Selling Gold Coins Safely While Seeking the Best Return

Purchasing and selling gold and silver coins can be both worthwhile and potentially profitable when approached thoughtfully. Some people acquired metals to hold over a long period, while others bought or sold in response to news. Others speculated, and some made precious-metals transactions on impulse. Investing in gold and other precious metals is not like buying and selling cryptocurrencies when looking at volatility. In contrast with cryptocurrencies, gold, silver, and other precious metals could be purchased and sold through many different channels.

When this article was originally published, popular ways to transact in precious metals included:

• Local Coin Stores
• Internet Dealers
• Online Marketplace Sites (eBay, Amazon, plus smaller “buy and sell” websites and apps)
• Coin Conventions
• Pawn Businesses
• Farmers’ Markets and Flea Markets
• In-Person Networking TransactionsAt the time of original publication, the article described the following:

Every method listed above for purchasing or selling gold, silver, and other precious metals carried benefits as well as drawbacks. Over the years, Atlanta Gold & Coin Buyers heard cautionary, exciting, and instructive accounts from customers who had tried one, or several, of these approaches before finding the business.

Here are 7 Steps for Selling Gold and Silver Coins Safely and Profitably

1.   “Shop” Locally

People considering a precious-metals transaction had many choices. The route selected depended on personal preference and comfort with the alternatives. When this article was originally published, most people buying or selling gold and silver coins chose a local coin store for the transaction.

Reasons local coin stores were often more popular than other choices included:

• A quick, straightforward transaction
• A local business or person known and trusted
• A recommendation from someone local who was known and trusted
• Competitive pricing, or
• Several of the reasons mentioned above combined

At the time of publication, one Google search could help indicate whether a particular store or company might be worth visiting, through reviews on Google, Facebook, or sites such as Yelp. The original article advised readers to research options and reduce their list before making a phone call by reading reviews of local coin shops and online retailers.

At the time of publication, Atlanta Gold & Coin had recently posted a blog article addressing how to locate an appropriate buyer and what to consider with coins. That archived article was: The Do’s and Don’ts of Selling a Coin Collection You’ve Inherited

2.   Understand Spot Price and Your Coins’ Value

Gold and other precious metals are generally weighed in troy ounces. A single troy ounce equals approximately 0.068 pounds, or 2.75 grams greater than an ordinary ounce.

This measurement system dates to the Middle Ages. Understanding the difference helps a seller calculate a gold coin’s actual metal cost from its weight and purity. Coins with historical significance can be worth more than their gold content alone, but generally a seller should not accept a large discount from the underlying precious-metals value.

When this article was originally published, one dependable source for the spot price of gold, silver, and other precious metals was: KITCO

At the time of original publication, the article described the following: When people tried to determine what a coin was worth, Atlanta Gold & Coin had encountered many approaches. That said, most people that call us or come to us that have unrealistic expectations, looked at one, or both, of two sites:

1. Etsy
2. eBay

Both sites let nearly anyone open an online shop and offer items with little or no oversight. That freedom could attract opportunists or scammers seeking quick money through gold, silver, and coins including platinum or palladium. At publication, a quick Etsy search for American Silver Eagles, including “rare us coin”, returned many listings, with nearly all priced 100 above actual value, or even 1000 times that value.

At the time of original publication, the article described the following: Because of this, people who had collected coins for years, or who found an “old” coin in their change, could be persuaded that they had won the lottery and then anxiously called around hoping to sell it.

At the time of original publication, the article described the following: Nearly every time Atlanta Gold & Coin received a call about a coin carrying little or no premium over its face value, the business had to deliver disappointing news to the caller.

Just as Etsy allowed sellers to post items at almost any chosen price, eBay was the second site Atlanta Gold & Coin found people used when researching a coin, bar, or other bullion. Although searches often returned the same or a similar item, remember that the results displayed listings that had not sold. The original article asked readers to consider why those items remained unsold.

The original article suggested searching eBay for a coin in this manner:

• Enter the coin’s denomination, year, mint marks, and any detail believed to be rare or otherwise distinctive.
• Search. At the time of publication, a list of items for sale should have appeared.
• At the time of original publication, the article described the following: The original instructions then directed readers to the “Advanced Search”
• Choose “Sold Items”
• Run the Search Again
• This was intended to display matching items that had actually sold, offering a better sense of a coin’s market-based value from completed sales.

3.   Consider Having a Gold Coin Graded

A coin believed to be mint condition or better might have been worth submitting to a grading company such as PCGS or NGC. Coin grading involved fees, but a coin that received a high grade could possibly sell for substantially more than an ungraded example. Grading was not required, though the original article described it as a constructive step for someone seeking the most from coin holdings.

Turnaround could range from several weeks to a couple of months, depending on the selected grading option and how soon a person hoped to sell. At the time of publication, the article suggested contacting NGC and PCGS to ask about their then-current turnaround times, grading costs, and the overall submission process, especially for a first-time submission.

4.   Identify What You Have

Coins: Most coins carry a date, denomination, portrait, mint mark, and other identifying details. Some U.S. coins lack a mint mark, which 99% of the time indicated Philadelphia production. After locating the exact coin online, the original article advised researching its details and reviewing what others had valued it at previously; the eBay approach described above was presented as a useful starting point. Knowing the precise item could help determine whether it merited shopping around, professional grading, or returning to a coin jar.

Bullion

Bullion made from precious metals specifically for investment came in three separate forms: bars, rounds, and coins. Around the world, bullion coins were the most widely used form among private investors. They differed from ordinary currency and coinage because they were not intended for routine circulation or payment for goods and services. Bullion could also include gold bars.

A key reason for the attractiveness of the bullion coin is their portability. Since every coin is produced at a standard weight, gold, silver, and platinum bullion can be stored, moved, or exchanged for currency with relative ease. The broadly accepted purity standards are another feature that appeals to investors.

Well-known gold bullion coins include the American Eagle, American Buffalo, South African Krugerrand, Canadian Maple Leaf, and Austrian Philharmonic, all of which were among the world’s most popular examples.

5.   Research Going Rates on Different Venues

After identifying and researching your coins, you should have had a general sense of the prices similar gold coins were bringing when this article was originally published. With that rough figure in mind, you could compare venues to determine where the strongest return might be available. If that estimate was below what you paid for the gold coin, you might have chosen to wait for gold prices, and therefore the coin’s price, to rise.

But if you were considering a sale because of difficult circumstances after other choices had been exhausted, the original article advised continuing to learn how to preserve as much value as possible and limit avoidable losses.

The original article suggested comparing online sales and auction platforms, pawnshops, and jewelry stores. A private buyer could also have been considered if someone you trusted had a positive experience with one. For that kind of connection, online reviews were presented as a sensible starting point for research.

6.    Be Safe In Person Looking For A Buyer

The original article advised against immediately disclosing what you had, except with a reputable dealer. Working with someone other than a coin dealer could carry additional risk, so a seller might have preferred to keep details close at first. A reputable coin dealer, however, was described as valuing clear and candid information about items that were available for sale at the time of publication. Once an appropriate buyer was found, that openness was usually said to be mutual.

When this article was originally published, many reputable gold coin dealers would discuss their buy rates or a percentage of spot by phone. The article therefore recommended calling several places before driving around the city in search of the best offer. Conditions varied by city, however, so making more than one trip could still have been necessary.

If several in-person visits were necessary, the original article advised not sharing too much about items in your possession until you felt at ease. Once a quoted price seemed reasonable and the setting felt safe, it described showing the dealer the item or items as an acceptable next step.

Some people recommended pawnshops, while others advised avoiding them when seeking a buyer for gold and silver coins. Based on Atlanta Gold & Coin’s experience at the time of publication, pawnshops were compared to a fishing spot that a few people praise even though nobody ever seems to catch anything there.

The original article concluded that pawnshops generally paid well below market price for goods such as gold and silver coins and bullion.

Returning to the earlier point about calling around, the article said that if you heard figures you liked at the time of publication, that was the point to bring in the coin for inspection. Discussing price in advance, or receiving some indication before bringing in a coin, could make a seller less vulnerable to being taken advantage of. If you entered the first store you saw, set down the coin, and said “what will you give me for this?” the buyer might test how much you understood about the item and attempt a low offer.

When a buyer intended to resell an item, the article noted that buyer and seller shared the same ultimate objective: profit.

7. Be Safe In Person When Completing a Sale

For an online sale involving local pickup, or any in-person meeting to sell one or more coins, the original article emphasized that safety was especially important. It advised against going alone and suggested bringing someone you trusted with your safety and valuables. If nobody could accompany you, it suggested sharing the meeting address with another person and staying on a video chat with them.

At the time of original publication, the article described the following: If something went wrong, another person would immediately know where you were and could call for help.

For person-to-person exchanges, the article identified a police station as the safest meeting place. At the time of publication, growing use of online and local selling apps had led many police departments to designate areas on their property for face-to-face meetings. It also noted that certain gas stations and stores had camera-monitored locations intended for transactions.

The original article also advised carrying protection. It stated that gun enthusiasts with concealed-carry licenses already understood the situation. For people opposed to guns, it cautioned that the other party might not share those views, and suggested carrying at least pepper spray.

Even so, the article did not recommend this kind of transaction because too many things could potentially go wrong.

The article cautioned that a private buyer trying to avoid having an identity recorded was likely not an appropriate person to deal with, or one likely to offer the best price.

In SummaryAt the time of original publication, the article described the following:

By this point, the article’s main point should have been clear. It advised readers not to rush into a sale before doing research. Selling gold coins could take time, but the article maintained that the effort would be worthwhile. Its message was to spend time researching so that the resulting sale could justify that time through the profit earned.

When this article was originally published, readers were asked: Are you ready to sell your Gold, Silver, Platinum, or Palladium coins and bullion?

At the time of publication, Atlanta Gold & Coin Buyers described itself as a coin dealer authorized by the Numismatic Guaranty Corporation and the Professional Coin Grading Service, which it identified as two of the world’s most respected third-party numismatic organizations. It also reported an A+ Better Business Bureau rating and stated that it was the only Atlanta-area coin dealer posting our rates for buying coins online. The article said the company wanted each person it worked with to feel comfortable about the decision being made.

At the time of publication, readers who wanted Atlanta Gold & Coin to appraise the coins in your collection were invited to fill out our form to schedule an appointment.