Should You Sell Gold Coins?

With the price of gold on a steady climb in the last few years, many people think now is the time to sell gold coins they’ve been collecting. Whether it’s right for you depends on a number of criteria, including how badly you need the money, what you’ll do with the profits and whether a long-term gold coin strategy is best for you.

Gold coins are usually made in one troy ounce weight, making it easier for coin dealers, governments and collectors to easily and accurately value gold coins regardless of where or when they were minted. The exceptions are the seldom seen and truly rare gold coins that are a hundred years old or more. These can have an inflated value dependent more on their beauty and scarcity than on their gold content alone.

If you have gold coins such as South African Krugerrands, Australian Kangaroos or Canadian Maple Leafs, it’s easy to find out what they are worth to collectors by visiting one of the many sites that buy and sell gold coins. If you sell to one of these sites, keep in mind that you won’t receive what the coin is actually worth. Remember that these companies are buying and selling gold to make a profit so they need a margin for mark-up. However you can make a decent amount if your coins are in good shape.

Some things that will affect the value when you sell gold coins include:

• Condition of the coin. Is it in mint or near mint condition? A worn or damaged coin isn’t worth as much.

• Do you have the authentication paperwork? Some dealers won’t buy a gold coin if you don’t have the certification that proves it is genuine because it is harder to resell. Forged coins are also a problem, and dealers do not want to get caught up in this.

• Do you still have the presentation box the coin came in? This can also affect the value of a gold coin, particularly if it is one of the coins prized for its beauty as well as its intrinsic value.

If you prefer to sell gold coins locally, you can work with a coin dealer in your area. Some of them will take your coins on commission. The downside to this arrangement is that neither of you make any money until the coin is actually sold. The up side is that the dealer can take the time to contact potentially interested parties and hold out for a good price.

Of course, none of these options will work for you if you need to sell gold coins and get the cash right away. If you are strapped for cash and don’t want to wait around, try selling your gold coins directly to a company that specializes in buying gold of any kind. These companies are also often refineries so the gold they buy is melted down and used to make new gold products. Since gold coins are nearly pure gold, you can easily check current gold prices and get an idea of the current price of the gold in your coin. A gold buyer will typically give you at least 65 percent of the current gold value for your coin. It’s a quick and easy way to make some money without having to have your coins authenticated or wait around for the right buyer.

The bottom line is that if you need cash now it’s probably a good time to sell gold coins since the price of gold is so high.