More than a status symbol, gold is a commodity. Its price fluctuates daily in the commodity markets and when the value of money declines, the price of gold prospers making it one of the most popular precious metals for investors. Gold bullion is available in bars and coins. Compared to bars, coins are easier to sell and are available in several denominations.
Here are some tips on buying and selling them.
Start with North American Coins
The Canadian Maple Leaf and the American Eagle gold coins are the easiest to ones to trade. The 22-karat Eagle’s content and purity are certified by the U.S. Mint, though the Maple Leaf has a higher purity at 24 karats. These coins are widely used in North America and are usually easier to sell. Outside North America, you can trade in the Austrian Vienna Philharmonic and the South African Krugerrand. Rare coins can sell for a higher price but it is not recommended if you are just starting out.
When buying coins, it is safer to store them in a safety deposit box or a home safe to avoid dealer scams.
To maximise your profits when selling, it is best to buy gold coins below the market value. You can do this by buying from the public. You can also buy from the government as they usually have a guarantee on the coin’s content, weight and purity. The riskiest route in obtaining gold coins would be from an individual dealer as some dealers may exploit their buyers with shady guarantees.
Keep Track of Gold Value
Most newspapers publish the daily price of gold, and you can also get updates online. Also take into consideration the value of currency, as this has an inverse relationship with that of gold.
Sell at Peak Demand
You should sell your coins before the value of gold starts declining. This one takes some research and intuition. This will give you a sizeable profit especially if the price is at an all-time high and the demand is at its highest.
Gold coins are a great investment though there are some downsides. They are not usually meant for trading and you should hold on to them at a minimum of three years. Gold should be bought with careful consideration and attention should be paid to safeguard its value.