Dealing With Local Coin Shops

There was a recent article written on Opening A Coin Shop which talked about the considerations when starting this type of business.

What the article reminded me of was the pitfalls of only dealing with one or more small local coin shops which may not be able to serve your needs when buying and selling gold and silver. My old boss used to say "the failure rate in the coin and bullion business is 90% every decade". If gold goes to $1500 or $2000 (as some experts are predicting), how likely is a local dealer going to be able to buy back the 10 or 15 Gold Eagles (or other one-ounce coins) you bought from them?

If silver goes to $50 an ounce (as it once did), how likely is a local dealer going to be able to buy back the bag of junk silver you bought from them (at 715 ounces per bag, that would be approx. $35,000).

If you are only dealing with a small coin shop, you might want to consider establishing a relationship with a large coin dealer who is more likely to be in business long-term and be able to handle the larger transactions you have or will have in the future.

Happy investing.