It might seem this evolution in the way business is being done benefits all concerned by eliminating the middleman. If the collector with some duplicates to sell can avoid having to work with a traditional coin dealer then they can probably sell their coins for less and actually end up putting more cash in their pocket. What I really see happening is a swift and dramatic growth in the number of people who consider themselves coin dealers. There will be more middlemen, not fewer. There is a simple reason for this. Nothing tastes sweeter than a profit and the first taste can make your mouth water for more.

Casual coin dealers have long been an important part of the hobby and business. Buying and selling coins and using the profits to build the collection makes sense. We all know collectors who have managed to assemble great collections from small initial investments.

In time, I think we will discover that a huge increase in the number of coin dealers will add significantly to the stability of the marketplace. The coin market has always experienced cycles ranging from a boom time to periods of greatly diminished activity. In the past, conditions often went from bad to worse simply because the existing dealer community could not absorb the flood of material entering the market. Traditionally, those who have invested in coins, including the dealers, have followed a “buy high sell higher” approach. They also tend to act in unison adopting the attitude that if the other guy doesn't want it then what am I doing with it. Confidence in the commodity has never been a strong point of the coin market.

In the past, it was common to talk about the coin market in terms of strong or weak hands. Were there enough dealers who had invested so much that they had no choice but to support the market during the slow periods? Would they continue to buy in a declining market to preserve the value of their existing inventory? Based on my experience with Canadian coins the answer was usually no. When things were flying high everyone wanted to board the plane. At the first sign of stormy weather it was time to grab the parachute.

What I see coming is the idea marketplace for Canadian coins. I'll use the 1948 dollar as an example. There are 18,000 dealers doing electronic trading and each of us has one of these coins. I just sold mine for a profit and so I'd like to buy another. In fact, I did so well on the last coin I might take a chance on two. A guy in BC is going through a divorce and he needs to dump his stock. A dealer in NB passes away and his 1948 dollar also comes on the market. I buy them both. Suddenly, nobody wants to buy 1948 dollars. Am I stuck with these pups! Have I really become the ultimate consumer? Showing my last bit of faith in the coin market, I decide to give my 1948's one more try by lowering the starting price to my cost. I can't believe it! They both sell and I actually made a profit! Dealing in coins is cool!

The above example was intended to show how “many hands” in the dealer community can influence the value of what we call rare coins. In my view, expanding responsibility for maintaining coin values can only benefit the hobby. Such widespread participation can also have a moderating effect should a few participants attempt to manipulate the market.