Wednesday, December 7, 2011

What to Look For When Evaluating Coin Buyers

By Glen Phillips


If you are on the lookout for coin buyers whether to take rare coins off of your hands or just simply offer a good return for bullion silver or gold coins, then you have to look no further than coin dealerships. Today, with the high price of silver and gold and other precious metals, coin dealerships are avid coin buyers of all sorts of coins.

Before you approach a dealer try to find out which type of coins yield the most profit:

- Rare coins. These are coins that command a high market value because they are in demand by coin collectors and numismatists. Depending on the exact coin in question, the mintage, the condition and the overall demand, some coins can easily hundreds, if not thousands of dollars in the market.

- Ordinary coins with high percentage of precious metals are usually less profitable but are much easier to sell. Unlike the category mentioned above, the value of such coins is primarily dependent upon the metal content. Factors such as rarity might increase the overall price but still the most dominant factor is the precious metal value. Finding coin buyers for pure gold and silver coins is often quite easy because dealing in these coins is similar to participating in the precious metals market.

- Junk silver. These refer to silver coins that are of lower silver content than the more popular 99% silver coins. Still, 40% and 90% silver coins, among others, command strong prices in the coin market. Coin buyers are willing to buy these in bulk and are offer quotes that are primarily based on the prevailing spot price for silver.

- Scrap gold. While not coins, many coin buyers also purchase scrap gold, which is gold that is composed of lower purities. A common example is dentistry gold or the gold extracted from old dental fillings. You would be surprised to find that coin buyers will offer very competitive prices for this type of gold considering that the current price of gold is over $1,700 an ounce.

While looking for coin buyers you must keep a few important things in mind. Otherwise you might not be able to sell your items at the most competitive rates. Here are some tips and guidelines:

- We strongly recommend dealing with coin dealerships that have a solid reputation. Don't discount online coin dealers if you're not able to find a local coin dealer willing to pay your asking price. These are typically family owned local companies with a long history of being in the industry. The track record of these coin buyers can be confirming by reading reviews provided by previous customers. Because of the stakes involved, never compromise your potential profit by choosing just any coin dealer.

- Do not limit yourself to one dealer especially if you are new to the business. Try to obtain a few quotes around the area or from online coin dealers, if possible, before deciding to settle on specific coin buyers.

- Free coin appraisals are quite common these days, so if you want to save some money then you should find a coin dealership that offers this service. Also, if a company provides free appraisals then you can be sure that it is in the business for the long run.

Selling coins and precious metals is a great way to make money. If you invest your money in the right place and choose the right dealership you won't have to worry about being treated fairly. On the other hand, if don't follow the guidelines outlined in this article, you may not be able to find reputable coin buyers, thus potentially reducing the price that you receive for your coins and bullion.




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