Off time - no update Asking for Buying and Selling Rates from Your Coin Dealer

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Tip of the Week: Asking for Buying and Selling Rates from Your Coin Dealer

Coin Dealers
Gold Coins

This week’s tip of the week addresses the issue of buying and selling coins from the same coin dealer.  If you’ve identified a local or online coin dealer with whom you’ve established a relationship and plan on selling your coins to at some point in the future, it’s important to determine ahead of time what type of rates you can expect to receive.

Since the gold and silver market is subject to substantial swings, it may be difficult for a coin dealer to commit to a certain price or rate in the future, as the price for physical bullion may differ substantially from the price of gold and silver in the futures market.  However, obtaining a general idea (at least based on current market conditions) will help you to determine what type of increase you need to realize in the value of your coins before you realize a profit.

As a general rule, the frequency and dollar value of your purchases will have a direct impact on the type of rates you can expect to receive when you go to sell your coins.  If a good enough customer, some coin dealers may even be willing to act as an intermediary and arrange a sale directly with a buyer for a small commission, but you should not expect this type of arrangement unless you have a long standing with your coin dealer.

Not all coin dealers operate the same way, so don’t assume that just because you’ve been doing a good bit of business with a coin dealer that you’ll receive preferred rates.  Also, it may be helpful to periodically ask your preferred coin dealer what his buyback rate is, even before you’re ready to sell your coins, so that you can monitor buying rates in changing markets.

Tony Davis
Tony Davis