When purchasing gold coins, or any coins (specifically American Gold bullion), it is vital that you could trust the dealer who you are buying coins from. When conducting business with a Professional Numismatist Guild (PNG) dealer of gold coins, you will be assured of your coin dealer’s product quality and ethics. The Professional Numismatist Guild requires specific requirements of its dealers:
- Five years’ numismatics experience
- Numismatic assets of over $175,000
- Must hold up the Bill of Rights by Coin Collector's
- Must end disputes through binding arbitration
- Must be elected to the Professional Numismatist Guild by a majority of membership
Other necessities of Professional Numismatist Guild coin dealers include not overcharging the customers, giving a fair cost for all coins and gold coins, and continuing to be professional in every transaction.
If the dealer is not a member of the Professional Numismatist Guild, determine why. Dealers understand the value of being associated with a company that is reputable, so if you get mumbling as a reply, there is usually a great reason the PNG did not wish to affiliate with the dealer. Do take your business somewhere else.
Value vs. Price: Tips to Purchase American Gold Bullion Coins
In your search for the ideal gold coins, you will hear about gold coin costs. You will additionally hear about gold coin values. What is exactly the difference?
Price: This includes the price a dealer will ask you to pay to purchase a coin. Gold coin cost will depend on numerous factors:
Value: This could be a little trickier to understand. If you wished to sell your collection of gold coins, it will have a value that won't correspond with the cost. If a dealer purchases the coins, he'll purchase them for less than he understands he could sell them for, so he can have a bit of a profit for himself.
Compare it with purchasing an automobile. You'll view the sticker price (that is the “price”), yet you understand there is also the cost the dealer paid (the “value”). The car dealer wishes to obtain a profit, so he tries to sell the vehicle to you at the sticker cost. If you are smart, you will bargain with him.
You might have heard of the Red Book. The book records the retail cost or coin's worth. That is what the dealer will sell them for, and what you could pay. But, there's another book, the Blue Book, that allows you to know what the dealer will give you for the coins. As a typical rule, you should expect to receive an offer that is half of the coin's retail value.