If you are looking to sell bullion from your collection and don’t know what to sell. This Article can give you some advice on which type of bullion to off load when the time is right.
Choosing between gold bullion coins and proof coins can be confusing, especially with all the mixed information out there. Let’s break down the key differences to make things clearer.
Bullion Coins are straightforward gold coins typically minted from high-quality gold, usually with a purity of 99.9%. Their value is largely based on the gold content, with little consideration for design or condition when reselling.
Proof Coins, on the other hand, carry a numismatic value. When selling proof coins, factors such as design, condition, and rarity are often considered by buyers, in addition to the gold content. Though a proof coin with 99.9% purity contains the same amount of gold as a bullion coin of the same purity, its value is usually higher due to its collectible aspects—like design, history, and rarity.
Proof Coins are often purchased as commemorative pieces, perhaps to mark a special occasion such as a birthday or wedding. They’re not typically seen as investment assets, unlike bullion coins. The value of proof coins can fluctuate unpredictably, driven by demand and rarity. If you need to sell bullion coins quickly, a typical dealer might only consider the gold content, ignoring factors like design or the coin’s historical significance.
When valuing coins, you can’t use the same method for bullion as you would for numismatic coins. Different numismatic coins command varying prices, with some fetching more than others.
Sellers Beware
Be cautious when selling gold coins, as some dealers may try to undervalue them. Their goal is to maximize profit, which sometimes means offering you less by focusing solely on the gold content. To understand how this works, try selling your proof coins back to the dealer you bought them from. You might find that they offer significantly less—perhaps only 50-80% of what you originally paid. This is because selling proof coins can be challenging, and dealers may not offer the same price they would for investment-grade bullion coins.
If you own proof coins, your best bet might be to sell to a collector rather than a dealer.
Be Wary of Pushy Buyers
Gold buyers often try to acquire as much gold as possible for the lowest price, so they might try to persuade you to sell quickly. Always shop around and consider multiple offers.
When you’re ready to sell bullion, talk to your gold dealer about the coins you have. If you own proof coins, gather as much information as possible about their history and rarity. You might also want to consult with collectors who specialize in proof coins for expert advice.
