bullion dealers vs. coin shops

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Pianist4Freedom

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I just invested in some more silver eagles. I went to two local shops to compare prices---one was a bullion dealer and there were no coins or bars in sight, the shopowner keeps everything in a back room. The other was a coin shop. The bullion dealer sold some to me for 1.20 above spot or just under 19$ each. The coin shop would have sold me some for 24$ each! These shops were in the same plaza---has anyone else encountered such a vast difference in price in your own region? And is it often the difference between a bullion dealer and an actual coin collector shop?
 
Most coin shops are in business for collectors. Typically collectors will pay extra to get exactly the coin they are looking for. A bullion shop does not usually cater to the coin collector and just deals with the metal, so the price should be lower at the bullion shop.
 
How does one go about finding a local bullion dealer?
 
RCA said:
How does one go about finding a local bullion dealer?
Click to expand...

http://coininfo.com/


I like coin shops. There are more of them here in Denver than I can count. I frequent a shop that is literally in-between 2 other shops. 3 shops; side by side by side.

There are some places here in Denver that have substantial differences in prices. Some shops charge $0.20 over spot and no tax while others charge $1.50 plus tax. It just depends on where you go.
 
I just called the local coin shops as listed on google. i.e. *insert your town here* coin shop. When I asked if the guy had silver eagles in stock, he said: "thousands" before I could finish the sentence. I didn't know he was a "bullion dealer" til I actually went to the shop though. I was expecting the typical glass cases, huge varieties of coins, coin holder stuff, books, etc. that you usually see in a coin shop. This place had a variety of collectibles (not coins) out in the main part of the shop but no coins or bullion anywhere in sight. Seems a bit of a unique shop...anyway, it was def. the best deal around here.
 
do you always make sure you get a receipt from your coin shop/dealer? I did not get one from the local bullion dealer here---but the coins appear to be real, they have that nice "ding" when you hit them with something. Not that a receipt guarantees anything is real---but in the event I discovered one was not real I could demand the real thing from the guy and if that didn't work take him to small claims court ;)
 
A receipt is very good to have to prove when you bought them and how much you paid for the metals.
When it comes time to sell them, the IRS wants to know how much you made in the process so they can tax the heck out of you.
 
Dr.3D said:
A receipt is very good to have to prove when you bought them and how much you paid for the metals.
When it comes time to sell them, the IRS wants to know how much you made in the process so they can tax the heck out of you.
Click to expand...


This is really important, say you sold at $25, how could you prove that you bought at $20 and not $18? The difference is your profit and the govmnt will want it's piece of the pie. I'd go back and ask for a receipt, take it with you if you have to.
 
Does the government really tax capital gains on coins? What about capital gains on any other collectible?
 
They tax you on whatever they can prove that you made profit on
 
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