This is a common question we get here at MoneyandFinances.org. Sometimes you’ll get quoted a good price, but you’ll want to make sure you’re dealing with a reputable outfit. Do this by checking with the Better Business Bureau and checking if they have had any complaints filed against them. Companies with the most complaints tend to be those that use high-pressure sales tactics. Also make sure any business you patronize has been in business for a long time.
Online Gold & Silver Sellers
Here are some places to purchase gold and silver coins online:
- Republic Monetary (RepublicMonetary.com)
- Rare Coin Wholesalers (RCW1.com)
- American Silver and Gold (AMSGold.com)
- Universal Coin & Bullion (UniversalCoin.com)
Local Gold & Silver Sellers
Check your local yellow pages or an online gold dealer directory. Some likely businesses doing commerce in gold and silver coins include pawnshops and jewelry stores. Any gold dealer you frequent should be a member of the Professional Numismatists organization. If you deal with any business who is a member of the organization and deliberately misrepresents the value of their coins, you can file a formal complaint with them.
Types of Coins to Look For
Gold coins sell at a small premium compared to the spot price of gold. The reason for this is that the governments who meant these gold coins charge a fabrication fee. This premium usually ranges between 3% and 15%. Also stay away from collector’s coins if you are just interested in using the coin as a store of gold.
Kruggerands are considered the standard for one ounce bullion coins and generally trade for a very small premium above the spot price of gold. The South African mint only charges a 3% premium on these coins above the minting cost. These are recognized as being the primary coin for investors wanting a physical store of gold in coin format.
Because there is a collectors market for British sovereign coins, they tend to trade at a slightly higher premium than kruggerrand coins. It should be noted that it’s going to be easier to sell these coins making them a good purchase. If you purchase your British sovereigns in bulk, you can get this premium reduced. There are no capital gains taxes on these coins in the UK.