Coin dealers shutting up shop
 

I have noticed that a couple of the coin dealers in my area have shut up shop (SE Australia). Could the volatility in the PM prices drive them out of business?

Re: Coin dealers shutting up shop
 

Only if they buy high and sell low.

Re: Coin dealers shutting up shop
 

Well, if they're not making the profits they hoped for - It seems tough to make a profit at anything, and bricks and mortar stores seem to be harder.

Possibly, if they were sitting on some inventory, they decided they could make more money by holding inventory than selling it.

Re: Coin dealers shutting up shop
 

Good point there Ardent.

Re: Coin dealers shutting up shop
 

Looks like OPPORTUNITY knocking for your NEXT endeavor - a coin shop!

Re: Coin dealers shutting up shop
 

I would love to but I haven't got much fiat and very little stock to start up as a dealer.

Re: Coin dealers shutting up shop
 

I'm not interested in starting my own business -- the 18-hour days don't sound romantic -- but given the scarcity of PM dealers in my area, I have surely pondered it.

The capital required for entry is probably large, retail space leases around here are barbaric, and I'm not interested in coins because I don't understand them. Having made those excuses, it sure looks interesting anyway: take calls on your home phone, and contract out the storage and delivery to somebody at an undisclosed location full of pit bulls and old cars.

Re: Coin dealers shutting up shop
 

[quote=DrillAndFill] -- given the scarcity of PM dealers in my area, I have surely pondered it.

If the oppurtunity is there, you could always just do it short term. Set up something to service the local area for a few months - then when those ppl have bought their metals, and you have milked their trade-in's - go back to your day job.

I have also thought of the same thing. Open a shop miles from anyone else, you probably wouldnt have to sell much. Just offer buyback prices and get PM's for seriously great prices.

Re: Coin dealers shutting up shop
 

They probably wised up...I had a full brick and mortar coin and bullion store.....did it full time for 17 years.

To do it in this day and age, with the increased violent crime, internet competition, escalating costs on everything from rent, salaries, insurance, advertising, etc etc would take balls the size of basketballs in my opinion.

Try hotel buys if you got the bug.....cheap entry level...that is where I got my start....it has been long enough since anybody really doing it seriously.......set up in small rural college towns.

GLTA