If you’re looking to make some cash by selling gold or silver coins, you’ll want to make sure you investigate your options and only do business with a legitimate coin dealer for better gold and silver prices. When selling coins, it happens all too often that a pawn shop or scam artist will take advantage of an uninformed private seller, if the seller is unaware of how much the coin is worth.
For this reason, it is well worth the time and effort to educate on best practices when selling coins. When you are informed about the value of your coin before heading in to sell to a dealer, you will be more likely to walk away happy with the transaction. Here you will find a comprehensive guide to getting the best price for your coins.
Understanding Coin Values Alongside Gold and Silver Prices
Never put your coins up for sale until you have a solid understanding of their value. Keep in mind that price and value are two different things. Price is a measure of what you would pay a dealer for that coin, while value is the amount that you would get if you were selling it yourself. So how do you know what your coin’s value is? There may be no absolute number, but the date, mintmark, and condition of your coins will provide valuable clues.
You can also weigh your gold coins to determine their AGW, or Actual Gold Weight, then multiply that number by the current value of gold per ounce to obtain their melt or scrap value, which will help you determine the lowest price you should accept—don’t accept anything dramatically below the melt value!
And be sure to consider all the other factors, like rarity or desirability of the coin, when determining your base price. You can then separate your collection according to low, medium, and high coin values.
Where to Sell Gold and Silver Coins
Once you have an idea of the value of your coins, you can tackle the question of how to sell gold coins and other items, and to whom. The question of where to sell silver and gold coins actually leads to several answers:
- Coin shows – Local coin shows are a great place to find knowledgeable dealers who recognize value when they see it. Ask your community’s coin club for information of future coin shows in your area as in gold and silver prices.
- Rare coin auctions – If you have rare coins to sell, auctions that attract serious collectors can be right up your alley. Competition can be fierce, which drives prices up; some rare coins sell for thousands or millions of dollars apiece at these events.
- Direct sales to collectors – Collectors know the value of coins inside and out, with a special eye for rare or particularly desirable items. If you know you have something special, a collector will likely pay top dollar for it.
- eBay – eBay may seem like a convenient way to sell coins online, but beware of an uninformed pool of buyers who may make it impossible for you to command a decent price. This coupled with high sellers fees usually makes this an undesirable outlet. You may want to reserve this option for coins of relatively modest value as in gold and silver prices.
- Online coin dealers – These companies are experts at valuing coins and performing fair, efficient transactions. If you’re selling gold and silver coins, pick an online dealer who specializes in those precious metals.
As you can see, you have plenty of venues for selling your gold and silver coins.
The next trick, then, is to make sure you select the perfect dealer.
Finding a Coin Dealer
What qualities should you seek in local or online coin dealers, apart from basic honesty? Here are some things to check:
- Reputation – Ask for testimonials from satisfied sellers. If you’re eyeing an online seller, do some Internet research on coin forums.
- Knowledge – Do the dealers make a clear effort to educate their clientele? Do they offer guides and other helpful, authoritative documentation?
- Selling guarantees – What kind of selling guarantee, if any, can you obtain from a dealer?
- Type of value offered – Choose a dealer who considers the fair value of your coins instead of one who will only give you the melt value (or some completely made-up value) as in gold and silver prices.
- Ability to value rare gold coins – Not all dealers possess the necessary equipment and expertise for evaluating the value of rare gold coins. Choose a company that specializes in buying gold and silver coins like Scottsdale Bullion and Coin.
Best Practices to Sell Coins Online
If you plan to sell gold and silver coins online, here a few best practices for getting the best possible price:
- Take a good picture – The clearer the image you post, the more appealing and easy to evaluate your coin will be to prospective buyers.
- Determine coin weight and value – Take the steps mentioned above to determine AGW if you plan to sell gold coins, to determine a minimum base price.
- Shop around – Don’t take any one dealer’s offer until you have collected several different offers to choose from.
Once you understand coin values and align yourself with the best coin dealers who will pay the highest prices, you can sell gold and silver coins with confidence.
Analysis of Different Types of Gold and Silver
1) “Junk” Silver
This consists of American dimes, quarters and half dollars minted prior to 1965. These coins are 90% silver and one dollar of them — for example, four quarters, or ten dimes, or one half-dollar and five dimes — weighs 0.77 troy ounces (a troy ounce equals approximately 1.1 ounces).
- Pros: “Junk” silver is overlooked by many people. Many people who believe that a currency crisis is coming (I don’t — but I get a lot of people in my coin shop who do) prefer these coins because they come in different sizes, and the risk of them being counterfeited is extremely low, which makes them an ideal choice for bartering gold and silver prices.
- Cons: It isn’t 100% silver, so if you aren’t good at math it can be hard to know how much silver you have. If you aren’t careful it can get mixed in with your regular change. Not all places pay fair value on “junk” silver coins, so you have to be careful.
- Comment: This is a great place to start if you want to dip your toes in the market.
2) Generic Silver Bullion
Generic silver bullion is produced at commercial mints and comes in “rounds” or bars of various sizes, from “fractional” rounds of less than 1 troy ounce to bars of 100 troy ounces — and even higher! It is 100% silver. Each round or bar is stamped with its weight and purity. Larger sizes usually have the lowest premiums — although there are exceptions. The largest sizes — 100 troy ounce bars, for instance — may be more difficult to sell, however.
- Pros: Ounce for ounce, generic bullion is less expensive than premium bullion.
- Cons: They may be slightly harder to sell or barter because some buyers prefer bullion issued by government mints.
- Comment: Silver bullion is an affordable store of wealth and the preferred entry point for most first-time buyers.
3) Premium Silver Bullion
Premium silver bullion is 100% pure silver and is produced by government mints. Examples of premium silver include coins such as the American Eagle, Austrian Philharmonic (my favorite), Canadian Maple Leaf and Mexican Libertad.
- Pros: It’s beautiful. When bought in a roll (typically 20 coins) you can get them for a smaller premium. They may be slightly easier to sell or barter because some buyers prefer bullion issued by government mints.
- Cons: Ounce for ounce, premiums are higher compared to generic silver bullion.
- Comment: If appearances matter, then add some to your collection. If a dealer is offering them at a great price, then buy some. Otherwise, I suggest avoiding them because of the high premiums.
4) Numismatic Silver
This category primarily consists of US silver dollars minted prior to 1936. They are 90% silver and weigh 0.77 troy ounces per coin. Morgan dollars were minted from 1878 to 1921. Peace dollars were minted from 1921 to 1935.
- Pros: A handful of dates for both coins are very rare and valuable. Depending on their quality, numismatic silver can have high resale values of gold and silver prices.
- Cons: They carry a high premium. Unless you have rare or high quality coins, dealers are reluctant to pay market value for them.
- Comment: If you can get them cheap, then stock up. If you can purchase high quality rare ones at a fair price, then do it. Otherwise, leave them to coin collectors.
5) Numismatic Gold
These are 90% gold US coins minted prior to 1933. They come in different varieties and sizes.
- Pros: They’re an historic addition to any collection — and they aren’t making them anymore. The rarest numismatic coins can be sold for significantly more than their gold value.
- Cons: This is a large and difficult market to learn and profit from. American numismatic gold coins carry very high premiums. It can be hard to verify the quality of a gold coin if you aren’t used to dealing with them.
- Comment: Don’t purchase these unless you’re a skilled collector.
6) Generic Gold Bullion
Generic gold bullion is produced at commercial mints and comes in “rounds” or bars. Like generic silver bullion, it is 100% pure in conjunction with actual gold and silver prices. Generic gold bullion comes in many different sizes. You can buy amounts ranging from 0.5 grams all the way up to a 100 troy ounce bar. Larger sizes typically have lower premiums — although there are exceptions.
- Pros: Ounce for ounce, generic bullion is less expensive than premium gold bullion.
- Cons: Smaller sizes — for example, 5-gram and 1-gram bars — can carry a 25% premium, which you don’t recoup when you sell. They may be slightly harder to sell or barter because some buyers prefer bullion issued by government mints.
- Comment: Gold is the ultimate store of wealth; as such, it’s intended to be held for a long time.
7) Premium Gold Bullion
Premium gold bullion is produced by government mints. Examples of premium gold include American Gold Eagles and Gold Buffalos, Canadian Gold Maple Leafs and South African Gold Krugerrands. Most of these coins are offered in multiple sizes. You can reduce premiums by buying larger-sized coins.
- Pros: It’s beautiful. When bought in rolls you can get a smaller premium. They may be slightly easier to sell or barter because some buyers prefer bullion issued by government mints.
- Cons: Ounce for ounce, the premiums are higher than generic gold bullion.
- Comment: As with premium silver, if appearances matter then add these to your collection. If a dealer is selling them cheap then, buy some. Otherwise, I suggest avoiding them because of the high premiums.
Gold and Silver Prices and Investing Advantages
With the unfolding turmoil taking place in economies and financial markets worldwide, investing your hard earned money is riskier now more than ever. But believe it or not, many folks consider the here and now a prime investment opportunity! How could this be, you ask? Simple – it is in volatile periods when investing in gold and silver bullion makes the most sense. Let’s take a look at some of the advantages these precious metals can offer.
For starters, understand that gold and silver have always been valuable. Even after crossing an ocean in ancient times, if you wanted to do business, you had better have your purse full of gold, or silver. In addition to gold and silver holding its’ place as a primary form of money throughout recorded history, it has also been recognized by virtually all corners of the earth as valuable.
Kingdoms as well as individual merchants conducted their business in gold and silver, since everyone considered it an acceptable form of payment. Even as recently as the 20th century, sovereign nations paid for goods among themselves in the form of precious metals. Although cumbersome, a country knew beyond a reasonable doubt that a payment in bullion was legitimate.
Both gold and silver hold their value. A paper note can lose it’s value (take Zimbabwe or Argentina as modern day examples), and a government issued bond can fall into default (as of this writing, Europe is having plenty of trouble with selling bonds to investors).
These scenarios aren’t at all far-fetched; just read any major newspaper today for specific examples of these very real scenarios. Although the metals’ value does fluctuate, it still has-and holds-value. In fact, both gold and silver appreciate long term.
Conclusion
If a person was concerned with losing his savings, or preserving hard earned capital, investing in gold and silver would act as a form of insurance. Therefore, if market events proved too volatile, one could enjoy a hedge from uncertainty as in gold and silver prices. And gold and silver can even represent a valuable inheritance. For many investors, this can be the ultimate safety vehicle.
What do these factors have to do with you? Everything! Regardless of your age, occupation, or station in life, both gold and silver bullion can be practical, prudent investment now and in years to come. These five factors represent just a portion of the advantages to be had by investing in these precious metals.
Only certain parts of the world are blessed to have bullion deposits in the earth. And it is very unlikely that one of those places is your backyard. Thus, its scarcity adds to its’ value. Even if you’re not a “player” in the stock market, buying some gold or silver today could be a wise investment for years to come.
If you’re ready to invest in a precious metals portfolio consisting of all the IRA-Approved Gold and Silver Coins today, we suggest purchasing or rolling over your current retirement plan to a Gold or Precious Metals IRA Account.
For more information on what gold and silver coins are IRA-Approved see our Pages:
View our List of Top 10 Gold IRA Companies and see for yourself why we only choose to work with the best company. It is far better to invest your gold and silver coins with the best Gold and Silver IRA company than to hold onto them yourself, firstly for security and also as investing in gold and silver should be considered a long-haul speculation.
Do you have any questions on how to find the best gold and silver coin prices for your IRA? Ask below!
