Do you want to become a gold coin dealer? Do you want to make money buying and selling gold coins from home? If YES, here are 7 easy steps to buy and sell gold coins online for profit. If you have some spare cash, rather than leave it to lie fallow in your bank account, you can invest it into buying and selling of gold coins online. This is a very lucrative business, especially since gold coins have better liquidity than bars.
Just like any other kind of investment, trading in gold coins requires research and education. In this article, which is a brief guide, you will learn the basics of gold coin trading; from the point of buying your gold to the point of selling them. So without wasting your time, the following are guidelines that you must follow before investing in gold coins:
7 Easy Steps to Make Money Buying and Selling Gold Coins Online
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1. Take your time to compare prices
Don’t be surprised that you will see the same coins going for various prices in different markets.
2. If you are buying rare coins (otherwise called numismastic coins), try to research the historical value of each coin to determine if it has been a solid long term investment. Keep in mind, however, that a history of good performance doesn’t guarantee good performance in the future.
3. Before buying any coin, consider the resale market. While rare coins are usually highly valued, you may find it very hard to sell them.
4. Because commissions are typically higher for numismatic coins, many coin dealers attempt to force them down the throat of industry newcomers. Don’t fall for this gimmick. Only buy numismatic coins if you have full understanding of what you are purchasing.
5. Before investing, consider the current prices of gold, but don’t let substantial swings (up or down) influence your decisions. Human nature is to buy when prices are going up and sell when prices are going down. To remove emotion from your decisions, take a dollar cost averaging approach, as this will likely result in more successful outcomes in the long term.
6. Connect with a local coin dealer in order to learn more about the gold coin market. Aside being ready to answer your most provocative questions, coin dealers with whom you have established a relationship will provide you with discounted prices and early access to new inventory. They will also typically offer you a premium over their standard buying rates when the time comes to sell your coins.
How to identify Counterfeit Gold Coins
Due to the current high prices of gold, producers of counterfeit gold coins have entered the market in large numbers with coins made of relatively worthless metals, such as copper and tungsten. To avoid the expensive mistake of buying counterfeit gold coins, start by researching the coin dealer you plan to buy gold coins from. Other tips to avoid this mistake are as follows:
Invest in a reliable scale.
Purchase a weighing scale that measures tenths, if not hundredths of a gram. Specified weights for all types of gold coins can be found online. Weigh any gold coin and compare its weight with the specified weight. Any difference should raise your scam detector.
Purchase a caliper
A caliper measures the length, breadth, and thickness of an item. Calipers are more accurate than rulers and tape measures. Gold coins are produced in line with strict dimension specifications. Measure any gold coin you plan to buy, and compare its dimensions with the standard.
Use a rare earth magnet
Gold is not magnetic. So, use a magnet to test the authenticity of any coin before you buy it. If a magnet attracts it, it’s not gold.
3 Best Places to Buy Gold Coins
Aside buying from individual dealers, there are other sources where you can buy high quality gold coins at cheap prices. Examples include the following:
- The government: government-issued coins usually come with a reliable guarantee of gold content, weight, and purity. The U.S. government sells gold coins online. Find out more about how to buy from them.
- Online auction sites: Examples include Ebay.com. Most sellers are cash-strapped and are willing to sell for cheap prices.
- Public: If you want to buy coins at rates that fall well below market value, like the dealers do, learn how to buy coins from the public.
How to Sell your Gold Coins
Sell your gold when the price is at all time high, when the demand is high, when the sentiment is generally bullish, and when you are sitting on a sizable profit.
In conclusion, you must keep in mind that this article is not meant to give all the information you need to get started. Consult other online resources as well as experts in gold coin trading to learn more about the technicalities of the business before you take a plunge.