Tag: selling gold coins

How to Find the Value of Your Gold Coins

Gold Coins

Gold CoinsJust like you wouldn’t think to sell your car without knowing how much you can ask for it, so too should you carefully research the value of a coin collection before exchanging it for cash value.  Before you sell, look into the proper worth of your gold coins.

Find The Current Price of Gold

If you happened to be lucky enough to buy gold before its spike in value during the 1970s, you’d be sitting on a mint right now, as the value of the precious metal has increased to over thirty times its original value in a single generation.  When looking at a gold coin collection, you know right away that regardless of the individual value of any coins, each one is worth at minimum the current price of the metal.  You can keep up with the raw cost of your gold per ounce simply by Googling “price of gold” to get up-to-the-minute information on the commodity’s dollar value.  There’s a difference between the price of gold and the selling price, of course — one is how much it costs to buy, the other is how much you can expect when selling gold coins — and a local coin dealer will help you understand your collection’s value and how to sell gold.  Remember that a coin dealer will give you a quote, which is simply how much they’re willing to pay.

Find The Actual Gold Weight (AGW) Of Your Gold Coins

Gold Coins on ScaleIf you’ve heard the expression 14- or 24-karat gold, you may know the difference in consistency and quality of gold.  When you sell gold, you sell it by its purity as well as its weight, and the closer a coin gets to 100% gold, the higher its value.  If you’re wondering how to sell gold coins, start with the actual gold weight (AGW), which is simply the raw weight multiplied by the purity. It’s easy to weigh a coin (a kitchen scale will do just fine), though a gold dealer will use a much more refined scale for the exact weight of the coin and it’s purity. Finding the purity, on the other hand, requires a bit more research. Check out online databases of coin values and purities and search by year, mint mark, and style of the coin.

Find the Melt Value of Your Gold Coins

Melting Gold CoinsIf you were to melt down your gold coin collection, how much would be pure gold?  Perhaps not as much as you think: many gold coins are “cut” with low-value metals; zinc, for instance, costs a mere six cents per ounce — it would take two million ounces of zinc to equal the value of one ounce of gold.  Your gold coins are worth their melt value, or the pure gold left over after melting the coin and removing other metals.  When you sell gold, you often sell by the spot price (its current value as a security on the marketplace, determined as a value at any time) per troy ounce (a unit of Imperial measurement used for metals) multiplied by AGW.  Those wondering how to sell gold coins that are old or even ancient should know that the intrinsic or historical value nearly always outweighs the melt value — never settle on the melt value if the coin is old.  Nevertheless, the melt value is always the lowest you should accept.  Coin databases like NGC’s often contain the melt value of common gold coins.

Find the Blue Book Price

Coin Blue BookJust like there’s a blue book price on a 2003 Toyota Camry, so too is there a blue book price on popular gold coins.  The blue book is a starting guide on where to sell gold coins because it offers a wholesale price benchmark that’s used by nearly all coin dealers.  Check the blue book price and you’ll see the best place to sell gold based on how much more they offer you than the listed sum.

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Find the Red Book Price

Coin Red BookSimilar to the blue book, the red book helps when selling gold coins by providing information on individual coins rather than the wholesale price: if you find a coin listed for $100 in the red book but on sale for $10, it’s a great deal.  By contrast, a coin listed for $15 in the red book but on sale for $10 may just be the dealer trying to clear out inventory.  The red book helps to determine insurance premiums for very rare or valuable coins by calculating the specific price for one coin.

Shop Around

Would you sell coins to the first offer if you wanted to maximize their value?  Unless you have the supreme good luck to find an astronomically high sale value on the first time, the obvious answer is that it pays to shop your coins around.  A reputable gold coin dealer will give you a quote for the coin’s sale value and help calculate the melt value in order to know how much it could be worth to the right dealer, which will give the best offer and be the best place to sell coins.  Where to sell gold depends on the buyer: it’s rarely the best choice to take your gold coins to “We Buy Gold” shops and pawn shops, since they profit from unsuspecting customers (or customers in need of a quick buck) and have a tendency to lowball a coin’s value.  Nevertheless, asking around at various pawn shops may give you a starting idea for how much you can ask for a coin.  The process of selling other precious metal coins made of silver, platinum, or palladium is no different than selling gold: you can nearly always sell gold and silver coins to the same dealer.

Conclusion

Selling your coins can be a fun and educational experience, especially since many coin dealers are eager to talk about the specific value of a coin or compare it to others that they have traded.  By doing research ahead of time to find a coin’s value, you can better negotiate a favorable price that leaves you with more cash in your pocket.  If you are interested in selling your coin collection, SBC Gold has the knowledge and expertise to help determine an honest price.

Selling Gold and Silver Coins, Bars & Bullion Safely as a Private Party

Precious Metals Bars and Coins

Precious Metals Bars and CoinsThere are two types of people who buy gold and silver: collectors and investors. While collectors are generally one-directional, buying to collect and hold on, investors are clearly going a different direction, buying to then sell at a profit. For investors, there are a few things to watch out for to make sure you are selling gold and silver safely. Avoid scams, be careful about which sellers to work with competitively, and learn the types of buyers most likely to be available.

Gold Weight Discrepancies

When selling coins and bullion in either gold or silver, it’s important to first do one’s homework and know the weight of the metals involved. In some cases, this can be particularly easy; the government has printed the exact weight on the coin itself for clarity. However, one may find that to sell gold and silver coins some homework may be necessary. Coin values and standard gold prices can often be found in coin guides and spot market pricing reports. All of these give a seller a good grounding of what a particular item may be worth, but that doesn’t guarantee that’s what it will sell for.

Common scams can involve aggressive arguing thinking the buyer is desperate to sell coins, as well as using faulty scales. Knowing the weight and value ahead of time identifies a faulty scale weighing right away, and refusing to be pressured avoids hard buying tactics. At the end of the day the seller controls the deal, not the buyer. Remember that rule.

Coin Buyers From Out Of Town

It’s often the case that an out of town buyer shows up, offering to buy gold and silver coins and bullion with fair pricing. This is often just a marketing call. Many of these gold buyers appear at traveling coin shows or set up shop temporarily with mobile offices.

Recently, a third approach has been “gold parties” where the buyer with the help of a local stages a party in a home. It becomes an easy place to sell gold. The items are “weighed” and “tested for quality” and then a cash price is offered on the spot. Very few refuse and the host gets a small percentage, so it seems like a win-win situation. In fact, such buyers often purchase private items for far less than they are actually worth. By the time the seller figures out what happened, the out of town buyer is literally out of town, never to be seen again.

Whenever looking for where to sell gold or silver, be very wary of out of town buyers. Not all are bad, but again doing one’s homework is critical to avoid being taken for a ride.

Shipping Without Guarantee

The Internet and online auctions provide an easy venue to sell gold and sell silver digitally, and then the items get shipped to buyers across the country and internationally. In fact, there are entire markets of private sales going on every day to sell gold and silver coins.

  1. The first rule in digital sales is to always get paid first before shipping, no exception. To sell gold and silver coins means to actually get paid when releasing ownership. The buyer should always assume the risk, not a seller.
  2. Second, never accept personal checks as a form of payment. They are notorious for bouncing. Instead, take cash, money orders, and guaranteed digital payments through processors like PayPal or Western Union. The payment should be “guaranteed” because a non-validated digital payer can use a chargeback to scam a payment, paying up front and then telling the processor it was a mistake or a fraud charge. The seller then ends up losing the digital payment as well as the coin, which has now been shipped.
  3. Third, when shipping, always use insurance and tracking. These are critical to 1) prove the item was sent where directed, and 2) it is a form of third party recovery if the item does indeed get lost in transit.

Bad Reviews

yelp and bbb logosWhen dealing with a coin buyer to sell gold and silver coins, it’s a good idea to see what kind of reviews exist about that company before finalizing a transaction. Many want to work fast, using private sales as their supply for inventory. Still others hope that private sellers are too ignorant about the market to know when they are being scammed. Yet again, the Internet can be a valuable tool in this regard. Sites like Yelp or a local Better Business Bureau log complaints about particular businesses all the time. If a given seller has too many or a number of serious issues to sell coins to, avoid them. Even if a sale sounds imminent, it probably won’t follow through if a commercial buyer has a long history of problems.

No Transparency

Good gold buyers have no issue with sellers who want to take their time, checking out information as well as the buyer’s reputation and payment processing. When a seller finds himself dealing with a buyer who doesn’t want to say much, a red flag should go up. Again, the allure of a quick sale can be very attractive, but it’s not done until the payment is secured at the right price. Many unscrupulous gold buyers avoid discussing their business and instead use hard pressure tactics and threats to walk away or tell people a buyer’s item is fake to force a sale. The seller then gets desperate and is hooked.

The best place to sell gold coins is often with reputable gold dealers that have been established in the community and have an interest in keeping their business going. They will be honest if they have too much of a given inventory and don’t want to spend much on an item right now. They will also suggest resources to help you find out where to sell gold and where to sell silver that they won’t buy.

Conclusion

There is no special protection for sellers of gold and silver coins and bullion. The seller has to watch out for his or her own interest. That means doing homework, not taking the first offer, and confirming payment processes before shipping. Finally, smart sellers anticipate problems and cover themselves with documentation and insurance. After all, it is a free market.

 

Sources:
http://abcnews.go.com/Business/selling-gold-scams-beware-tips/story?id=14309128&singlePage=true, http://coincollecting.answers.com/valuations/things-to-know-before-selling-your-coins-online, http://coins.about.com/od/coinbuyingadvice/qt/coin_dealers.htm, http://coins.about.com/od/coinbuyingadvice/a/coin_secrets.htm, http://www.nationalpawnbrokers.org/2013/rogue-gold-buyers-a-conversation-with-ric-blum/, http://www.kiplinger.com/article/saving/T015-C000-S002-smart-ways-to-sell-your-gold.html

“We Buy Gold”: Avoid These Gold Buyers Like The Plague When Selling Coins

Do you know where to sell your gold for the best price and be sure you are not getting taken for a ride? With so many gold buyers on every corner, it can be hard to know which ones to trust. This article will share some ways you can be sure to always get the best price when you go to sell gold or silver coins, bars and bullion.

Selling Gold is Popular

With the economy the way it is, a lot of people are looking for ways to make extra money. Often, one of the first objects to sell is extra, unworn or inherited gold jewelry and coins. Because so many people are eager to sell gold there is plenty of opportunity for scammers to mislead people, especially when it comes to coins.

The best thing you can do to protect yourself is to do research beforehand to know how much your coin(s) are worth, and to know exactly where to sell gold in your area so you don’t get scammed. Knowledge is power when it comes to selling gold coins.

Cash for Gold Shops

Cash for Gold Sign HolderThe market of gold buyers is flooded due to high demand. This makes it hard to know where to sell gold, and know you’ll get the best price. If your town is like most towns these days, there are “cash for gold” or “we buy gold” shops seemingly on every corner. These shops are not always reputable. In fact, most of them will give you 40 to 60 percent less than you could get at a legitimate, well-run coin store. These stores are often also unregulated and unlicensed, so they don’t have to follow the same stringent rules that legitimate gold dealers do. Look for associations with the PCGS and NGC when selling gold coins especially, as these are professional coin organizations.

Remember, the vast majority of cash for gold shops will mislead you about the value of your gold. They do this by using faulty scales, offering scrap value so they can melt your metals, and a variety of other fraudulent tactics. Doing research online before you go out into the world of gold buyers will help you figure out where to sell gold in your town. Look for reviews from others who have used these places. They will tell you which buyers are good and which should be avoided.

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Pawn Shops

When you are looking for where to sell gold and silver, you may consider pawn shops. This isn’t an unreasonable consideration, as these shops are definitely licensed and regulated. Most have good reputations, too. However, pawn shops do not typically specialize in buying gold coins. They won’t know enough about the real worth of what you are bringing in to give you a good price. Instead, you will probably get scrap value, when you could get so much more somewhere else. If you’re curious, you can take your metals to different pawn shops just to get estimates on what they would pay. At the very least, this may give you an idea on which stores are definitely lowballing on the price.

Rogue Gold Buyers

Rogue Gold BuyerThese are the worst if you want to sell gold coins. They appear out of nowhere, and are likely mobile businesses. They are not licensed or regulated, so they can do business as shady as they like, and you have little to no recourse about it if you find you’ve been lied to by them. You may find rogue buyers in tents in parking lots, at hotels hosting conventions, and even at roadside stands. Their main goal is to underpay people who don’t know any better. A good rule of thumb is to never sell to someone from out of town.

Gold Parties

If you’ve ever been to a party at someone’s house where the goal was to buy something, you have an idea of what a gold party is. People come to these parties, usually at the home of a friend or friend of a friend, to sell gold. The person hosting the party is working for a gold buying company, and will get a monetary cut of whatever gold is purchased at the party. Like cash for gold shops and rogue buyers, lowballing is the name of the game at these gatherings. Since the companies that run the parties are unregulated, there is no recourse after you’ve sold your gold for too low of a price, either.

Tips for Selling Gold Coins Safely

If you want to know where to sell gold safely, there are a few things you can do.

  • First, check with the Better Business Bureau on any buyer you’re thinking of using. Look for complaints.
  • Also, look online for complaints or compliments. People are just as ready to praise a buyer who did right by them as they are to complain about a buyer who wronged them.
  • Never mail any gold (or silver) coins, bars or bullion to a prospective buyer without getting a written guarantee that it will be returned.
  • Do the proper research to know the value of your gold coins. Check websites such as www.ngccoin.com to find out retail values and information of what you have so that you can have a good barometer of what you should be getting. Know that any gold buyer will give you slightly less than the full value of your gold, as the buyer needs to make a profit. The good buyers, though, will give you the highest and most fair price possible.
  • Shop around for estimates and compare offers. Go with the highest one.

Best Places to Sell Gold Coins, Bars and Bullion

Scottsdale Bullion and CoinThe best places to sell gold are the places you know you can trust. In most cases, these will be locally owned and operated gold dealers with personnel who are most knowledgeable in valuating gold bars and coins. You want a company that has the proper equipment to measure and weigh gold accurately. Reputable gold dealers will also offer you guidance and valuable information on selling precious metals. Scottsdale Bullion and Coin meets all of these qualifications. If you are looking to sell coins, bullion or bars give us a call to get an honest, fair price for your metals.