What Makes a Coin Broker “Right” for You?
A coin broker is the gateway between the collector and the coin marketplace. There are so many ins and outs it is a real challenge to break into the market without experienced help. Not only can a good broker help you find the exact coins you are looking for, they are also an invaluable resource on current values. Before you choose a broker there are some things you need to think about.
1. Is the broker an expert in your area of interest? The collectible coin market is vast and there are many areas of specialization. If you are most interested in Wheaties, you want to find a coin broker that specializes in them. Specialization will let them help you find specific coins and advise you on valuable acquisitions to your collection.
2. Is the broker professionally recognized? Reputation is incredibly important when choosing a coin broker. Keep in mind that they are in the business to make money. They buy low and sell high whenever possible. You need a dealer that is honest about values and experienced in the field. Some of the qualifications you should look for are:
- Membership in the Professional Numismatist Guild (PNG). This is the only organization that has professional standards regarding admission and an ethics committee that oversees its membership.
- Stable Employment History. A broker that switches firms every couple of years is not the best bet. Multiple changes in employment can indicate dissatisfied clients and lack of expertise. It is not always due to professional problems, but it can be a warning sign.
- Professional Reputation. You may not be able to get someone universally recommended. Other brokers are often reluctant to provide positive references for the “competition.” Instead, you might check to see if a prospective broker has been published or if they contribute to pricing guides.
3. Does the Broker Keep Current? Second hand information is almost useless in coin collecting. Prices change so rapidly that a deal that does not go to auctions and coin shows is acting on out dated information. Brokers who attend shows and auctions have the most current information and get the opportunity to make invaluable networking connections for future deals.
Never hesitate to question brokers you are considering for your future coin purchases. A respected and qualified dealer will be more than happy to answer any questions you have about coin collecting in general, and your collection in specific. Find a broker that you are comfortable working with, that you can trust. It will simplify your trades and purchases if you have a reputable coin dealer to help you broker sales.
Understand that brokers are in business and they do have to make a profit, but do your homework and make sure that you are not being taken advantage of. Brokers are not all honest, but if you find one that is a member of PNG, active in the collecting community and up to date on pricing you are in position to make your collection a world class show piece.