I’ve written several times in the past about why buying gold should be an insurance move, not “get rich” move. Buying gold coins to sell for profit is an insecure strategy. The reason for this is because gold has a premium placed on it that marks it higher than the price of gold on the market. Therefore the premium, which is based on weight and type of gold, makes the profit available on gold insignificant.
If a person were to buy gold bullion coins there are a few things an individual can do with the gold. They can sell it to a coin dealer, if the dealer buys the gold (big IF) they will only buy it for a small amount over the price it was originally purchased for. Sometimes to make a large enough profit a coin dealer will not purchase the coin over previously purchased price, they will simply ask for it for market price or pass on the purchase.
Gold dealers can sell the gold for whatever a person is willing to pay for it. If coins were purchased as a form of gold then the dealer can market them as rare coins and hope to make a bit more money. Many people will buy the sale of a rare coin even if the claims are false, in hopes that they can later sale it for more money.
Another way that a person can sell gold coins is to sale the gold on ebay or any classified website. The seller can specify a beginning bid, and thus the profit made on the gold can be at purchased price, or if any bids are made, higher than purchased price. Ebay could be successful it selling gold because some of the people buying may not know where else to purchase gold.
The downfall would be due to the high price of gold, a seller may get no bids and be stuck with the gold. The High side to Ebay is that it opens up the availability of people able to purchase the gold, because Ebay is international and thus a seller can advertise the gold father than a local distance. Thus the likely hood of the gold being purchased is greatly increased.
Lastly and probably the best thing to do with gold after it is purchased is to just sit on the gold. Not to sit on the gold literally but to keep it in a safe area and hold on to it. Gold due to the premium and high pricing is not good for resale profit, but gold is perfect as a form of security.
The reason gold should be held onto and used as a form of security is because it will always have value, the price may decrease and increase depending on the demand of gold, but it will always hold value. In the case of a financial crisis gold can be used as a form of trade for goods and services. Also in such an event a paper form of money will be useless because it is not backed thus it will just be worth paper, so something will be needed of value and that is where gold bullion coins help.
Purchasing gold coins to sell as profit is not a good idea unless from when the coins had been purchased the price of gold has gone up. The best way to work with gold is to hold on to it and save it for when times get hard. Gold is a very precious metal and always has been, so it is logical to have it for security.
Tags: gold coins, sell gold, selling gold coins