As the value of currencies falls, the price of gold tends to rise. You can take advantage of it in many ways. This page tells you what to do with gold coins, which have higher liquidity than bars.
Steps
Step 1. Learn which coins to buy
Coins can be grouped into various types.
- Commonly more valuable ones (American Gold Eagle, South African Krugerrand) sell for approximately the base value of gold.
- Rare collectibles (numismatics) can be sold for a sometimes very high premium, more than the value of gold itself. Since there is a high profit potential in this case, you will need to learn as much as possible to value and measure rare coins. And it's not for beginners.
- The standard weight of gold is 31.1 grams. There are coins that weigh less, but are traded less frequently and you will pay a higher premium to buy them. They will lower the potential profits.
Step 2. One of the most important things you can do to stem the losses is to make sure the coins are pure gold, without damaging them
Have them checked by a qualified person who certifies their authenticity
Step 3. Think about where you will keep them
Any safe place to store them will cost you. Think, for example, the safe in the bank, the safe in the home, or a security program offered by some merchants in the branch. The latter, however, is more of an investor thing. If you plan on reselling them for immediate profit, you may want to keep them on hand.
Step 4. Invest
There are many ways to buy gold coins. It is best to compare the prices of the ones you intend to buy.
- Buy them from the government. Their coins usually have a guarantee regarding the gold content, weight and purity. The US government sells coins online.
- Buy them on an auction site like Ebay.
- Buy them from a merchant. It is the riskiest thing. Try ticking off a price guarantee (a specific guaranteed value that the seller assigns to the coin). But remember that some give ambiguous guarantees to entice you to buy.
- If you want to buy coins below cost like traders do, learn how to buy them from individuals.
Step 5. Always keep an eye on the value of gold
Most newspapers publish daily quotes and you can get instant updates on many sites online.
Step 6. Check the dollar value
This is also being extensively updated. As mentioned earlier, there is an inverse relationship between the value of the currency and the value of gold.
Step 7. Try to sell your coins at the time of maximum demand
And this is where research and intuition come into play. You have to sell before the value of the gold drops, to exit the transaction with more revenue than the expense of buying the coins. Since determining the timing of the market doesn't always work, you should consider selling when gold is at a good level, demand is high, the trend is generally bullish, and you can make a good profit.
Advice
- The prices of gold coins are influenced by a number of factors such as the rarity of the coin, demand and demand for gold.
- Gold coins are special because no matter how damaged the gold is or its grade, they will always contain quite a few. Even the most damaged ones are valid.
- Gold coins from the US government (or one of the states) can be set aside for retirement purposes.
Warnings
- Beware of gold-plated coins. Just because they're plated doesn't mean they're worth less. Gold is actually a very very thin layer on the coin, which makes it less valid than one made of solid gold. Try reading How to Distinguish Real Gold from False Gold.
- In the United States, gold coins are taxed by the government at 28% when you sell them, versus a rate of 15% for stocks or securities. One way around this is to use retirement funds to buy them.
