The point of this is that quality is expensive, but is worth it. If you buy quality, when you sell your coins dealers and auction houses will beat a path to your door. As Ray Merena has stated, "Coins that are the hardest to buy are the easiest to sell." On the other hand, if you are a slave to published prices and want just bargains, you'll have no trouble buying coins, but selling them may be an entirely different matter.

Building a Relationship

Probably the most popular way to buy coins is by direct purchase from dealers, primarily through the mail. Often the details of a transaction are worked out on the telephone. There are two main types of rare coin dealers. Although some firms are in both areas, most go one way or the other:

- The dealer who sells to knowledgeable collectors: The dealer who sells to knowledgeable collectors usually does so by issuing printed catalogues, running advertisements listing individual rare coins, or by servicing want lists. This type of dealer sells the specific coins his customers want to buy.

- The dealer who sells to the general public: The dealer who sells to the general public usually does so by running advertisements for common or generic coins (pieces available readily and in large quantities) in non-numismatic publications, including financial papers. His customers usually do not know what they want to buy, and have little knowledge of rare dates, grading, etc. This type of dealer tells his customers what they should buy, as the customers do not have sufficient knowledge to make their own decisions. Often, this type of dealer operates on a higher profit margin due to the expenses involved in advertising to the general public.

Often a person who becomes acquainted with coins through the second type of dealer will learn about numismatics and later become a good customer for the first type of dealer. Dealers of the second type perform a valuable function in that they serve to do missionary work for numismatics.

I consider it important for you to build an ongoing relationship with one or more dealers. In general, dealers have the coins that you want. If a dealer has two or three clients who need the same coin, the client who has established the best rapport often gets first chance. It will pay you to establish such a fine relationship.