If you have gold collectible coins in your possession that you’re trying to dispose for profit, there only two major things you’ll need to focus on: how to avoid getting ripped-off and how to realize the highest possible gain from your rare gold coin sale. Before you go on your selling venture, keep in mind the practical tips mentioned below.
Tips on selling rare gold coins
Make your own gold coin inventory. If you have a lot of collectible gold coins to sell you’ll need to list them all. Make a catalog system with information about each coin. If you only have one rare gold coin you can directly take note of its specifics.
Write down the important details such as the mint year, brand, noticeable scratches and deformities and the general condition of each coin. This is to make sure that when you have the rare gold coin appraised you know that the very same coin was returned to you.
Find out the selling price of rare gold coins
Learn more about the numismatic gold that you’re selling so that you can take full advantage of their potential profit.
Check the closing price of similar coins that were sold on online auctions like Ebay so that you have a clear idea regarding the potential value of your gold collectible coins. Gaps in your knowledge may ruin your sale plan.
Buy a price guide book or visit a website to find the fair-market value of a rare gold coin.
There are two types of price guides: fair market value price guides and dealer-made price guides. Dealer-made price guides are for buying coins. Use the fair-market value guide when selling them.
Appraise your gold rare coins
At a minimum you should at least be able to give a rough appraisal on the rare gold coin that you’re trying to sell. However, an unofficial grading opinion is not enough to convince buyers. Remember that when it comes to grading and authenticity of gold collector coins, it’s always best to get a second opinion.
Approach companies providing certification services. These companies will give appraise your coins’ authenticity and grade.
Four of the most reliable and trusted grading companies are: PCGS (Professional coin grading Service), ICG (Independent Coin Grading Company), NGC (Numismatic Guaranty Corporation of America) and ANACS (American Numismatic Association Certification Service).
Gold rare coins with authentication certificates are more liquid.
Maintain records from sales of your rare gold coins
For tax purposes, keep a record every time you sell rare gold coins.
Write down the what, when, where, who & how much of the transaction. You may be required to pay taxes on the sale of your coins. If you don’t have a record of your actual gain, the IRS will assume that you realized the biggest profit possible thus increasing your tax due.
The tax involved in the sale of rare gold coins is called capital gains tax (CGT). You pay tax when you sell your gold coins for more than what you bought them for, similarly, you can also deduct a loss if you sell the coins for less than what you paid for when you buy them.
Your sale is recorded on Schedule D which requires you to report the transaction using some basic information (when you bought and when you sold the coin).
If you owned the gold coins for a year or less, your gain is taxed at your ordinary rate, otherwise, your gain is taxed at a maximum of 28% which is the normal tax rate for collectible gold coins.
Where to sell rare gold coins?
Sell your numismatic gold to individual collectors, If you know someone collecting gold rare coins, you can directly go to him and sell your coins. Transaction can be immediately closed if both parties agreed with the price.
Sell rare gold coins at auction houses, Auction companies are regular and reliable places for selling your collectible gold coins. Not only do gold coin dealers buy at auctions, so do rare gold coin collectors. Your coins will be presented to thousands of interested collectors, investors and dealers alike.
Selling gold collectible coins online, You can make an account on auction sites like Ebay. This tends to be successful because some people who doesn’t know where to buy gold, go to auction sites online. Start your auction price above the dealer-made price (what a dealer will pay for a particular coin) but below fair-market price. You’ll get a lot of bids this way.
Selling gold rare coins at local coin shop, You can also sell your gold rare coins on local coin shops. Just keep in mind that rare gold coins had a wide market so if you’re not satisfied with the price your local coin shop is willing to pay, you can always find other interested buyers.
Dealers, If you’re aiming for fast cash, dealers are almost always willing to buy rare gold coins as it’s a way for them to re-stock their inventory. The best candidate would be the dealer from which you buy the gold coins from. Bear in the mind that dealers will not pay you the actual price of your rare gold coins as they’ll need to make allowance when they re-sell them.
Consignment, Dealers are willing to accept consignments as a way to increase their inventory without laying out cash. The length of the consignment depends on the type of gold rare coins being consigned. Hard-to-sell gold collector coins may be consigned for about 2 weeks to a month, more liquid gold coins, on the other hand, may be consigned for just three days to a week. Remember to get a receipt with the terms & conditions of the consignment.