As holiday time gets closer, some people may want to sell their gold to get cash for purchasing gifts or may want to buy gold coins to give as gifts. Do your homework first, cautions the Professional Numismatists Guild (PNG).
The PNG is a nonprofit organization founded in 1953 that’s composed today of the country’s top rare coin and bullion coin dealers who must adhere to a strict Code of Ethics in the buying and selling of numismatic merchandise.
“We caution consumers and investors that if you don’t know gold, you’d better know your gold coin dealer to help you make responsible decisions,” advised Dana Samuelson, President of the PNG. The organization recently created an Accredited Precious Metals Dealer program to provide consumer protection and education in the buying and selling of gold, silver, platinum and other precious metals.
“Consumers need to be aware of three crucial marketplace factors before they buy or sell gold for the holidays: the actual cost per ounce (“spot” price); the bullion value versus any collector value; and timely delivery of the merchandise,” Samuelson explained.
- Price: Common gold bullion coins, such as the American Eagle and Canadian Maple Leaf coins, usually trade at a small premium over the spot gold price. Gold bullion coins ranging from one full ounce down to 1/10th of an ounce trade at 3% to 15% premium over spot based on the size of the coin and the quantity being purchased. The current spot prices for gold, silver and other popularly traded precious metals can be found online at www.apmddealers.org/spot-metal-prices.
- Bullion vs. Collector Coins: If you are selling a gold or silver coin, make sure you know the difference between a “common” one and a truly rare coin that may be worth many times its intrinsic precious metal content because of its collector value. “In one case, an unscrupulous itinerant gold buyer offered only $60 for a rare gold coin actually worth about $10,000,” said Samuelson.
- Delivery: Under normal conditions delivery of coins you’ve purchased by mail order should be received with 10 to 14 days. However, if at the time of purchase the seller may be aware of a delivery problem it should be disclosed to you that there may be a delay.
Members of the Professional Numismatists Guild Accredited Precious Metals Dealer program must adhere to a Code of Ethics that prohibits use of high pressure sales tactics and misrepresentation of the value of items being sold. PNG-APMD members must demonstrate knowledge, responsibility and integrity in their business dealings. They also must agree to binding arbitration to settle unresolved disagreements over numismatic property.
A list of PNG-Accredited Precious Metals Dealer members can be found online at http://apmddealers.org/apmd-dealers.
For additional information, contact the Professional Numismatists Guild by email at [email protected] or by phone at (951) 587-8300.