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Financial crises often spur investors to start thinking about gold diversification. Aside from the allure of trading in gold, there is definite money to be made if you can time the drastic ups-and-downs of gold prices. Many are drawn to the security of having physical gold on-hand. Whatever the reason for investing, selling gold coins can be done by following a simple process.
Steps
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Compare prices from various buyers. You'll want to get the best bang for your buck. Doing a simple online search of gold buyers in your area should provide multiple businesses. There may not be a large degree of variation between the buyers because of the spot gold price, but give each a call and find out what they are currently offering.
- The US Mint does not necessarily get involved in the pricing, but they do provide a handy tool that allows you to find local buyers/sellers. [1] X Research source
- There are many other exchange sites that keep track of precious metal (i.e. gold, silver, platinum). Just search online and there is a wealth of resources.
- Be aware the spot gold price may be the current price, but many dealers charge a premium to buy the gold.
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Lock in your sell price. Because the price of gold fluctuates so rapidly, once you find the right location to sell your gold, you'll need to move quickly to lock in the price. Waiting too long could cause your gold coins to lose significant value. Some require a simple online form to be filled out with the various details.Advertisement
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Sell your gold coins in person. Once you establish a plan to do business with a local dealer, they may require nothing more than a phone call to lock in a sell price. They'll likely want to weigh your gold in person and verify the clarity of the coins. However, selling gold in person has a few disadvantages. [2] X Research source
- There is no guaranteed assurance your gold will not be substituted with something less valuable, but similar looking.
- Selling gold by hand will likely incur a higher premium. Gold insurance scams are common, and premiums are developed to overcome the scams.
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Sell your gold coins online. Online dealers provide a fairly straight-forward method of selling gold coins. Most have nothing more than a few steps to complete before shipping the gold. Check the following steps and you'll likely be well-prepared:
- Register for an account on the respective website.
- Call their trading department for a current price.
- Talk with their specialist regarding your gold coins' value
- Determine if there is a minimum amount to sell in order to do business with them. [3] X Research source
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Sell your gold coins on an auction site. You can put your gold coins on auction sites like eBay if you'd like to see if someone is willing speculate and pay a little more. Depending on the auction site, there may be a registration process, but some simply require the completion of an online form and submission of a photo of your gold. [4] X Research source
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Finish your sale. Once you've figured out all the details on your coin, the method of selling, and negotiated the price, it's time to get paid. Some gold exchanges will allow you to fill out a form with routing number and checking account number for an ACH transfer.
- You may even be asked to provide a voided check for ACH transfers.
- Buying and selling gold is often done with cash, however, so be prepared to work without credit.
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Pay taxes on your sale. Depending on the amount of gold coins you sell at one time, there may be tax implications. In general, the 1099-B form needs to be used when selling at least 25 of any of the following coins:
- Gold 1oz Maple Leaf
- Gold 1oz Krugerrand
- Gold 1oz Mexican Onza. [5] X Research source
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Package your shipment. Remove everything on the box that may indicate anything related to gold coins inside the box. A business name indicating gold, or anything related to bullion, is a clear indicator of the contents. Follow the steps below to ensure your package doesn't encounter any issues when sending out your gold coins:
- Double box - one inside another - in case the outer box rips/breaks.
- Use heavy-duty tape with nylon to cover every single edge and corner. Ensure the package is as secure as possible.
- Reinforce heavier packages with strapping tape.
- If the business with which you are dealing requires something extra, like a filled out form or a voided check, include it in the box where applicable. [6] X Research source
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Choose your method of shipment. There are several options when choosing how to send your coins. In general, the most secure method, discrete method possible is preferred. You may even be able to deliver it by hand.
- USPS doesn't have fuel or residential charges like UPS and FedEx, but that doesn't mean the price will be cheaper. [7] X Research source
- Some sellers offer door-to-door services. An overnight shipping label will be sent to you, and pickup will be scheduled according to their schedule. [8] X Research source
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Include any shipping extras. Because gold is more valuable than the average shipment, and likely more prone to theft, you'll probably want to take some extra precaution when shipping your coins to ensure everything arrives to the buyer safely.
- Ensure you get a confirmation number. You will want to track the package, something also called delivery confirmation.
- Get insurance. Larger carriers offer loss or damage protection. Some, like UPS, offer up to $100 USD coverage for free. Based upon the declared value, you will have to make additional payment.
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Research the spot gold price. The spot gold price is basically the current going price for gold if you were to try and sell your gold coins over the counter to someone. [9] X Research source Typically, the gold is sold by ounce, gram, or kilogram. [10] X Research source
- Check the price on a larger finance website. The basic gold ticker is GCM16.CMX, and everything about the current price, historical price, and various financial indicators like Simple Moving Average (SMA) is listed on most financial websites. [11] X Research source
- Monex.com has current prices and charts, and has been operating for more than 40 years.
- Kitco.com is a more news-oriented site. You can get the latest prices as well as lots of recent news regarding the current price of gold.
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Choose the gold coin to sell. Some gold coins are easier to sell than others, particularly depending on your location. Some have purity guarantees, and can even be added to retirement accounts. The rarer coins are more difficult to sell, because grading can be both difficult and debatable.
- Within the U.S., the Canadian Maple Leaf (24-karat) and American Eagle (22-karat) coins are the most frequently used. The American Eagle coin is guaranteed pure by the U.S. Mint.
- Outside the U.S., the Canadian Maple Leaf dominates. It's also easier to sell the South African Krugerrand and Austrian Vienna Philharmonic.
- The U.S. made a pure gold coin called the American Buffalo in 2006. It was intended to compete with the Maple Leaf, but it's not used as frequently. [12] X Research source
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Determine the weight and value of your gold. Actual gold weight (AGW) of your coins is typically displayed in Troy ounces (i.e price per troy ounce). If the ounces aren't displayed, weigh the coin first. After it's weighed, you'll need to know the amount of non-gold metals inside the alloy. Once you know the AGW, multiply it by the gold price per Troy ounce to know the value of your coin. [13] X Research source
- For impure coins, you'll have to break down the fraction included in AGW. For instance, if the coin were to weigh two ounces, and it was 50% pure, you'd have 1 Troy ounce AGW.
- Keep in mind a Troy ounce (31.1 grams) is not the same as a normal ounce (28.35 grams). [14] X Research source
- If not specifically listed, you'll need to confer with a professional to determine the non-gold metals in your coin.
- Convert grams to AGW by dividing the grams by 31.1035.
- Some coins are standardized, and have the weight in Troy ounces displayed prominently.
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Community Q&A
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QuestionWhen you sell gold coins are there forms to file for taxes?Community AnswerDepending on the type and number of gold coins sold, a 1099-B form may be necessary. If 25 or more Gold 1oz Maple Leaf, Gold 1oz Krugerrand, or Gold 1oz Mexican Onza are being sold, then the tax form is required.
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QuestionI bought a coin last year. Did I lose money on selling it by saying it is old gold?DonaganTop AnswererNo. Gold's value is not affected by the passage of time. Prices vary only with immediate supply and demand.
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QuestionWhat is the commission on the sale of an American Gold Eagle 1 oz coin?Community AnswerIt varies over time and according to several other factors. Let us express commission as a percentage of the spot price of gold. Smaller Eagles will command a higher commission relative to larger Eagles. Check the total price of 10 coins of 1/10 oz gold each and compare it to the price of one 1 oz coin to see this fact. Also influencing the size of commission will be the current state of the market - it changes every day, so there is no simple answer other than to say that you should look around at several vendors to see how they price purchase and/or sale commissions (these are priced very differently so that vendors can make a profit and stay in business). Shop around and you'll have the answer your question.
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Warnings
- Storing your gold coins in a safety deposit box or personal safe is a better option than with a dealer.Thanks
- If you recently purchased the gold coins, know that prices fluctuate a lot. You should hold on to them - some recommend at least three years - before deciding to sell. [15] X Research sourceThanks
- Do NOT sell your gold coins online to big for-profit companies without receiving a price quote.Thanks
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Tips
- Try to find the best prices for your gold coins. If you are selling coins in an auction site, check out "completed lists" for similar items to get an idea of how much others would pay for your gold coins.Thanks
- Consider holding onto your coins for a bit longer if you are able to do so; gold usually stays valuable, and may even appreciate.Thanks
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References
- ↑ https://catalog.usmint.gov/coins/precious-metal-coins/bullion-coins.html
- ↑ https://www.bullionvault.com/guide/gold/Ready-to-buy-gold#section-Ready-to-buy-gold-Possession
- ↑ https://www.apmex.com/sell-gold-sell-silver-overview
- ↑ https://coins.ha.com/coin-dealer-services.s
- ↑ https://www.jmbullion.com/reportable-bullion-transactions-infographic/
- ↑ https://www.texmetals.com/sell-gold-coins
- ↑ https://online-shipping-blog.endicia.com/fedex-ups-usps-cheapest-shipping-rates-comparison-chart-2016/
- ↑ https://www.texmetals.com/sell-gold-coins
- ↑ https://owninggold.com/spot-gold-price/
- ↑ https://goldprice.org/spot-gold.html
- ↑ https://finance.yahoo.com/q?s=gcm16.cmx
- ↑ https://www.bankrate.com/finance/investing/tips-investing-gold-coins.aspx
- ↑ https://taxfreegold.co.uk/agw.html
- ↑ https://www.jmbullion.com/investing-guide/types-physical-metals/troy-oz/
- ↑ https://www.bankrate.com/finance/investing/tips-investing-gold-coins.aspx
About This Article
Article Summary
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To sell gold coins, try selling them online through a reputable gold trading website for convenience. You can also sell your coins on an auction website like eBay, where you might be able to find a customer who is willing to pay more money. Or, you can sell your gold coins in person to a local gold dealer if you don't want to ship your coins, but keep in mind that many dealers charge a high premium. For tips on how to ship gold coins in the mail, scroll down!
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- "One must be careful selecting a person or company when selling a collection."
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"One must be careful selecting a person or company when selling a collection."
