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The Top Five Tips For Buying And Selling Gold Coins

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The Top Five Tips For Buying And Selling Gold Coins


The Top Five Tips For Buying And Selling Gold Coins

Below is a guide to effectively buying and selling gold coins.


1. Stick With North American Coins

Statistics show that the American Eagle and the Canadian Maple Leaf gold bullion coins are the easiest coins to buy and sell. Outside of the United States, the Maple Leaf reigns supreme; however, inside the US it is best to purchase the 22-carat American Eagle. According to Mladjenovic, the Eagle’s gold content needs to be guaranteed by the US Mint to be considered worthwhile. Stuppler agrees that American Eagle coins can be valuable and even more of an investment when placed in individual retirement accounts.

North American gold coins are much simpler to sell that other gold coins, such as the Austrian Vienna Philharmonic coin or the South African Kruger Rand. Due to this, it is seen that these North American coins are purchased and then sold outside of the US.

Competing with the 24-carat Canadian Maple Leaf, the US Mint decided to develop a new gold bullion coin in 2006 – the American Buffalo. Also presenting with 24-carat gold, the American Buffalo is one of the purest coin developed by the US Mint. While this gold coin is considered more valuable, it is not as easily bought or sold as the American Eagle – potentially because it is more expensive. In fact, as stated by Mladjevonic, some people may not even know about the American Buffalo and would not consider purchasing it because of its obscurity.

2. Consider The Cost Of Gold Bars

Recently, the gold bars have become more expensive. While the bars are typically traded in ten-ounce amounts, selling the bar can be difficult. The bars may be easy to purchase, but they can be costly to return to the dealer.

When purchasing gold bullion coins, it is recommended that you store all Canadian Maple Leaf and American Eagle coins in a safety deposit box or using a personal safe at home. According to Mladjenovic, maintaining physical possession of the gold coins is the best method to avoid any fraudulent transactions with dealers.

3. Comparing Dealer Prices

Disregarding the proof version, the US Mint does not sell American Eagle gold coins directly to a buyer. There is, however, a dealer locator tool on the US Mint’s website where you are able to find dealers in your local region. It is possible to research the dealers and compare prices finding coins that sell above the gold spot price and deliver it as a commodity. The spot price for precious metals can be located using different websites, such as Kitco.com or Monex.com.

According to Mladjenovic, paying above 5% premiums for any gold coin does not make sense and it is best to aim for a low price. While auctions may be tempting, he does not recommend buying gold coins from eBay as you may become engrossed in a bidding war spending more than you budget. However, it’s always best to compare investments and buyers.

4. Buying One-Ounce Coins

The American Eagle coins are issued according to four denominations:

• one-ounce

• half-ounce

• one quarter-ounce

• one tenth-ounce

It should be noted, however, the fractional gold coins carry a higher premium above the gold spot price than the one-ounce version. This means it is best to purchase and sell the one-ounce alternatives.

5. Avoid The Rare Coins

Contrary to popular belief, it is best to avoid rare coins when buying and selling gold coins. A rare coin requires specialist skills during the purchase and this can complicate the buying and selling procedure. To ensure you are receiving a good rare coin, you will need to hire a professional grading service and obtain a certificate of authenticity – an expensive and unnecessary hassle.


Mati Ur Rehman is a forex trader having 11 years experience in the field and knows as a technical analyst. He is an expert in XAUUSD Gold Analysis.

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