Make money buying and selling gold coins

Gold bullion coins, which sell in the millions weekly, tap into the allure of investing in gold. American Eagle and Canadian Maple Leaf gold coins have high gold purity and are easily bought and sold through precious metals dealers. But in recent years, people have been moving away from them, says Barry Stuppler, founder and president of Mint State Golda precious metals dealer in Woodland, California. But what goes up sometimes comes down: The price of gold coins has tracked the recent decline in the price of gold, as. Before plunking down hard cash, know that investing in gold coins can have its downside. Prices fluctuate wildly, Mladjenovic says. They may not accept makf unless they have the cash in hand. Selling coins also means laboriously shipping them back to dealers by packing them in coin protectors wrapped in bubble wrap.

7 Easy Steps to Make Money Buying and Selling Gold Coins Online

In the days of instant, online stock trading and financial accounts, sometimes money seems almost make-believe. We no longer even have a passbook to hold on to. We certainly never see most of our money as a tangible object. Some people may look askance to buy gold coins in this day and age, however. Here are some advantages and disadvantages of buying gold coins as an investment:. Advantages to buy gold coins Gold and other hard metals have always been a time-honored part of traditional investment plans. If you decide to buy gold coins, get it from a reputable dealer or financial institution. You may pay a higher premium if you buy gold coins less than one ounce each. They can sell at a very high premium, and their prices are dependent on more factors. Once you have the coins, you may be tempted to run the coins through your hands, like Ebenezer Scrooge. Thieves know where to look, or they can find it with a metal detector. Most investors want the majority of their portfolio to be in growth funds, stocks, or other investments. Your IRA administrator will keep them in a vault for you. Coins must meet standards of purity to qualify as IRA investments. Photo credit: chrisolson via photopin cc. Sally Herigstad is a certified public accountant and personal finance columnist and author of Help! Martin’s Griffin. She writes regularly at CreditCards. She is an experienced speaker and a member of Toastmasters International. Follow Sally on Twitter. Financial Health. By Sally Herigstad. Have you ever wanted to buy gold coins for investing? Or maybe just as a hobby?

A Gold Testing Kit

When economic times get tough or the stock market looks jittery , investors often turn to gold as a safe haven. Investors like gold for many reasons, and it has attributes that make the commodity a good counterpoint to traditional securities such as stocks and bonds. Those are a few of the major benefits of gold, but the investment — like all investments — is not without risks and drawbacks. In contrast, owners of a business — such as a gold miner — can profit not only from the rising price of gold but also from the business expanding its production. So there are multiple ways to invest and win with gold. One of the more emotionally satisfying ways to own gold is to purchase it in bars or in coins. One of the largest drawbacks is probably the need to safeguard the physical gold and insure it. The second-biggest risk occurs if you need to sell your gold. So you may have to settle for selling your holdings for much less than they might otherwise command on a national market. The biggest advantage of using futures to invest in gold is the immense amount of leverage that you can use. In other words, you can own a lot of gold futures for a relatively small sum of money. If gold futures move in the direction you think, you can make a lot of money very quickly. Risks: The leverage for futures investors cuts both ways. So while the futures market allows you to make a lot of money, you can lose it just as quickly. The goals of ETFs such as these is to match the performance of gold minus the annual expense ratio. The expense ratios on the funds above are only 0. You can trade the fund on any day the market is open for the going price. So gold ETFs are more liquid than physical gold, and you can trade them from the comfort of your home. Risks: ETFs give you exposure to the price of gold, so if it rises or falls, the fund should perform similarly, again minus the cost of the fund itself.

Why investors like gold

Acquiring gold coins to buy and sell can be a fun hobby and a way to make some extra cash. Gold is almost always a good investment, as long as you invest wisely. As the value of currency weakens, the price of gold tends to go up. Research the current price of gold before buying and selling any gold coins. This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. Together, they cited information from 22 references.

Log in Facebook Loading Google Loading Civic Loading No account yet? Create an account. Edit this Article. We use cookies to make wikiHow great. By using our site, you agree to our cookie policy. Article Edit. Learn why people trust wikiHow. Learn more Learn coibs coin weight. It is good to have at least make money buying and selling gold coins knowledge about gold coins when buying coisn selling. The standard weight for a gold coin is one Troy ounce There are coins that weigh less than one Troy ounce 1oztbut they trade less frequently, byying you will pay a bigger percentage premium to buy them from dealers.

That will cut into your potential profits. Pay attention to the difference between ounce and Troy ounce. The Troy ounce is used because a standard measurement system is needed since gold is an important, universal material. The difference between the two measurements matters more as you buy more gold.

For example, a Troy ounce bar of gold is not the same swlling ounces of sugar. You would sellinng losing 8. Calculate carefully. Look into bullion coins. Gold coins can mqke segregated into various types. The two main types are bullion and mae. Bullion coins are more commonly acquired by gold investors because the prices are transparent. The price of gold depends on the market price of physical investment grade gold. Learn about numismatic coins.

Numismatic coins are most often purchased by gold collectors. The price of this gold coin is more dependent buyijg outside factors, like rarity of coin, than market price. Rare collectible numismatic coins can sell at a very high premium—more than the gold value. Most of the buyers and sellers of numismatic gold coins have decades of experience.

It is not recommended for beginners. Numismatic coins are not produced in modern times. Do not rely on gold as insurance during a crisis. This is because gold loses its value in times of crisis. Gold is not stable, and it is actually a commodity because it is a metal. Avoid overpaying.

You should maake the price of gold the day you plan to buy. A small markup is normal because the extra cost typically covers the price of minting and shipping, the dealer, and the authorized purchaser. Notice the fees. Look into extraneous fees and the validity of the company you are buying from before making a purchase. You should look into fees like shipping costs, hidden commission, insurance fees, or extra charges due to payment type.

Look up the business. It is important to buy from a legitimate vendor when purchasing gold. Shop make money buying and selling gold coins. There are many ways you can buy gold coins. You can buy from the government, online, or from monry local retailer. Your best bet is to compare prices on whichever coin you’re thinking of buying.

Buy from the government. Their coins usually come with a reliable guarantee of gold content, weight, and purity. The variety of coins may be limited, but you can feel safe buying from the government. Buy from an online site.

There are numerous buuying to buy coins from online, like ebay. Because there are so many sites out there, be mnoey to check every website out before considering a purchase. Most retail sites offer multiple methods of purchase, like PayPal, credit card, money orders, and checks. The vendor with the lowest price may not be the one that provides the best quality of purchase.

Buy from an individual dealer. You can buy locally from a jewelry selljng or pawn shop. This is seling riskiest route. Some dealers make shady guarantees in order to trick buyers into purchasing their coins. Selping to mwke a price guarantee a specific value guarantee that the dealer places on your coin.

If buying within your state, check the United States Mint website for a list of reputable dealers by state. The US Mint checks the dealers, but does not vouch for. Buy coins from people. If you want to buy coins below market value, like the dealers do, learn sellint to buy coins from cons public.

You can do this by looking through yard sales and buying online from websites like eBay. Make sure you do so legally. Avoid soliciting others for their gold. Inspect the coins. Make sure the coins are real soon after you mae your purchase. One of the most important things you swlling do to minimize your losses is make sure the coins are made from real gold without damaging.

You can do this by testing things like the weight, sound, and acidity. Even if the coin weighs what it should, check the diameter and thickness. Sometimes fake coins will make up for weight by a thicker diameter and thickness. Or, they will be underweight to make up for the size.

Strike the gold coin maoe another coin. It should chime. Base metals will sound duller, and the sound will not last as long. Buy an acid test to see if the gold coin is genuine. Do not overdo this because the test can cause permanent damage to the coin. You check the quality by rubbing the gold on a black stone, which will leave a mark. You then apply nitric acid to the coin. Any mark that is not gold should dissolve. Have a third party certified coin dealer verify they are real.

Plan where you will store the coins. Any secure method of storage is going to cost you money. Consider a bank safe deposit box, a home safe, or a safekeeping program offered by some gold dealers. This mainly concerns investors. You will keep the coins on hand, in a lock box, or safe temporarily if you plan to resell them for a quick profit. Keep track seloing gold value. Most newspapers report the price of gold daily, and you can get almost instantaneous updates online at several sites.

Check the site often and sell when the coin is doing well, or when you really need it.

How to Start a Gold Business and Make Money Buying & Selling Gold

Generally speaking, nothing could be further from the truth. Gold dealers are highly risk averse given the volatility of the metals market, and so they are very unlikely to speculate on future spot price. Review: Spot price is the over-the-counter commodities exchange price for a oz good delivery gold bar. Some operate hybrid operations, stocking some products, and drop shipping. Gold brokers are unaffected by the spot price at all, because the spot price they charge to the customer is roughly identical to the spot price they buy from the wholesaler. In this way, they essentially pass along hedging responsibility to the wholesaler, while making money on the premium. In either case, the system is not fool proof. Unfortunately, many investors think buying bullion is no different than buying a book online; that the vendor is in no way impacted for an order cancellation. On the contrary, a non-paying customer poses a serious problem for dealers. Subscribe to our mailing list, and stay up-to-date with the latest news and analysis of the bullion market. So do gold dealers protect themselves against price fluctuations? So how do gold dealers make money? Aelling 13, By Gold Price. Latest Posts. Strong Move for Metals to Koney January 3, Compare Gold Storage Options Discover the best way to securely store your precious metals.