Gold Coins and Bars: 5 Strategies To Get the Best Possible Price on Your Investment
Coin collecting can be a fun and profitable hobby if you use the right buying and selling strategies — especially for gold coins, which are highly prized by dealers and collectors. If you’re just in it for the money, you can expand into gold bars as well. In both cases, getting the best possible price begins with researching the gold market and finding out where buyers pay a premium.
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The best type of gold to invest in depends on your objectives and personal preferences. For investors seeking a straightforward way to accumulate gold with a focus on purity and cost-effectiveness, gold bars are usually the best option. With gold coins, on the other hand, you not only get the inherent value of the metal but also additional value from their worth on the collectibles market.
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If you are looking to sell gold, here are five strategies to maximize your profits.
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Keep Track of the Market
As with any asset, gold goes up and down in value depending on various factors. These include interest rates, economic cycles, Treasury yields, inflation and consumer confidence, according to the Federal Reserve Bank of Chicago. Find out how gold prices are trending before buying or selling.
Go Where the Buyers Are
If you are selling gold coins, you have a number of options. Here’s a list of good places to find buyers, according to Atlanta Gold & Coin Buyers.
Local coin stores
Online merchants
Online auction/commerce sites such as eBay and Amazon
Coin shows
Pawn shops
Farmer’s markets/flea markets
Networking with other collectors
In terms of specific places to sell gold bars and/or coins, choices include the United States Gold Bureau and dealers/platforms such as Cash for Gold USA, Express Cash Gold, Worthy, Sell Your Gold and Luriya.
Research and Compare Dealers
Gold dealers typically charge fees in addition to gold spot prices, CBS News reported. They also have the option to set their own prices for their services, which means you might find wide swings in how much particular dealers are willing to pay you for your gold bars and coins. Take the time to research and compare your options before making a deal.
Buy in Bulk
As with many products, the more gold you buy the better the price. As CBS News noted, if you were to buy a 1-ounce gold bar, you’d likely pay a bigger per-ounce markup than if you bought 10 ounces.
But Don’t Necessarily Sell in Bulk
When you are selling gold coins, you’re almost always likely to get a higher per-coin price and margin by selling only a few items at a time vs. a few dozen. However, if you simply want to downsize your collection and rake in some quick cash, you might sell large quantities for lower margins.
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This article originally appeared on GOBankingRates.com: Gold Coins and Bars: 5 Strategies To Get the Best Possible Price on Your Investment