fellow citizen carrying firearms, sorry if there was any misunderstanding.

maybe i wasnt able to convey what i meant clearly, thats the problem with cyber communication.

respectfully, neil

No problem man.

Deal

[Morsecode]

If you build it, they will come. Maybe

I live in a city of 60,000, nary a coin shop. None. Nearest one is two towns over, and another one in the town next to that. Both are single proprietor and have been around for many years.

Their stores are merely physical meeting places for people responding to Yellow Pages ads to bring coins, scrap, sterling, etc. Most of their selling is done online, or with the core following they've nurtured over decades of doing business. A lot of time spent letting people down easy while trying to explain that their common date Shield nickel is not the heirloom they thought it was. But, that goes with the territory I guess.

I look around my town and, while there are no coin shops, it seems a new pawn shop opens every month. And they advertise like crazy. Even well known jewelers are getting into the act; store names that have been part of the local lingo for generations. How to compete with that?

Regulation is another concern. The dimwits at our Statehouse are currently considering a 7 day waiting period to sell coins and precious metals! Totally clueless, but always a threat to your business.

Deep down you'll have to have a passion for coins, rather than just an ambition to succeed. When the current hoopla ebbs, and it will eventually, always does, is this something that'll still get you out of bed in the morning?

The shop I frequent more than the other is owned by a guy who will spend ten minutes on the phone with a gold buying whale, then twenty minutes talking Mercury dimes to some kid in the store. Which probably explains a lot about longevity.

[SteelCityCopper]

I just closed on another small plaza this afternoon and there is an open spot in it that I was thinking about opening a "play shop" where I could bring a few ryedales and sort and if anyone stops in then I stop and play coin shop.

Why not? Especially if you own a friggin plaza! People are still looking to brick and mortar as a safe harbor for doing business. I get calls from "old school" folks all the time wanted to do business the ole fashion way and don't trust the internet. To each his own. However, when you're talking about brick and mortar, location and customer service is everything, whereas in the cyber world, exposure and customer service is the key. I have customers all around the world that I do business with each week and I don't have any fancy brick and mortar storefront. Pretty cool stuff if you think about it.

[SteelCityCopper]

Can they almost always buy low and sell high?

No they can't always buy low and sell high. You'd be surprised how little coin shops actually make off deals that others would think is a rip off. Everyone is looking for basement prices. However, if a shop buys lots for current spot + small premium and you have a price surge, the shop makes bank... that is if they don't plan on restocking inventory / replacing what was sold. It's all about timing, pricing, customer service, product (bullion vs numismatic), location... a ton of factors go into a successful business.

[shinnosuke]

Regulation is another concern. The dimwits at our Statehouse are currently considering a 7 day waiting period to sell coins and precious metals! Totally clueless, but always a threat to your business.

You obviously haven't heard about the recent spate of drive-by coin murders. The state would be wise to make us wait 7 days to pick up our wheat pennies so we won't throw them out the window at somebody wearing the wrong colors in a moment of rage.

[kagarise]

Regulation is another concern. The dimwits at our Statehouse are currently considering a 7 day waiting period to sell coins and precious metals! Totally clueless, but always a threat to your business.

You obviously haven't heard about the recent spate of drive-by coin murders. The state would be wise to make us wait 7 days to pick up our wheat pennies so we won't throw them out the window at somebody wearing the wrong colors in a moment of rage.

haah yesterday my buddy acctualy go hit by one of those big plastic juice bottles full of change.
fell off the back of some guy's truck as he flew around the corner.

[shinnosuke]

Regulation is another concern. The dimwits at our Statehouse are currently considering a 7 day waiting period to sell coins and precious metals! Totally clueless, but always a threat to your business.

You obviously haven't heard about the recent spate of drive-by coin murders. The state would be wise to make us wait 7 days to pick up our wheat pennies so we won't throw them out the window at somebody wearing the wrong colors in a moment of rage.

haah yesterday my buddy acctualy go hit by one of those big plastic juice bottles full of change.
fell off the back of some guy's truck as he flew around the corner.

Did the driver of the truck just keep on going?

[Know Common Cents]

Don't think anyone mentioned the likely new 1099 reporting requirements for single or cumulative transactions over $600 in a calendar year. Something like this could sink your average coin shop quicker than most anything else. I know there's been a movement to abolish this requirement, but I don't believe that this has been repealed. My understanding is that this was included as part of Obama's health care reform package. Sort of an unintended consequence, but devastating nonetheless.

Actually, I think it stinks. This will encourage more cash transactions under the radar or owners will just pull the hook and give up. Sad. Really sad.