Selling gold coins

[paul253]

Simple question: What is the best way to go about selling gold coins? I have 2 coins I'd be interested in moving. One is an American Eagle coin containing 1/10 ounce gold and the other is a Canadian Maple Leaf coin containing 1/4 ounce gold. I'm just trying to figure out where the best place to sell them would be and how to make sure I'm getting a good deal. Does anyone have any knowledge or experience in this area? (I have a couple of Morgan silver dollars too but they aren't in the best shape)

[nodakfan17]

Hi Paul - You could ask 10 people and get 10 opinions, but I think I can get you on the right track.

 

The spot price of gold today is approximately $1360 USD / ozt (troy ounce). Why troy ounces and not ounces? IDK. What's the difference between an ounce and a troy ounce? Not much. Therefore, your 1/10 ozt American Gold Eagle is worth at least $136. Similarly, your 1/4 ozt Canadian Gold Maple is worth at least $340. I say "at least" because American and Canadian bullion are among the most recognized in the world. They often command a small premium over the spot value because they possess some collectable (numismatic) value. Generally, the amount of the premium depends on the age of the coin, as well as the condition. If I were in your position, I would take the pair of gold coins to at least three different dealers and accept the highest offer. You can try coin shops, jewelry stores, and even pawn shops. You should have an approximate idea of their value based on the spot price. Note that the US and Canada did not start minting bullion coins until the 1980s, so while popular with collectors, they probably will not command a substantial premium. With few exceptions, they just aren't old enough or rare enough.

 

As for your Morgan silver dollars, they are all worth about $15 right now. The Morgan dollar was the official dollar coin of the United States from 1878-1921, so there are still tons of them around. Usually only the most pristine Morgans command a premium. There are a few key dates that have some additional value, but unfortunately, I'm not too familiar with them. Calculating the price of a Morgan is as bit wonky because they are 26.73 grams each. You can't do a simple grams to troy ounces conversion because only 90% of the coin is actually silver. As a general rule of thumb, common, worn Morgans are worth 3/4 of the spot price of silver. Today, the spot price of silver was about $20.50. As you probably know, the spot price of gold and silver changes constantly, but you can easily find it on sites like Yahoo! Finance.

 

You could always go the eBay route to get the highest premium, but then you'd have to contend with fees and unscrupulous buyers. I like your odds better with local dealers. You're almost assured of a fair offer if you try more than one place.

[paul253]

Great information thanks. I'll just look up coin dealers in my area and head over there. I appreciate it.

[paul253]

I forgot to ask. Are most coin dealers willing to negotiate or is their price their price?

[rwa12]

From what I've seen, there is a little negotiation if the coins are being purchased for numismatic value, but firm if you are selling for metal weight. If you can find someone that gives you exact value/weight, I'd take it. Most will add a few dollar charge to hedge against the market. Not a big deal in gold, bigger in silver.

[nate82]

Hopefully you didn't buy these as investments coins can be harder to sell and usually don't fetch as much as bars. Plus you can cut up bars and sell them off easier than a full coin.

[nodakfan17]

From what I've seen, there is a little negotiation if the coins are being purchased for numismatic value, but firm if you are selling for metal weight. If you can find someone that gives you exact value/weight, I'd take it. Most will add a few dollar charge to hedge against the market. Not a big deal in gold, bigger in silver.

I think this a fair statement. I wouldn't be surprised if the seller is offered the spot price for each coin. The dealer would then incur the costs / risks of holding onto them longer while they attempt to sell them for a numismatic profit. It's possible that the seller might receive an offer below the spot price, but national mint products (Eagles, Maples, Britannias, etc) tend to fetch more than the generic (non-mint) bullion.

[nodakfan17]

Hopefully you didn't buy these as investments coins can be harder to sell and usually don't fetch as much as bars. Plus you can cut up bars and sell them off easier than a full coin.

I wouldn't worry too much about that. It's true that liquidity should always be a consideration when investing in precious metals, but 1/10 and 1/4 ozt are pretty common denominations for gold. Plus, Eagles and Maples are among the most popular bullion coins in the world.