How to Sell Gold Coins
Gold is one of the most liquid and marketable assets available. The ability to readily sell your gold holdings to raise money for any number of purposes is one of gold’s most attractive characteristics.
Gold is the universal currency, recognized and trusted as a medium of exchange around the world. Gold overcomes language and cultural barriers as something of great value that is understood by friend and foe alike. Perhaps that is why military aviators from as long ago as World War II have been issued gold coins in case they find themselves downed in unfamiliar or hostile territory and need to buy their way to safety.
Gold is even more liquid than many forms of money around the world. Think about it. If you own $1,000 worth of Gold Eagles and $1,000 in Thai baht (the currency in Thailand), which do you think would be more marketable in your vicinity?
Gold coins can be sold discretely at any number of the tens of thousands of coin dealers across America, from local coin shops to large investment houses. In addition, many banks and other financial institutions are now set up to make a market in gold coins. This marketability is an essential companion to gold’s liquidity. When you want to sell your gold coins, you can do so at a large number of places and you usually do not have to wait for your money.
This stands in sharp contrast to some investments, such as real estate, which lack liquidity and others, such as life insurance cash value, which lack marketability (that is the ability to liquidate the investment readily at a variety of firms).
There are a few standard operating procedures of which idividuals should be aware which are common to most transactions involving the sale of gold coins.
Selling Gold Bullion Coins
Most coin firms will readily buy standard, widely recognized gold bullion coins, such as the Gold American Eagle, the Gold Canadian Maple Leaf, the South African Krugerrand and other such government-minted coins.
If you choose to do business with a firm which conducts its business primarily over the telephone or via the internet, when you express your desire to sell your gold bullion coins, you will be given a price indication over the telephone. This is usually not the price you will actually receive for your bullion coins but is the price at the time you express the desire to sell your coins. The purpose of this quote is to give you an estimate of what price you might expect when your coins are liquidated.
At this point it is incumbent upon you to ship your coins to the dealer in a timely manner. Once the dealer receives your coins, he/she will provide you with a firm bid for your coins. This is the market value at the time he/she receives your coins and may be higher or lower than the indication previously given to you depending on what the spot market for gold has done.
At this time the dealer should mail you a check as payment for your bullion coins.
Selling Rare Gold Coins
The procedure for selling rare gold coins is similar to that for selling gold bullion coins, with slight differences.
Be advised that most banks and financial investment firms have no ability to provide you with timely bid prices on rare gold coins. Most of the tens of thousands of coin dealers across America can provide you with a means of liquidating your coins, though some smaller coin shops may not have the financial wherewithal to pay you for truly rare coins or large quantities of coins.
If you are dealing with a firm that conducts its business over the telephone or via the internet, you can expect a firm bid on most rare gold coins which have been certified and graded by the two leading independent coin grading firms, PCGS and NGC. However, if your rare gold coins are not certified at all or are certified by a firm other than PCGS or NGC, you may only receive a price indication over the telephone.
For PCGS and NGC certified coins, the dealer will customarily send you a check upon receipt of your coins. For coins that fall into the other aforementioned categories, you may have to wait for the coins to be evaluated and graded before you can receive money for your coins. (Obviously, this illustrates the advantage of buying PCGS and NGC graded coins over all others.)