If you want to get into the gold coin market, then there is a lot to learn. If you try to jump right in, you might end up losing a lot of time and money to silly mistakes that could have been easily caught if you had the proper education. To help you make a nice chunk of change, here are some tips for trading gold coins:
Pick a Coin
The first thing to understand is that not all coins are created equal. Several dozen major countries have their own gold coins of varying purities. To keep your life simple, you should focus on a single type of coin. This will make buying and selling a very simple process, since you will only need to follow the value of that one coin. If you want to deal with multiple types of coins, then you will vastly increase the amount of time and effort that you have to commit to tracking prices.
You will need to decide what kind of coin you want to get started on. For instance, you might want to pick 1/2 ounce American Gold Eagles or 1/4 ounce Canadian Maple Leafs. American and Canadian gold coins tend to be the most popular, which makes them good choices for beginners. By dealing with lower purities, you can get a lot more coins for the same amount of money. Although it might sound strange, there can be a positive psychological benefit to dealing with large quantities of goods. You might be more motivated to continue buying and selling if you are dealing with dozens or hundreds rather than just a few.
Pick a Dealer
As with any purchase decision, it's a good idea to examine all of your options. Not every gold coin dealer offers the same rates on transactions. Some will charge a higher fee, which may or may not be proportional to a higher degree of security. Check out many different coin dealers in your area, like Dubin Rarities, before you settle on just one.
On top of that, gold coin sales are often done over long distances, which can influence shipping rates. Even if you find a dealer that offers a very low transaction fee, they might be so far away that the shipping costs are prohibitively expensive.
If you do end up selecting a dealer that is far away, you might want to consider shifting to a higher purity of coin. Higher purity coins hold more value in less weight, which means that your shipping costs will be reduced without drastically affecting the profit of the shipment.Share