Fun Coin Facts
Gold Bullion & Silver Bullion
With over 70 years of combined experience in dealing in gold and silver bullion, as well as collector coins and currency, we have decided to share what we 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, we cannot advise people when to buy/sell. However, we 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. We 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 we are 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 our post and we hope you will check back for additional posts about our years of experience as full-time dealers 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 us.
Questions To Ask Before Buying
After over 70 years of combined experience in 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 us.
Where to Sell My Personal or Inherited Collection of Coins, Gold Bars, Silver Bars and Other Items?
There is a lot of information to cover and we want to try to provide a good starting point when it comes to answering the question above. The first question to ask is “How do I find out who and where to receive a fair price?” The answer is not simple and there are many factors that will come into play. The second question is “How quickly do you need to sell?” More time gives you a better chance to realize a higher price. There are dealers located all over the United States. If you are located in or close to a high population area there will be more places to choose from. One thing to keep in mind is “bigger is not always better.” Remember it is the customer who indirectly pays the dealers overhead. It is costly to maintain a large store with several employees in a high value location. We find this also true with jewelry store chains located in high rent mall locations. Finally, just because someone says they have been in business 30-40 years can also mean they have one years’ experience 30-40 times. It is our recommendation to put together a list of things to consider before contacting dealers and auction companies both local or national.
Things to Consider:
- The coin dealer’s location.
- What are their hours?
- Do they rent, own their location and are they willing to travel if needed?
- The number of years in business and specific areas of expertise they deal in.
- Do they attend local, national and overseas coin shows? If so, approximately how many per year?
- Do they set up and display at these shows as a vendor or simply attend as a visitor?
- Do they charge to appraise your coins or offer to appraise for free? Our experience is, free is usually worth what you pay. If a dealer does not think their expertise is worth charging for maybe it isn’t.
- Does the dealer carry insurance that covers your merchandise while they are viewing it and overnight if you need to leave it. We consider this a VERY important question to ask the coin dealer. If they do carry insurance ask them if they will provide an insurance letter stating so. Lack of insurance is a sign they are not looking out for the customer’s peace of mind and a major red flag in my opinion.
Questions to ask auction companies:
- Is there a fee charged to the seller?
- Is there a fee charged to the buyer?
- How long after a sale before you are paid and is merchandise insured?
- When is the next auction? Is it live, online or both live and online?
- Can you set reserves on high value items?
- Is there a buy back fee if a reserve is not met?
Once you are ready to sell your coin collection, we would recommend to Google and search the following terms to help you start. Never be afraid to ask tough questions and try to find a dealer you feel comfortable with. Many times, people ask “How will I know I am getting a fair price for my collection?” The truth to that question is unless you are willing to take the time to learn as much as the dealer, you will never know the answer. However, learning to build trust and knowing that whoever you choose they will have to make a profit but not take advantage of you. Also check to see if they have a website and check their Google Reviews as well.
Google search recommendations:
Coin dealers near me
Coin dealers (your city or state)
Coin buyers near me
Coin shops near me
Gold and silver buyers near me
Rare coin buyers near me
