Do you have gold bullion coins to sell but wonder if you are getting the best price? A simple answer to that is having your coins evaluated by multiple gold dealers. There are a couple of things you can do to improve the price that everyone is offering for your gold bullion.
To begin with, if you are in the market for gold coins that you are planning on selling at some future date then do not buy obscure coins. Gold bullion coins are not novelty items but an investment that could net you great profits if you approach it right from the very beginning.
Gold coins have varying degrees of value, one 99.9% pure gold coin won’t necessarily be worth the same price as all the other gold coins on the market. Remember that the bigger the buyer’s market is for your kind of gold coins, the easier it will to sell.
- Capital gains tax
When buying gold coins focus on well known, preferably, investment coins issued by government mints like the U.S Mint, The Royal Mint, Perth Mint and so forth. The best way to maximise on your selling price is to avoid Capital Gains Tax (CGT). Stick to Australian coins if you are in Australia. They have a face value which means they qualify for free Capital Gains Tax. You get to keep the profits from your sales and not pay the taxman any percentage.
- Plan ahead
When selling gold coins, think of the future. Plan your sales and don’t leave it until the very last minute. Gold prices rise over the medium to long term but they tend to be extremely volatile over short term periods.
- Take care of your coins
Gold coins are valuable. They are more so if they look perfect, have no scratches and look like they just got off the minting press. It is important to keep your coins in a safe and secure container and to handle them with great care, especially .9999 pure coins which are easy to scratch.
- Invest in a variety of gold coins
Variety can enhance your investment portfolio. This means buy a mixture of different coins in various sizes. Collect new and old coins to take advantage of opportunities that arise when certain coins become sought after in the market. The supply and demand of various coins is different and fluid, while some coins may be trading at a premium because of their scarcity, cheaper commemorative coins may become valuable in time. The premium for regular gold bullion coins is about 5% whilst limited issue coins can have a premium as high as 20%.
- Shop around
Different cash for gold dealers will have different prices for gold. One buyer could pay less if the coins are in great demand than there other. It’s not always easy to get the best price for gold, but with a little bit of information, some legwork and strategic planning you can score a great deal.
Find a reputable dealer who is known for competitive prices and customer service. When you sell your gold coins make sure that it is to a cash for gold dealer that you can trust.
- Gold is better as a long term investment
Gold is not like stocks that you can buy today and sell back in a day or two. It is appealing to buy gold coins at a low price and sell at a higher price in the shortest time frame possible. However, many experienced gold investors will tell you that when it comes to gold bullion it is better to plan for a long term investment.
There are a lot of elements that impact the gold price, however, it hard to predict performance over a shorter term. You have to be mindful of the bid-offer spread which means buying gold and selling for a big profit in a short period might not be practical because it does not give the market enough time to overcome the bid-offer spread or the buy/sell margin. The best approach is to buy and hold over a longer period. The extended timeframe cancels out luck and bad timing.