Hey Coin Thrill readers! I’m Jesse Gernigin, the proud owner of Ken’s Coins—a coin, gold, and estate shop in East Alton, Illinois. Four years ago, I took over the shop from the assistant of the original owner. Ken, who had established Ken’s Coins, passed away 20 years before, and the business had been somewhat neglected since then. When I heard it was up for sale, I saw a great opportunity. Ken’s Coins has served the greater St. Louis area since 1969, and in the Midwest, longevity carries significance. So, I decided to purchase it and have been running it ever since.
People often ask how I got started with coins. It all began at an auction while I was there to buy a futon for college. I stumbled across a couple of silver dollars, the Morgan kind, and decided to buy one out of curiosity for $14—long before silver prices shot up. That simple purchase sparked a passion for collecting.
Initially, I focused on classic coins, aiming to build a Morgan dollar collection. However, my college budget wasn’t up to the task. A local dealer advised me to start with dimes, but I didn’t care for them (and still don’t). Instead, I went for Franklin Halves, and after seeing a few, I fell in love with them. The first set I completed was a Dansco Franklin set, and I often recommend it to fellow collectors seeking a challenge beyond a #2 wheat penny Dansco book. I later traded my Franklin set for five very fine NGC Seated Liberty Half Dollars and spent a year collecting more of those. Eventually, I traded my NGC collection for gold coins, just before their value skyrocketed. I made enough during this boom to purchase Ken’s Coins debt-free.
Owning a coin shop is incredibly rewarding. In my first year, I learned more than during my entire college career—it’s like earning multiple PhDs in negotiating, pricing, valuation, and patience. Every day brings new challenges and opportunities.
Starting my shop when gold and silver prices were at an all-time high taught me the importance of having ready cash. Once, a customer wanted to sell me over $30,000 in gold and expected 97% of its value due to the amount he had. I refused, knowing that to melt the gold for a quick $900 profit would tie up my funds for days. The next day, a customer came in with a valuable silver coin collection, mentioning another dealer who couldn’t buy because they’d just spent all their cash on gold. I ended up making over $1,000 on that deal for just $2,500—a much better outcome.
Aspiring coin shop owners often dream of building a community, collecting, and attending shows. But the reality involves much more. It’s about:
1. Turning a profit: Coin shops operate differently from internet businesses. You might think sites like eBay would diminish our profit margins, but collectors value more than just low prices.
2. Navigating seasonal challenges: Each season brings distinct challenges and opportunities. Spring’s tax time prompts sales from those raising money for taxes. Summer draws tourists and pickers, who often haggle fiercely. Winter focuses on jewelry, while fall presents a mix.
3. Maintaining cash flow: I always keep at least $1,000 in-store and have access to more at the bank. This ensures I can purchase large collections, whether they include ten thousand Morgan dollars or a hundred NGC graded half dollars, accommodating all customers.
Being a coin dealer isn’t always easy. I’ve been called names, threatened, and even robbed. Still, some experiences stand out:
Early in my business journey, a woman called offering to sell silver “poisoner rings”—rings that supposedly hid lethal powder. I invited her to visit; sometimes, people surprise you.
She surprised me alright. When she walked in, I was shocked to see a capuchin monkey perched on her shoulder. Its smell hit me instantly. The woman was a visible addict, her vitamin-deficient teeth damaged severely. Despite the strange situation, I didn’t buy her rings but ended up purchasing two ounces of gold rings at melt value.
Another incident involved a man carrying 160 $20 Liberty gold coins in round tubes, unaware of their value. I helped broker his collection for a percentage and converted his gold to silver to avoid taxes.
I’ve encountered other odd items: slave badges, Mason artifacts, a “haunted” penny that shattered all my glass displays overnight (caught on camera), Tiffany glass, Hitler’s belongings, and rare first editions, among others.
Every day at the shop can be wildly exciting or quietly mundane. Just today, while writing this, someone came in to sell a $10 Indian gold coin and Morgan dollars. Yesterday, not a single person walked in.
To answer a common question: Yes, I’d want to go through it all again. I love coins, buying, selling, and the incredible experiences Ken’s Coins has brought me. I wouldn’t trade it for anything.
Got a question for me? Leave it in the comments below!
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Monkey pic by David M. Jensen
