How to Buy and Sell Gold & Silver
Gold and silver prices have been at or near record levels recently, heightening interest in buying and selling gold and silver coins. Consumers,
however, should resist the temptation to make impulse buys or to sell an item before researching its potential value.
The ANA urges everyone to be wary of cold-call solicitations or mobile offices, set up in temporary locations such as motels, offering instant cash
for gold and silver coins. Be patient, be informed and don’t let anyone pressure you into making impulsive decisions.
Following is a checklist we encourage you to follow before buying or selling gold or silver bullion coins.
The reputation and expertise of your bullion dealer is important. Your dealer needs to be a respected name in the
industry with experience buying and selling bullion in fluctuating markets. ANA dealers must adhere to a strict code of ethics. To locate an ANA
bullion dealer, use our Dealer Directory.
Know the actual cost per ounce of precious metals. Gold and silver prices fluctuate daily, so check that day’s
spot price prior to making a transaction. Expect to pay a higher percentage over melt value for fractional gold pieces (1/10th, 1/4th, and 1/2 ounce)
than for one-ounce pieces. Also, American Eagle and Canadian Maple Leaf bullion coins typically have a higher retail price than South African
Kruggerrand bullion coins.
Understand the fees and/or commissions involved. According to the Professional Numismatists Guild, the average retail commission for one-ounce American Eagle or Maple Leaf gold coins is about five
or six percent.
Arrange for timely delivery If immediate delivery is not possible, obtain from the seller in writing specific
confirmation about the delivery date. Only then should you execute your order.
Know that all investments come with risks. If you intend to buy bullion coins for investment purposes, your best
protection is to spend time learning about the coins before you buy them. Uninformed buyers who make hasty purchases often overpay. Like any
investment, there are no guarantees – and no one can predict with certainty that gold and silver prices will remain at the current levels or
continue to appreciate.
Protect against identity theft. Do not give out credit card numbers or bank account numbers or other private
information such as Social Security numbers over the phone to anyone not known to you.
Glossary of terms
Bullion Coin A bullion coin is a coin that is valued by its weight in a specific precious metal.
Collector or Rare Coin The value of a collector or rare coin is based upon the coin’s rarity, demand, condition and mintage.
A collector or rare coin may be worth more than its bullion value.
Spot price The spot price is the market price for immediate delivery of a commodity, such as gold, silver or platinum. Melt value:
Melt value refers to the basic intrinsic bullion value of a coin if melted and sold.
Spread The spread is the difference between what a dealer will charge to sell an item and what he will pay to purchase it.
Troy ounce The troy ounce is the measurement used in the pricing of precious metals such as gold and silver. The troy ounce is 480
grains or exactly 31.1034768 grams.
Helpful Reference Materials
The Red Book
Yeoman, R. S., Bresset, Kenneth, ed. Guide Book of United States Coins, Atlanta, GA: Whitman Publishing, LLC, 2008.
The Coin Collector’s Survival Manual
5th Edition, Scott A. Travers, New York: Random House, 2006.
2008 Standard Catalog of World Coins, 1901-2000
35th Edition, Iola, Wis.: Krause Publications, Inc., 2007.
2008 Standard Catalog of World Coins, 2001-Date
2nd Edition, Iola, Wis.: Krause Publications, Inc., 2007.
Other Resources
NGC with Current Metal Prices
ANA Consumer Awareness
ANA Dealer Virtual Bourse
Contact Us - coininfo@money.org
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