Have you ever considered becoming a gold bullion dealer?

[dualstow]

Come on, you know you have.
Well, I imagine that most of us are too busy doing what we're doing to switch, and what we're doing is probably makes for more interesting workdays.
But, I have spent time thinking about what it would be like to receive those initial deliveries.

Perhaps a better question is: do bullion dealers visit this forum?

[MediumTex]

Perhaps a better question is: do bullion dealers visit this forum?

I doubt it.

I don't visit tax law forums.

I wouldn't want to be a bullion dealer.  Think about all the dumb questions you would have to answer every day, over and over and over, along with the occasional armed robber.

[AdamA]

I wouldn't want to be a bullion dealer.  Think about all the dumb questions you would have to answer every day, over and over and over, along with the occasional armed robber.

Here's what I envision:
http://www.youtube.com/watch?v=CxkBQmtk4us
(It's from "Hardcore Pawn", about 3 mins long and mildly offensive).

[bronsuchecki]

Being a low margin business (a few percent of the gold price) with higher risks of theft etc it can only work if you can generate volume. If you have capital to invest in a business I'm sure there are better returns to be had. Having said that the gold business is counter-cyclical so your business plan doesn't have to worry about risks of economy going to crap - that would actually be what you business case would be based on!

[dualstow]

Perhaps a better question is: do bullion dealers visit this forum?

I doubt it.

I don't visit tax law forums.

I wouldn't want to be a bullion dealer.  Think about all the dumb questions you would have to answer every day, over and over and over, along with the occasional armed robber.

The threat of robberies would certainly bother me, although the ones I visit are on a heavily patrolled block.
As for the questions, I don't know that they'd be that different from a subset of those asked here. (Not necessarily dumb, just lacking the variety of questions here). I did get kind of burnt out teaching English once I stopped doing it overseas. Perhaps the previous owners of a gold shop often mentioned here got burnt out, because apparently they moved on to running Brazilian restaurants. That does sound more exciting.

the gold business is counter-cyclical so your business plan doesn't have to worry about risks of economy going to crap - that would actually be what you business case would be based on!

That made me smile because, as it happens, the website of the dealer I just used -- can't believe he actually has a website; he uses an adding machine with paper -- has a few conservative rants on the front page about why the world is going to pot.

I'll have to check out that video!

[Tortoise]

I get the sense that coin dealers' highest-profit sales are in numismatic coins, not bullion coins. Why else would so many coin dealers try to steer newbie customers toward numismatic coins when they are simply looking to buy some gold or silver?

Does anyone here know roughly what percentage of coin dealers' profits tend to come from numismatic transactions vs. bullion transactions?

[dualstow]

I get the sense that coin dealers' highest-profit sales are in numismatic coins, not bullion coins. Why else would so many coin dealers try to steer newbie customers toward numismatic coins when they are simply looking to buy some gold or silver?

Does anyone here know roughly what percentage of coin dealers' profits tend to come from numismatic transactions vs. bullion transactions?

I agree. Perhaps with numismatics, it's easier to increase the markup. Any customer can look at the spot price of the moment and quickly calculate the dealer's cut on a bullion coin sale. With a U.S. 1780 coin? Not so easy.

My dad isn't interested in bullion and strictly buys coins with numismatic value. It's a hobby as much as it is an investment. I don't think his dealer sells bullion at all, so in his case the answer to your question would be 100%.