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A Few Minutes With The CEO: Integra Gold Corp.
5 Tips When Buying Gold Coins
Gold coins have gone up a great deal in value in the last couple of years and since they are now so expensive, there are a few things you should watch for when making your purchases. With the advent of the internet, you are not limited to the local coin dealer anymore. This can give you the opportunity to get better prices on many coins, but also may introduce a few more things for you to think about when buying your gold coins.
1. Whether you are buying from a bricks and mortar dealer or buying online through a website or and auction site like EBay, check the reliability of the dealer first. For a store, at least check with the local Better Business Bureau. If the dealer is a member of the Professional Numismatists Guild (PNG), that is a big plus. For an EBay auction, check the seller's feedback rating. If it's very low, or there are many negatives, think twice (and a third time) before spending a large sum with them. Even if the feedback seems good, look closer, some people will buy or sell a number of very inexpensive items to build up their ratings, then jump in selling big ticket items. On large ticket items, ask if the seller will agree to use Escrow.com. They act as a middleman in the transaction and the money doesn't pass to the seller until the buyer is satisfied with the item. There is a charge, which the buyer would be expected to pay, but its well worth it when big money is changing hands.
2. One of the biggest problems buying collectible gold coins is grading. Your idea of an MS65 may be different than the dealer's. Many coins have a huge gap in value between grades. Avoid the issue by buying only coins that have been graded by one of the third party grading services. Make sure that you only accept the major services (ANACS, NCG, PCGS, NCS, ICG) grading, there are some lesser known grading services whose grading may be suspect. You should also want the grading to have been done in the recent past. Grading standards have changed over time and what was an MS65 five or ten years ago, might only be an MS63 or 64 today.
3. Make sure the seller has a return policy that will allow you a refund if you are not satisfied with the coin. This should apply to both on-line and off-line dealers. This is especially important if you are buying a non-certified coin. You want to have the option to return it if your grading service returns a lower grade than you bought it at.
4. Buy the scarcest coin in the best condition that you can afford. Many collectible gold coins sell near the melt price of gold because there are more than enough around to cover demand. This is especially true in the lower grades. When gold increases or decreases in value, these coins will follow by a like percentage. But the higher the grade, the lower the population and demand will push up the price rather than just following the price of gold.
5. Try to invest regularly. As with the stock market, it's very difficult to call the tops and bottoms of the coin market. Over the course of time, you will fare better by dollar cost averaging than investing a large amount at one time.
About the Author
Ken is a successful writer and online entrepreneur. He has developed
Gold Coin Investing
as a portal for presenting articles, information, resources, news and links about buying and investing in gold coins.
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Frequently Asked Questions...
2004 ICG MS 70 SILVER EAGLE?
I bought a 2004 ICG MS 70 SILVER EAGLE, off of ebay for $46.00. Did i get a good deal or is that what they are going for. Me and my son are thinking about starting to collecting the silver eagles and the silver state coins(but only the ones w/ a grade of 70) I told him that we wouldnt lose money by collecting graded 70 coins that were all silver or gold. Was i correct in saying that, I dont wanna lead my son in the wrong direction, because he will be using some of his own money.. Thanks
Answer:
These days the mints of the world have things down to a pat science. True there are errors from time to time but in special collector coins it is very rare to find an error. That being the case most coins that are proofs or special collector mint state coins are either MS-70 or PF-70 anyway. Grade is only one factor, the other is mintage or in the case of older coins how many survived. As an example my 1916-D dime in the low grade of just good will advance in value every year, your coin may or may not depending on how many are made and just how many are slabbed. The mintage for the 2004 Silver eagle which is a bullion coin and not made to circulate had a mintage of 8,891.025 a good majority are MS-69 or 70. Over a period of time few of these will get lost or even get any wear unless mishandled. My dimes had a mintage of 264,000 and a lot have wear and some have been lost. I am a rare over the new any day person. Silver is down but even with the economy rare coins are doing real well. Hope this helps.

































































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