How to Become Dealer in Bullion Coins

Some bullion coin dealers specialize in specific coin types, such as pennies.

Bullion coin dealers trade in those made from gold and silver, as well as traditional coins. Bullion dealers have advanced knowledge about coins, the history surrounding specific dates on bullion, varieties, metal types, coin errors and counterfeit products. As bullion collectors often see their hobby as an investment, the best dealers are those who are reputable, honest and cater to new and seasoned numismatists alike. Although the U.S. Mint states that it is not accepting new applications for commercial licensees in 2011, you can still become an independent bullion coin dealer.

Instructions

1. Gain knowledge about bullion coins. Dealers in the U.S. who buy and sell bullion coins are familiar with the composition, weight of coins, coin history, mint marks and collecting trends. Learn how to identify the condition of a coin, which can range from "poor" to "mint." You can learn about bullion coins by becoming a member of a numismatic club, taking classes through numismatic associations and by working for a bullion coin dealer.

2. Specialize in a type of bullion coin. Because there are so many types of bullion coins, it is best to deal in specific types so you can offer quality products. For example, you may choose to purchase and sell gold and silver coins or U.S. bullion that dates from the 1900s to the present date. Other bullion coin dealers specialize in commemorative coins or collectible bullion coins from other countries.

3. Become familiar with bullion coin dealer laws. The U.S. Mint states that you must observe all trademark and copyright laws when advertising your products and using images of bullion coins. As a coin dealer, you must make it clear that you are not affiliated with the U.S. government and that the bullion you sell are repackaged items from the U.S. Mint.

4. Write a business plan and open a retail coin shop. According to the Professional Coin Grading Service, you must work as a full-time bullion dealer for a minimum of three years before you can become an authorized dealer for numismatic associations.

5. Apply for the U.S. Mint's Bulk Purchase Program. In addition to doing business with bullion coin wholesalers, you can receive a five percent discount on purchases of $5,000 or more on products you purchase from the U.S. Mint. The Mint also offers bulk purchase programs if you are interested in selling American Eagle bullion coins made from platinum, silver and gold.

6. Attend coin shows and conventions as a bullion dealer. Numismatic associations host coin shows and conventions in the U.S. throughout the year. Attending these events can help you gain new customers and learn more about the trade.

7. Receive a bullion coin dealer certification. While it is not necessary to be a member of a numismatic association or be an authorized dealer, doing so will increase your credibility as a bullion coin dealer. The Professional Coin Grading Service states that you may become a certified dealer if you have worked as a full-time coin dealer for a minimum of three years; you and your employees have not had any felony convictions within the last five years; and you have three credit references, references from at least three Professional Coin Grading Service-certified dealers, and capital of at least $100,000, which can include your inventory.

References

• United States Mint: Federal Regulations
• United States Mint: United States Mint Bulk Purchase Program
• United States Mint: American Eagle Bullion Coins
• United States Mint: Do's and Don'ts of Selling Genuine United States Coins on the Secondary Market
• Professional Coin Grading Service: Requirements for Becoming a PCGS Authorized Dealer
• Certified Gold Exchange: Certified Coin Dealer