Helpful Tips for Buying and Selling Gold Coins for Beginners
Investing in gold coins is a good idea and a smart way to make some profit. However, like every form of investment, there are a lot of things that you need to learn before you start trading. Before you can start making money by selling and buying gold coins you will have to do some research on your own and learn about issues ranging from where to find gold coins for sale, to how to trade properly without falling for scam sellers and buyers. This could be quite a lucrative business especially if you know what you are doing. Here are some simple guidelines to help you get started as an investor in the gold coins market.
Be sure to study the prices and compare your options: It’s good to be eager to buy and sell, but it is also imperative that you take your time to study and understand the prices and their implications. Gold coin prices tend to vary quite widely in different markets. You should take your time to compare these prices before making a purchase.
Do you research: While this advice sounds cliché, it is one of the most valid you can get about trading gold. This point becomes even more vital if you are purchasing numismatic coins (rare gold coins). Be sure to research the historical value of the coin and ensure that it has long term value before putting in your money. However, always keep in mind that a good history does not always mean the coin will perform well in the feature so always keep an open mind.
Consider the resale market: it is unlikely that you will be holding a coin indefinitely. Since you will have to sell it at some point, you must consider the resale market for a coin before making a purchase. For example, numismatic coins are highly valuable but some of them are very hard to sell. Make sure you put this into consideration before you buy any coins.
Don’t let market swings influence your decision too much: Although it is true that you have to put the price into consideration before buying gold coins, do not be fooled by an extreme market swing. Try to keep emotions away from every decision you make. One simple way to go about this safely is to use the dollar-cost averaging approach. This way you can easily neutralize short-term volatility and make more gains in the long run.
Be wary of cunning coin dealers: it isn’t uncommon to find dealers trying to force some deals down your throat simply because it helps them to earn higher commissions. Be careful with such dealers especially if you are new in the industry. Get as much understanding of the market as possible to avoid being duped.
A good coin dealer will be willing to give answers to all of your questions and will help you learn more about the market rather than hurrying you towards a deal. Once you have established a good relationship with a good deal, he will help you find better deals, discounted prices and might even give you early access to new coins on the inventory.
Know how to spot fakes: like every asset’s market, it isn’t uncommon to find producers of counterfeit coins trying to sell worthless metals to buyers. Factors like higher gold price as well as technology have further increased incidences of fake gold coins. While shopping online means you will most likely be getting better pricing, it opens you up to a lot of dangers. This is why it is advised that you avoid dealing with faceless companies and go for established dealers with a known name and reputation.
But even buying coins physically does not guarantee authenticity unless you know how to spot a fake gold coin. Here are some tips to help with this.
- Always use a reliable scale: if you are serious about buying and selling gold then you should get your own scale preferably one that measures tenths or even hundredths of a gram if possible. Research about the official weight of any coin you are buying and compare to what your scale measures.
- Purchase a caliper: in addition to measuring the weight, dimensions can be used to detect fakes too. Buy a caliper than you can use to measure the thickness, breath, and length of a coin and compare these dimensions to the standard.
- Use a magnet: fake sellers typically try to pass off other worthless metals as gold. One simple trick to catch them is by using a magnet. Gold isn’t magnetic, so using a magnet should help you figure that out.
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As an investor in any market, how much profit you make depends largely on your knowledge of your field? Be sure to do your research as deeply as possible in order to be confident of any deal you make.