Buying and selling gold and silver coins can be profitable and rewarding if you are smart about it. Some people buy and hold for the long term, some people buy or sell based on news, others speculate, and others transact in precious metals on a whim. Investing in gold and other precious metals is not like buying and selling cryptocurrencies when looking at volatility. Also unlike cryptocurrencies, there are many different ways to purchase and sell gold, silver, and other precious metals.
Some of the current popular options to transact in precious metals are:
- Local Coin Stores
- Online Merchants
- Online Auction Sites (eBay, Amazon, and other smaller ‘buy and sell’ sites/apps)
- Coin Shows
- Pawn Shops
- Farmer’s Markets/ Flea Markets
- Face to Face through Networking
Each of the above avenues to purchase or sell Gold, Silver, and other precious metals has its advantages and disadvantages. Over the years we have heard horrifying, exciting, and lesson teaching stories from our customers who tried one (or all) of the ways above before finding us at Atlanta Gold & Coin Buyers.
Below are 7 Steps to Help You Sell Gold & Silver Coins Safely and For a Profit
1.“Shop” Around
When looking to transact in precious metals, you have many options. Which option you choose is up to you and how comfortable you are with the alternatives. Most people purchasing or selling gold and silver coins choose to use a Local Coin Store.
Some reasons Local Coin Stores are more popular than other options:
- The ease and speed of transaction
- Local and/or someone you may know and trust
- Referred to them by someone locally that you know and trust
- Competitive Prices, or
- A mixture of the aforementioned reasons
Thankfully, in today’s world a single Google search can show you if a particular store or company is worth visiting by viewing their reviews either on Google, Facebook, or review sites such as Yelp. Make sure to do your research and narrow down your list before making a single phone call by reading reviews on local coin shops or even online retailers.
We recently published a blog post touching on the process of finding the right buyer and certain things to look at when it comes to your coins. The blog article is: The Do’s and Don’ts of Selling a Coin Collection You’ve Inherited
2. Know the Spot Price and Value of your Coins
Gold, as well as other precious metals, are usually measured in Troy Ounces. One Troy Ounce is equal to about 0.068 pounds, or 2.75 grams more than a regular ounce.
This method of measuring dates back to the Middle Ages. It is important to know this distinction so you can accurately see how much the actual cost of the gold coin is, based on its weight and purity. Gold coins with historical value may be more than their actual weight in gold, but in general, you shouldn’t accept much of a discount off the underlying precious metals value.
One reliable source for the current spot price of gold, silver, and other precious metals is: KITCO
When trying to see how much a coin is worth, we have seen it all. That said, most people that call us or come to us that have unrealistic expectations, looked at one, or both, of two sites:
- Etsy
- eBay
Both of the sites above allow almost anyone to create an online shop and list items for sale with little to no oversight. With that freedom comes opportunists and/or scammers looking to make quick money buying or selling gold, silver, and other coins such as platinum or palladium. A quick search of Etsy for American Silver Eagles, even “rare us coin”, brings back a large amount of results and almost all overpriced by 100, or even 1000 times their actual value.
Due to this, many people who have had collected coins over the years or found an “old” coin in their change can be led to believe they just hit the lottery and anxiously call around to try and sell it.
Almost every time we get a call about a coin that has little to no value over it’s Face Value, we have to be the ones to break the bad news.
Just as Etsy allows sellers to list items at almost any price they want, eBay is the second site that we find people turn to when looking for the value of a coin, bar, or other bullion. While many searches come back with the same or similar coin you might be looking for, remember that you are being shown item listings that have not been sold. Wonder why it’s not selling?
Try searching eBay for your coin like this:
- Type in your coin with denomination, year, any mint marks, and anything else you believe to be rare or special about it
- Search. You should see a list of items currently for sale.
- Now head to the “Advanced Search”
- Select “Sold Items”
- Hit Search Again
- This should show you all items matching your search description that have actually sold and therefore should give you a better idea of your coins value based on the market
3.Have your Gold Coin Graded
If you have a coin that you feel is in mint or better condition, it may be worth sending in to a grading company such as PCGS or NGC. There are fees associated with having your coin graded, but if you were right and it comes back with a high grade, you may be able to sell it for much higher than if it were not graded. While this is not necessary, it is certainly a positive step to take to get the most for you coin(s).
The turn-around time can be a few weeks to a couple of months so depending on which grading option you select and how quickly you are looking to sell. It would be wise to give NGC and PCGS a call or email to check on their current turn around time, cost of having the coin graded, and overall process if this would be your first time sending in a coin.
4.Know What You Have
Coins: Most coins will have a date, mint mark (some US coins do not have a mint mark which 99% of the time means it was minted in Philadelphia), portrait, denomination, along with other identifying factors. Once you find your exact coin online, search to learn details and what others have valued that coin at in the past (eBay method above is a good start). Once you know exactly what you have, you can better decide if it is worth your time and energy to shop it around, send off to be graded, or throw back in your coin jar.
Bullion
Bullion composed of precious metals and produced specially for investment purposes comes in three distinct forms: bars, rounds and coins. Worldwide, the most popular form for private investors is bullion coins. This type of coin is different from regular currency or coinage because it is not meant for general circulation as payment for goods and services. Bullion can also include Gold Bars.
Among the reasons for the attractiveness of the bullion coin is the portability. Because each coin is manufactured to a standard weight, Gold, Silver or Platinum bullion can easily be stored, transported or exchanged for currency. The accepted standardization of purity is also attractive to investors.
Some of the most popular Gold bullion coins in the world are the American Eagle, American Buffalo, South African Krugerrand, Canadian Maple Leaf and Austrian Philharmonic.
5.Research Going Rates on Different Venues
Once you know what you have and have researched it, you should have a ballpark idea of what similar gold coins are going for. Once you get your ballpark figure, you can start looking around to see where you will get the most profit. If your ballpark figure is less than what you paid for your gold coin, you may decide to hold off until the price of gold rises, and subsequently the price of your coin.
However, if you are selling it because you are going through a rough time and have exhausted all other options, keep reading to make sure you maximize your profits and avoid unnecessary loss.
You should look at online sales and auction sites, pawnshops, and jewelry shops. If you know someone who has had a good experience with a private buyer, you may want to consider this as an option. Looking up online reviews would be a great place to start, especially for this type of connection.
6. Be Safe In Person Looking For A Buyer
Never reveal what you have right away, except to a reputable dealer. While dealing with someone besides a coin dealer may be a bit risky (you may have a desire to hold your cards close to the vest), a reputable coin dealer appreciates individuals who are open and straightforward with what you have available for sale. This is usually reciprocated once you find the right coin buyer.
Most reputable gold coin dealers will share with you over the phone their buy rates or percentage of spot, so it’s always best to call around first before traveling all over the city in hopes of finding the best deal. However, every city is different, so you may have no other choice but to make multiple trips.
In the event you’re required to make multiple in-person trips, be careful not to divulge too much with respect to the items that you have in your possession until you feel comfortable. If the price quote that you receive sounds reasonable, and you feel safe in your environment, then it’s acceptable to show the dealer your item(s).
Some people will recommend a pawn shop, while many people will also tell you to avoid pawn shops while looking for someone to purchase your gold and silver coins. In our experience, Pawn Shops are usually like that fishing spot a couple people swear by, but no one ever seems to catch anything.
Ultimately, pawn shops tend to pay much less than market price for items like gold and silver coins and bullion.
Circling back to our original comments regarding calling around, if you hear numbers you like, then it is time to bring the coin in for them to see it. If there’s some advance discussion regarding prices or an indication before bringing in a coin, you are less likely to get ripped off. If you walk in to the first store you see, plop your coin down, and say “what will you give me for this?” the buyer may want to see how much you know about what you have, and try to low ball you.
If the buyer will be reselling, they are in this for the same end goal as you: profit.
7. Be Safe In Person When Completing a Sale
If you have been dealing with an online sale but are doing a local pickup, or meeting someone in person to sell your coin or coins, safety is of utmost importance. You should never go alone. Bring someone you can trust with
your safety and valuable. If you cannot find someone, you can give someone the address of where you are and get on a video chat with them.
If things go wrong someone immediately knows and can call and get you help.
When conducting person-to-person transactions, the safest place to do an exchange would be in a police station. With the increased popularity in online and local selling apps, many police departments have designated spots on their property for face to face meet-ups. Gas stations and some stores also have designated spots for transactions that are monitored with a camera.
Always bring protection as well. If you area gun enthusiast with a concealed carry license, you already know whatthe deal is. If you are against guns, there is no telling that the person you will be dealing with has the same views as you. You should at least carry pepper spray.
This type of transaction is really not recommended though, as there are too many things that could go wrong.
If your buyer is a private buyer trying to avoid having their identity recorded, they are probably not the person you want to be dealing with, or the person that will give you the best deal.
In Summary
The overall lesson in this article should be pretty clear by now. Don’t rush into a sale without doing research. Selling your gold coins will take time, but it will be worth it. Take the time to do the research, and your sale will cover your time with all that profit you will make!
Are you ready to sell your Gold, Silver, Platinum, or Palladium coins and bullion?
At Atlanta Gold & Coin Buyers, we’re a coin dealer that’s been authorized by the Numismatic Guaranty Corporation and the Professional Coin Grading Service, two of the most respected third-party numismatic organizations in the world. Along with our A+ Better Business Bureau rating, we’re also the only coin dealer in the Atlanta area that posts our rates for buying coins online. We want everyone we work with to feel comfortable that they’re making the right decision.
If you’d like us to appraise the coins in your collection, fill out our form to schedule an appointment.
