One of the most important questions you will ever ask yourself, one that we are asked almost daily, is how do I select a rare coin dealer for my collecting and/or portfolio needs? You want to be very cautious with the people who handle your money; most of you did not accumulate your assets by taking undue risks. So now that you are collecting coins and have the discretionary income, there is no reason to take chances. Comprised below is a list of guidelines for deciding on the rare coin dealer(s) best suited for your needs. These thoughts are not foolproof; you will rarely find someone who fits all these characteristics. Look for the attributes that you value the most.
1. Service - If you are not a coin expert or specialist, then you need a dealer who will take the time to guide and educate. Customer service is an area that many dealers try to improve upon, but fall a bit short because they do not have the patience or the time. Although, this may be one of the most important factors in your selection process, do not make it your main criteria. You can pick up lots of good information from dealers who don't have the time to educate. Watch and listen because many of the most intelligent coin dealers are not service oriented. Their focus is on wholesale business because of the quick turnover. Be aware that there are some coin companies that will give you great service, but their quality may leave much to be desired.
2. Quality - As with any purchase, you want value for money spent. Collectors lacking experience in grading coins must rely on dealers. If you already have an eye for quality and do not need the expertise of a dealer, you probably don't need to read this; you need to find the right coins at the right price. For those who do not know the finer points of grading, it is a long-term educational process. Most dealers will tell you that there is always something to learn about coins--almost daily.
3. Price - This is also a very important component in your selection of a dealer. However, do not let a low price be the sole determinant of the coins you buy. If you do, the majority of your purchases will consist of low-end coins. When it comes time to sell, most dealers will not want these coins or they would buy them at heavy discounts.
4. Organizations - It is comforting to know that the dealers you select have an eye toward the future. There are a few numismatic organizations that dealers should be members in good standing. ANA, American Numismatic Association, is the leading collector oriented organization in the United States and beyond. There are over 30,000 members worldwide. ICTA, Industry Council for Tangible Assets, is a dealer organization which acts as liaison between the coin industry and the government. This is the only organization that the coin industry has looking out for the welfare of numismatics relative to laws and future legislation. Without ICTA, the coin industry would be government regulated and there would be fewer dealers and less competition. PNG, Professional Numismatists Guild, is a dealer member organization that is known in the industry for maintaining an arbitration process that strives to satisfy complaints regarding members. PNG puts teeth into this process to maintain their high ethical standards. There are numerous other organizations, including national and local clubs; membership does not mean the dealer is reputable, however, as a member of industry organizations, a dealer has concern for the future of numismatics.
5. Location - This has become a secondary element in the selection process, with all the major shows, ease of shipping, and Internet viewing and auctions. In spite of the fact, many still choose dealers according to ease of access finding the old fashion way of interacting directly with dealers a main objective.
6. Longevity - We all realize that it takes some time and effort to achieve education in the scholarly institution of numismatics. However, mere presence in the coin business for a long period of time does not necessarily go hand-in-hand with reputable coin dealers. Longevity may be important, but character and expertise must weigh heavily.
7. Expertise - This goes along with longevity; the more experience one has and the more knowledge one has gained, the more one can educate those who are willing to listen.
The perfect coin dealer is the one who locates the best coins for you, sells them at 10% less than he paid, takes plenty of time to educate, extends credit for three months, allows returns up to a year at the price paid, and always gives you "first shot". By the way, this guy is no longer in business. The next best choice is a combination of the previously mentioned guidelines. All of these elements are not necessary, but they should give you a head start in your selection process.
Selecting A Rare Coin Dealer To Handle Your Collecting Requirements
