The gold and silver market have taken off in a huge way within the past few years, with a faster-paced society and a more interconnected world economy. For instance, a strike in China can influence the dollar, and political instability in Europe affects the course of the economy.

An investment in gold maintains an intrinsic value that is not so closely tied to the actions or economic policies of a government. A gold coin today is worth its weight and holds its value better than many other commodities. Gold bullion is popular among those in the know.

Gold is gold and maintains the same price anywhere in the world. If the market crashes, the stock is worthless. Bullion, however, can save you. In the blink of an eye, paper currency can lose its value. The same cannot be said of metal though. Irrespective of the country you may be in, a golden dollar can be bartered with. People may not even know what a dollar is, but they understand gold.

Also, just in case of a crisis or war, you can always count on gold to remain intact. It does not tarnish or deteriorate, unlike paper, which can burn, tear, or decompose. A gold hoard buried 5000 years ago can still be found and maintain value. The trick is not to lose track of it! In addition, gold and bullion are valuable even in small quantities. An ounce of gold can buy you a vacation and it can be hidden in your pocket.

The process of selling gold coins is quite different from that for selling gold jewellery. For example, if you have a gold wedding band that you’d like to sell, you will usually be able to sell it online or offline to a local jewellery store or pawn shop.

Gold coins, on the other hand, are more of a niche item. To be more precise, gold coins are a type of gold bullion, therefore they are usually treated as an investment or store of value, rather than as a consumer gold item.

4 Best Places in UK to Buy and Sell Gold Coins

Before you decide to buy and sell any gold sovereigns, it is worth considering which avenue will help you get the best service.

  1. eBay and Online Auction Sites

This will give you access to a global audience, but buyers are reluctant to pay a premium for an item they cannot inspect.

  • EBay: Clearly eBay is a wonderful marketplace to pick up some great prices on almost anything you may wish to buy.
  • GoldSilver.com

Goldsilver.com was established by renowned precious metal advisor Mike Maloney. His bestselling book remains one of the best publications on precious metals investment. This is a real professional that takes the time to analyze the minutiae of the market. The site offers customers a dedicated team of professionals that will look after their interests, informing and advising on current market trends and projections.

  • Bullion Vault

The world’s largest online investment gold service, bullionvault.com needs no introduction to any investor that has ever dealt in bullion. They offer a quick and easy platform for investors to peruse the professional bullion market and provide cut-rate prices on buying, selling, and storing of bullion, be it gold or silver. Possessing vaults in London, Zurich, and Singapore, amongst others, this is a big player running some 2 billion dollars’ worth of bullion for 70,000 investors.

  • Money Metals Exchange

Established in 2010, MoneyMetals.com has quickly risen to prominence not only as a seller but also as an educator for numismatic aficionados. With over 75,000 buyers and more than half a million readers and subscribers, they are a serious dealer and influencer in the world of numismatics, providing quality at affordable prices making a big niche in the online gold market.

  1. Coin Dealers & Shops

If you know the sovereign is collectable, you may receive an offer above the bullion price. Great for securing a quick sale, but they will only pay a wholesale or discounted price so they can sell your sovereigns for a profit. The best place to start is the British Numismatic Trade Association (BNTA) who registers all the trustworthy gold dealers in the UK.

If dealers are a member of this association, they need to adhere to a strict code of ethics, and you will have a dispute process should their service and goods fall below this code. Generally, you will have a decent choice of gold bullion and coins with a dealer, depending on their area of speciality.

  1. The Royal Mint

The name itself provides the reassurance that your gold can be trusted and is of top quality and condition. One of the major restrictions with this avenue is that The Mint only sells new gold coins (such as the Sovereign), it doesn’t offer circulated coins or gold bullion at all.

So if you are looking for tax free gold coins, then The Royal Mint can certainly offer you pretty coins. But if gold investment is your main driving force, then this is an extremely expensive option. You will essentially be receiving far less gold for your money than if you source the gold elsewhere. You cannot sell the gold back to the Mint so to realise a profit on your gold investment you will need to sell at the prevailing rate to a gold dealer.

Tips to Buy and Sell Gold Coins in UK

Just like with gold jewellery or gold bars, there are several steps that you can take to get the best price for your gold coins:

  1. Understand What You are Selling and Understand Its Value

Gold coins are commodities, therefore many trade at a fixed price through bullion dealers and other trading platforms. To get a fair price for your gold, it is necessary to know what you are selling and how much it is worth. A lot of gold and silver bullion coins are produced by national mints.

There are several official bullion coins from other countries, such as the Canadian Gold Maple Leaf and the Vienna Gold Philharmonic coins. Many of these coins are traded as individual units by bullion dealers. Once you know the type of gold coins you have, you can look them up online via a gold bullion market such as Monex, Money Metals Exchange or JM Bullion to see how much they are selling for right now.

When checking prices, it is crucial to understand that all gold coin buyers will pay slightly less to purchase gold coins than their listed selling prices. If you aren’t convinced with the type of gold coins you have, you will usually be able to sell them for their scrap gold value, rather than as specific coins. To calculate their approximate value, you can weigh these coins, and then calculate using the current gold price per gram.

  1. Identifying a Reputed Gold Dealer

Many investors are discouraged by the prospect of looking for a trustworthy gold dealer. However, this can be a simple task if a common-sense based approach is followed. Remember, online dealers, are likely to provide you with a larger catalogue of products than the traditional high street gold dealer, who may offer you limited choices.

It is also easier to check the market reputation of an online dealer via the Internet. If the business has had a long track record of being in the market, they are going to have several customers who have posted reviews online. Going through these reviews would give you an idea of the trust factor of each dealer.

  1. Communication is Key

Calling the dealer is a wonderful idea and any reputed dealer worth its salt will be eager to answer any questions that you may have regarding investments. They would also be able to offer you a buyback scheme and documents guaranteeing the quality of the gold they are selling.

If the dealer refuses to buyback what they are offering, clearly something could be wrong. Most reputed dealers would also offer you the option of storing your gold with them in an approved vault. They can also offer you a secure, insured delivery option in the event you choose to collect the gold at your home. Once you have gone through these steps, you are likely to shortlist a couple of reputed online dealers whom you can start doing business with.

  1. Whenever Possible, Avoid Pawn Shops and Brick-And-Mortar Jewellery Stores

While the process of selling to these stores is usually fast and efficient, you will almost always get a subpar price for your gold. There are three reasons for this. The first is that pawn shops need to make a large profit from every sale. To make a profit after paying rent, utilities, salaries and other expenses, they will offer a lower-than-market price for your gold coins.

Secondly, pawn shop staff usually aren’t experts in precious metal trading. Therefore, they may not recognize the value of a gold bullion coin. For you as a seller, this generally means a lower offer and a poor return on your investment.

The third is that most pawn shops and jewellers focus on gold jewellery and scrap gold. As gold coins are investment gold, they are treated differently and usually traded at a smaller mark-up. Even though a pawn shop or local jewellery store may be a decent option if you need to sell your gold coins urgently, there are definitely better options available if you are aiming to get the best price for your gold.

Conclusion

Whichever way you choose to buy or sell gold coins, the main things to consider are their guarantees, independence, security, and stability. Investing in precious metals is a good way to hedge your bets and provide a financial plan B in case things go sour.

Ajaero Tony Martins