With the price of precious metals generally holding a good value, the business of coin collecting for investment has grown considerably since the late 1990s. While you are not likely to get rich, buying gold coins for resale can be profitable if you know the ins and outs of the trade.
1. What to Look For
If you are a novice at coin collecting, a good way to start is by purchasing the more common gold coins that are often easier to find and to sell. One of the more popular gold coins is the American Gold Eagle, a 1-ounce 22-karat coin. To make a better profit, buy when gold prices are lowest. Since prices vary daily, you should check often before buying or selling.
2. Finding Gold Coins
If you prefer to shop for gold coins in person, check out local coin dealers in your area and stand alone businesses that specialize in gold selling and trading. Swap meets and flea markets could also be good places to search for the coins you are looking for. Also visit pawn shops and attend auctions. Internet searches can be productive, but be wary of any business that does not have a physical address.
When you are buying gold coins for resale, make sure you are getting a fair price. Do your research to find out what the average wholesale and retail price of the gold coins are at that time before making a purchase. To make a better profit, find a dealer that has not more than a 5 percent markup over wholesale value. If you pay retail, there will be little room for profitable mark-up. Also, if you are buying in bulk, ask for a discount.
4. Beware of Scams
While it might seem tempting to invest in gold coins that are advertised as historic or rare, beware of scams that can be offered by precious metal dealers, especially on the Internet. The rise in gold coin scamming can result in purchase of worthless counterfeit coins, especially if you are a novice. Contacting the Better Business Bureau for a reference could be a good idea before making a purchase.
Tips & Warnings
Always make sure that gold coin comes to you in a bubble pack and if that bubble wrap is tampered then talk to the dealer immediately and also report on the appropriate mint website.
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