Finding a local coin dealer is easy-just open up the yellow pages or search Google for coin dealers and appraisers in your area and you’ll find a long list of names. The trick is finding a dealer near you who has a high moral and ethical standard, who is respected by his or her peers in the numismatic field, who has a stable business, and who is an expert in rare and collectible coins. As you can imagine, putting these search restrictions is the search field makes the list much shorter.Get more information from first fidelity reserve.
Here are five questions to ask in choosing the right coin dealer:
Question #1: Does the dealer have experience?
It is always recommended that coin investors and collectors learn the most they can about their investment, but few of us have the time to devote to becoming an expert. Coin dealers are paid to be the expert, so make sure they are one. Especially with something as complex and unpredictable as buying or selling coins, it is imperative that the dealer is adept at determining the true value of a coin.
The dealer should be able to prove to you that they have extensive expertise in coin dealing. Ask to see their credentials or portfolio before beginning a deal, and don’t be afraid to question why they have an interest in coins-Do they collect? What coins do they own? How did they get started in the field? Answers to questions like these can tell you a lot about their experience.
Question #2: How long will the dealer be around?
Before entering into a transaction with a coin dealer, consider the stability of their business. You want a dealer to be around in the future just in case a problem with a coin arises-such as if it turns out to be a fake. If this occurs, will the dealer still be in the area to provide compensation?
Coin dealers pop up often, but many go under in less than five years, leaving those who have done business with them helpless. Check to see if the dealer has assets which suggest that his or her business is there to stay.
Question #3: Is the dealer known amongst his peers?
A dishonest coin dealer will say anything to you to get your business, so it is crucial that you check with other dealers or investors to see how they are viewed by others in their field. If a dealer is not respected by others in his own discipline, then it is probably not a wise decision to do business with them. For starters, find out if the dealer is apart of a guild or group of other dealers. Many of these groups are by invitation only, so only trustworthy dealers are involved.
Question #4: Does the dealer have good ethics?
Before you choose a coin dealer, inspect their ethical and moral code, and not just in their dealings with you, but with other customers. If they don’t treat another customer fairly, then why should you expect to receive different treatment?
Ask the dealer what their ethical standard is, and request to review it in writing if possible. And, if necessary, watch how they treat other customers or ask around. You can never be too careful when trusting someone with your investment.
Question #5: Does the dealer off you security in case you get ripped off?
In case the worst should happen and there is a dispute between you and the dealer, it is important that have some protection. Sometimes legal action may be inevitable if both parties cannot come to an agreement, but that should be a last resort.
The cost of defending your case in court is expensive, and some people may not be able to afford it. So protect yourself by doing business with coin dealers that offer some recourse security in case future disputes arise.
Finding a coin dealer is the simple part, but coin collectors and investors should take the next step of investigating who they are about to do business with before trusting a dealer with their rare coins.