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That is an excellent and reasonable question. I was able to put a moderate chunk of capital into my inventory and yes, that absolutely has helped (the old 'it
by nlh 3y ago
That is an excellent and reasonable question. I was able to put a moderate chunk of capital into my inventory and yes, that absolutely has helped (the old 'it takes money to make money'), but at the same time, I'm not the most efficient capital allocator. I know people who make just as much as I do (and more!) with 1/10th the capital, but they play a different version of the game I do and have a different set of skills.
I do think that numismatic know-how is an absolute must and the more you have the more opportunities there are. There's very little money to be made simply churning bullion, for example. That doesn't require a ton of know-how other than hanging a shingle and buying and selling gold and silver. But margins there are 2-3% if you're lucky, so that's a hard game to play unless you've got a BIG chunk of capital to throw at it. (Also, I'd argue bullion slinging is on the fringe of true "numismatics" but I'm a snob about that lol)
- dogman144 3y agoThanks for the details! If you’re ok sharing, what’s a sane startup cost in your mind as to be competitive in the numismatic-competent approach you describe, but still small time ($10-20k/yr profit) - an initial $5-10k, $10-30k, $40k+?
- nlh 3y agoI think a 1:2 capital:revenue ratio is what I would call "medium difficulty" mode -- you should know what you're doing and don't need to be insanely perfect in every call. So to make $10-$20k annually, putting $20-40k to work should do it. But you never know - I've had double-ups on some coins, so you might buy a $10k coin and make $10k in a single deal if you know what you're doing :)
- dogman144 3y agoTy! I’ve got the time and capitalization to try this in that case. Grew up interested in stamps so sounds like time to re-engage in a way. Appreciate the unselfish discussion and details.
- nlh 3y agoShoot me an email (see bio) and I'm more than happy to help in any way I can. The other wonderful thing about this hobby/business is that for the most part more dealers !== more competition, since there are so so many different facets of the business it ends up growing the hobby more than not. Happy to help you find your niche.
- dogman144 3y agoWill do next week. Thank you!