Just Say "no" to Damaged Gold Bullion Coins – Part 2

In the first part of this article I dealt with, why you should always buy the best condition gold bullion coins you possibly can. If you do buy coins in the best possible condition- an arbitrage opportunity crops up from time to time & I want to show you how you can take advantage of it. Some coins blur the line between being gold bullion coins and collectible coins.

The classic example of this is the British gold Sovereign. I have to throw my hand in here and admit that this is one of my all time favorite gold coins! Fortunately a lot of other people think the same and so the market in this gold coin is particularly buoyant. There are plenty of collectors willing to pay a premium to get their hands on a nice example of a certain date. This is because many collectors are interested in producing collections which feature “date runs”.

So, how can you profit from this? Well remember I recommended buying the best example of a gold bullion coin you possibly could- in this case the gold sovereign- by actually handling it in the shop? If you are prepared to go through this pain barrier with the bullion supplier, you will be pleasantly surprised to discover that you may well be able to re-sell you treasure- to a coin collector- at an almost immediate profit. The key is to buy “right” at the start. Using the British gold sovereign as an example, I have often made 20% between the price I’ve bought at, and the price I’ve sold at- just by moving the coin in front of the right audience.

So, where is the best place to sell your gold bullion coin?

eBay.

It is the most vibrant market for coin collectors. Some even talk about “buying off the web” and “eBay” interchangeably. One dealer even said to me “regarding coin dealing…. the internet is eBay.”

Let’s get your ducks in a row:

You choose a bullion coin with a buoyant market. You get the best possible condition you can-by actually handling it. You only pay the bullion price….and then you turn the coin round in front of a large market of collecting enthusiasts.

It doesn’t always work…as the advert says “your results may vary”, but this technique offers an interesting opportunity to turn a profit!

Till next time,

Happy Gold Coin Collecting!

Paul

If you would like to learn more about gold & bullion coins, then visit my websites for free information:

http://www.buybullioncoins.com/blog/

http://www.value-of-gold-coins.com