Selling Gold Coins

With the rising price price of gold it's a great time to be in the business of selling gold coins. This article takes a look at a typical coin dealer and outlines the challenges they face on a day-to-day basis. We will focus on small businessman Jim Lukes from Manitowoc, Wisconsin in the USA. Jim's been in business since 1977 and has built up a wealth of experience selling gold coins. He will tell you that selling gold, is not all fun & games.

Picture Source: Manitowoc Herald-Times

Jim Lukes on Gold Coins Value

Gold has always been a hedge against inflation, even though US currency is no longer linked to any gold standard. But as Jim Luke's says "Gold should be just part of a good investment portfolio, I tell people, 'you may own gold but don't be owned by it,'". True enough, Just because the US Dollar is weak at this point in time, does not mean it wont eventually return to a better valuation. Right now gold coins value are being driven up by ongoing credit problems in the US mortgage and loan industry. Jim's advice is good, he's been around long enough to weather a downturn or two.

Selling price of gold coins

Jim buys and sells U.S. American Eagle gold bullion coins, which are available in $5, $10, $25 and $50 denominations. What some gold coin buyers might not know is that coin dealers like Luke's cant buy their coins direct from the US Treasury. The U.S. Treasury sells the American Eagles to 13 hand-picked suppliers who in turn sell them to coin dealers and the general public.

The recent upsurge in buying and selling gold coins is good for business. But profit margins tend to be small for coin dealers. Lukes prefers buying and selling coins from the general public and other coin dealers. The selling price of gold coins is never cheap. Buyers "are seldom lenient no matter which way the price is going," says Lukes. He prefers dealing with the public because it saves him shipping and insurance prices when they bring their coins into the store.

Know about Gold Coin Value

Jim Lukes has some good advice for new gold coin buyers "You don't have to be authorized to sell gold, so when there is a gold rush, the charlatans and crooks pop up," Lukes said. He has seen his share of disreputable gold coin sellers who roll into town, set up shop at a local hotel and are long gone before sellers realize the gold coin value they received may not have been the best.

A bricks and mortar coin shop is a better place to do business because people like to do business with people they know and trust. Lukes says "Whereas, the local guy has been around for 31 years and has to keep his nose clean because people know where he is,". Thats also why its good to deal with Ebay sellers who own their own coin stores. You can reach them easily if there is a problem.

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How to sell your gold