Fun Coin Facts

Gold Bullion & Silver Bullion

With almost 50 years dealing in Gold and Silver Bullion, as well as collector coins and currency, I have decided to share what I have learned. First and foremost, a common question people ask is in regards to what and when to buy. Because of the many reasons the markets move as they do, along with factors with respect to personal goals and needs, which are motivating to the individual, I cannot advise people when to buy/sell. However, I can provide information regarding different types of bullion so that buyers/sellers have the knowledge to make the best decision for their needs. 

In general, there are two major types of Gold Bullion and Silver Bullion, which are Legal Tender and Bullion. Legal Tender items are mostly coins made by the government for use as coinage. In more modern times, coins referred to as Non-Circulating Legal Tender have become more and more common and make up a large part of the bullion trade today in coin shops around the United States. Examples of Non-Circulating Legal Tender are American Gold Eagles, Silver Eagles, Gold Maple Leafs, Silver Maple Leafs, Krugerrands, K rands, Chinese Gold Pandas, Mexican Gold 50 Peso through 2 Gold Peso coins, as well as many modern coins now being produced by countries around the world. As for Circulating Legal Tender, there are US 90% silver dimes, quarters, half dollars, and silver dollars made through 1964. More examples include $20.00, $10.00 and $5.00 US Gold coins made through 1933. While not all of these coins are treated as bullion, many are traded very close to their melt value. Other coins do have collector or numismatic value, which I will cover in a separate post. 

Another major difference when dealing with Legal Tender Bullion and Non Legal Tender Bullion is the variation in treatment across the United States. I have said many times that the difference is not as important when you are buying as it is when selling. For example, in Sarasota (where I am located) there is no sales tax on the sale of Legal Tender Gold Bullion and Silver Bullion. However, on sales for Non Legal Tender of less than $500, there is a 7% tax. Furthermore, cities and states have different reporting and holding periods regarding the sale of Non Legal Tender Bullion from the public. These differences can vary based on reporting and holding times before resale, fingerprinting and photographing the seller, taking government issued IDs, and reporting to the IRS and Local Law Enforcement agencies. However, when dealing with American Gold Eagles and American Silver Eagles, the number of reporting requirements are much less, which makes buying and selling them easier. This gives them a higher premium over melt compared to many other products.

The information regarding Legal Tender Bullion versus Non Circulating Legal Gold Bullion, Silver Bullion, and Platinum Bullion is a very general and brief explanation. Hopefully this material will be of value when in the market to buy or sell Gold Bullion, Silver Bullion and Platinum Bullion. 

Thank you for reading my post and I hope you will check back for additional posts about my 50 years as a full-time dealer in both U.S. and foreign coins, currency, silver bullion and gold bullion.

If you would like more information or have additional questions, please contact me at:

Email: rick52447@gmail.com 

Phone: (941) 952-0100

StoreFront: Estate Coin & Jewelry Galleria

1650 Main Street 

Sarasota, FL 34236

 

Questions To Ask Before Buying

After over 50 years of buying and selling coins and other collectibles, one of the biggest mistakes I’ve found is that buyers forget to ask questions concerning the subsequent sale of an item. After speaking to many other dealers, one common theme is that buyers often find a local business to sell what they’ve purchased, however, they fail to look for local dealers when buying in the first place. In reality, it is just as important to understand the different factors related to selling an item as it is to understand the value of the original purchase.

Important factors include: location of buyers, liquidity of what you are buying, and local and federal laws concerning reporting regulations on what you are buying/selling. Another important matter to consider is that rare or scarce coins cannot be sold through a mass marketing format (i.e., large newspaper ads or a fast-talking TV sales person). A general rule to remember is that the terms “rare” and “scarce” refer to something there is not a lot of. Therefore, the concept of mass marketing, which is designed specifically to sell large numbers of an item, cannot also cater to limited pieces. 

Please feel free to reach out for assistance with starting a coin or paper money collection. 

If you would like more information or have additional questions, please contact me at:

Email: rick52447@gmail.com 

Phone: (941) 952-0100

StoreFront: Estate Coin & Jewelry Galleria

1650 Main Street 

Sarasota, FL 34236